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We're transitioning from the old "set and forget" goals (open loop) to an "evaluate, learn and adapt" goals (closed loop).

Goal setting and performance management should operate as a closed-loop system. Goals are established to achieve desired business outcomes, but as organisational priorities, risks and conditions change, the goals may no longer be fit for purpose. Regular quarterly reviews can provide feedback on performance, goal relevance and effectiveness. This information can then be used to adjust objectives, priorities or actions, ensuring the system remains aligned with current business needs linked to the strategy rather than continuing to pursue outdated targets/commitments.

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Disturbance: A significant market disruption, such as a war or global financial crisis, causes investment market volatility and liquidity constraints. This impacts the organisation's ability to price products competitively because of assumptions about investment returns, risk, costs and customer behaviour may change rapidly.

Noise: Data provided to the product pricing team is incomplete, inaccurate or misleading regarding product demand and customer behaviour. As a result, pricing decisions may be based on faulty information, reducing the team's ability to accurately assess market conditions and respond effectively.

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IT Security may conduct simulated phishing campaigns to measure employee adherence to security expectations. Employee responses are automatically monitored and compared against the desired behaviour of identifying and reporting phishing attempts. Staff who correctly report the email receive confirmation they have followed the expected process. Staff who interact/engage with the phishing email are automatically enrolled in refresher training. Future phishing simulations then measure whether the corrective action has improved behaviour, creating a continuous feedback loop that helps maintain organisational cyber security awareness.

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An HR example for an organisation is an exit survey process operating as an open-loop system, where feedback is collected but not acted on. It would become a closed-loop system by analysing themes and using insights to drive and monitor improvements.

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Noise (internal to the system with variability in measurement or process): - Inaccurate or delayed sales data used in pricing decisions - Inconsistent pricing decisions across regions or teams
Disturbances (external to the system with outside influences): - Competitors lowering or raising prices - Interest rate or mortgage rate announcements affecting demand

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Automation in non‑technical systems can be applied by embedding structured feedback loops that trigger actions without manual intervention.

For example, a professional learning program can operate as a closed‑loop system where:

completion of training automatically triggers an immediate feedback survey,

a follow-up survey is sent one month later to assess impact on practice, and

results are analysed and used to refine future professional learning.

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In a system that helps an organisation set competitive product prices, noise refers to inaccurate or random data that can confuse pricing decisions, such as incorrect sales figures, delayed competitor data, or survey errors. Disturbances are real external changes that affect pricing, such as competitors changing prices, shifts in customer demand, higher supplier costs, inflation, or supply chain disruptions.

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By using feedback to monitor performance and trigger corrective action when results fall outside desired targets. In areas such as recruitment, customer service, finance, or compliance, this means setting goals, measuring actual outcomes, identifying gaps, and automatically prompting adjustments such as reminders, escalations, task reallocation, or follow-up actions. This approach helps organisations improve efficiency, consistency, and responsiveness while still allowing human oversight where judgment is needed.

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Can you identify any systems in your organisation that should be operating as closed-loop systems but are currently open-loop systems?

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Can you identify any systems in your organisation that should be operating as closed-loop systems but are currently open-loop systems?

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We run a lot of projects in terms of an open loop system because there is not time or resourcing to fully implement lesson learned to obtain feedback on outcomes or collect feedback once the project moves to BAU

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Give examples of noise and disturbances for the system that enables the capability of setting competitive prices of products.

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Give examples of noise and disturbances for the system that enables the capability of setting competitive prices of products.

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Supply and demand shifts, government regulations, changes in input costs or competitor price changes are all examples of noise and disturbance

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How could the concept of automation (as discussed in closed-loop systems) apply to non-technical processes/systems in an organisation?

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How could the concept of automation (as discussed in closed-loop systems) apply to non-technical processes/systems in an organisation?

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Automation applied to non-technical processes involves using systems maps to handle repetitive, rules-based tasks to identify feedback loops and underlying structures, involving stakeholders, and using automated processes to improve overall system functionality and create more effective, long-term solutions for complex, chronic problems. For example in areas like finance, HR, customer service.

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We currently only have on our website a complaints register, we do not have a survey or rating section to review our services. It would be great to get real time feedback positive and negative.

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Noise examples would changes in prices in competitive markets. Disturbances would be a new competitor in the market. We recently lost a client based on a competitor having an "app" that we didn't.

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Businesses need to constantly looks for ways of automation. We recently introduced an online form for client services registrations which increased accuracy of information and reduced staff time for enrolments.

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Procurement and contracting process, no systemised measurement of quality or efficiency.

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Noise – predictive sales model has flaws

Disturbance – uncontrolled cost of supply

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An automated complexity assessment in the procurement process could assist with determining the more appropriate approach to market.

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Processes where we define the output as communicating a decision to a stakeholder. Adding a measurement process around the number and type of questions that output might generate would be valuable for continuous review of the communication style, templates, link to additional resources etc. We do this informally, but gathering feedback in a more systematic way would be useful.

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Noise might be lack of detail in product items/categories which results in not being able to compare pricing with competitors accurately enough.

Disturbance might be changes in the competitive landscape - as others have said, a new competitor in the market which has a different business model (affecting prices) or offers a novel product range which changes the market demand significantly.

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Detailed process mapping can help organisations identify opportunities for automation, and is becoming routine as we all grapple with the impacts of AI. The more detailed the 'process' part of the closed loop is defined, the more the organisation can build in automation for the routine/easily coded parts of a workflow. This can prevent errors and enhance the 'measurement' aspect of the closed-loop system, and allow the organisation to put more resource into the quality enhancement functions.