Example of my corollary to the Iron Law of Bureaucracy in the book Zero to One

Recall:

Those dedicated to the propagation of the organization itself at the expense of its original purpose will be strongly inclined to seek out and socially punish activities which serve that original purpose, because the greatest threat to their institutional power is the possibility that high performers will wield the prestige which naturally accrues to them as influence on behalf of the organization’s original purpose.

Corollary to the Iron Law of Bureaucracy

This example is archetypal. Emphases added:

The World According to Convention

How must you see the world if you don’t believe in secrets? You’d have to believe we’ve already solved all great questions. If today’s conventions are correct, we can afford to be smug and complacent: “God’s in His heaven, All’s right with the world.”

nerv1

SEELE_Logo

The German in the SEELE logo is a play on Schiller: “As God judges above the firmament, we judge.”

For example, a world without secrets would enjoy a perfect understanding of justice. Every injustice necessarily involves a moral truth that very few people recognize early on: in a democratic society, a wrongful practice persists only when most people don’t perceive it to be unjust. At first, only a small minority of abolitionists knew that slavery was evil; that view has rightly become conventional, but it was still a secret in the early 19th century. To say that there are no secrets left today would mean that we live in a society with no hidden injustices.

In economics, disbelief in secrets leads to faith in efficient markets. But the existence of financial bubbles shows that markets can have extraordinary inefficiencies. (And the more people believe in efficiency, the bigger the bubbles get.) In 1999, nobody wanted to believe that the internet was irrationally overvalued. The same was true of housing in 2005: Fed chairman Alan Greenspan had to acknowledge some “signs of froth in local markets” but stated that “a bubble in home prices for the nation as a whole does not appear likely.” The market reflected all knowable information and couldn’t be questioned. Then home prices fell across the country, and the financial crisis of 2008 wiped out trillions. The future turned out to hold many secrets that economists could not make vanish simply by ignoring them.

What happens when a company stops believing in secrets? The sad decline of Hewlett‐Packard provides a cautionary tale. In 1990, the company was worth $9 billion. Then came a decade of invention. In 1991, HP released the DeskJet 500C, the world’s first affordable color printer. In 1993, it launched the OmniBook, one of the first “superportable” laptops. The next year, HP released the OfficeJet, the world’s first all‐ in‐one printer/fax/copier. This relentless product expansion paid off: by mid‐2000, HP was worth $135 billion.

But starting in late 1999, when HP introduced a new branding campaign around the imperative to “invent,” it stopped inventing things. In 2001, the company launched HP Services, a glorified consulting and support shop. In 2002, HP merged with Compaq, presumably because it didn’t know what else to do. By 2005, the company’s market cap had plunged to $70 billion—roughly half of what it had been just five years earlier.


HP’s board was a microcosm of the dysfunction: it split into two factions, only one of which cared about new technology. That faction was led by Tom Perkins, an engineer who first came to HP in 1963 to run the company’s research division at the personal request of Bill Hewlett and Dave Packard. At 73 years old in 2005, Perkins may as well have been a time‐traveling visitor from a bygone age of optimism: he thought the board should identify the most promising new technologies and then have HP build them. But Perkins’s faction lost out to its rival, led by chairwoman Patricia Dunn. A banker by trade, Dunn argued that charting a plan for future technology was beyond the board’s competence. She thought the board should restrict itself to a night watchman’s role: Was everything proper in the accounting department? Were people following all the rules?

Surveillance capitalism. Also: why we should never have taught women to read.

Amid this infighting, someone on the board started leaking information to the press. When it was exposed that Dunn arranged a series of illegal wiretaps to identify the source, the backlash was worse than the original dissension, and the board was disgraced. Having abandoned the search for technological secrets, HP obsessed over gossip. As a result, by late 2012 HP was worth just $23 billion—not much more than it was worth in 1990, adjusting for inflation.

Peter Thiel via Blake Masters
Zero to One
Chapter 8: Secrets

This is an impressive book in general. Your homework is to make the mental jump between this nearly mythical example and this, this, and Q-anon.

About Aeoli Pera

Maybe do this later?
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8 Responses to Example of my corollary to the Iron Law of Bureaucracy in the book Zero to One

  1. bicebicebice says:

    “Surveillance capitalism. Also: why we should never have taught women to read.”

    heh *raises you all of social media where wahmen in “healthcare” dance like dancing israelis as all the bridges comes crashing down whilst being paraded and saluated ’round the media as heroes the unsung heroes of world war 3 and victors against the war on the white man everything he builteth*

    the thing about treestumps is that the people you hate should hate and will hatejust as the Lord hates them well atleast contempt strongly have no power in such a realm, this is worth so much that when more than 80% of whites lived in the countryside with less agriculture tech shit like this they didn’t happen at all.

    with Borgonizing the chinamen can have their china man ways heck even the sharia men can check their kikes and wahmen but the whiteoid man he has no culture to enforce leading to the worst thing ever the gay.io and frankly I don’t want to live in such a digital shithole VR world lead by bill gates marina abramovic and every fucking dancing wahmen israeli under the western sun…

    times up fuckoos get your treestumps today before itz gets so bad you don’t even know

    https://scontent-arn2-1.xx.fbcdn.net/v/t1.0-9/94149280_131072498515276_8655541033490186240_n.jpg?_nc_cat=107&_nc_sid=110474&_nc_ohc=9Ohv_UCT2roAX8-GN1i&_nc_ht=scontent-arn2-1.xx&oh=95305dc45fca9c1622d154cfb08d1754&oe=5EC7C6E2

  2. Boneflour says:

    Top performing wamen says: Take as few risks as possible! Follow the rules! Like anyone here could do anything. Baka!

    The Yoko vs. Kamina dynamic IRL. It’s a shame that guy was 77.

  3. Boneflour says:

    Zero To One is a great book btw. Peter Thiel is my favorite Elon Musk.

  4. Not much says:

    This will chase women out of nursing. In general they don’t thrive on mortal salience; which is biologically sound. All the cheerleading is keeping many of them on the line when they’d rather run.

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