The Shape of the System (Big Picture)
Before you can use Feedback Loops effectively, you need a clear mental model of how the system is shaped.
Not the steps. Not the templates. The shape.
This section explains how the stages relate to each other, why the order matters, and what kind of thinking belongs in each part.
Feedback Loops Is a Progression of Constraints
Feedback Loops works by progressively constraining uncertainty.
Each stage narrows the problem space in a different way:
- Stage 1 constrains what is real
- Stage 2 constrains what is intentional
- Stage 3 constrains what is true about the business
Nothing downstream is allowed to widen the uncertainty again.
That is the core structural rule of the system.
The High-Level Shape
At a distance, the system looks simple:
Unclear reality
↓
Stage 1 - Problem Management
↓
Stage 2 - Project Planning
↓
Stage 3 - Strategic Domain Design
↓
Stable business meaning
What changes at each step is not activity, but confidence.
Stage 1 - From Noise to Valid Problems
What exists at the start:
- complaints
- anecdotes
- frustration
- intuition
What Stage 1 produces:
- a clearly stated problem
- supporting evidence
- shared agreement that the problem is real
What kind of thinking belongs here:
- sceptical
- exploratory
- evidence-driven
If you feel uncertain in Stage 1, that is correct.
If you feel certain too early, something is being skipped.
Stage 2 - From Problems to Intentional Commitment
A validated problem is not yet a project.
Stage 2 exists to force a decision about intent.
What Stage 2 produces:
- a declared outcome
- defined scope
- acknowledged tradeoffs
- an explicit decision to proceed or stop
What kind of thinking belongs here:
- strategic
- selective
- consequence-aware
This is where teams must decide what not to do.
If everything feels in-scope, intent has not been clarified.
Stage 3 - From Intent to Business Truth
Once intent is clear, the system shifts modes.
Stage 3 is not about choosing. It is about describing reality accurately.
What Stage 3 produces:
- named work
- stable terminology
- explicit decisions
- clear rules
- recognisable business structure
What kind of thinking belongs here:
- descriptive
- precise
- non-speculative
If you are debating solutions here, you are in the wrong mode.
Why the Order Cannot Change
The order exists because each stage assumes work from the previous one is complete.
- You cannot design a business you have not committed to addressing
- You cannot commit to an outcome for a problem you have not validated
- You cannot validate a problem while already optimising a solution
Reordering the stages does not save time.
It introduces contradictions that surface later as rework.
Decision Gates, Not Checklists
Movement through the system is governed by decisions, not completion.
At the end of each stage, the question is:
“Do we have enough clarity to responsibly move forward?”
Possible answers are always:
- yes, proceed
- no, revise
- no, stop
Anything else is avoidance.
What the System Optimises For
Feedback Loops does not optimise for momentum.
It optimises for:
- clarity before commitment
- shared meaning before design
- explicit decisions before execution
Speed later is a consequence of discipline earlier.
How This Should Feel
When the system is working:
- early stages feel slower than expected
- later stages feel easier than expected
- disagreement appears early
- confidence increases over time
When the system is not working:
- early stages feel rushed
- later stages feel chaotic
- the same questions resurface repeatedly
The shape of the system explains why.
A Constraint to Remember
Once uncertainty has been resolved at a given stage, it is not reopened downstream.
If new uncertainty appears later, the correct action is to move back, not forward.
That is not failure.
That is the system behaving correctly.
Next, we will look at How You Should Be Thinking in Stage 1 - not the steps, but the mindset required.