At the recent, excellent Law 2030, Vijay Govindarajan observed, “There is only so much Six Sigma you can do.” Despite my affinities, I concur. Low baselines can have an outsized impact on the efficacy of interventions—but then baselines stop being low.
Consider buying a car with an eye towards better gas mileage.
Which technological leap saves more gas? Improving a car’s miles per gallon (i) from 10 mpg to 20 mpg or (ii) from 20 mpg to 100 mpg?
Put another way, from the perspective of gallons saved, what is the ‘bigger improvement’ (i) +10 mpg/2x or (ii) +80 mpg/5x?
Since I’m asking the question, you already surmised the answer is counter intuitive:

One simple takeaway is that once you cut something in half, there is nothing you can do, save eliminating it entirely, that will ever again deliver the same raw level of improvement.
In the legal context, for example, we have good reason to accelerate contract review. Start with a standard review that averages 20 minutes and reduce it by 60% through basic interventions (harmonized templates, checklists, playbooks, deviation matrices, etc.). You save 12 minutes per contract. Next, throw on some razzle dazzle AI that reduces average review time by another 60%. You save less than 5 additional minutes. That’s not nothing, especially with large volumes. But it comes at a cost, including the opportunity cost of addressing other chokepoints, constraints, and rate-limiting factors. Continue Reading The Limits of Incremental Improvements









