Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life

by Rory Sutherland

The production of rivets under communism demonstrated a similar pattern. Typically a factory was given a monthly quota that it was required to manufacture – the unbranded rivets were then sent to a central rivets depository, where they intermingled with all the other factories’ rivets. From there, all the rivets, whose provenance was by now completely indistinguishable, would be transported to wherever they were needed. The Soviets soon found that, without a maker’s name attached to a product, no one had any incentive to make a quality product, which pushed quantity upwards and quality downwards. The easiest way to produce a million rivets every month was to produce a million bad rivets, which soon led to ships falling apart. Furthermore, you did not know which factory to blame, because the rivets had become commoditised, which is to say anonymised. Eventually the regime swallowed their ideological pride and made factories stamp their names on their rivets – the feedback mechanism was restored and quality returned to acceptable levels.