This segment explains Ken Beck's 3x framework (Explore, Expand, Extract), illustrating how the majority of a product's business value is accrued during the Expand and Extract stages. The speaker emphasizes the importance of understanding this framework for strategic decision-making and resource allocation, highlighting that most products fail to reach the Expand stage, let alone the Extract stage. The visual representation of the time axis to scale and the area under the curve representing business value is crucial for grasping the concept. Evaluate PMs based on product stage (explore, expand, extract). Performance should be assessed across insight, execution, and impact, with weighting adjusted by stage. Explore prioritizes insight; expand balances insight and execution; extract emphasizes impact. This framework allows for objective scoring and avoids rigid OKR dogma. This segment introduces a three-dimensional framework for evaluating Product Manager (PM) performance: Insight, Execution, and Impact. It emphasizes that evaluating PMs requires considering their understanding of the product, users, customers, and domain (Insight), their ability to translate that understanding into strategy and proposals, and their delivery on high-priority initiatives (Execution). The speaker highlights the importance of judgment in assessing these aspects and the need to move beyond simply measuring shipping velocity.