In the face of uncertainty, organizations make rules: banks set credit thresholds to limit risk exposure; colleges require baseline SATs to ensure student success; restaurants standardize procurement protocols to guard against low-quality ingredients. But rules are imperfect. A credit score is not a failsafe indicator of financial responsibility, just as SATs are not ideal predictors of academic aptitude. This inexactness gives life to a fundamental tension: when do rules and standards help, and when do they inhibit, an organization in the achievement of its goals?
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