The Personal MBA

Master the Art of Business

A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.

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What Are 'Diminishing Returns'?

Something suffers Diminishing Returns when, after a certain point, having more of it becomes pointless or detrimental.

Optimizing everything to perfection is almost impossible. After picking the "low hanging fruit", further optimization can cost more than the returns you'll reap.

Optimize until reaching the point of Diminishing Returns, then focus on something else.

Questions About 'Diminishing Returns'


"The last 10 percent of performance generates one-third of the cost and two-thirds of the problems."

Norman R. Augustine, aerospace executive and former U.S. undersecretary of the Army


From Chapter 11:

Understanding Systems


https://personalmba.com/diminishing-returns/



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The Personal MBA

Master the Art of Business

A world-class business education in a single volume. Learn the universal principles behind every successful business, then use these ideas to make more money, get more done, and have more fun in your life and work.

Buy the book:


About Josh Kaufman

Josh Kaufman is an acclaimed business, learning, and skill acquisition expert. He is the author of two international bestsellers: The Personal MBA and The First 20 Hours. Josh's research and writing have helped millions of people worldwide learn the fundamentals of modern business.

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