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Book Summary: Jack Welch, ‘The’ Man Who Broke Capitalism?

June 23, 2022 By Nagesh Belludi Leave a Comment

The Man Who Broke Capitalism (2022) by New York Times columnist David Gelles contends that the pernicious greed spawned by former General Electric CEO Jack Welch is exceptionally responsible for exposing the structural failings of capitalism in recent decades.

'The Man Who Broke Capitalism' by David Gelles (ISBN 198217644X) The danger inherent in any ideology grows stronger when it starts to thrive because it swiftly morphs into temptation—a voracious appetite for ever better “returns” in the present case. Welch was indeed the most visible catalyst and a much-imitated champion of brutal capitalism. But Gelles’s narrative draws his book’s lengthy subtitle (“How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America”) excessively, thrusting ad nauseam the well-founded thesis against Welch’s ploys and “the personification of American, alpha-male capitalism.” See my previous articles (here, here, and here) about how the faults of Welch’s strategy become evident many years after his retirement.

Gelles does an agreeable job of outlining the socioeconomic paradigm that has made modern western capitalism’s shortcomings ever more apparent. Starting with influential economist Milton Friedman’s decree in the ’70s that the one and only social responsibility of a business is to maximize profits, Gelles explains the revering of Welch’s “downsizing, deal-making, and financialization” strategy. Without balance, it provided short-term benefits for shareholders, but the long-term well-being of corporations and society lost out. A sense of restraint is most pertinent to the power of capitalism.

Summary of 'The Man Who Broke Capitalism' by David Gelles Capitalism isn’t irretrievably bound to fail, as Gelles rightly argues, but it needs to be rethought. It’s morally incumbent upon the social order to inhibit the embedded incentives that create powerful tendencies towards short-termism. Gelles offers no more realistic, objective insights than the familiar solutions prescribed by our career politicians.

Overall, Gelles’s pro-Fabian polemic falls short of a fair-minded assessment of the epoch’s economic forces. Indeed, many of Welch’s tactics were timely and necessary, but he pushed them farther and longer. Too, Gelles fails to study counterexamples of many corporate leaders who’ve thoughtfully copied Welch’s playbook and helped their businesses and communities prosper, not least because they were restrained enough to avoid Welchism’s blowbacks.

Recommendation: Speed Read The Man Who Broke Capitalism for a necessary reappraisal of the legacy of Jack Welch. There isn’t much eye-opening here, but author Gelles affords a relevant parable about the power of restraint and the time- and context-validity of ideas.

Wondering what to read next?

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  2. The Checkered Legacy of Jack Welch, Captain of Wall Street-Oriented Capitalism
  3. Lessons from Peter Drucker: Quit What You Suck At
  4. The Cost of Leadership Incivility
  5. Shrewd Leaders Sometimes Take Liberties with the Truth to Reach Righteous Goals

Filed Under: Business Stories, Leadership Reading, Mental Models, The Great Innovators Tagged With: Decision-Making, Discipline, Ethics, General Electric, Getting Ahead, Humility, Icons, Jack Welch, Leadership Lessons, Role Models, Targets

The Tyranny of Best Practices

May 9, 2022 By Nagesh Belludi Leave a Comment

By all means, acquaint yourself with the management practices of Dell (in supply chain management,) Toyota (quality control,) Ryanair (working capital,) or whatever company is the present-day shining exemplar of the pertinent best practices. But beware of the risks of taking their best practices out of context and applying them to your business.

The Tyranny of Best Practices - Deceptively Simplistic Solutions Some advantages are unlikely to be accrued by borrowing fashionable ideas from other companies. It makes sense, for example, to study how Apple’s innovations have changed the world, but the visionary in Steve Jobs can’t be replicated.

Best practices can offer deceptively simplistic solutions. Some of them aren’t implementable—even relatable. You can try replicating Google’s policy of allowing employees to spend 20% of their time on their own ideas; that initiative isn’t likely to transform a company designing gasoline engines.

Many of the basic principles of innovation are universal. But management methods succeed—or fail—in a specific context. A company’s industry, maturity, location, and leadership structures influence this context. Unless you develop a thorough understanding of all the factors that have contributed to others’ success, there’s a risk that you’re learning the wrong lessons.

