2min chapter

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EP 184 Dave Snowden on Managing Complexity in Times of Crisis

The Jim Rutt Show

CHAPTER

The Fat Tail Method of Decision Making

During the 2008 financial crisis, some idiot CEO of a major financial corporation came on and said, we couldn't be expected to plan for this. It was a 16 sigma event. You should never say something is a one in 100 year event. But it's interesting because one of our big current projects is looking at distributed decision making. So you distribute decision making into combinations of three roles, not to people. And one of the roles can actually be an avatar. Now, that actually allows us to take it about 40 or 50% of the admin cost of judicial bureaucracy. That increases transparency and it makes smaller decisions at the front.

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