Read more about stocks and flows and check out the stocks and flows diagram.<\/p>\n\n\n\n\n\n\n\n
What Are Stocks and Flows?<\/h2>\n\n\n\n
A stock represents the elements in a system that you can see, count or measure. It can be commonly thought of as an inventory, a store, or a backlog.<\/p>\n\n\n\n
Flows are the means by which the stocks change over time.<\/strong> Inflows increase the level of stock, while outflows decrease the level of stock.<\/p>\n\n\n\n Let\u2019s take a simple system: a bathtub.<\/p>\n\n\n\n This can be drawn on a stocks and flows diagram, as here:<\/p>\n\n\n\n The clouds signify wherever the inflow comes from, and wherever the outflow goes to. To simplify our understanding of a system, we draw boundaries for what\u2019s important for understanding the system, and ignore much of the outside world. This stocks and flows diagram serves as an example for how things work. <\/p>\n\n\n\n Many systems are analogous to the bathtub:<\/p>\n\n\n\n As humans, when we look at systems, we tend to focus more on stocks than on flows. (Shortform note: This might be because the stock is much more obvious and tangible than the flows. This is also related to how elements in a system are more easily recognizable than the Interconnections.)<\/p>\n\n\n\n Furthermore, we tend to focus more on inflows than on outflows<\/strong>. <\/p>\n\n\n\n Changing the outflows can have very different costs than changing the inflows.<\/p>\n\n\n\n Stocks take time to change. <\/strong>In a bathtub, think about how quick it is to change the inflow or outflow. It takes just a second to turn on the faucet. It takes minutes to fill the tub. <\/p>\n\n\n\n Why do stocks change so gradually? Because it takes time for the flows to flow.<\/strong> As a result, stocks change slowly. They act as buffers, delays, and lags. They are shock absorbers to the system. <\/p>\n\n\n\n From a human point of view, this has both benefits and drawbacks. On one hand, stocks represent stability<\/strong>. They let inflows and outflows go out of balance for a period of time. A stock buys you time to solve the problem and experiment.<\/p>\n\n\n\n On the other hand, a slowly-changing stock means things can\u2019t change overnight.<\/p>\n\n\n\n If you understand that stocks take time to change, you\u2019ll have more patience to guide the system to good performance.<\/p>\n\n\n\n As agents in a system, we make decisions to adjust the level of a stock to where we think it should be.<\/p>\n\n\n\n If you look at the world through a systems lens, you\u2019ll see a large number of stocks, and flows that adjust the levels of stocks.<\/p>\n","protected":false},"excerpt":{"rendered":" What are stocks and flows and what is their role in systems? How do stock and flows work? Stocks are the tangible elements of a system, and flows are the means by which the stocks change. Understanding stocks and flows can help you understand the inputs and outputs of a system, and therefore better understand the system itself. Read more about stocks and flows and check out the stocks and flows diagram.<\/p>\n","protected":false},"author":5,"featured_media":16564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,34],"tags":[139],"class_list":["post-16553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-communication","tag-thinking-in-systems","","tg-column-two"],"yoast_head":"\n![\"\"\/](\"https:\/\/lh5.googleusercontent.com\/BFNDv5zbz4AcWKstksHMdZuId0NL58dVCfZfB6c-FSHEkiEDihKpaQs0qSM1_Wip7mGiaZ2isw7f9KKv01PJUvnJv_ptEergmhr8JpbaqEwFBxNKN48w90WNe7fpPglFd202-Np3\")
Where We Focus<\/strong><\/h4>\n\n\n\n
Properties of Stocks and Flows<\/strong><\/h4>\n\n\n\n
Decisions Influence Stocks<\/strong><\/h4>\n\n\n\n