Today while explaining my son how our heating system works, it brought me back to my earlier post about organization charts. Same as in heating system where you have a heating loop and a control loop, 2 loops exist in every organization. The first is formal and visible—it's drawn out in neat boxes and lines as your organizational chart, showing who reports to whom and where decisions get made. The second is informal and largely invisible—it's the actual pathways through which information, ideas, and real work flow to get things done. The two flows of organizational systems When we apply systems thinking to organizations, we can identify two critical flows that determine how effectively an organization functions: Control flow represents the formal authority structure—who has decision-making power, who approves what, and how accountability flows up and down the hierarchy. This is what your org chart captures beautifully with its clean boxes and reporting lines. Informat...