Lenny’s Top Business Books - Deepstash
Lenny’s Top Business Books Collection

A DEEP DIVE INTO

Lenny’s Top Business Books

Essential reads for entrepreneurial growth, curated by Lenny Rachitsky.

133 key ideas from

9 books

It takes just

18 mins to read

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Skills

Overview

Key Ideas

FAQ

What you'll learn

Improve operational efficiency using the Theory of Constraints

Effective leadership and team management for high performance

How to utilize market segmentation for targeted product adoption

Foster open communication and constructive feedback.

Ideas from books, podcasts, videos & articles

The Goal

The Goal

High Output Management

High Output Management

Crossing the Chasm, 3rd Edition

Crossing the Chasm, 3rd Edition

Radical Candor

Radical Candor

Obviously Awesome

Obviously Awesome

Influential people you will learn from

Eliyahu M. Goldratt

Eliyahu M. Goldratt

Jeff Cox

Jeff Cox

David Whitford

David Whitford

Andrew S. Grove

Andrew S. Grove

Geoffrey A. Moore

Geoffrey A. Moore

3 Top Key Ideas (133 total)

The Premise

Productivity is the act of bringing a company closer to its goal. Every action that brings a company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive.

Productivity is not about getting more done in less time. It’s about getting the right things done. The right things are those actions that move you or your company closer to the goal.

The Goal of A Business

In business, you have three primary levers – net profit, return on investment, and cash flow. You want all three levers to move in the right direction. A common mistake is optimizing for one of these metrics, which may inadvertently make one or both of the other metrics go in the wrong direction. 

It’s important to view your business as a system, and the system improves when you move the three metrics the right way.

Throughput, Inventory, and Operating Expense

In a warehouse setting, throughput, inventory, and operating expenses are proxy metrics that represent net profit, return on investment, and cash flow, the three levers of a business.

Throughput: the rate at which the system generates money through sales.

Inventory: Inventory is all the money that the system has invested in purchasing things which it intends to sell.

Operating expense: Operational expense is all the money the system spends in order to turn inventory into throughput.

The goal is thus to increase throughput while simultaneously reducing both inventory and operating expense

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