operationalizing loops - causal loops are lifelong, stock and flow are daily - HR(hiring, traingin, compensation, turnover), Products (r&d, capacity, product mng), - Challenge: not enough data, - iterate: identify central **stocks**, specify regulating **flows**, close **loops** one at a time - balance sheet are stock and income statement are flow - cash-based, acruel-based (when contract is made; account receivable) - reflecting what will happen (transparent, > 25 million) - sell products, buy new warehouse and raw materials, pays shareholder a dividend - ![[Pasted image 20221005151200.png]] - perception of growth is a reinforcing loop R: speculation (BC demand, price change, expected growth rate, investment) B: supply (BC supply, price change, price, demand for investment, - balance loop are not very strong, response of