User:AnaB1096/FeedbackLoopsinstrategicplanning

The feedback loops in strategic planning indicate the condition of a strategy that has been implemented in an organization. The performance of that strategy has to be monitored in order to determine if the strategic goals and objectives have been achieved, as well as to analyze how competitive advantage has been sustained. All the information collected is returned to the corporate level through the feedback loop, where top managers can decide whether to continue or to change the existing business model.

In order to be able to establish a system of operation in the company it is important to consider the input and output of it. In fact, companies may ask themselves where they want to be, how will they get there and where are they know. And to give an answer to these questions is necessary the application of the feedback loops.

The objective of the implementation of a continuous feedback loops is to create a learning organization that promotes a free flow of feedback so that every part of the company can be aware of the concept of feedback loops.

Furthermore, the feedback loop is the perfect replacement of the annual review because it is more practical to set up a system of constant check-ins and implementing a process that reviews the way of working of a person as well as its connections with the values and objectifs of the company.

== Types of feedback loops ==

Manager – Subordinate
It is critical that managers have an appropriate relationship with their subordinates because only then they will be able to understand the work that they are doing, so they can effectively delegate, receive and give information, and give feedback when necessary.

Manager – Team
Managers are in charge of bringing the group together and stablish a communication line that allows providing information as well as receiving it in order to make decisions. In this line of communication there is a big risk of the managers applying the inappropriate feedback loop, it is important that they know when it is necessary a one-to-one meeting and when the whole team needs to be involved.

Manager – Manager
This involves every manager in the organization, within the same department, as well as in other areas. These loops permit them to be aware of what others are doing and also the impact that your work has in theirs. It is essential to exchange information between the areas that compose the organization.

Manager – Community
Information obtained and given inside the organization as well as outside of it is very important because it will ensure that your organizational strategy is reached properly.

The good implementation on feedback loops
Feedback loops are cyclical and an important part of communication and collaboration within an organization as well as outside with customers and stakeholders. So as to be effective, top managers need to implement them regularly and at the correct time so decision can be well made. Companies apply an anonymous feedback tool in order to improve the collaboration of employees because of the fear some people may feel at free their minds.

However, companies have failed in a crucial element, the follow-up. Once employee feedback is gathered together and managers do not do anything with it, all the planning has been a waste of time. Employees want to be heard, if you make employees feel involved in decision making process it can have a huge impact on their engagement to the company. Therefore, is important that the managers receive the incoming feedback as a support tool that will allow them to create a constant communication that overtime.

Open System vs Closed System
Strategic planning is represented by an open system, which means that after accomplishing the strategic analysis, establishing mission, vision, goals and strategies and finally applying strategic management, there is a feedback loop that connects one with another. Therefore, information is allowed to flow throughout the whole system, at any time.

On the other hand, the closed system will only allow information to go through the top to the bottom of the system and there will not be opportunity for the information to flow back. In fact, the closed system cannot contain a feedback loop, and a system without a feedback loop can be an unrealistic effort to conduct strategic planning.



Costumer Oriented feedback loops
The entire feedback loop is designed to improve experiences and customer’s experience is the most important. There is a process of six steps that exists in order to respond to the costumer appropriately and also to identify the source of the customer’s dissatisfaction. First of all, is important to collect data, using complaints or surveys that can help the company identifying the source of dissatisfaction, which is the second step. The third step is to make a Root Cause Analysis which requires the selection of an investigation team that can compile facts and data in order to identify the root causes or issues and finally design and implement solutions to the problem. The fourth step is the selection to solve systemic problems which is followed by the granting of feedback on prevention. Finally, it is essential to confirm improvement of the issue.