Diminishing Returns

Increases in inputs to a process will eventually lead to smaller increases in outputs.

• Adding more cooks in the kitchen beyond a point doesn't increase the quality or quantity of food.
• More effort doesn't always lead to better performance.
• The usefulness of more things.

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Key Insights & Principles

Productivity

1. Beyond a certain point additional input can be detrimental.
2. Given diminishing returns, it is important to be flexible and evolve.
3. Acquiring material things beyond their usefulness does not provide any benefit, rather it comes at a cost.
4. Each day, our capacity for making decisions is subject to diminishing returns.

1. Define "done", or targets, and when you hit them, stop.
2. Focus on the few things that produce most of the results, then stop.
3. Stop before diminishing returns sets in.

Book References