https://en.wikipedia.org/wiki/Peter_principle#Summary_2

For my part, I’d rather trust people’s judgment and intrinsic motivation than enforce the rules. Enforcement is annoying, tedious, and distracting to my mission. However once I decide their judgement can’t be trusted I use rules to extrinsically motivate them.

I don't think this is a problem, exactly. It just means I'm the kind of person who works much better in startups than mega corps. I can't not notice all the ways poorly made rules get in the way of getting things done, but once we hit the fourth layer of management, at least one of them WILL be the kind of manager who has gotten ahead in their career by writing and enforcing rules.

All that means is that the company has grown to the point that it's time for me to move on to the next project.

(And before anybody asks, of course there are some rules that are incredibly important. Many of them are codified as laws. Most of the rest would bring down the company. If I'm not willing to work within those rules, the company is the wrong fit for me from the start, regardless of size.)

The "point" where this fails, of course, is where the "cost" call above is such that the supervisor can't agree.

Beyond "taking one for the team", in business, I didn't see the article make some key distinctions:

* What is the origin of the rules? (Originated in the interests of the organization, or came from outside, such as regulatory requirements.)

* How much does the organization care about the rules? (Some rules they just need to make a paper trail show of effort, and worst impact is a transactional cost-of-business fine, or an unflattering news cycle. Other rule violations could dethrone a CEO, or even send them to prison.)

* Would the organization actually love to get away with violating that rule, when the right individual comes along to execute it without getting caught? (Say, some very lucrative financial scheme that's disallowed by regulations.)

* How aligned is the manager with the organization wrt the rules in question? (Say, the company actually really doesn't want people to violate this one rule, but a manager gets bonuses and promotions when their reports have the advantage of breaking the rule.)

Depending on those answers, a manager's claim of "Doing what it takes to get the job done!" can sound very different.

I live in a place that loves rules (Germany) and I come from one (Netherlands) that has people like I just quoted taking a more relaxed attitude to rules. Being pragmatic about rules and not placing blind trust in them is key to being able to adapt to changing circumstances.

Germany is having a hard time adjusting to modern times. It's something that's being complained about a lot in the country. The topic of "Digitization" (capitalized, because that's a German grammar rule) has been a topic in elections for the last 20 years or so. They can't do it. There are rules that say that only paper signatures are valid. Never mind that this rule has been challenged, relaxed, etc. They stubbornly revert to doing everything on paper. It's infuriatingly stupid. You get this whole ritual of people printing paper, handing out copies, and insisting it's all done in person. I get plenty of docusign documents to sign as well these days. So I know that this perfectly acceptable. For official documents for the tax office even (via my accountant). It's fine. This rule no longer applies. But try explaining that to Germans.

Breaking rules when they stop making sense and don't apply to changed circumstances is a sign of intelligence. Supervisors can't foresee all circumstances and they like people that can think for themselves that can adjust and follow the spirit of the rule rather than the letter of the rule.

This seems like a prima facie bad conclusion to their hockey study, considering that the Panthers won the cup while being effectively tied for the lead in penalty minutes, with #3 not being particularly close. Yes there's a weak correlation between penalties and losing, but considering that the absolute best teams usually have a high rat index, there's a big lost opportunity to go into the rat factor in hockey and how it translates to the corporate world!

That is, a lot of dicey stuff happens and management tends to only care about the results and intentionally places the responsibility on the traders by operating a very loose leash. This is combined with a % based commission which encourages rule breaking, given how high the rewards can be. The loose leash means when something bad is discovered (and this was the sort of thing my dad would uncover as an accountant) supervisors had this plausible deniability they could fall back on. This meant they could reap the rewards of positive returns while mitigating the blowback on them in the worst case outcomes.

Gary specifically shared a story when he tried to quit in that he was threatened with an investigation to dredge up all the bad stuff he'd done in order to be one of the more successful traders, which ultimately ended up as a big nothing burger as he didn't break any rules to get his returns. What was telling, was the assumption that they _would_ find something to use a cudgel to keep him there, as if it was almost expected.

