Building blocks
The four scenarios
The bathtub
No feedbackOne stock, two independent flows. The level only tracks inflow minus outflow — it has no idea how full it already is.
Compounding savings
ReinforcingThe inflow is a function of the stock: more balance → more interest → more balance. The loop feeds itself.
Cooling coffee
BalancingThe gap between the coffee and the room drives the outflow. As the gap shrinks, the flow shrinks.
Thermostat with a lag
Balancing + delaySame balancing loop as the coffee — but the sensor reads a delayed temperature, so the heater keeps acting on stale information.
Eroding goals
BalancingA balancing loop chasing a goal — but the goal itself drifts down toward whatever performance you're already getting. Standards adjust to reality instead of reality rising to the standard.
The 12 leverage points
People push hardest on #12 (numbers), but real leverage is near the top — goals (#3), paradigms (#2). The thermostat scenario sits on #9, delays.