Measures of differentiation are the product of disproportionate returns. Not the standard 1 = 1, but 1 = 1(x). It’s the simple law of compound interest, generating outputs that exponentially outnumber the inputs that produced the returns.
In a mathematical framework, it’s easy to understand this basic concept with an investment example. You invest money, earn interest on it, and then earn interest on both your principle and your interest. Without additional effort, your returns become increasingly larger as time passes.
The same applies to our work. If we focus on things with the highest immediate value, we might be missing out on the real returns. Sure, our rate of output might be high, but it will always be contingent on the same efforts and the same inputs to produce the same consistent result. If we, on the contrary, look for opportunities to leverage our inputs with disproportionate outputs, we are on the way to generating returns without the need for marginal increases in input.
In the context of work, this comes as autonomy. Autonomy in where we work, when we work, and even how we work. The further we can move from instruction and closer towards autonomy and independence, the greater the opportunity to leverage our inputs and set ourselves up for future success. Even at an immediate cost, this approach will ultimately pay off handsomely in the future. Instead of short-term incentives, let’s double-down on where we can leverage our skills beyond our capacity.
“Whenever you can in life, optimize for independence rather than pay. If you have independence and you’re accountable on your output, as opposed to your input—that’s the dream.”
— Naval Ravikant