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Get Started, Passion Comes Later: A Case Study of Chipotle’s Founder, Steve Ells

September 2, 2024 By Nagesh Belludi Leave a Comment

Get Started, Passion Comes Later The notion of directly pursuing your passion can seem daunting, particularly if you’re uncertain about identifying your true calling or how it could translate into a feasible career path. The tale of Chipotle and its founder Steve Ells serves as a fitting illustration of this dilemma.

After graduating from arts college, Ells headed to the Culinary Institute of America, where he fell in love with cooking. Initially, he dreamed of opening a fancy restaurant, but the funds weren’t there.

During the early 1990s, Ells embarked on a culinary journey, starting as a sous chef under renowned chef Jeremiah Towers at San Francisco’s upscale Stars restaurant. It was during this time that the idea for Chipotle began to take shape. Inspired by the delectable “mission-style” burritos he savored in San Francisco’s Mission District taquerias, Ells seized the opportunity. With an $85,000 loan from his father, he ventured to establish the inaugural Chipotle eatery in 1993, nestled in Denver, Colorado.

Ells’s father, crunching the numbers, estimated that his son would need to sell 107 burritos daily to break even. However, the response exceeded expectations. Within the inaugural month, Chipotle was churning out 1,000 burritos a day. This swift success unveiled Ells’s true calling. He realized his passion lay not in haute cuisine but in the realm of delivering delectable, freshly-prepared Mexican fare swiftly. Chipotle garnered a devoted following for its scrumptious offerings, rapid service, and unwavering commitment to sustainable sourcing.

Idea for Impact: Starting with an exploratory approach is often wiser than waiting for the perfect alignment with your passion. Dabble in different areas, adapt your goals over time, and stay open to new opportunities. Sometimes, passion emerges along the journey, leading to unexpected yet fulfilling paths.

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Filed Under: Career Development, Great Personalities, Sharpening Your Skills, The Great Innovators Tagged With: Career Planning, Entrepreneurs, Personal Growth, Pursuits, Success, Winning on the Job

Champion Positives, Sideline Negatives

June 28, 2024 By Nagesh Belludi Leave a Comment

Warren Buffett's Advice: Champion Positives, Sideline Negatives Investor Warren Buffett’s wisdom isn’t just about making money. He’s known for his simple yet powerful life advice, often told through folksy metaphors. One of his biggest teachings is about investing in yourself and striving to be the best you can be. Buffett advocates surrounding yourself with top-notch people and learning from them: he famously remarked, “It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.”

It’s all about picking up their good habits and making them your own. Buffett has offered a practical approach: create two lists of qualities. First, write down what you love about your role models. Then, jot down the stuff you can’t stand about those you don’t vibe with. Then, aim to adopt the good and steer clear of the bad.

Idea for Impact: Be more like the people you admire the most. This exercise can help you level up and become the best version of yourself.

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Filed Under: Career Development, Great Personalities, Mental Models, Sharpening Your Skills Tagged With: Discipline, Getting Ahead, Mentoring, Parables, Role Models

The Deceptive Power of False Authority: A Case Study of Linus Pauling’s Vitamin C Promotion

May 2, 2024 By Nagesh Belludi Leave a Comment


The Allure of the Famous Word

The Deceptive Power of False Authority: A Case Study of Linus Pauling's Vitamin C Promotion In the 1970s and 1980s, Linus Pauling, the American chemist with not one but two Nobel Prizes to his name, started championing the extraordinary potential of mega-doses of Vitamin C (ascorbic acid) as a wide-ranging panacea—a solution to a myriad of ailments, in fact—from the common cold to cancer and even heart disease.

The world of medicine and science didn’t greet Pauling’s bold claims with open arms. Skepticism abounded, and rightly so. The reason? A scarcity of compelling scientific evidence to bolster his audacious assertions. Leading medical institutions turned a critical eye toward his ideas, raising ethical red flags. They feared that people might be swayed to forgo established medical treatments based solely on the strength of a seemingly authoritative endorsement of Pauling.

