Categories, Part 2: Where the Real Opportunities Live
In the previous discussion on categories, we explored why categories aren’t just helpful—they’re essential. They allow us to simplify a complex world, group problems instead of treating everything as a one-off, and make decisions without drowning in information.
In this follow-up, the focus shifts to something more interesting: where opportunity actually emerges once categories start to break down.
Because while categories help us think, they also create friction. And that friction—within a single mind and across many minds—is where both conflict and leverage appear.
Why Categories Exist in the First Place
Every time we try to solve a problem—whether in business, relationships, health, or strategy—we rely on categories.
- A business owner looks for bottlenecks
- A doctor looks for symptoms
- A person leaving a relationship looks for patterns
We can’t process the entire world at once. We filter reality through goals, and goals determine which categories matter in that moment.
But here’s the catch:
Just because a category helps you focus doesn’t mean it’s giving you the right information.
Categories age. They drift. Sometimes they’re simply wrong.
Updating them is part of living—and it’s rarely frictionless.
Category Friction and Productivity
Think of the human mind as a box filled with smaller boxes. Each box represents a category: work, relationships, food, politics, identity, expertise.
When something moves from one category to another—say, a trusted restaurant becomes unreliable, or a long-term collaborator breaks trust—it creates psychological friction.
Now multiply that friction:
- Across two people
- Then across ten
- Then across hundreds
Productivity doesn’t scale linearly. It degrades.
In simplified terms:
Productivity decreases as the number of people increases and as category friction increases.
This explains at least in some measure, why coordination gets harder—not easier—as organizations grow.
Why Modern Specialization Creates Distance
Modern civilization depends on specialization. Each field—law, engineering, psychology, economics—has grown so complex that deep expertise generates isolation. (both psychological and factual)
That depth is necessary.
But it comes at a cost.
As categories grow more complex:
- The distance between fields increases
- Shared language decreases
- Translation becomes rare
And this is where opportunity quietly appears.
The Opportunity Between Categories
Most people either:
- Live inside a category, or
- Live between categories
Both roles matter—but they create value in different ways.
Type 1: The Systems Person (Inside the Category)
- Thrives on structure and predictability
- Optimizes processes
- Gains depth and speed
- Keeps things running
These people stabilize systems.
Type 2: The Connector (Between Categories)
- Gets bored easily
- Struggles with rigid routines
- Sees patterns across domains
- Creates new combinations
These people update systems.
Neither type works well alone for long.
Why Entrepreneurs Often Feel Like Misfits
Entrepreneurs tend to live outside established categories. They borrow ideas from multiple domains, remix them, and create something new.
But without structure, ideas never compound.
That’s why successful projects often pair:
- A visionary or connector
- With a systems-oriented project manager
One generates movement.
The other converts movement into results.
Politics, Organizations, and Category Boundaries
This same tension shows up everywhere:
- Conservative systems favor stable boundaries
- Progressive systems favor openness and permeability
Too much rigidity leads to stagnation.
Too much openness leads to chaos.
Functional systems need both containment and permeability.
How to Use This Insight Practically
If You’re a Systems Person
- Master your domain
- Occasionally step outside it
- Borrow just enough perspective to prevent stagnation
If You’re a Connector
- Build discipline intentionally
- Partner with structure-oriented people
- Finish fewer things—but finish some
The opportunity isn’t choosing a side.
It’s knowing which role you play—and designing around it.
Why This Matters More as the World Gets Complex
As categories grow deeper and farther apart, fewer people can translate between them.
That scarcity is value.
The people who can:
- Communicate across domains
- Reduce category friction
- Align systems without flattening them
…become disproportionately impactful.
FAQs
Why do categories create resistance to change?
Because updating a category requires cognitive and emotional effort. Change isn’t just informational—it’s structural.
Why does productivity drop in large teams?
Because every additional person introduces more category overlap, negotiation, and friction.
Is specialization bad?
No. It’s necessary. The risk appears when specialization becomes isolation.
What role do entrepreneurs usually play?
They tend to live between categories, creating new combinations—but often need structured partners to execute.
How can organizations reduce category friction?
By keeping teams small, clarifying language, and intentionally designing translation roles.
If this way of thinking resonates and you’re trying to connect ideas across strategy, systems, and execution, email me at [email protected] or book a call:
This essay connects to the broader Systems knowledge branch: https://gabebautista.com/essays/systems/
