Why Things Get Worse Before Getting Better: The J-Curve | Future IQ
Concepts in this episode
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J-Curve mental-model
An improvement can make outcomes worse at first, then better as the change takes effect. Expecting the initial dip helps prevent abandoning a useful change too early.
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Complementary changes mechanism
A new technology may underperform when the surrounding organization is still designed for the old one. Its benefits emerge when those supporting arrangements change too.
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Local maxima mechanism
Moving from a good current state to a better one may require a temporary decline. The path to a higher peak can pass through a valley.
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Transition costs mechanism
A replacement system requires investment before it delivers returns, while the old system must still be maintained. Running both at once makes the transition temporarily more costly.
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Learning Curve mechanism
Repeated specialization can lower the cost of production because focus and repetition improve how the work is done. The learning curve is the compounding efficiency gained by doing a narrower task again and again.
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