Navigating Business Challenges with the Precision of a PID Controller

I was scrolling my LinkedIn Feed and ran across a demonstration of a PID controller . Oh my, the post made me feel 30 years younger when I was working on my ChemE degree at Iowa State (#iowastateuniversity).? That said, I have occasionally thought about how the principles of a PID controller could be used to solve business challenges, and not just in process control.

For my friends who have no idea what a PID controller is or what it is used for, a brief explanation.? A PID controller is used to control the inputs to a system in order get a desired output.? The most common application is within a feedback control loop.

What is a feedback control loop you ask?? Great question, a great example is you, every time you get into the shower.? Before you get in you stick your hand in the water and based on the feedback of the current water temperature (output), you adjust the temperature knob (input) and you repeat until you get to the desired temperature.? ?

The way the PID controller was explained to me is:

Proportional - Input is proportional to the difference between desired set point and the current output value.? In the shower example you make a larger adjustment if the temperature is far from desired temp and a smaller adjustment if the temperature is close to the desired temperature.

Integral - The input is dependent on the aggregate of difference between the output and desire state.? Visually, if you had a graph that showed the actual temperature vs desired temperature. An integral controller measures the area of the graph.? So the longer and further that the output has deviated from the desired state, the greater the amount of input.

Derivative - The input is dependent on the current rate of change of the output compared to the desired state. ? Visually, this is looking at the slope of the output compared to the desired state.? Imagine you’re in the shower and your wife flushes the toilet, the temperature very quickly rises from the set point and you quickly adjust the temperature accordingly.

I think there is merit in using the analogy of a PID contrloller when determining the level of investment enterprises should use when trying to solve business problems.? If there is an important KPI that an enterprise is striving to hit then the level of effort to hit that goal should factor…

1. P: How far are we from the target?
2. I: How long have we been trying to reach the target?
3. D: How quickly are we making progress to reach the target?

This is also why it is absolutely critical that if you are serious about solving a problem, you have to have metrics.? Without metrics, we can never know if we’re making progress and if we’re getting a return on our investment.? In my opinion, lack of metrics and associated goals are the primary reason for technology project failure.

In adopting the principles of a PID controller to navigate business challenges, we find a compelling framework that mirrors the precision and adaptability required for success. The parallels between the Proportional, Integral, and Derivative components and the critical elements in business problem-solving provide a roadmap for strategic decision-making.

Just as a PID controller ensures a system converges to its desired state, enterprises can apply a similar approach to meet key performance indicators (KPIs) and business objectives. Evaluating proximity to targets (P), the duration of efforts (I), and the rate of progress (D) allows for nuanced and dynamic adjustments in the pursuit of success.

Moreover, the emphasis on metrics and associated goals becomes paramount. Without a clear understanding of performance metrics, businesses risk drifting into uncertainty. The failure to establish measurable objectives and monitor progress stands as a primary pitfall in technology projects. It's the metrics that not only provide a yardstick for success but also enable informed decision-making and a robust feedback loop.

In conclusion, the PID analogy offers a transformative perspective on problem-solving, urging enterprises to embrace a systematic and data-driven approach. By continuously assessing and adapting strategies based on measurable feedback, businesses can navigate complexities with agility, ultimately achieving sustained success in their endeavors.