Worth looking up the talks they have on youtube. Just be prepared to hear the same few anecdotes 50 times.

The yes part:

Leaders like velocity and don't want rules to slow people down. Rules exist for a reason, because somebody in the past has fucked it up for the rest of us. Leadership still wants goal accomplishment in the shortest time frame and at the cheapest cost, though. The US Army baked this into the cornerstone of their leadership approach more than 20 years. The central concept is for a leader to tell their people at set of goals and then release their people into the wild and figure it out on their own. This provides flexibility with minimal constraints, which is especially important in a rapidly changing environment of fluid changes where the senior leader has outdated information.

Its also why corporate leadership doesn't discourage working on personal code projects if that value comes back to the organization.

The no part:

Leaders, at least the non-toxic ones, don't want to cannibalize their people. Even if rules are not important ethics certainly are. Good leaders don't want narcissistic assholes rotting the organization from the inside even if it does mean higher velocity. If your organization reaches a market milestone first but everybody has left the organization then its purely a Pyrrhic victory and the organization will still lose. This is why up to 25% of flag officers in the US military are continually under investigation at any time.

In the corporate world this is crystal clear when you look at your leadership and your peers. Are they primarily interested in releasing a product or reaching an organizational goal or are they primarily interested in their place within the organization or the appearance of relationships.

Supervisors will care if their own unofficial rules are broken.

If you have a supervisor, pay attention to their own personal set of rules more than the org rules.

Especially in large organizations, all rules exist for plausible deniability.

90% of my best bosses just tanked the bad news when things went wrong but otherwise loved it when you do your best to work around the system.

For those that don't know, you're generally either a commissioned officer (with ranks from 0-1 and up) or enlisted (E-1 to E-9). Some branches have warrant officers too but let's ignore that.

So if you join as an enlisted you start off as a private in the Army (it's called something else in different branches). By the time you finish bootcamp you're an E-2 private, possibly an E-3 (Private First Class). If you're not an E-3 it's automatic promotion after ~6 months assumpting you don't have any red flags AFAIK.

By the time you make it to E-4 (Corporal in the Army) you kinda know how things work BUT you're also in the last rank before you're in a leadership position. The next position (E-5, Sergeant in the Army) is a noncomissioned officer ("NCO"). Some people want to avoid that so they kinda hang around E-4 far longer than they should and they build up a body of knowledge on how to get things done. Or they may have been a higher rank and get busted down from an Article 15 (or NJP or whatever the specific branch calls it).

Requisitions can be a huge issue in the military, evne for simple things like office supplies. So you may find that E-4s can "acquire" needed supplies from other units. NCOs, Staff NCOs and command tend to be aware of it but will ignore it because it kinda needs to happen. And those E-4s are called the "E4 Mafia".

This, I believe, is the kind of "rule breaker" this post is referring to.

[1]: https://www.youtube.com/watch?v=SEgh-w4FIFc

If you aren’t sure if you are being dumb or not, you are probably dumb. If you are sure you are not dumb, you are probably dumb. If you think you may not be dumb, you may in fact not be dumb.

If the company wants you out or considers you low value/high maintenance, they use the rules. If the company likes you, they use the actual rules. If you are on the promotion track, they use the actual rules.

Also, it turns out the actual rules actually have serious revisions as you go up the corporate ladder - things that would get you fired might not get your boss fired, and definitely wont get the CFO fired.

I prefer forgiveness over permission ...

unless your break rules that negatively impact productivity

This is why businesses will break laws when fines are less than profits.

This is a really surprising piece of commentary considering the finding in the immediately prior paragraph:

> Different situations had different effects on coaches’ assessments of penalized players. Their generally favorable views [were] absent during winning streaks.

So the thought process here is, first we observe that coaches like fouls when the team is losing, and don't like them when the team is winning. And then we say that the coaches must be misguided (unless there's some kind of bias in the sample, but come on, look at the data) because teams committing a lot of fouls are doing worse than teams that aren't.