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Archives for October 2018

A Guide to Intelligent Reading // Book Summary of Mortimer Adler’s ‘How to Read a Book’

October 29, 2018 By Nagesh Belludi Leave a Comment

'How to Read a Book' by Mortimer Adler (ISBN 0671212095) If you’re interested in sharpening up your ability to read, comprehend, and debate, Mortimer Adler and Charles Van Doren’s bestselling How to Read a Book: The Classic Guide to Intelligent Reading (1972; first published in 1940 under only Adler’s name) is the definitive guidebook.

The book stemmed from Adler’s belief that students of liberal education needed to be grounded in the “great ideas” of humankind, as represented in the canon of Western classic literature. To Adler, the art of reading well is deeply correlated to the art of thinking clearly, critically, and freely.

After the publication of How to Read a Book (1940,) Adler advanced his ideas on educational theory further by starting the Great Books of the Western World program and the Great Books Foundation. His later successes as a University of Chicago philosopher and an educator had an colossal influence on American education in the twentieth century.

Take-away Lesson #1: Active Reading is the Effort to Understand

How to Read a Book is divided into four parts:

  • Part one discusses the first two levels of reading: elementary reading (the level of reading taught in elementary schools and high schools) and inspectional reading (methodical skimming and cursory reading.)
  • Part two contains the third level of reading, analytical reading: classifying the author’s arguments and information, coming to terms with the book’s line of reasoning, establishing the author’s implications, criticizing the book, and critiquing the author.
  • Abraham Lincoln and son reading a book Part three covers the particular nuances of reading various types of literature: practical books, creative literature, stories, plays, poems, history, philosophy, science, mathematics, and social science.
  • Part four of the book is earmarked to the ultimate goals of reading—viz., expanding one’s mind for further understanding—a goal facilitated by “synoptical reading.” Since, per Carl Jung, “one book opens another,” a determined reader should peruse several works on the same subject with the intention of establishing a broader outlook of the subject matter. According to Adler, syntopical reading is the hallmark of scholarship: “Knowing that more than one book is relevant to a particular question is the first requirement in any project of syntopical reading. Knowing which books should be read, in a general way, is the second requirement.”

The essence of reading’s comprehension and appreciation lies in how best the reader can answer four questions during the course of reading a book:

  • During elementary reading: “What does the book say?”
  • During inspectional reading: “What is the book about?” How the author is trying to say it? What methodologies, narratives, substantiations, and examples does he use?
  • During analytical reading: “What does the book mean?” And, “Are the author’s arguments and claims valid—in whole or part? What is the significance of the author’s theses?”
  • During syntopical reading: “How does this book compare with other books?” And, “What other sources of knowledge could be pursued?”

How to Read a Book concludes with two appendices: (1) a list of titles in the “Great Books of the Western World” program, and (2) a number of exercises and tests on all four levels of reading.

Take-away Lesson #2: A Reader Must Suspend Judgment Until He Can Express the Author’s Positions

  • “You must be able to say, with reasonable certainty, ‘I understand,’ before you can say any one of the following things: ‘I agree,’ or ‘I disagree,’ or ‘I suspend judgment.'”
  • “Students who plainly do not know what the author is saying seem to have no hesitation in setting themselves up as his judges. They not only disagree with something they do not understand but, what is equally bad, they also often agree to a position they cannot express intelligibly in their own words.” As I’ve elaborated on this blog before (here, here, here, here, and here,) you must be able to accurately state—in your own words—the position of those you’re debating, before you can challenge them.
  • “When you disagree, do so reasonably, and not disputatiously or contentiously.” And, “Most people think that winning the argument is what matters, not learning the truth. He who regards conversation as a battle can win only by being an antagonist, only by disagreeing successfully, whether he is right or wrong.”

Take-away Lesson #3: Reading Well is Better Than Reading Widely

  • The objective of reading a book is to evolve to the level of the author: “In the case of good books, the point is not to see how many of them you can get through, but rather how many can get through to you.” Additionally, “Enlightenment is achieved only when, in addition to knowing what an author says, you know what he means and why he says it.”
  • Read a “difficult” book multiple times. Each time you read a specific book, you’ll discover more—new ideas, new concepts, and deeper truths.
    • “In tackling a difficult book for the first time, read it through without ever stopping to look up or ponder the things you do not understand right away.”
    • “It is generally desirable to skim even a book that you intend to read carefully, to get some idea of its form and structure.”
    • “Ask questions while you read—questions that you yourself must try to answer in the course of reading.”
  • Regarding the “ignorance of those who have misread many books”, Adler asserts that such people, “are, as Alexander Pope rightly calls them, bookful blockheads, ignorantly read. There have always been literate ignoramuses who have read too widely and not well.”

