How Physics Explains Business

Business is filled with physics metaphors: Porter’s “five forces,” Helmer’s “seven powers,” startup accelerators, organizational inertia, wedges, leverage, momentum—I could go on.

Businesspeople are attracted to physics jargon because it makes them sound smart. But on a deeper level, it makes the world feel more predictable and in our control. It reminds us that mere mortals have built machines that put men on the moon and bought them safely back to Earth. Surely we can hit our growth targets this quarter—right? 🥲

Some people dislike the use of physics jargon in business. They think the metaphors don’t make sense and only serve to make people seem superficially smart. There is some truth to that, but ultimately, I disagree—physics jargon is cool.

When you exapt a concept from one domain and use it in another—“exaptation” itself being a great example, which I borrowed from evolutionary biology—you’re subtly encouraging people to think about the things that two different systems might have in common. You’re initiating a process where, for each idea you come across, you instinctively contemplate how it might have an analog in a different domain. It’s not just a way to communicate. It’s a way to think.

But if you want to take full advantage of this way of thinking, you need to actually understand what the concepts mean in their original setting. Only then can you benefit from the metaphor. Otherwise it’s just an empty label. You only know the name of the thing, but names don’t constitute knowledge.

I’ve had a nagging feeling that I should learn more about the physical and mechanical terms that get thrown around in business. So I picked up—and have been devouring—a book called The Way Things Work by David Macaulay.

The first chapter is about simple machines like wedges, pulleys, gears, levers, cranks, cams, belts, and more. I had only a foggy idea what most of these were and how they worked before I started reading; it’s been a delight to learn. Each page has short explanations for how these machines work, accompanied by charmingly analog illustrations.