Maximise Marginal Returns: Focus on the Next Step

Marginal returns are about the impact of your next action. High-impact people focus on the actions that yield the most improvement. Low-impact people spread effort evenly and hope for results.

In any role—product, finance, or personal growth—effort is limited. The difference between average and exceptional outcomes is often the next step you take. High marginal gains compound; small, wasted actions do not.

This isn’t just about efficiency—it’s about leverage. Identify the points where your effort has the highest payoff, double down, then measure. Repeat. Over time, the difference is huge.

I first learned the power of marginal gains from Michael Mauboussin’s writing; his work goes deeper if you want more detail.