Even a group of rogues can build a civilized nation with good institutions, as exemplified by Australia. On January 26, 1788, Arthur Phillip led a fleet escorting 770 convicts to this barren land, and over the next 80 years, 160,000 British convicts were transported there, earning Australia the nickname 'the convict nation.' Today, Australia is prosperous, democratic, and free, a top destination for Chinese immigrants. Institutions determine everything. It is said that tomb raiding typically requires two people: for example, they dig a hole, one goes down to retrieve jewelry and jade, and the other pulls them up with a rope. But initially, it often happened that the person above, seeing the wealth, would abandon the partner below. So tomb raiding groups evolved to be mostly father-son teams, but even then, a son might leave his own father in the tomb. Finally, a rule was established: the son goes down to fetch the goods, and the father pulls the rope above, and never again did anyone get left in the tomb. If this is the origin of institutional design, then we might as well learn from thieves. Seven people once lived together and shared a large bucket of porridge every day. The problem was that the porridge was never enough. Initially, they drew lots to decide who would distribute the porridge, rotating daily. As a result, each week they were only full on the day they distributed the porridge themselves. Later, they elected a morally upright person to distribute the porridge. But power breeds corruption, and everyone began to curry favor and bribe him, causing chaos in the group. Then they formed a three-person porridge committee and a four-person evaluation committee, but they argued and bickered so much that the porridge was cold by the time they ate it. Finally, they came up with a method: rotate the distribution, but the distributor must take the last bowl after everyone else has chosen. To avoid getting the least, each person tried to divide the porridge as evenly as possible, and even if it wasn't even, they had to accept it. They were happy and harmonious, and life improved. The same seven people, with different distribution systems, had different atmospheres. An organization without institutional rules is dangerous. We don't need to debate whether human nature is inherently good or evil. A reasonable organizational system must have both authorization and supervision, trusting your ability while doubting your nature. I want to use institutions to stimulate the angelic side of your character and also to deter the demonic side. If only the former exists, no matter how good the system, it will eventually collapse, because 'every man for himself' is human nature. If only the latter exists, it is tyranny and cannot last, because the human desire for freedom and equality will inevitably erupt. Only the combination of both, balancing yin and yang, can ensure the healthy and positive development of organizational systems. A lawyer friend told me that he has 'lost' many friends in the past two years. This lawyer is generous and always keeps his word. As everyone knows, the legal profession charges fees upfront, but he would help friends with lawsuits or mediations first, and only charge after the matter was resolved. He said this was his sincerity to friends. But he couldn't understand why most of these friends, who had received his legal aid or other help, later became strangers. The reason was that he didn't sign an agreement or contract on fees upfront, so when he asked for payment, disputes arose, and they couldn't remain friends. Later, I suggested that he sign a contract and agree on service fees before helping friends. The purpose of signing a contract or system is to not give friends the opportunity to be bad. Clearly state upfront what costs will be incurred, what is a favor, and what is work responsibility. Being upfront prevents friends from trying to renege. On one hand, it's agreed in advance; on the other, even if they renege, the contract serves as legal evidence. This makes the other party cautious and afraid to 'play' the villain. This way, friendship can last. Human desires are unlimited, and the goodness or badness of nature changes with time. Only by clarifying the responsibilities, rights, and interests under clear roles, and having an organizational system to supervise, can people fully utilize their abilities and create a harmonious environment. There was a court chief judge in a county. He was diligent and responsible, impartial in law enforcement, and especially refused to show favoritism or accept any requests. Anything that violated legal justice, he ignored. As a result, he offended many people. These people spread baseless rumors, and some leaders often came to his office for 'spot checks.' Since he often visited parties or went out for out-of-court mediation, he was frequently found to have the 'shortcoming' of being away from his post. So, in the year-end personnel adjustment, he was removed from his position and assigned a sinecure in the court. This personnel adjustment was a great blow to him and prompted him to reflect on his actions. Gradually, he realized some 'truths': more work, more mistakes, more offenses. So, he started coming and going on time, sitting in his office all day, drinking tea, reading newspapers, and playing computer games. Unexpectedly, the public's opinion of him improved, and leaders praised him for being punctual, seemingly changing their view of him. Good institutions can prevent bad people from doing bad things, while bad institutions can turn good people bad. Only good institutions can prevent good people from having the chance to become bad. (Source: Insight) Editor's Note: The editor has selected 1,067 quality articles from nearly 1,900 published on this official account, categorized into 14 major categories and 57 knowledge points, systematically compiling frontline marketing management content into a library for your learning. From market to customers, covering practical combat and management, all are pure干货. 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