butterfly effect In the 1970s, an American meteorologist named Lorenz explained the theory of air systems by saying that if a butterfly's wings flapped occasionally in the Amazon rainforest, it might trigger a tornado in Texas two weeks later. The butterfly effect states that even small changes in initial conditions can lead to drastically different future states. Some small things can be ignored, but if a system amplifies small things, it can be very important for an organization or a country, and it cannot be ignored. frog phenomenon If you put a frog in a hot pot directly, because it is sensitive to the bad environment, it will jump out quickly. If you put a frog in a cold pot and gradually raise the temperature, the frog will not jump out immediately because the water temperature will eventually reach a point where it cannot tolerate it, causing it to die because it has no time or ability to jump out. The frog phenomenon tells us that some sudden events are easily alarming, but the ones that lead to death are when there is a gradual worsening of the situation without a clear awareness. crocodile rule The original meaning is that if an alligator bites your foot, if you try to pull your foot free, the alligator will bite your foot and hand simultaneously. The more you struggle, the more it bites you. So, if an alligator bites your foot, the only way is to sacrifice one foot. For example, in the stock market, the crocodile rule is: when you find that your trading is diverging from the market direction, you must stop loss immediately, without any delay or illusion. fish effect Previously, the survival rate of sardines in transport was low. Later, someone discovered that if a catfish was added to the sardines, the survival rate would increase significantly. Why is this the case? The catfish, after arriving in a new environment, is 'restless' and wanders around, which is undoubtedly beneficial for the quiet sardines. The sardines realized that the 'distant relative' was very nervous and accelerated its movement. This helped solve the problem of sardines suffocating, and the sardines didn't die. herd effect The head sheep goes wherever it goes, the following sheep will follow it.The herd effect is a term used in stock investment, referring to the fact that investors have a learning and imitation phenomenon in the process of trading, 'learning by example', and blindly following others, which leads to them buying and selling the same stocks in a period of time.hedgehog rule Two sleepy hedgehogs huddled together for warmth. But because they both have spikes, they moved a short distance apart, but they were still cold, so they came together. After several twists and turns, the two hedgehogs finally found a suitable distance: it can provide each other with warmth without being poked, The hedgehog rule is mainly a 'psychological distance effect' in interpersonal relationships. watch rule The watch rule is that when a person has one watch, he can know the current time. When he has two watches, he cannot determine the exact time, and the two watches will not make him more confident in the accuracy of time. In enterprise management, the watch rule gives us a very intuitive inspiration: we cannot simultaneously adopt two different methods for one person or one organization, we cannot set two different targets for one person or one organization, otherwise, this enterprise or individual will be confused and unable to act. window crack theory If the windows of a house are broken and no one repairs them, it will not be long before other windows are broken. If a wall has some graffiti that is not cleaned, it will soon be full of messy things. If a clean place does not want to throw away garbage, people will not be embarrassed to throw it away, but once there is garbage on the ground, people will not hesitate to throw it away.Pareto's law (20/80 rule) In the late 19th and early 20th centuries, Italian economist Pareto observed that in any set of things, the most important ones make up only 20%, while the remaining 80% are secondary, even though they account for the majority, Pareto's law tells us not to analyze and treat problems evenly. In enterprise management and operation, we should focus on the key few; we should find the key customers who account for 80% of the profit, and strengthen service to achieve double-effect results. Leaders should carefully classify and analyze problems, and focus on solving the main problems and projects. bucket theory If the planks in the bucket are of different lengths, the amount of water the bucket can hold will depend on the shortest plank.