This controversy is a classic case in point of a brilliant person daring to traverse the boundaries of his expertise, venturing into unqualified territories. While a handful of studies explored the potential benefits, a universally accepted scientific consensus on the effectiveness of high-dose Vitamin C for these purposes remained frustratingly elusive. And even today, Pauling’s views on Vitamin C’s health benefits continue to spark fierce debates.

Truth Demands a Deeper Call

Make no mistake; Linus Pauling was a luminary in the realm of chemistry, but his credentials didn’t extend to the domain of medicine. This tale serves as a reminder that intelligence and judgment are not always cut from the same cloth. While Pauling’s claims may hold water in the world of chemistry, blindly accepting his assertions on Vitamin C would lead us down a path of fallacy – the “false appeal to authority,” or “Argument from Authority,” also known as “Argumentum ad Verecundiam.”

Celebrity endorsements, expert testimonies, and references to popular figures in non-expert fields can be a deceptive trap for those who unquestionably trust the statements of authorities. The assumption that truth is inherent in the words of a prominent figure, regardless of solid evidence or sound reasoning, undermines critical evaluation and neglects the necessity for substantial support.

Idea for Impact: Brilliance in one arena doesn’t guarantee infallibility across the board. Approach “expert” opinions with a critical eye, assessing them within the context of the evidence and rationale that underpin the argument. In the quest for understanding, always judge each assertion on its own merits. Context matters.

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Lessons from JFK’s Inspiration Moon Landing Speeches

March 4, 2024 By Nagesh Belludi Leave a Comment

When John F. Kennedy assumed the presidency in January 1961, the prevailing sentiment among many Americans was that the country was falling behind in the Space Race. This feeling was compounded by the Soviet Union’s successful launch of the first artificial satellite, Sputnik 1, four years earlier. Just three months into Kennedy’s tenure, Yuri Gagarin made history as the first man in space. Shortly thereafter, the Bay of Pigs debacle dealt another blow to America’s international standing.

Against this backdrop, Kennedy addressed Congress on May 25, 1961, with a bold proposal: America should commit to landing a man on the Moon and safely returning him to Earth before the decade’s end. He framed space exploration as a pivotal American endeavor, one with profound implications for the nation’s future. Kennedy emphasized that reaching the Moon would not be solely the achievement of astronauts but of the entire nation, calling for collective effort.

Lasting Legacy: JFK’s Influence on the Future of Space Exploration

JFK's Moon Mission Speech: Informing Public About Lunar Landing Goal Congress swiftly approved the substantial funding Kennedy requested, leading to a significant expansion of NASA. Within four years, the agency had grown ninefold from its size at the start of Kennedy’s presidency.

Kennedy’s speech marked a turning point in human space exploration, reshaping the dynamics of the Cold War and instilling a newfound sense of American potential. It sparked national pride and served as a catalyst for vast technological and educational advancements, reflecting the boundless aspirations of the era.

Kennedy’s declaration didn’t win over everyone. To drum up more excitement and boost his approval ratings, Kennedy delivered another speech at Rice Stadium on September 12, 1962, on the campus of Rice University in Houston, Texas. It was actually his brilliant speechwriter, Ted Sorensen, who employed rhetorical techniques to stir the audience’s emotions.

Using powerful imagery, Kennedy posed the question, “But why, some say, the moon? Why choose this as our goal? And they may well ask why climb the highest mountain?” He emphasized that the pursuit of the moon and other difficult tasks wasn’t because they were easy, but because they were hard.

Drawing parallels to the spirit of exploration, Kennedy likened the moon mission to the legendary ambition of George Mallory, the British explorer who perished on Mount Everest. Mallory, when asked why he wanted to climb the mountain, famously replied, “Because it is there.” Kennedy underscored the vastness of space as the next frontier, brimming with opportunities for knowledge and peace. He invoked divine blessings for what he described as the most perilous, daring, and grand adventure humanity had ever embarked upon.

