A note from Daniel

If companies optimize for the current environment and are successful, they could corner a market and have great success. But when the environment inevitably changes, they may not be able to adapt, because the market for the products and capabilities they've developed has disappeared. For companies to adapt and evolve, they need to keep some options open. But keeping options open means diverting resources away from immediate needs—choosing to optimize not for the moment but instead for the ability to stay around and play the long game. As Eric D. Beinhocker explains, for businesses, there is a constant tension between "how much should be invested in executing for today versus adapting for tomorrow."

Daniel The Great Mental Models, Volume 4, page 45 · December 10, 2024 Save to shelf
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