Flash Card Candidates | Total Value Maximization

Optimizing for one variable that suits your interest in a moment destroys equilibria in the long run.  Everyone can win if you play the game right.

Take stock that actions don’t occur in a vacuum or only from one perspective. Every player, everyone affected, and every complimentary player are pieces in the constantly moving chess game. Winning the game in the moment might also be losing in the long run. If you maximize for profit in a given short-run, you’ll gouge your customers, alienate your partners, and create competitive pressures (which drive-up costs internally), which ultimately lead to instability … which eventually leads to “forced election” (someone loses). If instead you maximize value to the “system” (cluster of related products, services, consumers, partners, competitors, the environment, the locality, etc), there is greater long-term stability and growth. Prevalence is a non-singular event. Value maximization is not profit maximization. Value is a form of composite good. Total value maximization involves a working system and not only one perspective/position.

Winning is an illusion.  Advancing and sustaining is the optimal outcome.  The strategy cannot occur on an island.  The strategy’s effectiveness escalates as the system approaches “perfect information.”

There is an intense connection to Conceptual Scale and Best Fit.  The fundamental difference is the intentionality of the organization.  The organization may intend to grow and change, but that it does so responsibly is not assured.  The organization may want to establish a best fit relationship with its customers, but only with the right organizational intention can it stay a reality.  This term is all about an organization's function.  Does it provide education, entertainment, goods, services ... and under what purpose and banner are those things produced?  Knowing what you are trying to do is essential, because it tells you how to value-maximize.

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