Competitive Advantage · Systems thinking
Causal Loop Diagram
Causal Loop Diagram · Systems thinking tool
Local fixes keep producing unexpected consequences because feedback relationships are not visible.
Why use it
Map reinforcing and balancing feedback loops that drive system behavior.
How to apply
- Define the specific management situation and desired outcome.
- Gather the minimum facts, constraints, and perspectives needed to use the tool.
- Apply Causal Loop Diagram, make key assumptions explicit, and compare the result with realistic alternatives.
- Record the decision, next owner or action, and a testable criterion for the next step.
Output
A causal-loop diagram and hypotheses about leverage points.