The Power of Persuasion: Analyzing JFK’s Rhetorical Magic

Kennedy’s words resonated with a profound sense of optimism and possibility. He emphasized the imperative of pushing the boundaries of human achievement and exploration, fostering a collective national pride and unity in pursuit of a singular goal. This vision electrified thousands of employees across various roles at NASA, from astronauts to janitors, all rallying around the audacious objective of landing a man on the moon. Even those with seemingly mundane tasks found purpose in the grand mission, as evidenced by one non-scientist at NASA declaring, “I’m not mopping floors, I’m putting a man on the moon.”

Kennedy’s message held sway because he possessed a rare ability to vividly depict the distant future with precision. His speeches served as a clarion call for progress and innovation, positioning the United States as a vanguard in the space race amid the backdrop of the Cold War. By framing the moon landing as a symbol of American ingenuity and technological supremacy, he underscored its significance in the global arena.

JFK's NASA Vision: Advancing Scientific Frontiers Boldly Moreover, Kennedy streamlined NASA’s ambitions to focus on a singular objective: “to develop a new frontier in science.” Prior to Kennedy’s presidency, NASA’s vision had been sprawling and unfocused, aiming to achieve superiority in technology and space exploration. By narrowing the focus to one goal, Kennedy recognized the power of clarity and direction in driving progress.

Kennedy vividly portrayed the magnitude of the challenge, emphasizing its enormity: “No single space project … will be more impressive to mankind, or more important for the long-range exploration of space; and none will be so difficult or expensive to accomplish.”

Dreaming Big: How JFK’s Moon Speeches Transformed History

By aligning NASA’s and the nation’s vision to a tangible and ambitious objective, Kennedy galvanized action: “commit itself to achieving the goal, before this decade is out, of landing a man on the moon and returning him safely to the earth.” Setting a clear deadline spurred engagement and focus. Kennedy’s speeches marked a pivotal juncture in the space race, laying the groundwork for future exploration of the cosmos.

The key lesson to glean from this is to strive for concreteness in vision statements, avoiding abstraction whenever possible. The objective of landing a man on the moon felt tangible, immediate, and relatable compared to the vaguer aim of “advancing science.”

Indeed, the future remains shrouded in uncertainty. Our mental image of what lies ahead is often hazy, leading us to discuss it in broad, sweeping terms to maintain flexibility.

Idea for Impact: A compelling vision propels us beyond the familiar, guiding us into uncharted territory and expanding the limits of our conventional thinking.

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The Best Way to Achieve Success is to Visualize Success

October 7, 2021 By Nagesh Belludi Leave a Comment

What athletes think about has a profound effect on how they perform—both negatively and positively. American sportswriter George Plimpton’s Sports! (1978) identifies the “self-satisfying optimism” that permeated the mind of soccer star Pelé under the stress of contest:

In the New York Cosmos’ locker room, it was Pelé’s ritual to lie on the floor with his feet elevated on a bench, one towel neatly folded under his head, another shielding his eyes. Half in, half out of his cubicle, he would begin a sort of waking dream—pleasurable scenes of playing barefoot on Brazilian beaches, playbacks of triumphs of his astonishing career that he planned to emulate. The more important the game, the longer his dream. On the occasion of the first huge crowd the Cosmos drew in New Jersey’s Meadowlands—62,394 people—he spent 25 minutes under his towel and then scored three goals against the Tampa Bay Rowdies.

Idea for Impact: Foreseeing yourself succeed helps you believe that it can happen.

Before you meet with a new sales prospect or when you’re procrastinating on any daunting task, take some time to imagine richly what you will see, taste, hear, smell, and feel once you’re successful.

Use the power of visualization to evoke the future self, who’s achieved your goals. See in your mind’s eye the finish line you’re aiming at.

Visualize what “done” looks like. Imagine the sense of achievement. Envision the relief of being finished. See the fame, rewards, accolades, awards, adulation, satisfaction you’ll receive in your mind’s eye.

Imagine taking action.

Visualize achieving your goal.

Now make it happen.

