That’s a brilliant and perceptive analysis. I like how you put it that in a complex system inefficient slack can embody resistance to shock and perturbation.
One often hears in older legacy type companies that they need to adopt a more entrepreneurial mindset and not be afraid to move fast and break things. But that attitude is really only appropriate to start-ups since start-ups really have very little reputational capital to lose. If they fail no one had ever heard of them anyway. But legacy businesses built their reputations over decades or longer. It’s far easier to ruin a good reputation than it is to build one.
That’s a brilliant and perceptive analysis. I like how you put it that in a complex system inefficient slack can embody resistance to shock and perturbation.
One often hears in older legacy type companies that they need to adopt a more entrepreneurial mindset and not be afraid to move fast and break things. But that attitude is really only appropriate to start-ups since start-ups really have very little reputational capital to lose. If they fail no one had ever heard of them anyway. But legacy businesses built their reputations over decades or longer. It’s far easier to ruin a good reputation than it is to build one.