Legal System Hacking

A framework for approaching system hacking and optimization by understanding boundaries first, then finding creative solutions within them.

Core Approach to System Hacking

• Study what's correlated with desired outcomes, but focus on upstream causes
• Don't obsess over the end goal (money, relationships, etc.)
• Work on improving yourself and your understanding first
• Focus on long-term sustainable wins vs short-term gains

6 Stakeholder Framework for Evaluating Companies

• Key stakeholders that must be considered:

  • Customers
  • Vendors
  • Employees
  • Investors
  • Regulators
  • Communities where you operate

• Evaluation method:

  • Score each stakeholder A-F
  • Aim for all stakeholders to be "winning"
  • Identify areas scoring below C as major risks
  • Use framework to assess sustainability and long-term potential

Example: Airbnb Stakeholder Analysis

• Customers (Guests): Strong positive
• Vendors (Hosts): Strong positive - making money from unused assets
• Employees: Happy/Positive
• Investors: Strong returns
• Regulators: Mixed - some resistance but tax revenue positive
• Communities: Challenges with parties/disruption
  • Company response: Ban parties
  • Actively working to improve community relations

Key Principles

• Long-term thinking beats short-term transactions
• Build trust with all parties involved
• Create win-win scenarios
• Understand where profit pools exist
• Don't extract too much value from any one stakeholder
• Risk accumulates over time if stakeholders are unhappy
• Framework useful for:
  • Job seekers evaluating companies
  • Investors assessing opportunities
  • Companies planning strategy