1- What is leverage

Leverage is the concept of achieving disproportionately greater results relative to the force exerted. It represents the connection between an action (input) and its consequent result (output), underpinned by a causality link. The effectiveness of a lever is quantified by the output-to-input ratio. A genuine lever exists when this ratio significantly deviates from the default or expected ratio, indicating that the input has been amplified to yield a higher output.

2- Why it is important

Understanding leverage is important for several key reasons:

1. Increased Awareness of Difficulties: Gaining insight into leverage means being more aware of potential difficulties in any endeavor, leading to better strategic planning and decision-making.
2. Focusing on High-Impact Points: Understanding where to apply minimal effort for maximum impact ensures resources are used effectively and not wasted.
3. Simplifying Execution: Leverage makes tasks and processes easier. Recognizing and utilizing leverage points streamlines complex or demanding tasks.
4. Tackling Challenges Effectively: It allows for addressing challenges and problems efficiently. By applying leverage, you can achieve greater outcomes with less direct effort.
5. Avoiding Vulnerability to Others’ Leverage: Crucially, understanding leverage includes recognizing situations where you might be susceptible to the leverage exerted by others. This knowledge helps in avoiding positions of weakness, where someone else’s leverage could adversely affect you, thereby safeguarding your interests and resources.

3- The Different Characteristics of Levers

3.1- Definitions:

The Lever: - The lever consists of two primary components: the effort arm and the resistant arm. - Effort Arm: This is the part of the lever extending from where the effort (force) is applied to the fulcrum. It acts as the conduit through which the effort force is transmitted. - Resistant Arm: This part extends from the fulcrum to the point of resistance (the load or object to be moved). It is where the lever acts upon the resistance. Fulcrum: - The fulcrum is the pivot point around which the lever rotates. It is the critical point that determines the balance of the lever and influences the amount of effort needed to move the resistance. The Effort: - The effort refers to the force applied to the lever. It is the input force used to produce movement or to lift a load. The position and magnitude of the effort influence the lever’s efficiency. The Resistance: - The resistance is the load or force that the lever is designed to overcome or move. It is the output force that is acted upon by the lever. The resistance’s position relative to the fulcrum affects how easily it can be moved by the applied effort.

3.2- How a Mechanical Lever Works

3.2.1- Mechanical Principle:

• Regardless of the type (first, second, or third class), all levers operate based on a fundamental mechanical principle. This principle involves a proportional relationship between the force required to move an object (resistance) and its distance from the fulcrum.

  • Principle of Moments: The principle states that for a lever to be in equilibrium (balanced), the clockwise moments must equal the anticlockwise moments. This is mathematically expressed as Effort×Effort Arm Length=Resistance×Resistance Arm LengthEffort×Effort Arm Length=Resistance×Resistance Arm Length.

  • Mechanical Advantage: This principle also underlies the concept of mechanical advantage, where the ratio of the length of the effort arm to the length of the resistance arm determines how much the effort is amplified. A longer effort arm relative to the resistance arm means less force is required to move a given resistance.

    4- Expanded Characteristics of Levers for Mental Model

In transitioning from the physical realm to the realm of abstract thinking and strategic application, we introduce additional characteristics to the concept of leverage. These expanded characteristics, while not present in the traditional mechanical definition of levers, play a crucial role in our mental model of leverage. They help us understand and apply the concept of leverage more effectively in diverse, non-mechanical scenarios, such as in business strategy, personal development, and social dynamics. These notions provide a nuanced understanding of how leverage works in contexts where the application is not as straightforward as in physical systems.

4.1- Fulcrum Width:

• In the mental model of leverage, ‘fulcrum width’ is a concept that represents the extent or breadth of the application point of leverage. This concept is not present in physical levers but is crucial in metaphorical contexts.
  • Implication: A wider fulcrum width implies a less efficient lever. This correlates to the real-world importance of precision and specificity in applying leverage. The right technique or approach, akin to a narrow and focused fulcrum, is more effective in exerting influence or achieving desired outcomes.

4.2- Sensitivity:

• Sensitivity in this context refers to the potential locations where a fulcrum can be effectively placed. It’s about identifying the right spots for applying leverage.
  • Application: Not all points in a situation or system are equally responsive to leverage. Some points may be insensitive or resistant to efforts. Identifying areas of high sensitivity – where the application of leverage will have the most significant impact – is crucial for the effective use of leverage in non-mechanical contexts.

4.3- Potential Energy:

• Potential energy, in the context of leverage, represents the possible impact or outcome (output) resulting from moving or influencing a resistance over a certain path.
  • Representation: This concept helps in visualizing the potential or expected results of applying leverage. It’s a way to quantify or anticipate the effect of leverage in terms of the change or outcome it can produce in a given situation or system.

