True, efficient learning, comes from experience: Experiencing the consequences of actions.
In systems this is called “feedback”. It can be “positive” or “negative”, but it returns information back to the system based on the output. A system with feedback is called “closed loop”. Only a closed loop system (a system with feedback) can reach a desire output without external input.
This has profound implications for organizations, families, parents, animal trainers, etc.
There are two keys to unlocking potential through understanding feedback:
- Understand incentives
- Measuring what matters (a.k.a. you cannot improve what you cannot see)
Understanding incentives can be as simple as incentivizing desired outcomes or behaviors and dis-incentivising undesirable outcomes or behaviors.
The best way to accomplish this is to systematize incentives: Create systems which make desired behaviors easier and undesirable behaviors more difficult.
Similarly, measuring what matters, bringing visibility to goals and progress, is a very clear and easy way to build feedback into a system.
A few examples:
- Credit cards offer “points” or “rewards” – this incentivizes spending.
- Keeping track of expenses (budgeting) incentivizes saving and investing (brings visibility to progress and goals) and disincentivizes spending (shows impact on financial goals and increases accounting load, i.e. more transactions)
- Saving and Investing incentivizes saving and investing (through interest and earnings). The compounding nature of interest makes this both extremely motivating and extremely lucrative. While credit card points “reward” with a percentage of what’s spent that month, savings interest accrues on the total saved (not just what’s saved that month and compounds on itself!).
- A system of toy storage for kids where if they clean up, toys are stored where they can reach them. If adults have to clean up, the toys are stored out-of-reach (encourages children to clean up after themselves).
- Offering commissions for some (non-essential) chores rather than and “allowance”, incentivises work and disincentives sloth.
- Having exercise clothes and shoes set aside to making changing or packing exercise clothes easy (remove barriers to desired behaviors).
- Limiting or eliminating junk food in the house (creating barriers for undesirable behaviors).
Do you have any examples of creating systems, feedback, or measuring what matters to bring you closer to your goals?
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