Feedback Loop Delays
When the consequences of a decision arrive late, people over-correct, under-correct and misattribute; systems with long delays oscillate, and decision-makers blame each other for the swings they caused.
An everyday example
Hiring aggressively on a demand signal, then laying off when the delayed effect of the last hiring wave lands.
What it can cost you
Decay masked until it is severe; reporting systems designed so the delay hides the problem past the reporting period.
Warning signs
- We keep over-shooting in both directions.
- The problem was invisible until it was severe.
One thing to do
Map the delay between action and visible result; act on leading indicators and hold action steady while the delayed effect arrives.
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