Analysing your IQ
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Small inputs can produce disproportionately large outputs when applied at the right point.
Leverage is a cognitive framework that changes how you see problems. Once you understand it, you'll notice opportunities to apply it everywhere.
Seek high-leverage activities: those where your effort multiplies rather than adds.
This model works because it strips away irrelevant detail and exposes the core structure of a problem. Most people reason by analogy ("what do others do?"); this framework forces you to think from first principles.
Writing code once that runs millions of times has more leverage than manual work.
Use Leverage when facing complex decisions with multiple variables. It's especially powerful when conventional wisdom seems wrong or when you're operating in unfamiliar territory.
Over-applying: Not every problem benefits from this model. Match the tool to the situation.
Under-applying: People learn the model but don't practice it. Application takes repetition.
Misunderstanding the principle: Surface-level understanding leads to poor execution. Study the examples.
Ignoring context: The same model works differently in different domains. Adapt accordingly.
Identify a current decision you're facing. Write down the assumptions you're making. Challenge each one.
Look at a past failure. Apply Leverage retroactively—would it have changed the outcome?
Teach the model to someone else. If you can't explain it simply, you don't understand it well enough.
Set a reminder to apply this model once per week for the next month. Track the results.
No single model handles every situation. Build a toolkit of complementary frameworks.
Mental models require specific cognitive traits to execute. Do you have the Purpose for this?
Small inputs can produce disproportionately large outputs when applied at the right point.
Seek high-leverage activities: those where your effort multiplies rather than adds.
Writing code once that runs millions of times has more leverage than manual work.
Use Leverage when facing complex decisions in the strategy domain, when conventional approaches aren't working, or when you need a structured framework for analysis.
Leverage is used by strategic thinkers, business leaders, and anyone who needs to make high-stakes decisions under uncertainty. It's particularly popular in investing, startups, and engineering.
Yes. Mental models are learnable skills, not innate talents. The key is deliberate practice—actively applying the model to real decisions, not just reading about it.