The Balancing Loop attempts to move some current state to a desired or reference state though some action. The structure may begin with the current state greater or less than the desired state, in which case the current state may approach the desired state from above or below.

The Desired State interacts with the Current State to produce a Gap. The larger the Gap the stronger the influence to produce Action. The Action taken then moves the Current State toward the Desired State reducing the Gap. When the Action succeeds in moving the Current State to the Desired State the Gap is reduced to zero and there is no more influence toward Action.