Recommendation: Mortimer Adler and Charles Van Doren’s How to Read a Book: The Classic Guide to Intelligent Reading is a smart reading that should be on everybody’s library. It is a goldmine of invaluable insights into the art of reading, debate, and persuasion.

Wondering what to read next?

  1. How to Read Faster and Better
  2. Curate Wisely: Navigating Book Overload
  3. How to Process that Pile of Books You Can’t Seem to Finish [+ 5 Other Reading Hacks]
  4. You Have a Pile of Reading Material at Your Desk?
  5. How to … Read More Books

Filed Under: Leadership Reading, Mental Models, Sharpening Your Skills Tagged With: Books, Critical Thinking, Reading

Inspirational Quotations #760

October 28, 2018 By Nagesh Belludi

A wise man will make haste to forgive, because he knows the full value of time and will not suffer it to pass away in unnecessary pain.
—Samuel Johnson (British Essayist)

The man who questions opinion is wise; the man who quarrels with fact is a fool.
—Frank A. Garbutt (American Inventor, Movie Pioneer)

Failure is, in a sense, the highway to success, inasmuch as every discovery of what is false leads us to seek earnestly after what is true, and every fresh experience points out some form of error which we shall afterward carefully avoid.
—John Keats (English Poet)

Rarely do more than three or four variables really count. Everything else is noise.
—Marty Whitman (American Investment Advisor)

The problem in this world is to avoid concentration of power—we must have a dispersion of power.
—Milton Friedman (American Economist)

Really, in the end, the only thing that can make you a writer is the person that you are, the intensity of your feeling, the honesty of your vision, the unsentimental acknowledgment of the endless interest of the life around and within you. Virtually nobody can help you deliberately-many people will help you unintentionally.
—Santha Rama Rau (Indian-American Novelist, Travel Writer)

Three things you can be judged by, your voice, your face and your disposition.
—Ignaz Bernstein (Russian-Jewish Bibliophile, Philanthropist)

It is far better to know our own weaknesses and failings than to point out those of another.
—Jawaharlal Nehru (Indian Head of State)

Hope is like a road in the country; there was never a road, but when many people walk on it, the road comes into existence.
—Lu Xun (Chinese Writer)

Ideas are somewhat like babies—they are born small, immature, and shapeless. They are promise rather than fulfillment. In the innovative company executives do not say, “This is a damn-fool idea.” Instead they ask, “What would be needed to make this embryonic, half-baked, foolish idea into something that makes sense that is an opportunity for us?”
—Peter Drucker (Austrian-born Management Consultant)

I detest that man, who hides one thing in the depths of his heart, and speaks forth another.
—Homer (Ancient Greek Poet)

A vigorous five-mile walk will do more good for an unhappy but otherwise healthy adult than all the medicine and psychology in the world.
—Paul Dudley White (American Cardiologist)

On the outside one is a star. But in reality, one is completely alone, doubting everything. To experience this loneliness of soul is the hardest thing in the world.
—Brigitte Bardot (French Film Star)

When the ox is down, many are the butchers.
—The Talmud (Sacred Text of the Jewish Faith)

The capacity of man himself is only revealed when, under stress and responsibility, he breaks through his educational shell, and he may then be a splendid surprise to himself no less than to his teachers.
—Harvey Williams Cushing (American Neurosurgeon, Biographer)

Filed Under: Inspirational Quotations

Don’t Use Personality Assessments to Sort the Talented from the Less Talented

October 25, 2018 By Nagesh Belludi Leave a Comment

Personality assessments have featured in personality development and career counseling for almost a century. Myers-Briggs Type Indicator (MBTI) and other tests form the basis for helping people deal with conflict, understand team interplay, outline career search, sharpen decision-making skills, and cope with stress.