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The Political Genius of Abraham Lincoln // Book Summary of ‘Team of Rivals’

October 5, 2020 By Nagesh Belludi Leave a Comment

Abraham Lincoln is one of history’s most admired leaders. There’s no better rendering of his leadership approach than historian Doris Kearns Goodwin’s fascinating Team of Rivals: The Political Genius of Abraham Lincoln (2005.)

In this Pulitzer Prize-winning work, Goodwin chronicles Lincoln’s early life and his surprising rise to the top of the political world. However, Goodwin’s focus is on Lincoln’s presidency.

President Barack Obama, who never shies away from comparisons to Lincoln, was so impressed with the book that he famously created his own “team of rivals”—a cabinet with Joe Biden, Hillary Clinton, and Tom Vilsack.

Lincoln was a genius for putting his political foes in his cabinet

After Lincoln was elected president in 1860, he knew that people doubted his ability. The country couldn’t be in worse straits. Nonetheless, he was determined to bring together a team of the absolute best people, lead the nation through the Civil War, and put an end to slavery.

And he did precisely that—no matter that those people held very different views or even disliked him personally. Three of Lincoln’s prominent cabinet members were better-known political foes who had campaigned against him in the 1860 election: Attorney General Edward Bates, Secretary of the Treasury Salmon P. Chase (he never stopped scheming politically against Lincoln,) and Secretary of State William H. Seward. Contrasting his three rivals, Lincoln had served only briefly in elected office—and he had steered clear of committing himself on slavery apart from asserting that America could not persist under the circumstances.

Lincoln’s political genius revealed through his extraordinary array of personal qualities that enabled him to form friendships with men who had previously opposed him; to repair injured feelings that, left untended, might have escalated into permanent hostility; to assume responsibility for the failures of subordinates; to share credit with ease; and to learn from mistakes. He possessed an acute understanding of the sources of power inherent in the presidency, an unparalleled ability to keep his governing coalition intact, a tough-minded appreciation of the need to protect his presidential prerogatives, and a masterful sense of timing.

Goodwin explains how Lincoln won people over and mobilized them in the face of their disparate abilities, personalities, and motivations. Lincoln created the micro-coalitions necessary to pursue his overall strategy.

Having risen to power with fewer privileges than any of his rivals, Lincoln was more accustomed to rely upon himself to shape events. … Seward, Chase, Bates—they were indeed strong men. But in the end, it was the prairie lawyer from Springfield who would emerge as the strongest of them all.

Conflict and inclusion of others’ perspectives can make the sum greater than the parts

Lincoln’s unusual combination of forgiving human spirit and sharp political instincts converted his enemies into (mostly) loyal friends and advisers.

Team of Rivals emphasizes Lincoln’s tactics and small, incremental decisions in aid of his larger purpose. Lincoln understood that the leader’s fundamental responsibility is to procure the support needed to unleash ideas and move them forward.

Goodwin captures Lincoln’s vulnerabilities, patience, intelligence, and fantastic will. Goodwin writes, “Good leadership requires you to surround yourself with people of diverse perspectives who can disagree with you without fear of retaliation.” A good leader takes the time to understand all sides of the issue and embrace alternative perspectives.

Lincoln’s mastery of men molded the most significant presidency in the nation’s history

To Goodwin, Lincoln was a political genius who picked the talent he needed, welcomed dissent, listened to his opponents, sought common ground, and piloted tough choices.

“Once a president gets to the White House, the only audience that is left that really matters is history.” Lincoln understood that leadership isn’t about being right, but doing the right thing. This is particularly obvious in how Goodwin describes Lincoln’s determined course of action on slavery.

Team of Rivals states that Lincoln was not an abolitionist by any means, but it’s clear that, in his heart, he was against slavery. After all, slavery was protected by the constitution. But Lincoln gained a better understanding and insight as the years went by. “Life was to him a school.”