Idea for Impact: You can’t truly become another company. You can only become a better version of yourself, not an inferior version of someone else. Be inspired by others’ best practices, but don’t imitate them blindly.

Wondering what to read next?

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  2. The Checkered Legacy of Jack Welch, Captain of Wall Street-Oriented Capitalism
  3. Dear Customer, Speak Early and Have it Your Way!
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  5. Creativity by Imitation: How to Steal Others’ Ideas and Innovate

Filed Under: Business Stories, Leadership Tagged With: Creativity, General Electric, Leadership Lessons, Learning, Mental Models, Role Models, Toyota

Ideas Evolve While Working on Something Unrelated

March 10, 2022 By Nagesh Belludi Leave a Comment

In the ’90s, Japanese conglomerate Hitachi, through its subsidy Hitachi-Omron Terminal Solutions, introduced the Clean ATM, which cleaned the bank notes during transactions. The Baltimore Sun (11-Dec-1996) notes,

Hitachi has turned its talents to money-laundering of a literal kind, with an automated teller machine that sterilizes and irons yen notes before dispensing them.

Hitachi did not set out to sanitize the money; its engineers were trying to solve the problem of crumpled bills, which tended to jam machines, a company spokesman says. They solved the problem by running the bills through rollers heated to 392 degrees [Fahrenheit, 200 degrees Celsius]—any hotter would singe paper money—and discovered that the process also killed bacteria.

Idea for Impact: Serendipity is central to the creative process. Many ideas evolve when you’re working on something unrelated. Always be ready to discover what you’re not looking for.

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Filed Under: Business Stories, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Innovation, Luck, Problem Solving, Thinking Tools

Book Summary of Verne Harnish’s ‘The Greatest Business Decisions of All Time’

December 6, 2021 By Nagesh Belludi Leave a Comment

'The Greatest Business Decisions' by Verne Harnish (ISBN 1603209786) The Greatest Business Decisions of All Time (2012) is a flatfooted anthology of 18 engaging—and oversimplified—business stories that influenced the course of business. Edited by management consultant Verne Harnish, this tome contains long articles by nine Fortune magazine journalists.

