Why Feedback Loops Predict Business Success

Imagine being able to predict whether a company will succeed or fail. That is exactly what Eli Portnoy discovered when he studied 150 SaaS companies. His finding was simple but powerful: the best-performing companies all had structured, consistent feedback loops. The underperformers? They either ignored feedback altogether or relied on ad hoc conversations that never translated into real change.

Most leaders assume they are hearing the truth because they have “good relationships” with their teams or customers. The reality? Without deliberate systems, what you hear is partial, filtered, and often inaccurate. And without true feedback, growth stalls.

Leading Yourself

Here is the trap I see with many executives: they believe openness alone equals feedback. But good intentions do not produce the truth. Systems do.

I worked with a CRO who understood this and implemented a bold but simple policy. Every month, during 1:1s, both leader and direct report had to share three things the other was doing well and three things they could improve on. No exceptions.

At first, it felt awkward. But over time, this lubricated the gears of communication. Feedback became normal, not personal. Conversations got sharper, relationships got stronger, and blind spots got exposed before they turned into breakdowns.

The lesson: if you assume feedback will surface naturally “when needed,” you are lying to yourself. What works is creating a culture of regular, consistent, two-way feedback and modeling it first.

Action Steps

1. Schedule a recurring monthly feedback exchange in your 1:1s where both sides share three positives and three growth opportunities.

2. Practice receiving feedback with gratitude before responding or defending yourself.

3. Model vulnerability by sharing one area you are actively working on and invite accountability.

Lead Others

Internal feedback is only half the equation. The companies Eli studied that grew fastest also had structured systems to capture customer feedback. And not just surveys that disappear into a black hole. The winning companies:

• Made sure the CEO personally spoke with a customer every week.

• Designated a clear owner for feedback so it was not scattered or ignored.

• Shared a weekly digest of customer insights across the company so every department could act on them.

Contrast that with companies that let feedback trickle in through anecdotes. They build products no one asked for, double down on features no one uses, and wonder why growth stalls.

If you want to outperform your competition, treat customer feedback like currency. Systematize it, share it, and use it to fuel iteration.

Action Steps

1. Establish a single point of ownership for customer feedback in your company.

2. Implement a weekly summary of customer insights that is shared across all teams.

3. Set a standard for leaders, starting with the CEO, to speak directly with at least one customer every week.

Becoming a No Limit Leader

At its core, leadership is about iteration, feedback, and growth. The best leaders do not cling to being right. They seek to be sharpened. They invite feedback internally, they chase it externally, and they use it as fuel to get better every single day.

Becoming a No Limit Leader means building a life where feedback is not occasional, it is a rhythm. At work, at home, in relationships, and in health. When you normalize feedback, you normalize growth. And that is how you unlock greatness in yourself and inspire it in others.

Challenge Limits. Develop Leaders. Fuel Greatness.
— Sean

PS: Executive Coach. Leadership Workshops. Keynote Speaking.

I help leaders unlock new levels of performance for themselves and teams. Ready to see what you’re truly capable of?

Let’s talk: nolimitleaders.com
Or book me to speak: seanpattonspeaks.com

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