Lincoln agreed with the abolitionists that slavery was “a moral, a social and a political wrong,” his plan to free the slaves divided his cabinet. He had always made it clear that preserving the Union trumped all other goals. He became increasingly aware of the need for the Union to embrace the end of the institution of slavery without creating further discord within his own administration and in a fractured state.

Lincoln’s political genius was not simply his ability to gather the best men of the country around him, but to impress upon them his own purpose, perception and resolution at every juncture.

For months, Lincoln let his cabinet deliberate about if—and when—slavery should be abolished. In the end, he conclusively made up his mind to issue his historic Emancipation Proclamation. He gathered his cabinet and told them that he no longer needed their inputs on the pivotal issue—but he would listen to their ideas about how best to implement his decision and its timing. When one cabinet member urged Lincoln to wait for a triumph on the field to issue the proclamation, Lincoln took his counsel.

The desultory talk abruptly ended when Lincoln took the floor and announced he had called them together in order to read the preliminary draft of an emancipation proclamation. He understood the ‘differences in the Cabinet on the slavery question’ and welcomed their suggestions after they heard what he had to say; but he wanted them to know that he ‘had resolved upon this step, and had not called them together to ask their advice.’ … His draft proclamation set January 1, 1863, little more than five months away, as the date on which all slaves within states still in rebellion against the Union would be declared free, ‘thenceforward, and forever.’ … The proclamation was shocking in scope. In a single stroke, it superseded legislation on slavery and property rights that had guided policy in eleven states for nearly three quarters of a century. … The cabinet listened in silence … The members were startled by the boldness of Lincoln’s proclamation.

‘Team of Rivals’ is one of the great leadership books

Goodwin’s chunky (750+ pages plus references) book is a serious commitment. The first third of the book is bogged down by particulars of the lives of Lincoln and his three “rivals” in local and regional politics. But these sections are worth plodding through because the backstories paint a richer picture of the personalities, their intentions and motivations, and how they evolved over time.

All four studied law, became distinguished orators, entered politics, and opposed the spread of slavery. Their upward climb was one followed by many thousands who left the small towns of their birth to seek opportunity and the adventure in the rapidly growing cities of a dynamic, expanding America.

Just as a hologram is created through the interference of light from separate sources, so the lives and impressions of those who companioned Lincoln give us a clearer and more dimensional picture of the president himself. Lincoln’s barren childhood, his lack of schooling, his relationships with male friends, his complicated marriage, the nature of his ambition, and his ruminations about death can be analyzed more clearly when he is placed side by side with his three contemporaries.

Russian novelist Leo Tolstoy called Lincoln, “so great he overshadows all other national heroes.” In the closing pages of Team of Rivals, Goodwin quotes Tolstoy (mentioned by Count S. Stakelberg per New York World on February 7, 1909):

Lincoln’s supremacy expresses itself altogether in his peculiar moral power and in the greatness of his character. … We are still too near to his greatness, but after a few centuries more our posterity will find him considerably bigger than we do. His genius is still too strong and too powerful for the common understanding, just as the sun is too hot when its light beams directly on us.

Recommendation: ‘Team of Rivals’ is a Necessary Read

Goodwin’s Team of Rivals: The Political Genius of Abraham Lincoln (2005) is a fascinating account of how President Abraham Lincoln held the Union together through the civil war, partially by bringing his political rivals into his cabinet and persuading them to work together. Particularly poignant is Goodwin’s characterization of Lincoln as the stoic head of a family afflicted by death and depression.

What makes Team of Rivals such a rich experience is Goodwin’s powerful lessons on bridging differences of opinion and using diverse perspectives to lead more effectively. These themes on leadership are very relevant outside the historical context.

Complement with Steven Spielberg’s remarkable Lincoln (2012,) which was inspired by Team of Rivals. Actor Daniel Day-Lewis won his third Best Actor Oscar for his masterful portrayal of Lincoln.

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Transformational Leadership Lessons from Lee Kuan Yew, Singapore’s Founding Father

June 24, 2019 By Nagesh Belludi 3 Comments

Almost all leaders take office with an ambitious vision for their country or their organization, but only a few ever succeed in transforming that vision into reality. Lee Kuan Yew (1923–2015,) the architect of modern Singapore, was one of them.