  1. Apple and the Return of Steve Jobs. The 1996 decision by Apple’s board of directors to bring back Jobs revived the company, transformed the consumer electronics industry, and made Apple one of the most valuable companies in the world.
  2. Zappos and Free Shipping. Zappos’s decision to offer free shipping and 365-day free returns lured more mainstream buyers onto the internet. Other retailers had no choice but to provide free shipping (albeit with some restrictions) and absorb the costs.
  3. Samsung and Global Immersion. In the early 1990s, Chairman Lee Kun-Hee instituted a policy to send his brightest young employees on international sabbaticals that exposed them to the local cultures and build business networks. This program later fuelled Samsung’s global ambitions.
  4. Johnson & Johnson and the Tylenol Comeback. Consistent with the company’s “patients come before profit” credo, CEO James E. Burke set the benchmark for crisis management when he decided to pull Tylenol off the shelves nationwide and create a tamper-proof bottle at the cost of $100 million. Johnson & Johnson cemented its reputation for responsible management.
  5. 3M’s 15% Free Time Rule and Innovation. 3M Company CEO William McKnight’s extraordinary idea of giving employees free time for “experimental doodling” yielded such innovative products as Post-It notes. 3M quickly diversified its portfolio and entered many consumer- and industrial-businesses. 3M inspired Google’s 20% rule.
  6. The “Intel Inside” Marketing Campaign. To forestall the commoditization of the computer chip, CEO Andy Grove shifted Intel’s image from that of a microprocessor company to that of a producer of a coveted, brand-name product that stood for performance. Intel became a household name that consumers sought when they purchased a computer.
  7. General Electric’s Jack Welch and Crotonville. Welch transformed GE’s sprawling management-training institute in Crotonville, New York, into a focal point of learning for the company.
  8. Bill Gates and His “Think Weeks.” The Microsoft founder’s twice-yearly retreat in rural isolation allowed him to read, reflect, and map out ideas—away from the distractions and the noise of business life.
  9. Softsoap and Impeding Competition. A small Minnesota company called Minnetonka Corp. developed liquid hand soap in the early 1980s. When Softsoap started flying off the shelves, deep-pocked behemoths like Procter & Gamble began to prototype their own variants. Minnetonka’s CEO Robert Taylor developed a smart strategy to block his giant competitors and keep his company’s market share. He purchased the entire U.S. supply of plastic pumps used in the liquid soap bottles for one year—that’s 100 million units from the only supplier. By the time his competitors had access to the plastic pumps, Taylor’s Softsoap’s brand was well established.
  10. Toyota and the Quality Revolution. Toyota’s institutional obsession with waste-reduction, zero defects, and process improvement has transformed manufacturing and inspired excellence in every service industry—including hospitals.
  11. Nordstrom and Customer Service Excellence. Nordstrom built its brand on “above-and-beyond” customer service and problem-solving. The entirety of the Nordstrom Employee Handbook fits on a 5×8 card and contains precisely one rule, “Use the best judgment in all situations. There will be no additional rules.”
  12. Tata Steel and Labor Relations. During a turbulent period of India’s leading steelmaker, Managing Director Jamshed J Irani confronted a bloated cost structure by reducing his 78,000-strong workforce to 40,000 by 2005. In keeping with the Tata Group’s rich philanthropic legacy, Irani offered decent pension plans and invested in labor welfare.
  13. Boeing 707 and the Jet Age. Boeing’s decision to develop the Boeing 707 at the cost of $185 million (more than the company’s market capitalization) “remade a company, an industry, and the very culture of its time.” The 707 was the first transatlantic commercial jetliner in an era of prop planes. It kicked off the Jet Age, revolutionized air travel, and established Boeing as a dominant airliner manufacturer.
  14. IBM and the Customer-Centric Makeover. In 1993, Lou Gerstner became CEO and embarked on an “Operation Bear Hug” to launch new communication pipelines between top executives and IBM’s customers. This helped transform IBM from an inwardly focused bureaucracy to a customer-centric market-driven innovator.
  15. Sam Walton and Walmart’s Saturday Morning Meeting. Walton’s energetic 6:00 A.M. meeting was a pep rally, merchandising workshop, and financial update—all rolled into one. He brainstormed with his store managers on how to improve things week after week and helped metamorphose Walmart from a single, small-town variety store in 1962 into the world’s largest retailer.
  16. Eli Whitney and the Dawn of American Technology. Whitney’s invention of the “saw gin” that worked well with short-staple cotton helped transform Southern agriculture (and sustain the institution of African slavery!) Whitney then popularized the use of interchangeable parts in making firearms.
  17. Bill Hewlett and David Packard and the “HP Way.” The essence of Hewlett-Packard’s management philosophy was an openness and respect for the employees. With a framework of principles and the simplicity of their management methods, they established many progressive management practices that prevail even today.
  18. Henry Ford and the Factory- and Wage-Revolution. When Ford introduced the moving assembly line, his fledging factory was confronting a dispirited workforce, declining workmanship and quality, absenteeism, and annual labor turnover of 370 percent. Then Ford decided to raise wages from $2.50 to $5 a day. The following week, Ford Motors had more than 26,000 job applicants. Ford increased production rates and slashed the per-unit cost of the Model T. Annual labor turnover fell to 16 percent, and Ford’s profits doubled within two years. Every time Ford increased the productivity of car production, he continued to raise wages. His well-paid workers had more to spend—and could afford the very cars they built.

Recommended: Quick read. The Greatest Business Decisions of All Time is a concise and entertaining read, especially if you like getting into heads, the thoughts, and the motivations of well-known business luminaries. The 18 case studies lack rigor and are beset with recency biases, narrative fallacies, and a misplaced sense of causes and effects. Some stories, e.g., the Softsoap one, aren’t well known.

Daniel Gross’s Forbes Greatest Business Stories of All Time (1997) is significantly more engrossing and instructional.

