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The Mattel Law The Mattel Law, also known as the 80/20 rule, suggests that business operators should focus on the key 20% rather than trying to cover everything. From a human resources perspective, managers should concentrate on the 20% of employees who are core performers, driving the majority with this minority to improve efficiency. From a marketing standpoint, focus on the 20% of key products and customers to achieve maximum impact. In financing, invest limited funds in the 20% of key projects to optimize capital allocation and improve efficiency.
The Davido Law Named after Intel's vice president Davido, this law states that to maintain market dominance, a company must always be the first to develop new products and the first to eliminate its own. It emphasizes the importance of being first to market to gain larger share and higher profits. Intel follows this law by always being the developer and advocate of microprocessors, even if their products aren't the fastest or best, they are always the newest. This law reveals the secret to success: continuously innovate, phase out old products, establish new markets and standards, and achieve mass production and high profits.
Murphy's Law Originating from a 1949 U.S. Air Force study on the effects of rapid deceleration on pilots, Murphy's Law states: if something can go wrong, it will, no matter how small the possibility, and it may cause greater losses. The law was coined after engineer Edward Murphy discovered that electrodes in a harness were all placed incorrectly, leading him to remark that if there are two or more ways to do something, and one leads to disaster, that one will be chosen.
The Veblen Effect A pair of leather shoes of similar style and quality might sell for 80 yuan in an ordinary store but several hundred yuan in a department store, yet people still buy them. Items like 16,600 yuan eyeglass frames, 68,800 yuan commemorative watches, and 1.68 million yuan top-tier pianos often sell well despite their high prices. Consumers buy such goods not just for material satisfaction but for psychological fulfillment. This phenomenon, first noted by economist Thorstein Veblen, is called the Veblen Effect: higher prices can increase consumer desire. As incomes rise, consumption shifts from quantity and quality to taste and style, and the Veblen Effect emerges when consumers can afford such emotional purchases. Understanding this effect can help businesses explore new strategies.
The "Ong Mary" Effect This educational psychology term refers to giving learners the psychological suggestion that they are capable and can do better, helping them recognize their potential and build confidence. When praised, individuals naturally strive for improvement to adapt to work demands, while those not praised are also given the hint that opportunities will come if they work hard.
The Hawthorne Effect At the Hawthorne Works factory in Chicago, despite good facilities, medical care, and pensions, workers were dissatisfied and production was poor. In 1924, a research team conducted experiments, including a "talk test" where workers were individually interviewed over two years, with over 20,000 interviews. Workers were allowed to express complaints freely without rebuttal. This led to a significant increase in production, as workers felt relieved and motivated. This phenomenon is called the Hawthorne Effect. The lesson: people have countless desires and emotions, but few are fulfilled. Suppressing unfulfilled ones is harmful; instead, let them out for better mental and physical health and productivity.
The Bucket Law The Bucket Law states that a bucket's capacity is determined by its shortest plank. In any organization, the weakest part often determines overall performance. Unlike the wine and sewage law, which deals with destructive forces, the shortest plank is a useful part, just less capable. Strength and weakness are relative and cannot be eliminated; the question is how much weakness you tolerate. If it becomes a bottleneck, action is necessary.
The Hedgehog Principle Two cold hedgehogs huddle together but prick each other, so they move apart, then get cold and come back, eventually finding a comfortable distance to share warmth without being pricked. This illustrates the "psychological distance effect" in interpersonal relations. Leaders should maintain appropriate distance with subordinates—neither aloof nor too familiar.
The Matthew Effect In the Gospel of Matthew, a king gives three servants money to invest. The first earns tenfold, the second fivefold, and the third hides it. The king rewards the first with cities and takes the third's money to give to the first, saying, "For to everyone who has, more will be given; from him who has not, even what he has will be taken." This reflects the phenomenon of "the rich get richer." For business, to maintain an advantage, you must quickly become dominant in a field. Once a leader, you can easily gain more than weaker competitors even with the same ROI. If you can't quickly dominate, keep seeking new areas to ensure good returns.
The Washington Cooperation Law This law states: one person does a perfunctory job, two people shift responsibility, and three people never get anything done—similar to the story of "three monks." Cooperation is not simple addition but complex and subtle. If each person's ability is 1, ten people's cooperation can be greater than 10 or even less than 1. People are like energies in different directions; when aligned, they multiply results, but when conflicting, they achieve nothing.
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