Sometimes simple stories have deep lessons. “Goldilocks and the Three
Bears” is a popular story for children, but it also has a hidden
productivity lesson for all of us.
We all know about Goldilocks and the porridge. When she tried the
first bowl, it was too hot. When she tried the second bowl, it was too
cold. And of course, the third bowl was just right. It was perfectly
obvious, even to her, that “just right” is what any reasonable person
should be after.
Maximum sustainable output
There’s a concept in economics known as the maximum sustainable
output. A country’s maximum sustainable output is the highest level of
output it can sustain in the long run. It’s not a hard limit on output,
and in fact a country can easily raise its output above this level. A
common situation for this is during wartime, when a country may ramp up
production dramatically to support the war effort.
However, if the maximum sustainable output is exceeded, the output
has to come crashing down at some point (after all, by definition, that
level of output is not sustainable). After this happens, the country has
to slog through a long period of low output. The worst part is that the
bust is always bigger than the boom.
During periods of high output, everything looks great. Everyone is happy and optimistic that the situation will last forever. But when reality sets in and output plummets, everyone is miserable, and they wonder why they allowed things to overheat in the first place, since they ended up paying a steep price for it.
During periods of high output, everything looks great. Everyone is happy and optimistic that the situation will last forever. But when reality sets in and output plummets, everyone is miserable, and they wonder why they allowed things to overheat in the first place, since they ended up paying a steep price for it.
In the long run, a country gets the highest level of output overall
by always staying as close as possible to the maximum sustainable
output. There won’t be any periods of miraculous productivity, but there
also won’t be any periods of awful stagnation. Not too hot, not too
cold, but just right.
How it applies to us
This concept applies to people as well, because we all have our own
level of maximum sustainable output, whether we’re aware of it or not.
Let’s say you have a big project you’re working on, and you just have
to finish it on time at any cost. You can certainly put forth a
tremendous effort and send your productivity through the roof. You can
put other things on hold, drink lots of caffeine, and burn the candle at
both ends, achieving far more than you normally would. But what goes up
must come down.
After you burn out and come crashing down, you’ll have to pay the
price with a period of reduced productivity. Maybe you’ll need to take
some time off to recover, or maybe you’ll be less motivated to work
efficiently, or maybe you’ll be scared off from attempting a project of
that magnitude for a long while. Unfortunately, you pay more during your
crash than you gained during your productive period.
The ideal solution
If your productivity engine is too hot, you’ll eventually crash and
burn. If it’s too cold, you’re doing less than you’re capable of, and
leaving output on the table. The way you stay the most productive in the
long run is by consistently working at your maximum sustainable output,
that magical “just right” level in between “too hot” and “too cold.”
Make sure you don’t bite off more than you can chew, since you’ll
have to pay for it later. At the same time, you don’t want to take on
too little, or you’re letting your capabilities go to waste. If you have
control over your work, be sure to keep your workload steady. If
someone else determines your workload, be honest with them about how
much you can handle. After all, if Goldilocks knew the difference
between “too hot” and “too cold,” we should too.
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