One Level Higher
When dealing with a system, start by identifying the highest level to optimize at. The higher the level you optimize at, typically the greater your return-on-investment.
Useful When
- You want to avoid spending years making small improvements when a higher level optimization could yield bigger results
- You want to think about the bigger picture and not get caught up in optimizing small details
About
This framework helps us figure out which systems in our lives are worth improving.
A system can be a process (maintaining a romantic relationship, economic growth), business (sports team, start-up, store), machine (rocket, car), or a state of being (health, happiness).
When dealing with systems that significantly impact your life, it’s critical to start by identifying the highest leverage level to optimize at.
Examples
You can spend years to earn a small raise or switch jobs and get an instant salary boost. Think about it like this: Your job is the machine while your salary is a cog in the machine.
If your goal is to get a bigger paycheck, optimizing the machine (your job) might be more worthwhile than improving the cog (your salary) inside the machine.
You can go even further and think about the job market as a cog in a larger machine. That machine is earning a living. Maybe there are other ways to achieve financial stability without 9 to 5 – moving cities to lower the cost of living, starting a company, or investing?
Always ask yourself if you’re optimizing at the highest level?
