The Paradox of Optimization: Why Resilience Is Key
Optimizing a device or system means getting the most out of it in the short-term. However, what happens when the world changes? An optimized system can quickly become obsolete, unable to adapt to new challenges.
Instead of always striving for optimization, smart leaders focus on building resilience. Whether it’s power plants, transit systems, or careers, creating systems with built-in slack allows them to thrive in a changing environment.
But here’s the paradox: in competitive markets driven by capital, the temptation to optimize early and often is strong. Outperforming more resilient competitors in the short run can lead to success, but it’s not sustainable in the long term.
Crashes are inevitable in optimized systems when faced with change. If you want to avoid this fate, avoid competing in markets where optimization is the only path to success.
Embracing Change: A Case Study
Yesterday, Britain shut down its last coal plant, marking the end of an era that began 140 years ago. The shift away from coal power demonstrates that change is possible, even in industries deeply rooted in tradition.
