Satisficing

QUOTE

John Maynard Keynes once said…

“It is better to be roughly right than precisely wrong.”

(British economist.)

CONCEPT

Satisficing

Satisficing is a decision-making strategy in which a person chooses an option that is "good enough" rather than the best possible one. Coined by economist Herbert Simon, the term combines "satisfy" and "suffice."

Instead of seeking the optimal solution, satisficing settles for an option that meets the basic criteria or needs. This approach is practical when time, resources, or information are limited, and it helps avoid the endless pursuit of perfection, which can be exhausting and inefficient.

STORY

Open the Flood Gates … Said Gates?

In the 1990s, Microsoft was working on one of its most critical projects: developing the first version of Windows 95.

At the time, the tech industry was moving rapidly, and Microsoft was under intense pressure to release the new operating system that would shape the future of personal computing. However, as the development team worked on refining the software, it became clear that developing their long list of features would delay the release significantly.

Bill Gates and his team faced a dilemma: should they continue perfecting the operating system, ironing out every bug and adding every possible feature, or should they release it "good enough" and improve it over time?

Microsoft chose to satisfice.

Instead of striving for a flawless, fully optimized product, they decided to release Windows 95 once it met their core criteria: stability, user-friendly design, and broad compatibility. Although they were aware that some bugs and missing features remained, they prioritized getting the product to market within a reasonable time frame.

Windows 95 launched in August 1995 to massive success, quickly becoming the dominant operating system for personal computers. Microsoft was able to address bugs and add improvements through later updates and new versions.

Had they waited for a "perfect" product, they might have missed the crucial market window that allowed them to shape the future of computing—and perhaps they wouldn’t be the multi-trillion dollar company they are today.