2min snip

Lenny's Podcast: Product | Growth | Career cover image

Shreyas Doshi on pre-mortems, the LNO framework, the three levels of product work, why most execution problems are strategy problems, and ROI vs. opportunity cost thinking

Lenny's Podcast: Product | Growth | Career

NOTE

The Pitfalls of the ROI Mindset

The ROI mindset can be counterproductive, especially in high-leverage roles. It encourages a focus on reducing time spent on tasks to improve the ratio of value created to time cost. This often leads to prioritizing quick wins over more impactful opportunities, which can neglect higher-value activities. The tendency to seek low-hanging fruit might fill one's schedule but may also minimize the potential for greater achievements. A shift towards considering opportunity cost—evaluating the difference between the value of the optimal task versus the task chosen—enhances decision-making. This perspective transforms the question from 'Is this a good use of my time?' to 'Is this the best use of my time?', driving individuals and teams to prioritize truly valuable work over merely expedient actions.

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