Personality Assessments Cannot Predict Performance

Even as their use has grown significantly over the last two decades, personality assessments—including strengths inventories, and emotional intelligence assessments—have been criticized at length:

  • An individual’s personality cannot be summed up by a personality assessment. Individuality is described best by continuous (not discrete), normally-distributed attributes. For example, the MBTI Step I classification of individuals into 16 categories (or 4 dichotomies from Carl Jung‘s book Psychological Types (1921)) does not encapsulate the full range of personality variance.
  • An individual’s behavior cannot be limited to one side of a dichotomy. For instance, every person can be outgoing and assertive in the external world (extraversion,) while requiring time for some contemplation (introversion).
  • Many academic studies question the tests’ predictive validity and poor reliability. Moreover, personality assessments have poor test-retest consistency. Test takers have been shown to change at least one dichotomy when they take the MBTI Step I survey a second time.
  • Personality assessments can initiate confirmation bias (“Barnum Effect”)—the test scores are self-fulfilling because people tend to behave in ways that are predicted for them. In other words, a person who learns that he or she is “outgoing” according to MBTI may behave that way.
  • Personality tests are decidedly fakeable, especially when used to evaluate future career opportunities. All personality assessments are contingent on a degree of honesty, but MBTI test-takers are often motivated to match up to extraverted, sensing, thinking, and judging (ESTJ) proclivities in the modern organization.
  • Assessments are regularly offered as universally applicable. Not only do they tend to mirror the biases of the test developers, but also they are skewed in preference of the social groups the developer studied.

Personality Assessments are Starting Points for Change, Not a Predictor of the Outcome

Academics have long acknowledged the previously mentioned criticisms of personality assessments. They’ve argued fruitfully that many of the criticisms should be directed to how HR practitioners understand personality tests and use them in the development arena.

MBTI and many other personality assessments were never intended to sort the talented from the less talented. They are designed for the individual who takes the assessment, and not for the HR practitioner. In other words, personality assessments were designed to help individuals discover their underlying preferences regarding learning styles, problem-solving styles, self-awareness, ethical inclinations, emotional intelligence, and stress management.

Intended for Increasing Self-awareness, Not Appraisal

On the contrary, HR practitioners tend to interpret test scores speciously to gauge behavior, rather than as pointers of categorical preferences. Besides, HR practitioners often fail to factor in the test-takers’ past and current environmental influences.

And then there’s the risk of people being pigeonholed or pushed into a particular course regardless of his or her preferences. HR practitioners and career counsellors who put too much emphasis on personality assessments may compartmentalize people into rigid categories. This flies in the face of a central tenet of the MBTI premise—that individuals could choose to act against their preferred type if the occasion demands it. People’s attitudes and behaviors often change over time because of emotional experiences or socialization into specific work and social cultures.

Idea for Impact: Use Personality Assessments to Facilitate Self-Awareness, Not for Categorization or as Predictors of Achievement

If you’re a manager or a HR practitioner, don’t use personality assessments to categorize people or as predictors of achievement. Encourage people to take personality tests, but help them interpret these pieces of data about themselves—only they could make sense of test results in the context of their life history, social environment, and ambitions for career and life.

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  3. What Every Manager Should Know Why Generation Y Quits
  4. What’s Next When You Get Snubbed for a Promotion
  5. The Career-Altering Question: Generalist or Specialist?

Filed Under: Career Development, Leading Teams, Managing People, Mental Models Tagged With: Career Planning, Employee Development, Hiring, Job Search, Job Transitions, Managing the Boss, Mentoring, Personal Growth, Winning on the Job

Creativity by Imitation: How to Steal Others’ Ideas and Innovate

October 22, 2018 By Nagesh Belludi 1 Comment

Emulating others’ ideas is an underappreciated learning tool. Many creative innovators set forth as remarkably astute mimics of others. “Good artists copy, great artists steal,” prods a creator’s maxim often misattributed to Picasso.

Imitation is a leading pathway to business innovation, even if being an imitator is anchored by a sense of derision. Ever more businesses are nicking great ideas wherever they can obtain them—in their own industries or beyond. Hospitals have adapted safety and efficiency procedures from the military and the airline industry. Aircraft manufacturers have adopted the car industry’s lean supply chain management concepts. Ritz-Carlton, the luxury chain of hotels and resorts, runs the Ritz-Carlton Leadership Center that has helped trained its legendary cult of customer service and employee empowerment best practices to managers from companies across industries.

Creativity by Taking Existing Ideas: Applying Them in a New Context

The most prominent example of innovating by imitation is Ford’s development of the automobile assembly line—a system Henry Ford copied (and improved) from the Chicago meat processing business.

Henry Ford’s relentless ambition to build his Model T a high-volume-low-cost automobile, together with his engineering knowledge and manufacturing experience provided the leadership and creative environment that nurtured the development of the moving mechanical assembly line. Today, the moving assembly line is the epitome of manufacturing. Almost everything that is now industrially manufactured—automobiles, aircrafts, toys, furniture, food—passes down assembly lines before landing in our homes and offices.