5- The different types of lever

Recognizing various types of levers helps in grasping the subtleties of their mechanisms and, at times, in manipulating these mechanisms for greater effectiveness. Below are some distinct types of levers, each with its unique characteristics and real-life examples:

5.1- Double Lever

• Description: A double lever occurs when you use a lever on an entity or factor that, in turn, has leverage over something else. This indirect approach is useful when direct leverage is not possible.
• Example: Lobbying efforts in politics can serve as a double lever. By influencing policymakers who have the power to enact laws, lobbyists indirectly leverage legislative outcomes.

5.2- Technological Lever

• Description: This lever involves using technology to amplify your leverage. The integration of technology adds weight to your side of the lever, increasing your capacity to influence or change.
• Example: Automation in manufacturing is a technological lever. By automating a production line, a company can massively increase output with relatively minimal additional effort.

5.3- The False Lever

• Description: False levers create the illusion of a favorable output-to-input ratio when, in reality, you are simply exerting more effort.
• Example: Building a personal brand on social media can be a false lever. It may seem like effortless exposure, but in reality, it often requires a substantial investment of time and effort in content creation and engagement.

5.4- Feather Lever

• Description: In this scenario, the resistance is easy to move, yet moving it can yield significant benefits. These levers are commonly the initial step in a series of leverages.
• Example: Using referral programs in business. Referral programs are easy to implement, but they can significantly expand a customer base through word-of-mouth.

5.5- Inverted Lever

• Description: This lever involves exerting influence by holding onto something or someone. The threat of releasing this hold creates leverage.
• Example: In business negotiations, having exclusive rights to a critical patent puts one party in an inverted lever position. The threat of withholding these rights can significantly influence the negotiation dynamics.

5.6- Fading Levers

• Description: These levers result in diminished returns due to the involvement of multiple actors trying to influence the same target. The total impact is divided among these actors, reducing individual effectiveness.
• Example: Marketing in a saturated market can be a fading lever. As more competitors employ similar marketing strategies, the individual impact of each campaign diminishes.

5.7- Balancing Lever

• Description: A balancing lever involves a scenario where two active forces are at play. Instead of acting against a passive resistance, you engage with a force that actively counters your efforts. The key here is to maintain equilibrium or to tip the balance in your favor.
• Example: In corporate board meetings or team decision-making processes, this type of lever is common. Your influence, based on credibility, past achievements, or popularity, can tip the balance in decision-making. It’s about leveraging personal attributes or relationships to sway the group’s collective decision in a particular direction.

5.8- Mutually Beneficial Lever

• Description: This lever is characterized by a symbiotic relationship where both parties actively collaborate, each using the other as a lever to achieve their respective goals. It’s a win-win situation where the leverage of one party benefits the other and vice versa.
• Example: Business partnerships often work on this principle. For instance, a tech startup might partner with an established corporation. The startup gains market access and credibility through the corporation, while the corporation leverages the startup’s innovative technology or agility. Each party uses the other’s strengths as a lever to achieve its own goals.

5.9- Autoblocking lever

• An autoblocking lever is a lever that once unlocked will continue giving you benefits without the need to continually apply effort. It is basically all stuffs that are ever green that do not decay with time and that continue to provide benefit over time.
• Example:
  • An investment with interest rate. Once you have invested in something robust you don’t have to redo all your work on assessing the investment opportunity
  • Actor who won a price. After the hard work they have opportunity coming without doing much more.
  • Once a certain level of influence or notoriety is reached if you don’t make bad steps you can conserve your place

6- Working with lever

Recognizing the various types of levers is a crucial first step in effectively utilizing leverage. To maximize the benefits of leverage, it is equally important to understand how each characteristic influences the leverage mechanism. In this section, we will delve deeper into each characteristic, viewing them through the lens of our mental model representation of levers. This approach will help us better grasp the subtleties of the mechanism at play and, potentially, fine-tune it to enhance its effectiveness.

6.1- The Effort

Effort is the cornerstone of any leveraging action. It’s essential to remember that leveraged movement requires an initiating force. In the absence of effort, the concept of leverage becomes void. Our aim with levers should be to exert the least amount of effort necessary to surmount resistance. This effort should be considered in relation to a specific entity or group. It’s critical to differentiate between the absolute minimal effort needed for movement and the minimal effort required from your end.

6.1.1- The non linearity of output:input

The mental model of a lever aligns well with most real-world scenarios involving effort and reward. A lever becomes operational only after surpassing a certain effort threshold. Beyond this point, it continues moving with no additional effort. Often, immediate rewards are elusive, and reaping benefits typically requires surmounting a predetermined effort threshold.

6.1.1.1- Making the most of it

Evaluate the least effort required for desired benefits and gauge if you can commit to this level of effort. If it’s beyond your capacity, reevaluating your strategy is advisable.

