General Systems Concepts.  While I do not have experience with business systems, I can demonstrate the theory of systematic concepts as it applies for military training at both an individual and group level. The basic system involves input, processing, and output, with feedback influencing future input and processing.   The language used to describe the system is different, yet the process is the same. Input equates to observation, processing is referred to as decision-making, and output is reaction. Feedback would be described as experience as it will affect future decisions and reactions. Feedback is crucial as it defines operating procedures in an ever-changing battleground.  For example I will describe room clearing at the team level (2-5 soldiers usually 4). The first man must get into the room and immediately clear the doorway either left or right and clear the near corner. Should he observe someone (input), he must immediately identify if it is a combatant or not (processing), and react accordingly (output). The number 2 man must enter and clear the opposite corner using the same process.  3 and 4 must clear the doorway and cover the middle. Each man must identify possible threats (doorways/windows) and relay it to the team leader. The team leader must decide (Processing) based on his observations (input), and experience (feedback), what the next step should be (output).  The way the Army enhances the training environment is to conduct an After Action Revue, which will further analyze the event. Faulty information on the input and processing side will yield incorrect outputs and that is exactly the point of the AAR, to ensure that everyone correctly goes through the steps of the system. If a threat is not observed, that constitutes missing input, which throws off the processing and output. Incorrect decision-making (processing) could mean failure to react to a threat, again causing an incorrect reaction (false output). The AAR provides quality feedback to ensure that the system is operating correctly, and identifies weaknesses that can then be corrected. While business systems will yield incorrect figures and can lose money if not executed correctly, this system can cost lives if not properly utilized. http://en.wikipedia.org/wiki/Systems_theory#Systems_psychology