# Chapter 8: Keeping the Wolves at Bay

## Core Focus

The tension between simplification and usefulness in strategic mapping. Introduces worth-based development, pricing granularity, and flow.

## The Simplicity Trap

Ashby's Law of Requisite Variety: "the controlling mechanism of a system must be capable of representing what is being controlled." Organizations oversimplify through 2x2 matrices, trading deeper understanding for apparent manageability.

## Worth-Based Development

Using a Large Format Printer (LFP) project example: shifting from contract-based to outcome-based compensation aligns incentives. Charging per lead generated rather than upfront:
- Focuses both parties on actual user value
- Incentivizes cost-effectiveness
- But exposes friction with rigid budgeting systems ("corporate corpus")

Result: more leads in 3 months than the client typically produced annually.

## Pricing Granularity

Zimki (2006) charged per function call. This granular cost visibility enabled:
- Identifying inefficient code
- Informed investment decisions about optimization
- Predated AWS Lambda by 8 years

## Flow and Capital Movement

Maps contain multiple flows: financial, physical, informational, risk, time, social. Understanding flows enables financial modeling and reveals where to invest for maximum impact.

## Efficiency vs. Effectiveness

Critical distinction demonstrated via manufacturing example:
- Company proposed millions in robotics to automate server modification
- Mapping revealed root cause: custom server racks forcing expensive modifications
- Effective solution: eliminate the value chain by adopting utility computing
- Not "make the ineffective process more efficient"

"Be very careful of process improvements focused solely on efficiency without questioning why the process exists."

## Key Takeaways

1. Simplification carries costs - trading complexity for manageability hides critical insights
2. Align incentives with value through outcome-based models
3. The corporate corpus resists change - good intentions embedded in systems impede innovation
4. Maps reveal hidden assumptions normalized through repetition
5. Granularity enables optimization - detailed cost visibility drives better decisions
6. Question the premises - before improving efficiency, verify the activity merits existence