Lenny's Podcast: Product | Growth | Career cover image

The engineering mindset | Will Larson (Carta, Stripe, Uber, Calm, Digg)

Lenny's Podcast: Product | Growth | Career

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Understanding Systems Thinking with Stocks and Flows

Systems thinking involves analyzing stocks (accumulating elements) and flows (movements between stocks). For instance, in the context of a lake, the number of fish in the lake represents a stock, while the number of people fishing is another stock. The flow occurs as the number of fish decreases based on the number of people fishing, but there are also flows related to fish reproduction. Efficiency of fishermen and reproduction rates further influence the dynamics of stocks and flows over time. Donatella Meadows' influential book on systems thinking is recommended for a deeper understanding of this concept.

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