4 ms·
Key points: Upside decay means that an organization doesn’t get any lucky breaks. Upside decay is hard to spot. It’s invisible if we’re not specifically looki
by skmurphy 5y ago
Key points:
Upside decay means that an organization doesn’t get any lucky breaks.
Upside decay is hard to spot. It’s invisible if we’re not specifically looking for it, because the absence of rare positive events is unexceptional.
Upside decay is preceded by a lack of virtue that leads to zero-sum or even win-lose transactions
Leadership choices
1. virtuous culture -> positive sum interactions -> weak ties help -> lucky breaks
2. unvirtuous culture -> zero sum interactions -> weak ties abandon -> upside decay
“The right culture, the highest and best culture, is a seamless web of deserved trust.” Charles Munger
Note: Clayton Christensen makes the same point for individuals who prioritize "winning" and "career advancement" over relationships in "How Will You Measure Your Life (https://hbr.org/2010/07/how-will-you-measure-your-life https://hbr.org/2010/07/how-will-you-measure-your-life). Summary at https://www.skmurphy.com/blog/2020/02/16/clayton-christensen-on-how-will-you-measure-your-life/ https://www.skmurphy.com/blog/2020/02/16/clayton-christensen...