The genesis of the moving assembly line is in the American agricultural products industry. During the late 18th century, the movement of grains changed from hand labor to belts and later moving hoppers.

Innovation by Imitation: Many Innovations Come from the Outside

By 1873, Chicago’s meat-processing industry adapted belts and hoppers to transform beef and pork production into a standardized, mechanized, and centralized business. After cows and pigs travelled to their fate in train cars from farms throughout the Midwest, they were dropped into hoppers and killed. Conveyor belts then moved carcasses past meat cutters, who progressively removed various sections of the animal, cut them into appropriate sizes, and repackaged and dispatched processed meat across the United States.

The meat processors’ task was disassembly (as opposed to putting together automobile parts in Ford’s plants.) Each worker had a specific, specialized job. Production moved swiftly. The American writer Upton Sinclair famously described this industry’s ghastly working conditions in his acclaimed novel The Jungle and said, “They use everything about the hog except the squeal.”

Chicago Slaughter Houses Were the Pioneers of the Moving Disassembly Line Before Henry Ford Started His Assembly Line

In the early 1900s, when Henry Ford wanted to keep Model T production up with demand and lower the price, Ford’s team explored other industries and found four ideas that could advance their goal: interchangeable parts, continuous flow, division of labor, and cutting wasted effort. Ford’s engineers visited Swift & Company’s Slaughterhouse in Chicago and decided to adopt the “disassembly line” method to build automobiles.

The introduction of the moving assembly line process in 1913 enabled increased production up to 1,000 Model Ts a day and decreased assembly time from 13 hours to 93 minutes. Additional refinement of the process, thanks to reliable precision equipment and standardized shop practices, shortened production time radically: within a few years, a new Model T rolled off the assembly line every 24 seconds. First produced in 1908, the Model T kept the same design until the final one—serial number 15,000,000 rolled off the line in 1927.

Auschwitz-Birkenau and Victims of the Holocaust

Sadly, just as Henry Ford copied the Chicago meat processing and perfected the moving assembly line, the Nazi apparatus copied Ford’s methods of mass production to massacre six million people. While Midwestern butchers processed the livestock carcasses, the Nazis systematically handled corpses of the victims of the Holocaust. Nazi operatives removed victims’ hair, clothing, shoes, gold teeth, hairbrushes, glasses, suitcases, and anything of value to be repurposed for the Reich. The atrocities of this inexpressibly shocking disaster are on display at the train tracks and the museums of Auschwitz-Birkenau, Poland.

Formal Strategic-Benchmarking Programs

Smart businesses have formal strategic-benchmarking programs to achieve significant efficiency improvements: they pinpoint the strategic capabilities that matter most to their businesses, seek out companies or businesses that currently manage those capabilities best, and try to copy and deploy those capabilities as rapidly as possible. But time is of the essence for the success of these undertakings, as the management guru Tom Peters warns,

I hate Benchmarking! Benchmarking is stupid! Why is it stupid? Because we pick the current industry leader and then we launch a five-year program, the goal of which is to be as good as whoever was best five years ago, five years from now. Which to me is not an Olympian aspiration.

Imitation is a Key Characteristic of Highly Creative People: The Case of Steve Jobs Copying from Xerox

One of the key characteristics of highly creative people is their exposure to and experience with working in several related domains. They are very good at crossing domain boundaries, relating their creativeness in new and perhaps unexpected ways, and adapting knowledge into new domains. The following case of one of history’s most famous innovators illustrates this distinguishing characteristic.

Steve Jobs of Apple introduced the revolutionary Lisa computer in 1983. It featured such innovations as the graphical user interface, a mouse, and document-centric computing. Jobs had taken—and refined—all these inventions from Xerox’s PARC research labs and introduced by Xerox on its commercially-unsuccessful Alto and Star computers in 1981. The biographer Walter Isaacson writes in his best-selling Steve Jobs: “The Apple raid on Xerox PARC is sometimes described as one of the biggest heists in the chronicles of industry.” Isaacson cites Jobs: “Picasso had a saying—‘good artists copy, great artists steal’—and we have always been shameless about stealing great ideas… They [Xerox management] were copier-heads who had no clue about what a computer could do… Xerox could have owned the entire computer industry.”

Idea for Impact: Borrow Ideas from Others and Combine Them with Your Own Creativity

Interestingly, many “benchmarking” exercises in the world of business—even academia—do not come “top-down” out of strategy. In other words, innovations by imitation are typically not driven from the top down. Instead, they materialize from everyday operational challenges—those painful experiences that send managers scuttling for solutions in a hurry.