Wondering what to read next?

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

Filed Under: Business Stories, Leadership Tagged With: Creativity, Innovation, Leadership Lessons, Thinking Tools

How to See Opportunities Your Competition Doesn’t

November 19, 2021 By Nagesh Belludi Leave a Comment

'Different' by Youngme Moon (ISBN 0307460851) Harvard strategy professor Youngme Moon’s Different: Escaping the Competitive Herd (2010) describes how many companies pursue the same opportunities that every other company is chasing and thus miss the same opportunities that everyone else is missing.

In category after category, companies have gotten so locked into a particular cadence of competition that they appear to have lost sight of their mandate—which is to create meaningful grooves of separation from one another. Consequently, the harder they compete, the less differentiated they become … Products are no longer competing against each other; they are collapsing into each other in the minds of anyone who consumes them.

Moon argues that the companies and brands that see a different game win big. Such innovators don’t just try to outcompete their rivals at the margin. Instead, they redefine the competitive landscape by embracing unique ideas in a world crammed with me-too thinking.

European airline Ryanair unleashed a new wave of relentless cost- and price-leadership by charging customers extra for everything beyond a seat itself. If you want to check a bag, you pay extra. If you want an airport agent to check you in and print your boarding pass, you pay extra. If you want food and drink, you pay extra. Later on, Spirit Airlines took the price-obsession further by charging for carry-on bags too. After a rough rollout and customer defiance, paying for carry-on bags has become the new normal.

Idea for Impact: Being different is what makes all the difference. If you do things the same way everyone else in your field does things, why would you expect to do any better? What are you doing to raise your game—not just to stay in place, but to get ahead?

Wondering what to read next?

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  4. Fail Cheaply
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Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Competition, Customer Service, Getting Ahead, Innovation, Leadership, Risk, Strategy

Let’s Hope She Gets Thrown in the Pokey

November 16, 2021 By Nagesh Belludi 1 Comment

The Elizabeth Holmes-Theranos criminal trial hasn’t been without its share of theatrics.

Yes, Holmes’s massive fraud is obvious. She entranced (read WSJ reporter John Carreyrou’s excellent chronicle, Bad Blood (2018; my summary)) journalists, investors, politicians, and business partners into believing her fantasy science. She may even be responsible for negligent homicide if people died because of her company’s fake test results.

Elizabeth Holmes / Theranos criminal trial

Then again, these sorts of cases generally hang on subtle distinctions between hyperbole and outright dishonesty and whether such deceit was deliberate.

Holmes’s lawyers will argue that she was merely an ambitious entrepreneur who failed to realize her vision but wasn’t a fraudster. Her lawyers will make a case that she is not to be blamed because people took her puffery and exaggeration as factually accurate. At what point do her wishfulness and enthusiasm go from optimism to intentional fraud? That’ll be the critical question.

'Bad Blood' by John Carreyrou (ISBN 152473165X) At any rate, the Theranos verdict is unlikely to deter others from the swagger, self-assurance, hustle, and the “fake it till you make it” ethos that is so endemic to start-up culture. Investors will never cease looking at people and ideas rather than the viability of their work.

Idea for Impact: Don’t be so swayed by story-telling that has a way of making people less objectively observant. Assemble the facts, and ask yourself what truth the facts bear out. Never let yourself be sidetracked by what you wish to believe.

Wondering what to read next?

  1. A Real Lesson from the Downfall of Theranos: Silo Mentality
  2. The Dramatic Fall of Theranos & Elizabeth Holmes // Book Summary of John Carreyrou’s ‘Bad Blood’
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  4. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
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Filed Under: Business Stories, Mental Models Tagged With: Biases, Critical Thinking, Entrepreneurs, Ethics, Likeability, Psychology, Questioning, Risk

Always Be Ready to Discover What You’re Not Looking For

July 19, 2021 By Nagesh Belludi Leave a Comment

Corn flakes were born (1894) when the Kellogg brothers inadvertently left a pot of boiled wheat overnight on a stove. They passed the flaky dough through bread rollers and baked the flakes to create a crunchy snack.

