This principle is very ideally suited for an IT chip maker like Intel. The existing competitors’ can try to match the speed of the processor or the cost. It would be a brave heart who can try to meet both the parameters. By the time the competitors’ R & D department works out the solution and can come with a processor which can match speed and the cost the target has already moved. INTEL by that time will release a processor twice the speed and at half the cost. Talk about double whammy!
Iceberg principle: Iceberg principle states that an iceberg hides more than what it reveals. A floating iceberg looks very small and can fool anyone into thinking that it is very small. Same is the case with any feedback and control mechanism. One should not blindly depend on the data and should probe deep enough to see if anything is being hidden beneath the apparent truth.
Murphy’s Law: Very famous principle. It says “what can go wrong will go wrong”. What is not said in the principle is "finally". We are all eternal optimists; we take too many chances and believe in our luck factor. One may come late to the college every day and it does not matter at all. But the day when we are late to a job interview – the interviewer does not allow that person to take the interview. We need to understand that every day and every occasion has to be treated as if it is the only day or occasion that we are living for. In the modern world one does not get a second chance.
Peter’s principle: Peter’s principle says “every person will rise to the level of his/her incompetence in an organization”. Hold on!. The principle says incompetence and not competence as it is popularly believed. What the principle says is that one can’t be promoted beyond one’s incompetence. That is a person’s incompetence decides his/her rise in the organization. For example a sales manager might be very good in selling but not have skills in administration, finance and Human Resource Management. So the sales manager can’t be promoted unless he gets more skills and knowledge or in other words he/she has to increase his/her level of his/her incompetence.
Pareto’s law: also called the 80-20 principle. Pareto’s principle says that 20% of the activities take 80% of the time and that the rest of the 80% of the activities take-up 20% of the time. Or 20% of the customers give 80% of the orders and the other 80% of the customers give only 20% of the orders. So to control the maximum activities or to maximize orders it is better to concentrate on the 20% of the activities or 20% of the customers.
Time will expand to cover the job: Human beings are very adaptable. We tend to expand the job so that it expands to cover the time. In simple words if the boss gives us one week we would take one week to finish the job, fifteen days if fifteen days are given and one day if only one day is given. In other words do not procrastinate and try to finish the job as early as possible and do not keep anything pending.
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