Mapping a Business System Kaplan

Application of Causal Loop Diagram: Reinforcing and Balancing Process There are many advantages to an organization or individual to utlize system diagrams in all aspects of business. According to the book, The Tip of the Iceberg by Hutchens, there are two basic processes that drive all activity in systems. They are reinforcing processes and balancing processes. (Hutchens 2001). Hutchens states that reinforcing processes enhance change with even more change in the same direction. Hutchens also states that these processes can produce exponential growth as well as collapse. There needs to be a balance to keep a system at a certain level of performance. (Hutchens 2001). Its extremely important to always have a checks and balances system in place based on what Hutchens is stating.Purpose of the Causal Loop SystemAs stated on the Mind Tools website, System diagrams are particularly helpful in showing you how a change in one factor may impact elsewhere. They are excellent tools for flushing out the long term impacts of a change. Importantly, a good system diagram will show how changing a factor may feed back to affect itself! (2011). The Mind Tools website also states that ,Drawing a system diagram is a good way of starting to build a computer model. The technique helps you to map out the structure of the system to be modeled. It shows the factors and relationships that are important, and helps you to start quantifying the linkages between factors. (www.mintdtools.com, 2011) Components of the Causal Loop SystemAs Hutchens states there are four main components of a causal loop diagram. The four parts are: a point of intersection that can contain values that can change, lines with an arrow showing influence direction, and time delay indicator. (Hutchens, 2001) Plagiarism is taken very seriously at Kaplan University. When students use the ideas or words from someone else and

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