Stock and flow are two fundamental concepts in systems thinking. Stock refers to a store or accumulation of resources in a system. It can be anything that is accumulated over time, such as water in a bathtub, money in a bank account, or population in a city. Flow, on the other hand, refers to the rate at which these resources enter or leave the system. Inflows add to the stock, while outflows reduce it. The relationship between stock and flow is dynamic and often forms a feedback loop. For instance, the amount of money in a bank account (stock) can affect the interest earned (flow), which in turn affects the amount of money in the account. In essence, understanding stock and flow can help us understand how systems change over time.
How do you avoid wasted time, money, and resources from short-sighted decisions? When you think in s...
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