{"id":216,"date":"2014-12-11T20:02:18","date_gmt":"2014-12-11T19:02:18","guid":{"rendered":"http:\/\/www.arumba.com\/website\/?page_id=216"},"modified":"2015-01-03T10:33:36","modified_gmt":"2015-01-03T09:33:36","slug":"feedback-loops","status":"publish","type":"page","link":"https:\/\/www.arumba.com\/website\/business-excellence\/feedback-loops\/","title":{"rendered":"Stablilizing Feedback Loops"},"content":{"rendered":"<h3>Lateness As an Universal Feedback Signal<\/h3>\n<p>Customers love dependable suppliers. The source of dependability is stable processes, because only stable processes can fulfill customer needs all the time. Dependability means, to keep your promises. And keeping promises means, never be late.<\/p>\n<p>If your supplier or your manufacturing is late it becomes difficult to keep your promises for your customers. If your invoicing is late, it is difficult to keep your shareholders&#8217; promises. If your month-end closing is late, your decision making is not easy. If your orders come in late it is difficult to make your budget.<\/p>\n<p>This is why we use <b>lateness<\/b> as the <b>universal feedback signal<\/b> in all processes.<\/p>\n<h3>What Gets Measured Gets Done<\/h3>\n<p>Additional principles come from behavioral sciences: &#8220;Never change a running system&#8221; and &#8220;what gets measured gets done&#8221;. Let your organization work as long as it fulfills the promises. Only if it fails, the responsible team manager should be <span style=\"text-decoration: underline;\">alarmed<\/span> immediately<b> <\/b>providing him or her a list of problems. With this information,\u00a0<span style=\"text-decoration: underline;\">problem solving can start immediately.<\/span><\/p>\n<h3>Strategic vs. Operational Feedback Loops<\/h3>\n<p>On strategic level, many companies implemented such a feedback loop with a monthly cycle, where <span style=\"text-decoration: underline;\">budgets<\/span> are compared with <span style=\"text-decoration: underline;\">actuals<\/span> and necessary actions are taken. Operations, on the other hand, needs much faster, usually daily, feedback loops to run stable processes.<\/p>\n<p>Summarized, the two level feedback loops are just like the cruise control in a car stabilizing the speed and the driver selecting the route and avoiding accidents.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lateness As an Universal Feedback Signal Customers love dependable suppliers. The source of dependability is stable processes, because only stable processes can fulfill customer needs all the time. Dependability means, to keep your promises. And keeping promises means, never be late. If your supplier or your manufacturing is late it becomes difficult to keep your [&hellip;]<\/p>\n","protected":false},"featured_media":0,"parent":25,"menu_order":0,"comment_status":"closed","ping_status":"open","template":"","meta":{"footnotes":""},"class_list":["post-216","page","type-page","status-publish","hentry","post"],"_links":{"self":[{"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/pages\/216","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/comments?post=216"}],"version-history":[{"count":6,"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/pages\/216\/revisions"}],"predecessor-version":[{"id":515,"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/pages\/216\/revisions\/515"}],"up":[{"embeddable":true,"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/pages\/25"}],"wp:attachment":[{"href":"https:\/\/www.arumba.com\/website\/wp-json\/wp\/v2\/media?parent=216"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}