Look outside your industry. To improve your creativity, try spending time researching other smart companies—even those outside of your industry. Learning directly from other companies is a useful, underutilized form of research for finding ways to improve performance.

Attend to developments at your competitors and in other industries. Look for potential opportunities that have been discovered elsewhere. Avoid the “not invented here” syndrome—don’t reject other’s great ideas. Keep an open mind.

Wondering what to read next?

  1. Howard Gardner’s Five Minds for the Future // Books in Brief
  2. This is Yoga for the Brain: Multidisciplinary Learning
  3. Many Businesses Get Started from an Unmet Personal Need
  4. Innovation Without Borders: Shatter the ‘Not Invented Here’ Mindset
  5. Four Ideas for Business Improvement Ideas

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Decision-Making, Entrepreneurs, Icons, Leadership Lessons, Mental Models, Thinking Tools, Thought Process, Winning on the Job

Inspirational Quotations #759

October 21, 2018 By Nagesh Belludi

History is a guide to navigation in perilous times. History is who we are and why we are the way we are.
—David McCullough (American Historian)

The most striking quality that humans and animals have in common is the capacity to experience suffering. Why do we still blind ourselves, now at the beginning of the twenty-first century, to the immeasurable suffering that we inflict on animals, knowing that a great part of the pain that we cause them is neither necessary nor unavoidable? Certainly we should know that there is no moral justification for inflicting needless pain and death on any being.
—Matthieu Ricard (French Buddhist Monk)

The hero’s choice is made in a flash. To him the larger vision is closer than the near. Within an instant, he strikes for eternity, strikes and is done.
—Sister Nivedita (Irish-born Indian Social Worker)

I don’t know anything, but I do know that everything is interesting if you go into it deeply enough.
—Richard Feynman (American Physicist)

Technical knowledge is not enough. One must transcend techniques so that the art becomes an artless art, growing out of the unconscious.
—D. T. Suzuki (Japanese Buddhist Philosopher)

When you first start to study a field, it seems like you have to memorize a zillion things. You don’t. What you need is to identify the core principles—generally three to twelve of them—that govern the field. The million things you thought you had to memorize are simply various combinations of the core principles.
—John Reed (American Journalist, Poet)

In our sleep, pain which cannot forget falls drop by drop upon the heart until, in our own despair, against our will, comes wisdom through the awful grace of God.
—Aeschylus (Greek Poet)

All the way to heaven is heaven.
—Teresa of Avila (Spanish Carmelite Nun, Mystic)

Filed Under: Inspirational Quotations

I’ll Be Happy When …

October 19, 2018 By Nagesh Belludi Leave a Comment

It is fallacious to let life slip away in the pursuit of the illusion that, “When I achieve something, I will be free to live in happiness.”

If you pursue a job, a relationship, a house, a material possession, or the settlement of a debt, happiness will never come because there is always another “something” that will follow the present one. The circumstances that you thus wait for do provide a transitory elation, but, too soon, they withdraw into the dull and mundane, only to be replaced by the next fantasy of happiness.

The Art of Simple Existence is One of the Most Difficult to Master

According to Buddhism, the art of simple existence is one of the most difficult to master. If you aren’t living in peace and happiness at this moment, you’ll never be able to. If you truly want to be at peace, you must be at peace right now. Otherwise, there is only the aspiration of peace “someday when I accomplish something.”

The experience of pleasure, freedom, and love are available now, whatever your circumstance. The American clinical psychologist John Welwood reminds us of this in Ordinary Magic: Everyday Life as Spiritual Path:

Our society would have us believe that inner satisfaction depends on outer success and achievement. Yet struggling to “get somewhere” keeps us perpetually busy, stressed out, and disconnected from that essential inner resource—our ability to be fully present—which could provide a real sense of joy and fulfillment. Our life is unsatisfactory only because we are not living it fully, but instead we are pursuing a happiness that is always somewhere else, other than where we are right now…

Cultivating the capacity to be fully present—awake, attentive, and responsive—in all the different circumstances of life is the essence of spiritual practice and realization. Those with the greatest spiritual realization are those who are “all here,” who relate to life with an expansive awareness that is not limited by any fixation on themselves or their own point of view. They don’t shrink from any aspect of themselves or life as a whole.

Idea for Impact: When One Lives, One Must Live Entirely

However difficult your circumstances, however uncertain the times, peace is not to be earmarked for a future time. The definitive source of happiness lies in the quality of your thoughts. Real sustainable peace springs from a healthy and nurturing relationship with yourself. Let nothing and nobody take that away from you. Don’t postpone being at peace.

