No. 215 · Strategy · Mathematics
Local Optimum vs Global Optimum
Being the best in your neighbourhood can stop you finding a much higher peak beyond it.
In the Almanac
“The quartz crisis”, 1969–1983 · “Garmin”, 2008–2020s
Both stories in full, three ways to use it and where it misleads.
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What is Local Optimum vs Global Optimum?
Local Optimum versus Global Optimum is the difference between the best solution in a small area and the best solution overall. Once you reach a local peak, every small step looks worse, so you stop exploring, as Swiss watchmakers did while quartz watches took over.
How do you use Local Optimum vs Global Optimum?
To use it, regularly step back and ask whether you're climbing the right hill. Compare your options against completely different approaches, not just tweaks, and try something new when you hit a plateau. Balance improving with exploring.
When does Local Optimum vs Global Optimum matter?
Local Optimum vs Global Optimum is one of the 56 mental models for strategy, the situations where you ask: How do I win when others want the same thing? Within that, it belongs to “Finding opportunities”, alongside Arbitrage, Idea Maze and Joy’s Law.
What is an example of Local Optimum vs Global Optimum?
Two stories show it at work: The quartz crisis (1969–1983) and Garmin (2008–2020s). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.
Which mental models are related to Local Optimum vs Global Optimum?
Satisficing, Divergent Thinking vs Convergent Thinking and Pivot. Local Optimum vs Global Optimum itself comes from mathematics.