Alloconomy 9 Oct 2026 3 min read

A Useful Map Does Not Need Every Pebble

Start with the work that matters. A simple map of delivery, streaming or software can teach more than a huge spreadsheet nobody can explain.

By Sathya Narayanan

A simple map: ask by choosing a decision, measure a few relevant activities, and check against real work. Keep detail when it changes understanding or action.

Foundations · Mental model 10

Follow the work: ten simple ideas

Start hereThe ten-idea cheat sheetA simple map of the work behind a price.
Idea 1Costs follow workConnect a customer promise to the tasks behind it.
Idea 2Different levels of workFind what makes an activity repeat.
Idea 3Averages hide differencesCompare equal shares with actual use of shared work.
Idea 4Choose a useful measureMatch the measure to the activity it explains.
Idea 5Available and used capacitySeparate available time from time used by customers.
Idea 6Extra steps add upBuild a job from its ordinary steps and additions.
Idea 7Follow the customer journeyLook at the help before and after a sale.
Idea 8Ask what actually changesCompare the money that changes under a decision.
Idea 9Use the time you freeTurn faster work into a chosen benefit.
Idea 10Keep the model usefulCurrent essayMeasure enough to support the decision, then improve it.

A map helps you get somewhere

Maya draws a map from home to the library. She includes the streets, a crossing and the library door. She does not draw every leaf on every tree.

Her map leaves things out, yet it helps Mayan arrive. A useful cost model works the same way. It should include enough detail to explain the work and support the decision.

Collecting information also takes time. If people spend all afternoon recording tiny differences, the model itself has become another job.

1 · ASK: Choose a decision: What are we trying to improve?; 2 · MEASURE: Follow a few activities: Use clear, fitting measures; 3 · CHECK: Watch real work: Add detail when it matters — Keep detail that changes understanding or action. Numerical examples are illustrative; actual business economics require case-by-case analysis. Open full-size infographic.

Start with one useful question

Imagine a small subscription app whose support team is overloaded. The owner wants to know where the team's time goes.

A first study might separate three activities: helping customers get started, answering everyday questions and fixing billing problems. For a short sample, the team records minutes spent in each group.

Suppose the sample shows 60 minutes on setup, 30 on everyday questions and 10 on billing. Setup deserves a closer look. Perhaps one confusing step is causing repeated calls.

The study does not need 200 categories to reveal that lead. Nor should the owner assume one small sample describes every future week. Watch more real work as needed and update the map when the process changes.

Put the ten ideas together

First, state the decision. Then name the customer promise and the activities it creates. Notice whether each activity happens per item, per group or for the service as a whole.

Choose measures that fit the work. Use them to compare resource use instead of assuming equal shares. Show available and used capacity separately when that distinction matters. Include the extra steps and the whole customer journey relevant to the question.

Before taking action, ask what money and work would actually change. If time is freed, choose what to do with it. Finally, keep only the detail that helps explain or improve the decision.

Try the map in another business

For a Prime example, begin with separate paths for delivery, video and music. One membership count is too broad for all three.

For YouTube or Netflix, decide whether you are studying content work, delivery of viewing sessions or account support. For YouTube, also distinguish a creator's business from the platform.

For Walmart fulfillment, separate storage, packing and returns. For DoorDash, separate the platform, merchant and Dasher. For hotel listings, separate listing checks, bookings and support. For SaaS, separate setup, running the app and helping customers.

These are starting maps, not complete models of those companies. The real work should tell us what to add next.

Try it

A shop wants to reduce the time spent correcting wrong addresses. Which is more useful first: recording the colour of every package, or counting address corrections and the minutes they take? Answer: corrections and minutes. They connect directly to the decision.

Carry this idea: a model earns its detail by helping someone understand the work or choose a better action.

Source

IMA: Implementing Activity-Based Costing provides a practical implementation framework. The simple starting maps and examples above are our teaching synthesis.

← Use the time you free