Wondering what to read next?

  1. The Simple Life, The Good Life // Book Summary of Greg McKeown’s ‘Essentialism’
  2. On Black Friday, Buy for Good—Not to Waste
  3. Having What You Want
  4. Marie Kondo is No Cure for Our Wasteful and Over-consuming Culture
  5. The Gift of the Present Moment

Filed Under: Living the Good Life, Sharpening Your Skills Tagged With: Attitudes, Balance, Buddhism, Discipline, Happiness, Materialism, Mindfulness, Money, Motivation, Philosophy, Simple Living, Wisdom

Inspirational Quotations #758

October 14, 2018 By Nagesh Belludi

I’ve always felt ideas were a dime a dozen. If you had one that didn’t work out, you should not fight too hard to save it, just go find another.
—Daniel Kahneman (American-Israeli Psychologist, Economist)

Blessed is he who has been able to win knowledge of the causes of things.
—Virgil (Roman Poet)

It’s really a wonder that I haven’t dropped all my ideals because they seem so absurd and impossible to carry out. Yet, I keep them, because in spite of everything I still believe that people are really good at heart. I simply can’t build up my hopes on a foundation consisting of confusion, misery, and death. I see the world gradually being turned into a wilderness, I hear the ever-approaching thunder, which will destroy us too, I can feel the sufferings of millions and yet, if I look up into the heavens, I think that it will all come right, that this cruelty too will end, and that peace and tranquility will return again.
—Anne Frank (German Holocaust Victim)

You have enemies? Why, it is the story of every man who has done a great deed or created a new idea. It is the cloud which thunders around everything that shines. Fame must have enemies, as light must have gnats. Do not bother yourself about it; disdain. Keep your mind serene as you keep your life clear.
—Victor Hugo (French Novelist)

It is truth that liberates, not your effort to be free.
—Jiddu Krishnamurti (Indian Philosopher)

If you go looking for a friend, you’re going to find they’re scarce. If you go out to be a friend, you’ll find them everywhere.
—Zig Ziglar (American Author)

Truth is not a crystal one can put in one’s pocket, but an infinite fluid into which one falls headlong.
—Robert Musil (Austrian Novelist)

There is nothing more silly than a silly laugh.
—Catullus (Roman Latin Poet)

Most men are individuals no longer so far as their business, its activities, or its moralities are concerned. They are not units but fractions; with their individuality and independence of choice in matters of business they have lost all their individual choice within the field of morals.
—Woodrow Wilson (American Head of State)

People do not get what they want or what they expect from the [stock] markets; they get what they deserve.
—Bill Bonner (American Finance Author)

Filed Under: Inspirational Quotations

Inspirational Quotations #757

October 7, 2018 By Nagesh Belludi

What I’ve learned about being angry with people is that it generally hurts you more than it hurts them.
—Oprah Winfrey (American TV Personality)

Men have called me mad; but the question is not yet settled, whether madness is or is not the loftiest intelligence—whether much that is glorious—whether all that is profound—does not spring from the disease of thought—from moods of mind exalted at the expense of the general intellect.
—Edgar Allan Poe (American Poet)

Freedom is about the willingness of every single human being to cede to lawful authority a great deal of discretion about what you do, and how you do it.
—Rudy Giuliani (American Politician)

Hard work and a proper frame of mind prepare you for the lucky breaks that come along—or don’t.
—Harrison Ford (American Actor)

That is the true season of love, when we believe that we alone can love, that no one could ever have loved so before us, and that no one will love in the same way after us.
—Johann Wolfgang von Goethe (German Poet)

Men are alike in their promises. It is only in their deeds that they differ.
—Moliere (French Playwright)

Like other practicing historians, I am often asked what the “lessons of history” are. I answer that the only lesson I have learnt from studying the past is that there are no permanent winners and losers.
—Ramachandra Guha (Indian Historian)

To tell the truth is the same as to be a good tailor, or to be a good farmer, or to write beautifully. To be good at any activity requires practice: no matter how hard you try, you cannot do naturally what you have not done repeatedly. In order to get accustomed to speaking the truth, you should tell only the truth, even in the smallest of things.
—Leo Tolstoy (Russian Novelist)

No act of kindness, however small, is ever wasted.
—Aesop (Greek Fabulist)

The notion of a universality of human experience is a confidence trick and the notion of a universality of female experience is a clever confidence trick.
—Angela Carter (English Novelist, Short Story Writer)

