Meaning
Temporal delays occur within an information network when a command must pass through several layers of hierarchy before execution. Systemic latency exists in every organization, representing the period during which a decision travels through the hierarchy and results in an actual change on the ground. A high level of latency makes it difficult for a founder to judge the effectiveness of their strategy because the feedback is so far removed from the action.
Feedback Delay
Gaps in the reporting loop create a situation where a leader is always acting on information that is slightly out of date.
Control Loop
Reducing the time it takes for a signal to return allows for more precise adjustments to the business direction. If the latency is too high, the organization risks overreacting to small changes and missing large trends because it cannot see them in time. High latency creates a cost in attention as the founder must constantly filter out the noise from the delayed signals.
A well-designed system uses automated reporting and direct interfaces to keep the delay as low as possible. Rapid feedback allows the company to respond to market changes with agility and accuracy.
Operational Friction
Resistance within the communication channels and the decision making process adds to the total delay. Minimizing this friction is the primary work of a manager who is trying to improve the efficiency of a department.