Pitfalls of Meritocratic Systems and Goodheart's Law

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Meritocratic systems often develop bureaucratic flaws over time. Goodheart's law states that when a measure becomes a target, it loses its effectiveness. Historical examples, such as the Imperial exam system in Imperial China and the Ivy League University system, showcase how systems deteriorate as people learn to game them. Succession within families can be an effective way to transfer both official and unofficial strengths of a position effectively.

On this episode of Live Players, Samo Burja and Erik Torenberg discuss the key aspects of succession for the Sulzberger family of the NYTimes, Samsung Lee family, and Sweden’s Wallenberg family. They debate the values of dynastic succession and touch on modern examples like Botswana. If you need an ecommerce platform, check out our sponsor Shopify: https://shopify.com/momentofzen for a $1/month trial period.

Live Players is part of the Turpentine podcast network. Learn more: www.turpentine.co

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LINKS:

Samo’s Bismarck Brief: https://brief.bismarckanalysis.com/

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TIMESTAMPS:

(00:00) Intro

(00:29) Dynasties and Succession

(00:54) The Succession Problem and its Implications

(01:31) The Decay of Merit-Based Systems

(04:40) The Power of Familial Associations

(05:26) The Influence of Dynasties in Everyday Contexts

(06:00) The Transfer of Informal Aspects of Power

(07:15) The Role of Marriage in Transferring Personal Reputation

(07:45) The Influence of Parental Success on Children

(12:16) The Dynasty behind The New York Times

(21:00) Case study: Bostwana

(26:35) Sponsor: Shopify

(28:08) The Lee family behind Samsung

(35:27) The Wallenberg Family in Sweden

This show is produced by Turpentine: a network of podcasts, newsletters, and more, covering technology, business, and culture — all from the perspective of industry insiders and experts. We’re launching new shows every week, and we’re looking for industry-leading sponsors — if you think that might be you and your company, email us at erik@turpentine.co.