Always Be Ready to Discover What You're Not Looking For The Penicillin mold was discovered (1928) by Sir Alexander Fleming, who, upon returning from a vacation, saw a Petri dish that he had left behind without disinfecting. That Petri dish had a zone around an invading fungus where his Staphylococcus bacterium culture had not grown. A mold spore from another lab in the building had accidentally fallen on this culture. The spore had grown while Fleming was away. Rather than throw the dirty Petri dish away, he isolated the mold and identified it as belonging to the Penicillium genus, which kills bacteria by inhibiting new cell walls.

The microwave oven was invented (1945) unintentionally during an experiment by Percy Spencer of Raytheon Corporation. Electromagnetic waves from a new vacuum tube melted a chocolate bar in his pocket while standing next to a magnetron.

Viagra had been developed (1989) as the chemical compound sildenafil citrate to treat hypertension and angina pectoris. Researchers found during the first phase of clinical trials that the compound was good for something else. It was approved for medical use in 1998.

Serendipity is a rich idea that is very central to the creative process. Lots of ideas evolve when you’re working on something unrelated. Physiologist Julius H. Comroe Jr. once said, “Serendipity is looking in a haystack for a needle and discovering a farmer’s daughter.”

Idea for Impact: Creativity is a disorderly journey. Much of the time, you may never get where you’re going. You may never find what you hope to find. Yet still, you must stay open to the new and the unexpected.

Explore how to transform serendipitous ‘mistakes’ into breakthroughs.

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Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Creativity, Entrepreneurs, Innovation, Luck, Problem Solving, Thinking Tools

Choosing Your Leadership Style: Detail-Orientation

July 5, 2021 By Nagesh Belludi Leave a Comment

Andy Jassy, CEO of Amazon - Leadership Style As Amazon’s Andy Jassy takes over the reins from Jeff Bezos, the Wall Street Journal has a profile of Jassy’s ultra-detail-oriented management style:

Former colleagues say Mr. Jassy would spend enormous amounts of time on the narrowest of details if he thought it was important. … When an AWS data center in Virginia was hit by a major outage, Mr. Jassy personally got involved in figuring out the problem. It turned out a technician had been checking a generator and the door accidentally bumped into a switch, shutting it off. Mr. Jassy dug into the incident and pressed the team to redesign the generators. When the CEO is digging at that level, everyone at the company starts to dig at the same level.

Flexibility and a detail-oriented mindset are leadership qualities that Jassy shares with Bezos. As at many founder-led firms, Amazon’s corporate culture has mimicked these traits, and the colossus has historically been able to jump on opportunities quickly and quality-control its organizational capabilities.

Idea for Impact: A fundamental duty of leadership is to guide an organization’s collective awareness. Attention to detail (without micromanagement) matters. When leaders don’t really care about the details and are content to produce low-quality work, their teams will start to do, too.

In areas where influential leaders aren’t detail-focused, they have somebody on their teams that does. Apple’s Steve Jobs famously focused on creativity and innovation while relying on Tim Cook and his tight-knit team of operations executives to run Apple’s operations.

Wondering what to read next?

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  5. How Smart Companies Get Smarter: Seek and Solve Systemic Deficiencies

Filed Under: Business Stories, Leading Teams, Sharpening Your Skills Tagged With: Amazon, Jeff Bezos, Leadership, Problem Solving

Tweets, Egos, and Double-Crosses: Summary of Nick Bilton’s ‘Hatching Twitter’

April 26, 2021 By Nagesh Belludi Leave a Comment

I spent the weekend reading New York Times technology writer Nick Bilton’s captivating Hatching Twitter: A True Story of Money, Power, Friendship, and Betrayal (2013.) This tome exposes the dark side of Twitter’s tense founding and the relationships amongst the company’s four founders, Evan Williams (@Ev,) Jack Dorsey (@Jack,) Biz Stone (@Biz,) and Noah Glass (@Noah.)

Personal ambitions unleashed a barrage of backstabbing

This motley crew of four San Francisco transplants chanced upon one another when trying to make it in Silicon Valley and became close friends. They started Twitter in 2006 as a side project at Odeo, an ailing podcasting business bankrolled by Evan Williams. With an appealing—albeit frenzied—startup idealism and naïvete, they forged ahead with the notion of a platform that offered everybody an equal voice in 140 characters.

