The term “butterfly effect” was coined by meteorologist Edward Lorenz, who
discovered in the 1960’s that tiny scale changes to the starting point of his computer
weather models resulted in anything from sunny skies to violent storms—with no
way to predict in advance what the outcome might be.
The Butterfly Effect means that simple and small actions leads to larger results or
rewards. The concept referred to as the butterfly effect is often used to emphasize the
significance of minute occurrences. The principle is explained usually this way –
If a small butterfly flaps its wings, the changes that it makes to the air and environment
around it could eventually cause a typhoon.
The Butterfly Effect is the phenomenon where a little shift in the first conditions may
pile up as time passes, and finally create and cause a larger effect. When we look
deeper into the Butterfly Effect, we understand that little, inconsequential activities
can influence or advance into incredible outcomes. In short, butterfly effect can have
both positive and negative outcomes so it always necessary to ensure that the results
turn out to be positive.
The greater part of the worldwide firms are currently presenting little changes in their
firm through innovation, promoting blend techniques, and driving production on a
huge size of greatness to determine a significant impact on business sectors. P&G, Kellogg’s, Nestlé, Unilever, Apple, and Samsung have encountered this impact in their business development.
Most firms use such effect by making a small change in their strategy with regard to
produce, price, place, promotion and posture (developing corporate image) to gain
higher market share and profit in a short span of time.
The economic, social, cultural and political conditions in which a business sets up have
vital influences on the success or failure of a business. Lorenz found that the smallest
change in the preliminary conditions created a different outcome in weather
predictions, and we can consider the same to be true for businesses as well. The first
few months and years of a business are a crucial time when rates of failure are highest
and the basic brand identity gets formed. Any of the early decisions made,
achievements, or mistakes made have the potential to be the wing flap that creates a
storm.
Marketplaces are chaotic systems that are influenced by tiny changes. Businesses keep
evolving and it is also necessary for them to continuously make changes to their
positioning message and design along with time. So small changes like image style,
new colour scheme for brand or even slight adjustments to logo, similar to butterfly
flapping its wings, could result to massive impact on business.
Always the small changes which haven’t been checked or considered correctly has the
tendency to create major negative impact.
In terms of business, treating people the right way adds to increasing the business
than any amount which is spent heavily on advertising or marketing.
• Employees – If the employer deals fairly and positively with the employees, it
can be observed that the employees in turn will do the same to their customers.
• Customers – A customer complaint or a problem raised by a customer must be
considered immediately on receival as the business becomes liable for it. This
positive experience will bring more trust in the company.
• Stockholders – Looking after their preferences and treating the stockholders as
important resource helps to maintain a good relation with them and in turn it
will help the business to prosper.
The above mentioned points shows the importance of valuing everyone and how it
can help us in our growth. All these small and simple actions taken will help us in
achieving greater success and good results.
The reality is that small changes in a business may or may not have a massive effect
and it is also impossible actually to know how it will turn out until it is tested,
analysed and repeated.
If we use the butterfly effect principle in businesses, that is, changing small elements
in a considered manner, it becomes the best and most valuable way to power up the
business brand by creating brand value and recognition.
Sreethi Dinesh || PGPMR
sreethi.dinesh@northpointindia.com