The difference between a simpleton and an intelligent man, according to the man who is convinced that he is of the latter category, is that the former wholeheartedly accepts all things that he sees and hears while the latter never admits anything except after a most searching scrutiny. He imagines his intelligence to be a sieve of closely woven mesh through which nothing but the finest can pass.
—R. K. Narayan (Indian Novelist, Short-story Writer)

From a management standpoint, it is very important to know how to unleash people’s inborn creativity. My concept is that anybody has creative ability, but very few people know how to use it.
—Akio Morita (Japanese Entrepreneur, Engineer)

The effect of having other interests beyond those domestic works well. The more one does and sees and feels, the more one is able to do, and the more genuine may be one’s appreciation of fundamental things like home, and love, and understanding companionship.
—Amelia Earhart (American Aviator)

Filed Under: Inspirational Quotations

I Admire Business Leaders Who’re Frugal to an Extreme

October 4, 2018 By Nagesh Belludi Leave a Comment

Business folks are rarely frugal, especially when they’re on their clients’ dime or using nameless stockholders’ funds.

I admire businesspeople and companies that are frugal to an extreme and are obsessed with reducing waste. Here are three prominent examples of leaders who’ve successfully inculcated frugality in their companies’ cultures.

Walmart founder Sam Walton was famously frugal and lived a humble life right up until his death. He drove a red 1985 Ford pickup and said, “What am I supposed to haul my dogs around in, a Rolls-Royce?” On business trips, Walton required Walmart’s buyers to lodge two to a hotel room, eat in family diners, and even bring pens from the hotel rooms for use at “home office.” One of their travel goals was to limit expenses to less than 1% of their purchases. Walmart did not have a corporate jet until they had $40 billion in sales. Walton wrote in his biographical Made in America: My Story (1992; my summary,) “A lot of what goes on these days with high-flying companies and these overpaid CEO’s, who’re really just looting from the top and aren’t watching out for anybody but themselves, really upsets me. It’s one of the main things wrong with American business today.”

Amazon is obsessed with reducing waste. From the very beginning, founder Jeff Bezos built a company focused on providing value in terms of prices and customer service. A micromanager, Bezos audited all corporate expenses when the company was much smaller and reproved everything not warranted for delivering value to customers—no first-class travel for executives, no color printers, office desks made from wooden doors, etc.

Thriftiness is at the heart of the Brazilian private-equity group 3G’s operating model. 3G is notorious for pressing the zero-base budgeting method of cutting operating costs at companies it acquires. Julie MacIntosh’s Dethroning the King (2010) has an interesting story about 3G-run InBev CEO Carlos Brito‘s first visit to Anheuser-Busch’s St. Louis headquarters after InBev purchased the American brewer in 2008:

To honor Brito’s visit and pay him the respect it felt he deserved as the soon-to-be new chief, Anheuser-Busch arranged for him to stay in a suite at the cushy Ritz-Carlton. The Ritz wasn’t Brito’s style, though, especially since he was just about to start indoctrinating Anheuser-Busch’s staffers to InBev’s frugal way of life. He had flown commercial into St. Louis from New York’s LaGuardia Airport.

He had someone call back and say, “No, no no, I’ve already reserved a room at such and such a place—like the Holiday Inn,” said one InBev insider. “I think that’s when it probably, for the first time, hit home in St. Louis that things were going to be different.” Rather than hitching a town car or helicoptering in to Anheuser-Busch headquarters from his hotel on Tuesday morning, Brito accepted a ride from [Anheuser-Busch President] Dave Peacock.

While on the subject of leaders and indulgence, I’d like to mention private jets, those symbols of corporate indulgence. Corporate jets were famously ridiculed when the CEOs of General Motors, Ford, and Chrysler flew them to Washington DC to seek government bailouts in 2008. General Electric’s former CEO Jeff Immelt’s was disparaged recently for flying around the world with a needless “backup jet” in case something happened to the corporate plane he was using. But a corporate jet isn’t an indulgence for a big company, it is a business necessity. Having used corporate jets during a previous job, I can swear that flying commercial is relatively counterproductive and costly. In the 1990s, Warren Buffett, the poster boy of thriftiness, reluctantly bought a private plane. He christened it “The Indefensible,” but within a few years, renamed it “The Indispensable.”

Wondering what to read next?

