You have all heard of the “Golden Rule” — he who has the gold, makes the rules. Well, here is the sequel: The Management Equation,
also the Dilbert Rule, a mathematical proof which explains why managers and others in authority make so much money.
From your physics course, you will recall that:
Power = Work / Time
From the world of business, we know that:
Knowledge = Power
and also that:
Time = Money,
Substituting these identities into the original equation, we get:
Knowledge = Work / Money
Solving for money, we get:
Money = Work / Knowledge
Thus, Money approaches infinity as Knowledge approaches zero, regardless of the Work done. What this means is: The Less you Know,
the More you Make. Taking this analysis and proof one step further, we know that:
Knowledge = Education x Time
Solving for Time:
Time = Knowledge / Education
and then substituting for Time back into the Power equation, we get:
Power = Work / Time = Work x Education / Knowledge
From which we can see that the closer Knowledge gets to 0, the more power one will have.
Note: You can also increase Power through increasing either Work or Education, but it should be noted that this approach doesn’t have the same type of leverage as lack of knowledge.
This equation is also known as the MANAGEMENT equation, since it provides a clear and concise mathematical explanation of why managers, executives, politicians, and most other highly unknowledgable individuals get paid so much.