6.1.2- Minimizing effort

The essence of leverage lies in generating more output with less input. This can be achieved by reducing our input.

6.1.2.1- Matching the effort requirement

To activate a lever, at least the minimum necessary effort must be reached. Any excess may contribute to the lever’s momentum but can quickly lead to diminishing returns. It’s crucial to recognize that leveraging could inversely impact at a certain point.

6.1.2.2- Constraining your effort level

Efficient lever are lever where your effort level is minimal. As stated previously you should not make unnecessary efforts but sometimes forcing you to minimize your effort and still assessing if you will be able to get the desired results force you to think more cleverly and find the strategy that allows minimal amount of efforts

6.1.2.3- Making the most of It

-Understand that once movement initiates, additional work may not yield proportionate benefits. Identify your position on the output=f(input) curve.

6.1.3- Minizing your effort contribution

Effort is always contextual to a system. If a system requires a certain level of effort, individual contribution can be reduced with complementary efforts to meet this threshold.

6.1.3.1- Making the most of it

Seek complementary effort sources, such as technology or delegation. Enhance efficiencies by involving more skilled individuals or boosting your own efficiency.

6.1.3.2- Protecting

Be vigilant against being an unwitting complementary effort source without proper compensation, especially in group projects. Recognize when your workload increases due to others’ lack of contribution.

6.1.3.3- example

In a coach-athlete dynamic, the athlete’s fame might eclipse the coach’s crucial role. While the athlete enjoys increased popularity, the coach’s significant contribution often remains underappreciated.

6.1.4- Building on previous efforts

Efforts are not always a one time thing. Sometimes they can be reused. This is how humanity progress is achieved by constantly using the work that has been achieved by our ancestors. If you reuse what has been done previously you effectively reduce the quantity of effort required to make the job.

6.1.4.1- Making the most of it

• Do not start by wanting to rebuild everything from scratch. First try to find if someone else has not already done what you are looking for. Could you reuse part of their job.

6.2- A moving lever

Once the requisite effort threshold is crossed, the lever should start moving, signaling the onset of benefits. Visualize this as a transfer of benefits from the resistance arm to the effort arm, facilitated by the lever’s tilt.

6.2.1- Ripping the benefits

Initiating lever movement doesn’t guarantee automatic benefits. Sometimes, there’s a metaphorical valve between the arms that needs opening to allow the benefits to flow.

6.2.1.1- example

6.2.2- First in line

In shared lever situations, those closest to the fulcrum often reap the most benefits, despite not contributing significantly to the lever’s activation. Their strategic positioning enables them to benefit first.

6.2.2.1- Protecting

When sharing a lever, ensure that others don’t unjustly reap the benefits first due to better positioning.

6.2.2.2- Example

In project teams, individuals who contribute minimally but position themselves strategically often receive disproportionate recognition, overshadowing the efforts of those who contributed more substantially.

6.3- Finding where sensitivity lies

Locating the correct points of application, or fulcrums, is essential for effectively using levers. These fulcrums aren’t omnipresent; they need to be identified for a lever to function.

6.3.1- Sensitivity exists where criticality exists

To discover where sensitivity lies, one should focus on areas of criticality. Critical points often possess an all-or-nothing property and directly influence pivotal aspects. Leveraging at points of criticality almost guarantees that you are applying force where it has the most significant impact. These critical points frequently align with the weakest links in a system, the most vulnerable parts, bottlenecks, or gateways.

6.3.2- Fulcrums in human

Humans themselves have unique fulcrums, varying from one individual to another. However, human nature has commonalities that manipulators often exploit by applying the right levers. Mastering this art involves understanding deep aspects of human psychology. We won’t delve into all possible human levers here, as it would require extensive exploration akin to a comprehensive study in psychology.

6.3.2.1- Playing on your own lever

Realizing that human psychology can be leveraged opens the possibility of applying levers to oneself. This often involves psychological tricks to motivate or persuade oneself to undertake tasks that might otherwise be avoided or neglected. It’s about understanding your psychological fulcrums and effectively using them to self-motivate or overcome personal barriers.

Breaking a lever

• If you are undergoing a lever, there is sometimes a way to break it.
• First identify the nature of the lever

Breaking it through optionality

• If you are undergoing a lever because you have no choices looking for other options is a good way to break this lever.

Example of levers

• Copycat strategy
  
  • Since you are copying someone else recipe you can try to benefit for all the work they have done to reach this step without the need to do the heavy work.
• Script kiddy
  • instead of writting the scripts by yourself you can rely on the script of other and just find those scripts and use them.
    • You will gain tremendous amount of time
• Platform
  • When you gather people and benefit from their work
  • taking a commission
• When you are restraining the options available to one person you are exercising a lever on them.
• Blackmailling is typically a type of lever