Incremental Thinking May Not Get You There

I painfully remember my first course in digital optimization theory where the approach was to increment variables to find the optimal solution.  The thought was that “as long as you are climbing the hill” you can always seek the peak and know you have found it.

Of course, this assumption rests on computational continuity (technically speaking … no singularities) and nothing more complex than parabolic curved surfaces.  Very simply, if there was only one peak and no other lesser peaks, the methods would probably find it.  However, if there was one big peak and other smaller peaks, you might not find it unless your staring assumptions were within the “mound” of the big peak.

What I am trying to point out with all this, is that continuous improvement in business processes assumes this is true.  But, what if there needs to be a leap of faith to the best mound?  Incremental thinking generally will never find it.

So, now my friends, let me ask you to read this announcement and see if you can spot the “stinkin thinkin” associated with incremental thinking: Read the Energy Voice article here. 

Can you see it?  Why offer a lower cost mortgage for a home like this?  Why not bundle in the energy costs and write a long term fixed payment stream that uses the energy efficiency to drive a better yield on your money?

Think I am way out ahead of people?  Nope.  Thomas Edison never thought you would be able to sell kWh.  He thought the answer was to sell heat and light.  He was right … and that is the golden opportunity in today’s market and on into the future.  Stop thinking you are selling electricity or fuel.

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