Key points:<p>Upside decay means that an organization doesn’t get any lucky breaks.<p>Upside decay is hard to spot. It’s invisible if we’re not specifically looking for it, because the absence of rare positive events is unexceptional.<p>Upside decay is preceded by a lack of virtue that leads to zero-sum or even win-lose transactions<p>Leadership choices<p>1. virtuous culture -> positive sum interactions -> weak ties help -> lucky breaks<p>2. unvirtuous culture -> zero sum interactions -> weak ties abandon -> upside decay<p>“The right culture, the highest and best culture, is a seamless web of deserved trust.” Charles Munger<p>Note: Clayton Christensen makes the same point for individuals who prioritize "winning" and "career advancement" over relationships in "How Will You Measure Your Life (<a href="https://hbr.org/2010/07/how-will-you-measure-your-life" rel="nofollow">https://hbr.org/2010/07/how-will-you-measure-your-life</a>). Summary at <a href="https://www.skmurphy.com/blog/2020/02/16/clayton-christensen-on-how-will-you-measure-your-life/" rel="nofollow">https://www.skmurphy.com/blog/2020/02/16/clayton-christensen...</a>