Leadership Lessons from Lee Kuan Yew, Singapore's Founding Father

Lee was one of the most competent leaders the world has ever seen. An incorruptible Cambridge-educated lawyer, he was an autocratic pragmatist—a strong-willed, visionary leader who “got it done.” Under his leadership, Singapore metamorphosed itself from a tropical backwater with few natural resources to a first-world metropolis in just one generation. Today, Singapore’s per-capita GDP in terms of Purchasing Power Parity is the third highest in the world.

There is also a darker side to the Singapore story, however. The island-nation’s prosperity came at the cost of a rather authoritarian style of government that sometimes infringed on civil liberties. In a 1986 National Day Rally, Lee defended,

I am often accused of interfering in the private lives of citizens. Yes, if I did not, had I not done that, we wouldn’t be here today. And I say without the slightest remorse, that we wouldn’t be here, we would not have made economic progress, if we had not intervened on very personal matters—who your neighbour is, how you live, the noise you make, how you spit, or what language you use. We decide what is right. Never mind what the people think.

Singapore is not quite a dictatorship, but neither is it a full democracy. Its political system is skewed to let Lee’s party dominate the country’s polity. In an interview with CNN’s Fareed Zakaria, Lee asserted, “It is not the business of the government to enable the opposition party to overturn us.”

'The Singapore Story' by Lee Kuan Yew (ISBN 9780060197766) A vast majority of Singaporeans today will overlook these civil-liberty concerns in the context of the country’s socio-political stability, public security, world-leading and affordable healthcare, free education, good housing for all, and high employment.

Singapore’s spectacular success is accepted as evidence, sometimes lamentably as justification, as with Rwanda’s Paul Kagame, that a vibrant economy and sustained prosperity could blossom only under a totalitarian government. Singapore’s achievement is not likely replicable in its entirety elsewhere.

Over the last several months, I’ve read a few biographies and evaluations of Lee and his political leadership, including the memoirs The Singapore Story: From Third World to First (1998) and One Man’s View of the World (2013.) Here are a few key leadership lessons that Lee had to teach.

Vision, structure, and determination are paramount to efficacious leadership. Lee was a brilliant, clear-eyed, far-sighted statesman. Singapore’s political stability, rapid economic growth, and its raising affluence between 1959 and 1990 were not accidental, but the result of his dynamic leadership and disciplined social engineering. In The Singapore Story (1998,) he writes, “The task of the leaders must be to provide or create for them a strong framework within which they can learn, work hard, be productive and be rewarded accordingly. And this is not easy to achieve.”

Leadership entails tough, unpopular decisions. Lee was not afraid of being out of favor. “I have never been overconcerned or obsessed with opinion polls or popularity polls. I think a leader who is, is a weak leader. If you are concerned with whether your rating will go up or down, then you are not a leader. You are just catching the wind … you will go where the wind is blowing. And that’s not what I am in this for.” He famously forbade the sale of chewing gum to keep Singapore’s streets clean. He maintained capital punishment and caning. Singapore’s vandalism rules drew worldwide attention in 1994 when American teenager Michael Fay was caned for damaging cars and public property, in spite of appeals for clemency from the US media and government, including then-President Bill Clinton.

'One Man's View of the World' by Lee Kuan Yew (ISBN 9814642916) The litmus test of great leadership is results that matter. Many take issue with Lee’s methods, but few dispute the results he achieved. He was a pragmatist with devotion to no particular ideology. He once contemplated, “I was never a prisoner of any [socio-political] theory. What guided me were reason and reality. The acid test I applied to every theory or scheme was: Would it work?” and “The acid test is in performance, not promises.”

