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Five structural patterns that prevent institutions from updating themselves: (1) Justification Cycle—filtering new information to confirm existing positions; (2) Containment Cycle—learning stays local and doesn't propagate; (3) Episodic Reform Cycle—learning happens in bursts after crises then stops; (4) Metric Substitution Cycle—measures of learning replace actual learning; (5) Dissent Suppression Cycle—challenging voices are marginalized.
A bank experiences all five cycles: post-crisis reviews are filed and forgotten (Episodic Reform), training hours are counted instead of capability change (Metric Substitution), risk warnings from branches never reach the board (Containment).
ILA Section 3