THE POWER LAW Half the value (work, creativity, competitiveness, value) in any o

THE POWER LAW
Half the value (work, creativity, competitiveness, value) in any organization, is produced by the square root of the number of people – and group competitiveness and standard of living depends on forming that hierarchy (Pareto distribution). Alternative? Eugenics.

POWER LAW SCALE
In a company, city, or army of 20,000 people the president, mayor, or general can personally know the ~150 key people and manage them (strategy), using the root of 150 or ~12 senior executives, and ~3 final authorities (finance, logistics, operations). 1>3>12>150.

POWER LAW SCALE CONSEQUENCES
This means that 1% of the people in an org, regardless of scale, provide all the competitive advantage. It’s why 1% end up holding all working capital. It means if your society cannot produce that hierarchy with genetic talent – you’re screwed.

INTERNATIONAL POWER SCALE
This is why group aggregate IQ matters – because elites compete against world peers on behalf of citizens. And it’s also why organizations must be national, not international, and why states must now take over strategic capital investment as has China.

GRAND CONSEQUENCES
It’s why India needed castes, Europe martial aristocracy, china the bureaucratic state, It’s also why Arabs need Israelis like Latins need germans, like germans need anglos, like conservatives need libertarians, and underclasses need liberals (marxists).