However, when Twitter (a social media giant with over 206 million daily active users worldwide) began to gain traction as a status-sharing service, tensions quickly emerged between the co-founders. The four founders came to blows over just what Twitter was supposed to be and for the right to be recognized as having conceived it.

Lesson #1 from Twitter’s founding: Never mix business and friendship

'Hatching Twitter' by Nick Bilton (ISBN 1591847087) The Twitter team’s infighting almost tore the microblogging company apart on more than one occasion in its early days. There was even acrimony over who got to sit by First Lady Michelle Obama at a Time 100 Most Influential People soiree.

Noah Glass, the “forgotten founder,” championed it initially and conceived Twitter’s name. Awkwardly, he was booted out before the startup even incorporated. He was left empty-handed from the contraption he had built and fought for when it was still an idea.

Biz Stone, the tactician and go-between, threatened to quit out of disgust with the infighting.

Hatching Twitter is particularly sympathetic to Evan Williams. He bankrolled Twitter as a fork of Odeo. He pivoted Twitter as a means for talking about what is happening in the world. Williams goaded it to prominence simultaneously as he tried in vain to keep Dorsey’s egotism in check.

Lesson #2 from Twitter’s Founding: Self-sabotage can undermine your hard work

For Jack Dorsey, Twitter was always about telling other people what you were doing and making them feel less alone. Williams chose Dorsey as CEO when Twitter formally became its own company. However, their relationship quickly soured. Dorsey failed to address Twitter’s early technical flaws, even as he took plenty of time to pursue hobbies outside of work. Twitter’s venture investors and Williams ultimately overthrew Dorsey.

Dorsey got bitter and launched another startup called Square (it’s now a thriving digital payments company.) Exploiting the public confusion about his role as Twitter’s chairman (albeit without a vote on the board,) Dorsey went on a media blitz to promote himself as Twitter’s sole inventor and the platform’s real brain.

Author Bilton makes Twitter’s founders seem so inept that one marvels at how the company got anywhere. But even as Dorsey and Williams squabbled, Twitter’s users set in motion a cultural phenomenon through retweets, @replies, and #hashtags. These three precepts gave Twitter its unique depth, scope, and versatility.

Later on, Williams got the boot in a coup d’etat orchestrated by a guileful Dorsey. He returned as Twitter’s executive chairman alongside a new chief executive. Dick Costolo, a former professional comic, made Twitter a revenue-earning business and steered it to an IPO.

Twitter Founders - Evan Williams, Biz Stone, Jack Dorsey, Noah Glass

Lesson #3 from Twitter’s Founding: Distribute credit—There’s plenty to go around

Interpersonal conflicts are the black ice of startups. Individual styles and priorities that are at odds with other founders can cause much drama in entrepreneurship. At the startup companies that I’ve been involved in, rifts have often forced co-founders to press mediators into their service and learn how to embrace conflict and establish boundaries.

When things are going well at any startup, everyone’s too busy to have much to disagree about. When the startup hits the skids, disputes pop up even where you’d least expect them. Some 65% of startups are suspected of failing because of interpersonal tensions within the founding team.

Hatching Twitter excels in shining a light not just on the founders’ conflicting personalities but how their individual dispositions affected what Twitter became:

Jack had the germ of the idea, of people sharing their status … Without Noah’s vision of a service that could connect people who felt alone, and a name that people would remember, Twitter would never exist. It was Ev who insisted on making Twitter about ‘what’s happening .’.. and without Biz’s ethical stance … Twitter would be a very different company.

Hatching Twitter, The Company That Almost Wasn’t

Recommendation: Quick-read Nick Bilton’s Hatching Twitter (2013.) It’s a fast-paced, entertaining back-story to how Twitter was founded and the drama caused by its founders’ personality conflicts and all the alliances and ousters and betrayals.

