202411071408 Status: #idea Tags: #information_theory #business # The highest order bit in information ![[Pasted image 20241107140701.png]] The concept of a "highest order bit" typically refers to the most important piece of information in a situation. The analogy here is to binary numbers: if I can flip the bit in position $n$ to $1$, then it is worth more than if I flipped *all of the bits* from positions $1$ to $n-1$ to be $1$. Hence, if I can find the highest order bit in a situation, I can have a *much* larger effect for a comparatively small amount of effort. The key takeaway then is to always look for the most important/highest leverage point in any given situation. Then, focus all of your effort on this point. Note that there are a couple of key difficulties: 1. You may not know what the highest order bit is. 2. You may not be able to flip the highest order bit even if you know what it is due to a lack of resources or a need to flip some lower order bits first. To address these, you must: 1. Identify the key flaws in your environment 2. Spend time identifying the highest-order flaw that you **actually have the ability to address** with your limited resources. 3. Pick the best possible action to fix it, even if it risks making some lower-order flaws worse 4. Start again from Step 1 with a less egregious set of shortcoming to choose from For more see [[Elon's effectiveness stems from his ability to find the highest order bit and focus all his attention on it]] One method for identifying the highest order bit: [[Think in terms of limits to expose trends or bottlenecks in a system]] --- # References