Decoding human behavior: Laws every business leader should know

As business and tech leaders, we're not just overseeing outcomes; we're indirectly driving change through others in complex systems. Effective leadership today transcends traditional notions of authority and control. It's more about harnessing the power of human connection, fostering collaboration, and navigating the complexities of change with empathy and foresight.

While human behavior is inherently nuanced and unpredictable, there are laws and principles that can improve our understanding of employees and colleagues. Think of them not as ironclad rules, but valuable lenses through which to view organizational dynamics. As George Box famously said, "All models are wrong, but some are useful." 

Communication and collaboration

Clear, honest communication is the bedrock of any continued success. But in today's hyperconnected world, misinterpretations and information silos abound.

• Betteridge's law of headlines: “Any headline that ends in a question mark can be answered by the word no” — Ask questions, don't dictate answers. Instead of "Will this migration work?", try "What are the potential challenges of this migration, and how can we proactively address them?" Questions spark critical thinking, invite diverse perspectives, and foster a sense of shared ownership.

   

• Hanlon's razor: “Never attribute to malice that which is adequately explained by ignorance” — That missed deadline is likely not by choice, but a lack of clarity or unforeseen circumstances. Give colleagues the benefit of the doubt, build psychological safety, and foster a collaborative environment that counteracts this razor.

   

• Occam's razor: “Seek the simpler solutions to any problem” — Complexity is the enemy of clarity. When explaining a new architecture or strategy, keep it simple. Ditch the jargon, focus on the core message, and ensure everyone understands. Remember, effective communication is about conveying meaning, not showcasing subject matter prowess.

   

• The Streisand effect: “Your efforts to conceal the truth often results in the opposite” - Transparency always wins. Address issues openly and honestly to build trust and enable collective problem-solving. In a world of instant communication, authenticity and openness are essential for building credibility and strong relationships.

   

  Managing people and projects

   

  Beyond communication, we need to guide people, deliver return on investments, and achieve desired outcomes. But human behavior can be unpredictable, and work often takes on a life of its own.

   

• Gilbert's law: “The biggest problem with a job is that no one tells you what to do” — In the age of agility, autonomy is key. But autonomy without direction leads to confusion and frustration. People need clear goals and well-communicated expectations. This means a clearly defined problem to solve, a framework to operate within, and the resources and support needed to succeed.
  
  

• Goodhart's law: “When a measure becomes a target, it ceases to be a good measure” — Leaders love metrics. But when metrics become targets, they lose their meaning and can even become counterproductive. Focusing solely on quantifiable goals can have unintended consequences. If you reward developers for lines of code, you'll get a lot of code, but not necessarily good software. Therefore you should try to balance quantitative measures with qualitative assessments, focusing on outcomes, impact, and value.
  
  

• The Pareto principle: “The 80/20 rule” — Not everything is created equal and most of your result will likely come from effort spent in a few specific areas. Identify those high-impact activities, prioritise them ruthlessly, and delegate or eliminate the rest. Similarly using this principle for people or effort in general if 80% of the contribution comes from 20% of the effort, it really does indicate that we should try to focus on where it matters most.

   

• Parkinson's law: “Work expands to fill the available time” — Set clear deadlines, define meeting agendas with specific outcomes and empower teams to make decisions efficiently. This law highlights the need to constantly mind the outcome and actively remove waste where possible.

   

• The Peter principle: “Every employee tends to rise to their level of incompetence” — We all want to promote our best people. But promotions based solely on past performance can lead to people being placed in roles beyond their capabilities or won’t fit their suitability or talent. Consider individual strengths, potential, and the specific requirements of the new position. Sometimes, the best engineer doesn't make the best manager but without other paths of growth, you force the person in a sub-optimal direction for both them and the business.

   

  Navigating organizational dynamics

   

  People and their work don't exist in a vacuum. They operate within complex organisational systems, with their own unique dynamics, inertia, and reasons for resistance to change.

   

• Shirky principle: "Institutions will try to preserve the problem to which they are the solution" — To drive transformation, understand the incentives and power structures that maintain the status quo. Identify those who benefit from the current system and find ways to align their interests with your vision for change. Change management is often more about navigating human dynamics than implementing identified areas of change.

   

• The law of tendency of the rate of profit to fall: “Capital growth leads to increased competition making continued profit harder to achieve” — In the digital age, innovation is a constant race. Competitive advantages erode over time. This requires a culture of continuous learning, experimentation and adaptation to stay ahead. Encourage your teams to challenge assumptions and embrace a growth mindset through an environment that allows experimentation and validating new ideas.

   

• The laws of unintended consequences: “Decisions with specific objectives can lead to unexpected outcomes” — Every action has a ripple effect. Before implementing a new policy or technology, consider the potential impacts on different stakeholders and anticipate potential pitfalls. Engage in open dialogue with employees, solicit feedback and be prepared to adjust your approach as needed.

   

• Weinberg's jam laws: “Like raspberry jam, the wider you spread it the thinner it gets”, “Like strawberry jam, as long as it has lumps, you can never spread it too thin”, “Like grape jelly, if you don’t expect much, you’ll never get disappointed” — These offer insights for consultants, change agents and corporate leaders alike. Spreading ourselves too thin may diminish our impact. The lump in the strawberry jam is you and when you stand out, so does your message. Like grape jelly on white toast, above the message itself, there is value in being uniform and predictable.

Conclusion

While we will never be able to "decode" human behavior, these laws and principles offer valuable insight to better understand the intricate dynamics of communication, teamwork and organizational change. The hope of highlighting a few of them in this post is to help create workplaces where:

• Employees feel more heard and valued: Open communication, psychological safety, and clear expectations create a sense of belonging and empower individuals to be their best at work.

• People collaborate more effectively: Shared goals, efficient processes and a focus on high-impact activities enable teams to achieve extraordinary results.

• Within a system set up to adapt and thrive: A willingness to embrace the unknown, continuous learning and a consideration of unintended consequences position organizations for long-term success in a world of uncertainty and change.

   

Ultimately, these laws remind us that leadership is about more than just making choices; it's about the continuous effort to improve human connection, enabling collaboration, and creating a shared sense of purpose. As you navigate the complexities of your organisation, consider these laws not as rigid rules, but as invitations to reflect, learn, and adapt how you approach your role as a leader.

Thanks to my esteemed Thoughtworks colleagues for your input and help creating this list.