Nick Bilton tells an exciting saga of rivalries turning to fallings-out, hubris unfolding. As great wealth is built and lost, Facebook’s Mark Zuckerberg notes, “[Twitter is] such as mess—it’s as if they drove a clown car into a gold mine and fell in.” Bilton is gossipy, and his narrative tends to theatrical—an undeniable fodder for an inevitable Hollywood adaptation.

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Filed Under: Business Stories, Managing People, The Great Innovators Tagged With: Entrepreneurs

Creativity—It Takes a Village: A Case Study of the 3M Post-it Note

April 15, 2021 By Nagesh Belludi Leave a Comment

Creativity isn’t always about sudden insights that work perfectly. No matter how good an idea is, it’ll probably need some work before it can mature into a helpful innovation.

The invention of 3M Post-it (or the sticky note) is a particularly illuminating case in point that innovation requires actionable and differentiated insight. Cross-functional collaboration can help ensure creative involvement throughout the development process.

A Glue That Doesn’t Stick: A Solution Without a Problem

Arthur Fry conceived the Post-It to bookmark the songs in hymnal In the winter of 1974, a 3M adhesives engineer named Spencer Silver gave an internal presentation about a pressure-sensitive adhesive compound he had invented in 1968. The glue was weak, and Silver and his colleagues could not imagine a good use for it. The glue could barely hold two pieces of paper together. Silver could stick the glue and reapply it to surfaces without leaving behind any residue.

In Silver’s audience was Arthur Fry, an engineer at 3M’s paper products division. Months later, on a frigid Sunday morning, Fry called to mind Silver’s glue in an unlikely context.

Fry sang in his church’s choir and used to put little paper pieces in his hymnal to bookmark the songs he was supposed to sing. The little paper pieces of bookmark would often fall out, forcing Fry to thumb frantically through the book looking for the correct page. (This is one of those common hassles that we often assume we’re forced to live with.)

In a flash of lightning, Fry recalled the weak glue he’d heard at Silver’s presentation. Fry realized that the glue could be applied to paper to create a reusable bookmark. The adhesive bond was strong enough to stick to the page but weak enough to peel off without leaving a trace.

Arthur Fry and Spencer Silver: Inventors of the Post-it Note The sticky note was thus born as a bookmark called Press’n Peel. Initially, It was sold in stores in four cities in 1977 and did poorly. When 3M offered free samples to office workers in Boise, Idaho, some customers started using them as self-attaching notes. It was only then that Post-it notes started to become popular. They were first introduced across America in 1980 and Canada and Europe in 1981.

Ideas Intermingle and Evolve: Creativity Needs Collaboration

In all, it took twelve years after the initial discovery of the “glue that doesn’t stick” before 3M made Post-it available commercially. The Post-it continues to be one of the most widely used office products in the world.

This case study of the Post-it is a persuasive reminder that there’s a divergence between an idea and its tangible application that the creator cannot bridge by himself. The creator will have to expose the concept to diverse people who can evaluate, use, and trial the product.

In other words, the creative process does not end with an idea or a prototype. A happy accident often undergoes multiple iterations and reinterpretations that can throw light on the concept’s new applications. In the above example, Art Fry was able to see Spencer Silver’s invention from a different perspective and conceive of a novel use that its creator, Silver, could not. And all this happened in 3M’s fertile atmosphere that many companies aspire to create to help ideas intermingle and creativity flourish.

Creativity---It Takes a Village: A Case Study of the Post-it Note

Idea for Impact: Creativity Is About Generating New Possibilities

Creativity is a mental and social process involving the generation of new ideas and concepts—and new associations that connect the ideas with existing problems.

Excellent new ideas don’t emerge from within a single person or function but at the intersection of processes or people that may have never met before.

Wondering what to read next?

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Filed Under: Business Stories, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Critical Thinking, Networking, Problem Solving, Teams, Thinking Tools, Thought Process

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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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RECOMMENDED BOOK:
The Story of My Experiments with Truth

The Story of My Experiments with Truth: Mahatma Gandhi

Gandhi's transparent glimpse into the mind of a truly great soul who demonstrated that an individual dedicated to conscious living, honesty, and love can overcome any violence or hatred.

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Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!