Distilling the capabilities from a large reasoning model (LRM) to a smaller student model often involves training on substantial amounts of reasoning data. However, knowledge distillation (KD) over lengthy sequences with prompt (P), chain-of-thought (CoT), and answer (A) sections makes the process computationally expensive. In this work, we investigate how the allocation of supervision across different sections (P, CoT, A) affects student performance. Our analysis shows that selective KD over only the CoT tokens can be effective when the prompt and answer information is encompassed by it. Building on this insight, we establish a truncation protocol to quantify computation-quality tradeoffs as a function of sequence length. We observe that beyond a specific length, longer training sequences provide marginal returns for downstream performance but require substantially higher memory and FLOPs. To this end, training on only the first 50% of tokens of every training sequence can retain, on average, ≈91% of full-sequence performance on math benchmarks while reducing training time, memory usage, and FLOPs by about 50% each. Codes are available at https://github.com/weiruichen01/distilling-the-essence.

Large language models (LLMs) have demonstrated remarkable performance across a wide range of industrial applications, from search and recommendation systems to generative tasks. Although scaling laws indicate that larger models generally yield better generalization and performance, their substantial computational requirements often render them impractical for many real-world scenarios at scale. In this paper, we present a comprehensive set of insights for training and deploying small language models (SLMs) that deliver high performance for a variety of industry use cases. We focus on two key techniques: (1) knowledge distillation and (2) model compression via structured pruning and quantization. These approaches enable SLMs to retain much of the quality of their larger counterparts while significantly reducing training/serving costs and latency. We detail the impact of these techniques on a variety of use cases in a large professional social network platform and share deployment lessons, including hardware optimization strategies that improve speed and throughput for both predictive and reasoning-based applications in Recommendation Systems.