Throughout my career, one of my hobbies was studying organizational design.  What makes good organizations run smoothly and accomplish their tasks and missions effectively and efficiently?  I have had several opportunities to assess and create organizations from scratch.  I thought exploring the tools and processes I used to create or assess organizations might be fun.  This series focuses on organizational design and function and may interest two groups of readers.  First is the young professional interested in growing as a leader and manager.  Second, the executive who might be looking for a quick mental refresh on a subject.  Reflecting on my career, I tried to think of things I wish I had known and appreciated more deeply as a young leader and manager.  I think it would have benefited me to understand better the interconnected nature and impact of essential foundational organizational elements.  In a manner of speaking, this series could be thought of as a letter to my younger self.  I would also like to acknowledge a couple of key points.  First, although there are commonalities across all industries, there are also differences.  Second, in my opinion, the size, e.g., the number of people in the organization, and working conditions, e.g., in-person, remote, etc., make some of the points raised in this series more or less applicable, e.g., an organization with 20 employees may not find a vision statement as impactful as a 2000-employee organization.  All of that is to say that some topics discussed in this series may not be as relevant in some industries or organizations.  Although the points discussed in this series have helped me throughout my career, they may not be as relevant in all situations.  Hopefully, some of the points raised will help you too.

There are several key principles to keep in mind when creating or assessing feedback loops: The channels (how and what data is received), data analysis (assess), and operational adjustments.

A learning organization is open to the idea that the initial plan may need some adjustments along the way.  There is an old saying, “No plan survives first contact with the enemy,” Carl von Clausewitz.  Although customers aren’t the enemy, the sentiment is relevant; no matter how much you plan for something, there are always extenuating circumstances that may cause a shift in your planning.

Feedback channels are intended to capture data, e.g., Key Performance Indicators (KPIs) and metrics, enabling leadership teams to see and assess organizational operations.  There are two key aspects related to feedback channels and data.  First, the data must be relevant, and second, the data must be seen by a decision-maker. 

Feedback analysis happens when data is processed into information and knowledge.  Ideally, the data provides meaningful insights, identifying patterns, trends, strengths, weaknesses, opportunities, and potential areas for improvement.

Operational adjustments to plans, systems, processes, etc., happen as a reaction to the feedback, ideally moving the organization closer to an optimized state of operation.  Changes and adjustments are made, and the monitoring process begins again.  Feedback loops should be thought of as an iterative process, continually adjusting.  The insights gained from previous feedback cycles inform subsequent iterations, driving a culture of learning, adaptation, and improvement within the organization.

Organizations that value feedback are often referred to as learning organizations and foster a culture of open communication tend to have more effective feedback loops.  Encouraging individuals at all levels to share their perspectives, ideas, and concerns creates an environment where feedback is welcomed, considered, and acted upon.  Organizational feedback loops play a crucial role in driving organizational learning, innovation, and growth.  Organizations can adapt to changing circumstances, enhance performance, meet stakeholder expectations, and maintain a competitive edge by consistently gathering feedback, analyzing it, and taking action.

Based on my experience, the most challenging aspects of feedback loops were generally related to two factors.  1) Identifying leading indicators.  Organizations should always strive to stay ahead of their customers.  2) Implementing cost-effective changes.  Although you can fix many problems with enough money, you must also ask what the Return on Investment is.  Utilizing feedback loops is not easy and is more science than art. 

I would encourage individuals and leadership teams to practice the science of proactive feedback loops to see how it might optimize organizational operations.   

“Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty… I have never in my life envied a human being who led an easy life.  I have envied a great many people who led difficult lives and led them well.” – Theodore Roosevelt

Please feel free to share your own experiences in the comment box below.

Your shared thoughts may help someone else going through a similar experience.  Thank you.