Leveraging Systemic Workarounds to Compound Business Value
In this episode, the hosts of The Best One Yet explain how businesses and policymakers bypass traditional growth limits using "a la mode" strategies and systemic workarounds. The core idea is that competitive advantage often comes from finding low-cost, high-leverage additions that change the economics of an existing asset. Whether it is golf courses replacing grass with sand to cut maintenance costs, or Netflix using interactive gaming to capture non-gamer attention, the common thread is the use of hidden efficiencies. This analysis provides a framework to identify where your own business might be over-investing in "grass"--high-maintenance, low-return assets--and how to pivot toward "sand" or "a la mode" additions that compound value over time.
The Hidden Economics of "Sand" and "A La Mode"
In systems thinking, we look for the bottleneck, or the constraint that limits the system's output. The hosts explain how savvy operators do not just manage these bottlenecks; they re-engineer them.
The golf industry provides a clear example. For years, golf courses have been stuck in a high-maintenance cycle, spending large amounts on water and pesticides to keep grass pristine. The shift toward sand is not just an aesthetic choice; it is a structural pivot. By replacing grass with sand, developers lower operational costs while simultaneously increasing the difficulty of the game, which drives higher engagement and revenue.
"Golf course developers are simply replacing what should be grass with more sand. And Jack, this is a Nathan for you level genius of business ideas... because it both lowers costs and will lead to higher revenue."
-- Nick Martell
This is a classic example of a "Profit Puppy," which is a feature that seems like a minor operational change but creates a durable advantage. The system responds by forcing the golfer to do the heavy lifting, such as raking, while the course benefits from lower overhead and higher product differentiation.
The Gateway Strategy: Capturing Attention Through Interactivity
Netflix’s move into gaming with their interactive experience shows a shift in how platforms compete for time. Rather than fighting for passive viewership, they are turning the smartphone into a supporting actor. By forcing the user to physically interact with the game via their phone, Netflix moves beyond the traditional algorithm.
The logic here is clear: by creating a gateway of gaming that requires no new hardware and lasts under 45 minutes, Netflix lowers the barrier to entry for non-gamers. They are not trying to beat Grand Theft Auto at its own game; they are using their massive existing user base to create a new habit. This is a strategic move to defend their time against competitors like concerts and live events.
The "A La Mode" Multiplier
The Levain Cookies example illustrates how to solve the seasonality trap without the capital expenditure of building new infrastructure. By partnering with established ice cream brands, Levain added a high-margin, high-frequency product to their menu.
"Adding an option to add a popular ice cream was a grinslam marketing move for Levan. It wasn't additive to revenues, it was multiplicative."
-- Jack Crivici-Kramer
This strategy works because it leverages existing foot traffic to increase the revenue per visit. It is an elegant solution because it avoids the build versus buy headache; they do not need ice cream machines or expertise, just the partnership. This "a la mode" model is portable: ski resorts adding water parks or Domino’s adding salads use the same logic of finding a complementary revenue stream that fills a seasonal or functional void.
When Bipartisanship Becomes a Systemic Force
The passage of the 21st Century Road to Housing Act shows how extreme economic pressure, such as the 6-million-home shortage, eventually forces a systemic response. Despite political posturing, the scale of the housing crisis has created a bipartisan consensus that is too popular to fail.
The implication is that when a problem reaches a critical threshold of public anxiety, such as 36 percent of income spent on shelter, the system will route around political obstacles. Even if a leader refuses to sign, the structural incentives of the legislative process ensure that the Warp Speed provisions will likely become law, proving that systemic necessity often overrides individual political intent.
Key Action Items
- Audit your "Grass": Identify the highest-maintenance part of your business that provides the lowest return. Can it be replaced with a "sand" equivalent that lowers costs and increases difficulty or value? (Immediate)
- Identify your "A La Mode": Look at your product list and ask: "What can I pair with this that increases the frequency of purchase without requiring me to build new infrastructure?" (Next 30 days)
- Map your "Gateway": If you have a complex product, design a 45-minute, low-friction entry point that requires no new hardware or training for the user. (Next quarter)
- Analyze your "Profit Puppies": Look for operational tasks that your customers are currently doing for free, like the raking example. Can you lean into this to improve your margins? (12-18 months)
- Monitor Systemic Pressures: Identify the housing bill equivalent in your industry, which is the issue causing enough anxiety that it will force a regulatory or market shift, regardless of who is in charge. (Ongoing)