Thread by @SahilBloom

The Locksmith Paradox says that as the locksmith improves at his craft, the customers become upset by the lower time input required to deliver a fixed output.

The results are the same, but the perception of value changed.

This focus (time>results) plagues most companies.

It’s a very interesting phenomenon.

Once you become aware of it, you’ll see it all around you.

I *think* asynchronous work cultures will help fix this.

The basic logic of the Locksmith Paradox is:

• It takes you 60 min to do X
• Customers pay $100 for X
• You improve at X
• It takes you 30 min to do X
• Customers want to pay you $50 for X

Same output, but perception of value is 50%.

You are penalized for proficiency!

Playing it out, the natural reaction of the locksmith:

• Do X in 30 minutes
• Read ESPN for 30 minutes
• Charge $100 for X

Explains a lot of standard corporate cultures…

Just ask any investment banking analyst how many hours they spend in the office browsing ESPN.

• Arrive at 9am
• Random work until 12pm
• Surf the web until 7pm
• Get PPT dropped on desk—need edits by tomorrow AM thx

But you have to be there to create perception of value!

Anyway, random Friday musings on something I’ve been reading and thinking about...

It’s 70 and sunny outside and my only remaining meeting is a 1-on-1 interview with the inimitable @waitbutwhy.

If this isn’t nice, what is?

The classic story of the Locksmith Paradox: Picasso in the market.

Industries that rely on “billable hours” are rife with examples of this paradox in action.

I’m curious to see how the professional services sector innovates or gets disrupted in the next 10-20 years.