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The Arrogance Premium
A lesson in business hubris
You've just taken over.
Could be a team.
Could be a whole company.
Doesn't matter.
And you see things that make your eye twitch:
Manual processes that should be automated
Meetings that seem pointless
Systems that feel ancient
And yes, maybe even a fax machine in the corner
Your fingers itch to fix it all.
Stop.
The $2M Fax Machine Story
Let me tell you about Alex.
Mid-Thirties.
Was sold the bologna dream that buying and running a small business was as simple as “adding some technology and hiring an operator.”
Just bought a medical billing company in Ohio with a full recourse SBA Loan.
First day walking around the office, he spots it: A fax machine.
Actually, three of them.
"Found the problem!" he texts his investor group. "These IDIOTS are still using fax machines! In 2024!"
Week two: The fax machines go in the dumpster. In its place… a fancy new SaaS, billed annually.
Week three: The phones start ringing.
Week four: Major clients start leaving.
Turns out:
Their biggest hospital client only accepts faxed claims
State regulations require fax trails for certain transactions
Half their elderly doctor clients don't trust email
Their insurance partners require faxed documentation
Six months later, the business is worth half what he paid.
All because he didn't ask one simple question: "Why?"
The Fence in the Field
There's an old principle called Chesterton's Fence.
It goes like this:
Before removing a fence, first understand why someone built it.
Sounds obvious.
It's not.
Because that manual review process you hate?
It caught a $100,000 mistake last year.
That "redundant" meeting?
It's where Jane from accounting and Tom from sales sync up informally, preventing dozens of little fires.
That fax machine isn't just a machine. It's:
A link in a complex business ecosystem
A trust signal to old-school clients
A compliance requirement
A backup system when everything else fails
But Alex didn't ask.
Didn't investigate.
Just saw old technology and assumed: obsolete.
The Arrogance of the New
We've all been there.
First week on the job.
Everything looks inefficient.
Outdated.
Wrong.
"These people must be idiots," we think. "How have they survived?"
This is peak arrogance.
Peak ignorance.
They've survived because those inefficient-looking processes contain hidden wisdom.
Accumulated knowledge.
Hard-won lessons.
That fence in the field isn't just a fence.
It's a history lesson.
It's there because three years ago, something went wrong
It's there because someone learned something the hard way
It's there because it's solving a problem you don't know exists yet
The Right Way to Change Things
Want to modernize a business? Start with:
"Why do we do things this way?"
"Who needs this system?"
"What problems does this solve?"
"What would break if we removed it?"
Then maybe, just maybe: "How could we do this better?"
The Quiet Truth
Sometimes the smartest move is:
Keeping the old system AND adding new options
Understanding before changing
Respecting what works (even if you don't like it)
The best changes often come from people who start by assuming they're wrong:
"What am I missing?"
"Why did smart people build it this way?"
"What problem was this solving?"
This humility unlocks real improvement.
Before You Change Anything...
Remember:
Every "outdated" system might be solving a problem you don't see yet
Understanding beats assuming
And maybe, just maybe, keep that fax machine around.
At least until you understand why it's there.
Also, I’m about 35 episodes into a video podcast called (you guessed it) Lazy Leverage.
Available on my Twitter, Spotify, and Apple Music.
I typically hate listening to my own interviews.
But this conversation with Argentina based Hugo, our Head of Operations, accidentally captures something I've never been able to properly explain about how we run Sagan.
Everyone talks about building global teams, but most… x.com/i/web/status/1…
— Jon Matzner (@MatznerJon)
12:40 AM • Nov 13, 2024
Link to Podcast on Apple:
Link on Spotify:
Yallah Habibi,
Jon
Passage of the Week:
“If you want to understand something, take it to the extremes or examine its opposites,” Boyd said. He practiced what he preached. He considered every word and every idea from every possible angle, then threw it out for discussion, argued endless hours, restructured his line of thought, and threw it out for discussion again.
Creativity was painful and laborious and repetitive and detail-haunted—not just to him, but to a half-dozen people around him.
Boyd needed the dialectic of debate. Often he abandoned the entire line of inquiry and went back to the beginning.
Robert Coram