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Fixes That Fail
Fixes that fail is a system archetype that in system dynamics is used to describe and analyze a situation, where a fix effective in the short-term creates unintended consequence, side effects for the long-term behaviour of the system and may result in the need of even more fixes.Senge, Peter M., "The Fifth Discipline" (1990). . This archetype may be also known as fixes that backfireFixes that backfire Isee systems, 2006. Retrieved 2011-11-01 or corrective actions that fail.Flood, Robert L., "Rethinking The Fifth Discipline: learning within the unknowable" (1999). p. 19 It resembles the System Archetypes#Shifting the burden, Shifting the burden archetype. Description In a "fixes that fail" scenario the encounter of a problem is faced by a correct ...[...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
System Archetype
A system archetype is a pattern of behavior of a system. Systems expressed by causal loop diagram, circles of causality have therefore similar structure. Identifying a system archetype and finding the leverage enables efficient changes in a system. The basic system archetypes and possible solutions of the problems are mentioned in the ''#Examples, Examples'' section. A fundamental property of nature is that no cause can affect the past. System archetypes do not imply that current causes affect past effects. Causality The basic idea of system thinking is that every action triggers a reaction. In system dynamics this reaction is called feedback. There are two types of feedback – positive feedback, reinforcing feedback and negative feedback, balancing feedback. Sometimes a feedback (or a reaction) does not occur immediately – the process contains delays. Any system can be drawn as a diagram set up with circles of causality – including actions, feedbacks and delays. positive ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rate Of Return
In finance, return is a profit on an investment. It comprises any change in value of the investment, and/or cash flows (or securities, or other investments) which the investor receives from that investment over a specified time period, such as interest payments, coupons, cash dividends and stock dividends. It may be measured either in absolute terms (e.g., dollars) or as a percentage of the amount invested. The latter is also called the holding period return. A loss instead of a profit is described as a '' negative return'', assuming the amount invested is greater than zero. To compare returns over time periods of different lengths on an equal basis, it is useful to convert each return into a return over a period of time of a standard length. The result of the conversion is called the rate of return. Typically, the period of time is a year, in which case the rate of return is also called the annualized return, and the conversion process, described below, is called ''annualiz ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Management
Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, Threat (security), threats) including uncertainty in Market environment, international markets, political instability, dangers of project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, Natural disaster, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root cause analysis, root-cause. Retail traders also apply risk management by using fixed percentage position sizing and risk-to-reward frameworks to avoid large drawdowns and support consistent decision-making under pressure. There are two types of events viz. Risks and Opportunities. Negative events can be classified as risks while positive events are classifi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Limits To Growth
''The Limits to Growth'' (''LTG'') is a 1972 report that discussed the possibility of exponential economic and population growth with finite supply of resources, studied by computer simulation. The study used the World3 computer model to simulate the consequence of interactions between the Earth and human systems. Commissioned by the Club of Rome, the study saw its findings first presented at international gatherings in Moscow and Rio de Janeiro in the summer of 1971. The report's authors are Donella H. Meadows, Dennis L. Meadows, Jørgen Randers, and William W. Behrens III, representing a team of 17 researchers. The model was based on the work of Jay Forrester of MIT, as described in his book ''World Dynamics''. The report's findings suggest that, in the absence of significant alterations in resource utilization and environmental destruction, it is highly likely that there will be an abrupt and unmanageable decrease in both population and industrial capacity. Although it ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Organizational Learning
Organizational learning is the process of creating, retaining, and transferring knowledge within an organization. An organization improves over time as it gains experience. From this experience, it is able to create knowledge. This knowledge is broad, covering any topic that could better an organization. Examples may include ways to increase production efficiency or to develop beneficial investor relations. Knowledge is created at four different units: individual, group, organizational, and inter organizational. The most common way to measure organizational learning is a learning curve. Learning curves are a relationship showing how as an organization produces more of a product or service, it increases its productivity, efficiency, reliability and/or quality of production with diminishing returns. Learning curves vary due to organizational learning rates. Organizational learning rates are affected by individual proficiency, improvements in an organization's technology, and improveme ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
