Strategy Drunk

21
A little Learning is a dang'rous Thing;Drink deep, or taste not the Pierian Spring:There shallow Draughts intoxicate the Brain,And drinking largely sobers us again.

—Alexander Pope

Businesses do dumb things all the time. When it happens, a sort of ritual ensues: they get lambasted in the press, Twitter erupts, and at some point, inevitably, Matt Levine lifts his fearsome pen, and channels our collective bewilderment into the perfect sequence of words.

Some recent examples:

  • The financial misadventures of Adam Neumann and Masayoshi Son
  • The crypto madness of 2017
  • Robinhood “checking & savings” account
  • The Mac butterfly keyboard
  • “Funding secured”

Of course, these things really were dumb. They deserve to be called out. But in the midst of the mosh pit, few stop to ask: why did they actually do that?

The assumption is that these managers, unlike us, are just incredibly dense. I mean, what else could explain it? But I believe reality is more interesting than that. It’s not that managers are dumb—in fact, they’re often extremely smart. But something causes them to overlook basic problems at an alarmingly high rate.

It happens so often, I often wonder why. It’s an interesting question, but mainly: I don’t want to screw up!

Well, after writing the article introducing Divinations last week, I think I finally came up with a concept that captures it, and suggests possible solutions:

Managers that make bad decisions aren’t dumb. They were just strategy drunk.

Create free account to continue reading

Ideas and Apps to
Thrive in the AI Age

The essential toolkit for those shaping the future

"This might be the best value you
can get from an AI subscription."

- Jay S.

Mail Every Content
AI&I Podcast AI&I Podcast
Cora Cora
Sparkle Sparkle
Spiral Spiral

Join 100,000+ leaders, builders, and innovators

Community members

Already have an account? Sign in

What is included in a subscription?

Daily insights from AI pioneers + early access to powerful AI tools

Pencil Front-row access to the future of AI
Check In-depth reviews of new models on release day
Check Playbooks and guides for putting AI to work
Check Prompts and use cases for builders

Comments

You need to login before you can comment.
Don't have an account? Sign up!