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Filed Under: Leadership, Mental Models, The Great Innovators Tagged With: Amazon, Attitudes, Jeff Bezos, Leadership Lessons, Materialism, Parables, Philosophy

Why I’m Frugal

October 1, 2018 By Nagesh Belludi Leave a Comment

Frugality Over the Ages: Frugality as a Virtue

Frugality Over the Ages

From Socrates to Thoreau, from Franklin to Gandhi, philosophers, moralists, and spiritual leaders have identified frugality as a virtue and associated simple living with wisdom, integrity, and happiness. The Cynics were the first to reject wealth, power, sex, fame, and other desires in favor of a simple life free of all possessions. Diogenes the Cynic (portrayed in image) famously lived in a wine barrel and had no worldly goods.

For the Puritans, the love of material consumption was an evil; their spiritual doctrine stressed, in the words of the American historian Edmund Morgan,

A man was but the steward of the possessions he accumulated. If he indulged himself in luxurious living, he would have that much less with which to support church and society. If he needlessly consumed his substance, either from carelessness or from sensuality, he failed to honor the God who furnished him with it.

Founding Father Benjamin Franklin, a doyen of the self-improvement movement, listed frugality as one of the 13 virtues he followed as a young man. Between 1732 and 1757, Franklin published such famous aphorisms in his Poor Richard’s Almanack as “be industrious and frugal, and you will be rich,” “beware of little expenses; a small leak will sink a great ship,” and “he that goes a-borrowing goes a-sorrowing.”

For the American philosophers Ralph Waldo Emerson and Henry David Thoreau, frugality or “transcendental simplicity” was a means to a higher end. In Man the Reformer (1841,) Emerson wrote, “Economy is a high, humane office, a sacrament, when its aim is grand; when it is the prudence of simple tastes, when it is practiced for freedom, or love, or devotion.” For Thoreau, “high thinking was preferable to high living;” he wrote in Walden (1854,) “Most of the luxuries, and many of the so called comforts of life, are not only not indispensable, but positive hindrances to the elevation of mankind. With respect to luxuries and comforts, the wisest have ever lived a more simple and meager life than the poor”.

Thoreau inspired the Russian novelist Leo Tolstoy. After suffering a mental breakdown in the late 1870s, Tolstoy, who was born into Russian nobility, rejected his family’s estate and serfdom. He renounced his decadent, racy lifestyle and engaged in a revolutionary brand of Christianity based on spiritual and material austerity.

Tolstoy’s philosophy showed the way for the creation of utopian communities of simple, self-sufficient living—the most famous example being the “Tolstoy Farm” ashram that Mahatma Gandhi established in South Africa. Gandhi was the quintessence of simplicity and sported austere homespun clothing. He famously said, “you may have occasion to possess or use material things, but the secret of life lies in never missing them,” and “our civilization, our culture, our [nation] depend not upon multiplying our wants—self-indulgence, but upon restricting our wants—self-denial.”

Frugality is a Moral Virtue

The distinguished career coach Marty Nemko once wrote, “I even take care to tear-off single sheets of toilet paper. Because I’m cheap? No. Because it’ll help the environment? No. I just think wasting is wrong.” That, in a nutshell, is why I’m frugal.

For me, frugality suggests an appropriate limit on individual and collective desires; it denies the materialistic expectations that the modern society imposes upon us.

Frugality is not some form of world-denying asceticism or austerity. It is a part of principled stewardship of not only the resources I’ve been blessed with but also of myself.

Frugality is about forgoing a subset of desires—as part of a quest for an abundant life. In other words, frugality restricts my indulgence of materialistic appetite, with the intention that I leave space for the cultivation of diverse forms of pleasure.

When I started to work while still in college, frugality was an element of my quest for financial independence. It became the lynchpin of a deliberate set of lifestyle choices and values. But my focus on achieving financial freedom never let me pining for the pleasures I might have had.

Six years ago, I gave up a corporate job and significant earnings in favor of a simpler life with plenty of discretionary time and money for world travel, leisure, learning, culture, and meaning.

Idea for Impact: Enjoying a rich life is more important than zealously stewarding one’s savings and investments.

Living frugally, with the particular intention of achieving financial freedom, requires a good measure of renunciation. This renunciation is easiest when one regards it not as deprivation, but as a deliberate choice in a trade-off for an enriched life.

Wondering what to read next?

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  5. The Simple Life, The Good Life // Book Summary of Greg McKeown’s ‘Essentialism’

Filed Under: Living the Good Life, Personal Finance Tagged With: Attitudes, Balance, Giving, Materialism, Money, Philosophy, Simple Living

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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EconTalk podcast host Russ Roberts on how morality comes from imagining being judged by our fellow man. A rendition of Adam Smith's Theory of Moral Sentiments.

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