The three blind spots of savvy investors when it comes to risk management and five actionable tips to address them.
Meritocracies work when merit is easy to evaluate. When it isn’t, people are selected on their ability to convey merit rather than merit itself.
A tempting solution is fairer appraisals. While there are steps to make in this direction, going too far might lead to assessments that are too narrow or easy to game – think about using quizzes as a “fair but incomplete” proxy to estimate professional proficiency, or about metrics that “objectively but narrowly” evaluate performance.
We should also give everyone the skills to convey merit adequately. Let’s teach some basics of communication, eloquence, job interviewing, and all skills whose lack makes it harder for talent to be spotted. Let’s ensure that every person with merit is also able to navigate the gatekeeping structures of meritocracies.
Not only do meritocracies require skills, but being a meritocracy is a skill in itself. It’s not something that can be built overnight. Meritocracies should learn to spot talent and teach talent how to be spotted. Doing the former without the latter isn’t sufficient.