5x1: Who pays the price for your productivity? | April 9th, 2025

by Monti Pace

The​ 5x1 newsletter​ is a concise and insightful resource around a simple concept: systems achieve goals.

sys·tem [ˈsistəm]
a set of things working together as parts of a mechanism or an interconnecting network.
a set of principles or procedures according to which something is done; an organized framework or method.

1 x Principle of Systemization

Externalities: When we design systems, we typically focus on the direct outputs and outcomes we're trying to achieve. But every system, no matter how well-designed, creates ripple effects that extend beyond its boundaries — what economists call "externalities."
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Externalities are the unintended consequences, both positive and negative, that spill over to affect people, environments, or systems that weren't part of the original design consideration. In traditional economics, externalities explain market failures when costs or benefits aren't reflected in prices. But this concept applies far beyond economics to every system we create.
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Consider a system to increase your personal productivity: you might implement time-blocking to boost focus and output, but this could inadvertently create stress for colleagues who now receive more tasks from you or feel pressured to match your accelerated pace. That stress is a negative externality — a real cost that doesn't appear in your productivity metrics.
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Identifying externalities requires expanding your perspective to see how your system interacts with adjacent systems. Effective system designers think in terms of interconnected ecosystems rather than isolated mechanisms.
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They ask questions like:

• Who else might be affected by this system, either positively or negatively?
• What second-order effects might emerge over time?

How might my optimization in one area create imbalances elsewhere?
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By acknowledging externalities, we can design more holistic systems that not only achieve their intended goals but also create positive ripple effects and minimize harmful ones. This broader awareness allows us to build systems that serve not just their direct purpose but contribute to the health of the larger systems they exist within.

1 x Systemization Quote

"We never design in a vacuum. Even our best solutions can create unintended consequences—unless we intentionally widen our lens." — Rita McGrath, The End of Competitive Advantage

1 x Reflection Question

What’s something you’re proud of optimizing—where, if you’re honest, someone else quietly paid the price? What system-level choice did you make that created lift for you… but drag for someone else?

1 x Personal System Idea

Mental Load Management: Most homes operate with invisible imbalances in who absorbs the mental and emotional costs of daily life. This simple system makes those externalities visible and addressable without creating ongoing administrative overhead.
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The concept is straightforward: For one week, each household member gets a small stack of index cards (or a shared digital note). Whenever someone performs a task that creates positive externalities for others or absorbs negative externalities that would otherwise affect the household, they jot it down.

These aren't just chores, but the invisible work that often goes unnoticed:

• Researching and scheduling doctor appointments
• Remembering family birthdays and organizing gifts
• Monitoring household supplies and making shopping lists
• Managing social calendars and coordinating with friends
• Noticing emotional needs of household members
• Planning meals that accommodate everyone's preferences
• Arranging home maintenance

After a week, set aside 30 minutes for everyone to share their cards. The goal isn't to compete or complain, but to make visible the previously invisible flows of energy and attention. This one-time activity often reveals surprising patterns that can lead to simple system adjustments:
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• Reallocating specific responsibilities based on newly revealed imbalances
• Creating shared calendars or lists for previously "invisible" tasks
• Establishing clear ownership for tasks that were falling through the cracks
• Expressing appreciation for previously unacknowledged contributions
• Identifying tasks that could be eliminated, automated, or outsourced

The beauty of this system is that it requires just one week of attention to generate insights that can improve household dynamics for months. It addresses the common problem where even well-intentioned household systems often create unfair externalities because they focus solely on visible tasks while ignoring the mental and emotional labor that powers daily life.

1 x Business System Idea

Meeting Spillover Buffer: This simple system prevents the negative externalities caused by meetings that run over their scheduled time. It addresses both the time theft from subsequent meetings and the mental stress of constant rushing.

Implementation:

• 25/50 Rule: Schedule standard meetings for 25 or 50 minutes instead of 30 or 60. This built-in buffer acknowledges the externality of transition time between commitments.
• Hard Stop Culture: Begin meetings by explicitly stating, “We have a hard stop at X:25 to respect everyone’s time.” Then actually enforce it, even mid-conversation.
• Agenda Right-Sizing: When creating meeting agendas, estimate time requirements and then cut them by 20% to avoid the common externality of agenda overflow.
• Decision Time-Box: For decision-making meetings, allocate the bulk of time to discussion but explicitly reserve the final 5 minutes for decision documentation, preventing the common externality of ambiguous outcomes.
• Flexible Attendance Protocol: Implement a standard message for meeting invites: “If this meeting conflicts with your priorities, feel free to decline or leave early. We’ll share notes with everyone.” This acknowledges that mandatory attendance creates significant externalities for participants.

Unlike complex meeting systems requiring extensive documentation or preparation, this approach creates immediate positive externalities across your organization by simply building respect for others’ time directly into your meeting structure. It requires minimal overhead while dramatically reducing the ripple effects of meeting mismanagement that cascade throughout the workday.