Negative Leverage: How Automation Can Drain Resources

Negative leverage occurs when non-essential activities are automated, silently draining resources from what's essential. For example, the speaker shares a personal story of subscribing to an online service that unexpectedly increased its prices and went unnoticed for months. This highlights the danger of automated subscriptions. The concept of negative leverage goes beyond finances and can manifest in relationships and teams. Hiring the wrong person or ignoring a team member causing conflicts are examples of negative leverage that multiply adverse effects over time.