Showing posts with label Economics. Show all posts
Showing posts with label Economics. Show all posts

Friday, May 27, 2022

The Miracle of Supermarkets

I marvel at the design and execution of supermarkets. 

They are temples of capitalism. 

Think for a moment of what a supermarket truly is. It is a place that has somehow worked out the economics of capital, labor, and land to make a profit while supplying goods and services that everyone needs and any moment for the price they are willing to pay. 

They have no way of knowing when you will arrive or what you will need but somehow always have EXACTLY what you need. Not only do they almost always have exactly what you need but it is at the price you are willing to pay. 

It's magic.

Ok, maybe not magic, but as close to magic as you can reasonably expect in life.

Few things in life meet this criterion of giving us what we want, when we want it, for the cost we're willing to pay for it. 

Wednesday, August 19, 2020

Become An Organizational Engineer

There is a quote from Principles by Ray Dalio that just resonated with me 100%. If you are a manager of people or processes this should resonate with you. 

Dalio says in Principles you need to become an organizational engineer. 

“A great manager is an organizational engineer”

Systems and teams exist to produce outcomes. Manager's jobs are to get clear on those outcomes and design systems and processes to meet or exceed those expectations. 

A good manager, like a good engineer, is constantly tinkering with their machine to figure out what is the optimal performance this machine should be running at and makes these minor adjustments to meet capacity. Your job, as a manager, is to continuously scan everything you are responsible for looking for warning signs of inefficiency and problems.