“Related to scale, most important real-world results are subject to an eventual decrease of incremental value. A good example would be a poor family: Give them enough money to thrive, and they are no longer poor. But after a certain point, additional money will not improve their lot; there is a clear diminishing return of additional dollars at some roughly quantifiable point. Often, the law of diminishing returns veers into negative territory – i.e., receiving too much money could destroy the poor family.” —Shane Parrish
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“When you focus on improving the same product area, the amount of customer value created over time will diminish for every unit of effort.
How it’s useful
Assuming you are effectively iterating the product based on customer feedback and research, you will eventually hit a point where there’s just not that much you can do to make it better. It’s time for your team to move on and invest in something new.”
— Brandon Chu
Source:
Shane Parrish’s Farnam Street Mental Model Guide – https://www.farnamstreetblog.com/mental-models/
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Product Management Mental Models for Everyone – https://blackboxofpm.com/product-management-mental-models-for-everyone-31e7828cb50b
Product Management Mental Models for Everyone
