Complicated Quote by Richard Thaler
“Anybody who's ever been in a large organization realizes that 'optimizing' is not a word that would often be used to describe any large organization. The reason is that it's full of people, who are complicated.”
About This Quote
Source Speech: Harvard Business School Lecture, 2013
Large organizations are complex, making true optimization rarely achievable.
In simple terms: Big firms are too messy to truly optimize.
Key Takeaway
Accept imperfect efficiency.
Themes
organization
complexity
optimization
Mood
analytical
pragmatic
Type
strategic
realistic
When to use this quote
- project management
- process improvement
- strategic planning
Key Concepts
systems theory
behavioral economics
Questions to Reflect On
- How can you improve specific processes?
- What limits full optimization?
A Different Perspective
Optimization may be possible in parts; not whole.
![“Geometry, which should only obey Physics, when united with it sometimes commands it. If it happens that the question which we wish to examine is too complicated for all the elements to be able to enter into the analytical comparison we wish to make, we separate the more inconvenient [elements], we…” quote by Jean le Rond d'Alembert](https://sms4smile.com/quotes/img-quotes/0d9/jean-le-rond-d-alembert-26487_able_geometry-which-should-only-obey-physics_6945.jpg)