System Dynamics
System dynamics (SD) is an approach to understanding the nonlinear behaviour of complex systems over time using stocks, flows, internal feedback loops, table functions and time delays. Overview System dynamics is a methodology and mathematical modeling technique to frame, understand, and discuss complex issues and problems. Originally developed in the 1950s to help corporate managers improve their understanding of industrial processes, SD is currently being used throughout the public and private sector for policy analysis and design. Convenient graphical user interface (GUI) system dynamics software developed into user friendly versions by the 1990s and have been applied to diverse systems. SD models solve the problem of simultaneity (mutual causation) by updating all variables in small time increments with positive and negative feedbacks and time delays structuring the interactions and control. The best known SD model is probably the 1972 ''The Limits to Growth''. This model fo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Fifth Discipline
''The Fifth Discipline: The Art and Practice of the Learning Organization'' is a book by Peter Senge (a senior lecturer at MIT) focusing on group problem solving using the systems thinking method in order to convert companies into learning organizations that learn to create results that matter as an organization. The five disciplines represent classical approaches (theories and methods) for developing three core and timeless learning capabilities: fostering aspiration, developing reflective conversation, and understanding complexity. Content The Five Disciplines The five disciplines of what the book refers to as a "learning organization" discussed in the book are: # "Personal mastery is a discipline of continually clarifying and deepening our personal vision, of focusing our energies, of developing patience, and of seeing reality objectively." # " Mental models are deeply ingrained assumptions, generalizations, or even pictures of images that influence how we understand the wo ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Tax Revenue
Tax revenue is the income that is collected by governments through taxation. Taxation is the primary source of government revenue. Revenue may be extracted from sources such as individuals, public enterprises, trade, royalties on natural resources and/or foreign aid. An inefficient collection of taxes is greater in countries characterized by poverty, a large agricultural sector and large amounts of foreign aid. Just as there are different types of tax, the form in which tax revenue is collected also differs; furthermore, the agency that collects the tax may not be part of central government, but may be a third party licensed to collect tax which they themselves will use. For example, in the UK, the Driver and Vehicle Licensing Agency (DVLA) collects vehicle excise duty, which is then passed on to HM Treasury. Tax revenues on purchases come in two forms: "tax" itself is a percentage of the price added to the purchase (such as sales tax in U.S. states, or VAT in the UK), ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loan
In finance, a loan is the tender of money by one party to another with an agreement to pay it back. The recipient, or borrower, incurs a debt and is usually required to pay interest for the use of the money. The document evidencing the debt (e.g., a promissory note) will normally specify, among other things, the principal amount of money borrowed, the interest rate the lender is charging, and the date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. The interest provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice, any material object might be lent. Acting as a provider of loans is one of the main activities of financial institutions such as banks ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Interest
In finance and economics, interest is payment from a debtor or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay to the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit (economics), profit or Reserve (accounting), reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs. For example, a customer would usually pay interest to debt, borrow from a bank, so they pay the bank an amount which is more than the amount they borrowed; or a customer may earn interest on their savings, and so they may withdraw more than they originally deposited. In the case of savings, the customer is the lender, and the ban ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Water Table
The water table is the upper surface of the phreatic zone or zone of saturation. The zone of saturation is where the pores and fractures of the ground are saturated with groundwater, which may be fresh, saline, or brackish, depending on the locality. It can also be simply explained as the depth below which the ground is saturated. The portion above the water table is the vadose zone. It may be visualized as the "surface" of the subsurface materials that are saturated with groundwater in a given vicinity. In coarse soils, the water table settles at the surface where the water Hydraulic head, pressure head is equal to the atmospheric pressure (where gauge pressure = 0). In soils where capillary action is strong, the water table is pulled upward, forming a capillary fringe. The groundwater may be from precipitation or from more distant groundwater flowing into the aquifer. In areas with sufficient precipitation, water infiltrates through pore spaces in the soil, passing through t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
