Systems that promote Generalists Struggle in the Long-Run

Specialists build labor and judgment in one field across years, which in turn leads to information asymmetry. Then there are generalists.

Why it matters:

• We live in a disruptive and ever-changing world. To stay ahead and innovate, you need specialists to identify and execute on which bets and trends are likely to succeed.
• It is easier to train specialists to become generalist managers but not vice versa.
• Long term, it promotes a culture of excellence because specialists can mentor and nurture other specialists by investing in high-potential people.

In contrast:

• When in leadership positions, generalists talk strategy and big picture. They give high-level directives and then withdraw. They are neither interested nor trained in the nuances of the trade.
• Specialists realize that to grow they need to become generalists and they give up on building labor and judgment.
• Eventually, the whole system fills up with generalists and the system loses its ability to make bets. There is a lack of middle management that can truly roll up its sleeves, obsesses over details, and convert strategy into tangible action.