Optimization
This is a preview of a concept contained in The Personal MBA by Josh Kaufman, a book that will help you master the fundamentals of business, hone your business instincts, and save a fortune in tuition. The Personal MBA distills the most powerful principles of business and delivers them quickly and concisely. Order your copy now…
What is “Optimization”?
“Premature optimization is the root of all evil.” — Donald Knuth, computer scientist and former professor at Stanford University
Key Points:
- Optimization is the process of maximizing the output or minimizing the input of a system.
- Maximization focuses on the system’s Throughput. Changing the system so it increases its Throughput means it’s performing better.
- Minimization focuses on the system’s inputs. For example, by minimizing your costs, you will increase your Profit Margin.
- You can’t Optimize multiple variables of a system at once. Focus your efforts on one until you understand how the changes you make will affect the system.
Questions for Consideration:
- What single output are you trying to maximize?
- How can you increase the output without overly compromising the system’s flexibility and resilience?
Share this concept: http://book.personalmba.com/optimization/
True leaders aren’t made by business schools – they make themselves, seeking out the knowledge, skills, and experiences they need to succeed. Read this book and you will learn in one week the principles it takes most business professionals a lifetime to master. Buy The Personal MBA by Josh Kaufman now.








