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Organizational Innovations for Modern Enterprise
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The Importance of Customer Feedback

  Katz and Kahn would describe the process of learning from mistakes as a negative feedback process. They point out that negative customer feedback - information about what you are doing wrong - is one of the most valuable organizational inputs you can have. This is because it allows companies to correct mistakes, and stay in tune with their customer's needs, wants and concerns.
 
 
  Organizations which isolate themselves from their customers and others in their environments, contribute to their own blindness and eventual decline. Organizations which attempt to manipulate their environment, risk the effects of an eventual balancing reaction from the environment (perhaps to reduce the organization's influence). Those organizations which can adapt to emergent environmental factors and customer needs, are the ones that will succeed in this new millennium.
 
 

 
  Katz, Daniel., Kahn, Robert L. "Organizations and the System Concept" in Jay Shafritz and Steven Ott (eds.), Classics of Organization Theory. Dorsey Publishing. Homewood: Ill. 1987.
 
 

 
 

 
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