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Similarly, this is from a hotel in Stockholm, the Lydmar. Has anybody stayed there? It’s the lift, it’s a series of buttons in the lift. Nothing unusual about that at all, except that these are actually not the buttons that take you to an individual floor. It starts with garage at the bottom, I suppose, appropriately, but it doesn’t go up garage, grand floor, mezzanine, one, two, three, four. It actually says garage, funk, rhythm and blues. You have a series of buttons. You actually choose your lift music.

Our own sense of self-aggrandizement feels that big important problems need to have big important, and most of all, expensive solutions attached to them. And yet, what behavioral economics shows time after time after time is in human behavioral and behavioral change there’s a very, very strong disproportionality at work, that actually what changes our behavior and what changes our attitude to things is not actually proportionate to the degree of expense entailed, or the degree of force that’s applied. But everything about institutions makes them uncomfortable with that disproportionality. So what happens in an institution is the very person who has the power to solve the problem also has a very, very large budget. And once you have a very, very large budget, you actually look for expensive things to spend it on. What is completely lacking is a class of people who have immense amounts of power, but no money at all. (Laughter) It’s those people I’d quite like to create in the world going forward.

So these questions … what is happening in the world is the big stuff, actually, is done magnificently well. But the small stuff, what you might call the user interface, is done spectacularly badly. But also, there seems to be a complete sort of gridlock in terms of solving these small solutions. Because the people who can actually solve them actually are too powerful and too preoccupied with something they think of as “strategy” to actually solve them.

The people with the power want to do big expensive things. And there’s to some extent a big strategy myth that’s prevalent in business now. And if you think about it, it’s very, very important that the strategy myth is maintained. Because, if the board of directors convince everybody that the success of any organization is almost entirely dependent on the decisions made by the board of directors, it makes the disparity in salaries slightly more justifiable than if you actually acknowledge that quite a lot of the credit for a company’s success might actually lie somewhere else, in small pieces of tactical activity.

But what is happening is that effectively — and the invention of the spreadsheet hasn’t helped this; lots of things haven’t helped this — business and government suffers from a kind of physics envy. It wants the world to be the kind of place where the input and the change are proportionate. It’s a kind of mechanistic world that we’d all love to live in where, effectively, it sits very nicely on spreadsheets, everything is numerically expressible, and the amount you spend on something is proportionate to the scale of your success. That’s the world people actually want. In truth, we do live in a world that science can understand. Unfortunately, the science is probably closer to being climatology in that in many cases, very, very small changes can have disproportionately huge effects, and equally, vast areas of activity, enormous mergers, can actually accomplish absolutely bugger-all.

Excerpted from https://www.ted.com/talks/rory_sutherland_sweat_the_small_stuff/transcript?language=en