The Butterfly Effect is all about how small changes in a complex system can equal results that are virtually impossible to predict. What might seem like a very small and insignificant change in one place could result in large differences somewhere else or at a later stage. Having the same metrics and the same incentives and the same bonuses across the board in a business can be detrimental. I think it’s more beneficial to segment and measure various activities differently. One of the drawbacks with uniformly applying efficiency metrics is that it discourages innovation and risk-taking. For example, if the goal is a modest 4.5% annual improvement, individuals may avoid bold initiatives because success poses challenges and failure brings its own set of problems. Therefore, I think it’s essential to establish distinct metrics and incentives for various marketing activities as there are the things where very small changes make very, very big differences.
NB. The complexity theory recognises that economic and organisational phenomena are similar to those observed in science and in nature.