Nurture a meritocracy. Lee’s commitment to meritocracy is a hallmark of Singapore’s national identity—social mobility is rooted in hard work and contribution regardless of ethnic differences. He devoted resources to cultivate an excellent education and health system, and developed a high-quality teacher workforce—all to maximize people’s potential. According to Lee Kuan Yew: The Man and His Ideas (1998,) he wrote, “It is possible to create a society in which everybody is given not equal rewards, but equal opportunities, and where rewards vary not in accordance with the ownership of property, but with the worth of a person’s contribution to that society. In other words, society should make it worth people’s while to give their best to the country. This is the way to progress.” In recent years, though, the debate over rising social inequality has led to some reproach of Singapore’s meritocracy.

Attract and retain superior talent; pay them well. A key contributor to the wealth, stability, efficiency, and cleanliness of Singapore is its civil service—it’s one of the most proficient and least corrupt bureaucracies in the world. The government’s transparent policies have been a powerful enticement for people, businesses, and investments. Singapore has some of the highest paid civil servants in the world. The country is not content to let its top graduates all go straight to the private sector, so it pays what it takes to get them. Prime Minister Goh Chok Tong, Lee’s immediate successor, told Singapore’s parliament on 3-Dec-1993, “If we do not pay ministers adequately, we will get inadequate ministers. If you pay peanuts, you will get monkeys for your ministers. The people will suffer, not the monkeys.”

One’s accomplishments become one’s legacy. Having a broad picture of the effect you want to have on the world will help you pinpoint the actions necessary to achieve it. Explaining his legacy, Lee wrote in Hard Truths to Keep Singapore Going (2011,) “I have spent my life, so much of it, building up this country. There’s nothing more that I need to do. At the end of the day, what have I got? A successful Singapore. What have I given up? My life.”

'The Wit and Wisdom of Lee Kuan Yew' by Lee Kuan Yew (ISBN 9789814385282) To judge leaders by their methods alone is to underrate their successes. While considering Lee’s legacy, one needs to acknowledge his achievements while refusing to close one’s eyes to certain lapses. Lee’s many critics considered him authoritarian—he imposed media restrictions and used detention without trial and defamation suits to quash critics of his government. Discussing a political opponent in Lee Kuan Yew: The Man and His Ideas (1998,) Lee justified, “If you are a troublemaker, it’s our job to politically destroy you. … Everybody knows that in my bag I have a hatchet, and a very sharp one. You take me on, I take my hatchet, we meet in the cul-de-sac. That’s the way I had to survive in the past.” Lee was unapologetic about his heavy-handed style of governing, seeing it as necessitous to get Singapore to where it got.

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Choose Your Role Models Carefully

November 17, 2017 By Nagesh Belludi Leave a Comment

Heroes and role models are very useful—they embody a higher plateau of cognitive and emotional truth, knowledge, and accomplishment that you can aspire to.

But the modern world has a dangerous problem with hero-worship: pop artists, rappers, film stars, sportspersons, capitalists, and so on command attention and affection as never before. This 2013 Financial Times article noted, “Way back in 2008, the three most admired personalities in sport were probably Tiger Woods, Lance Armstrong and Oscar Pistorius. They were portrayed not just as great athletes but as great men, role models….” And all these three popular heroes fell from grace.

While admiring and drawing wisdom, meaning, and inspiration from heroes can be constructive, you must take “hero narratives” with a grain of salt. The Buddha warned us not to trust anybody or anything just because it seems logical or it resonates with our feelings. He advised that we test our hypotheses by the results they yield when put into practice and shield our minds against the risk of biases or other limitations of our ability to discern from our experiences wisely. According to the Kalama Sutta, an aphorism of the historical Buddha that has been preserved orally by his followers (translated from the Pali by the eminent American Buddhist monk and prolific author Thanissaro Bhikkhu,)

Now, Kalamas, don’t go by reports, by legends, by traditions, by scripture, by logical conjecture, by inference, by analogies, by agreement through pondering views, by probability, or by the thought, ‘This contemplative is our teacher.’ When you know for yourselves that, ‘These qualities are skillful; these qualities are blameless; these qualities are praised by the wise; these qualities, when adopted & carried out, lead to welfare & to happiness’—then you should enter & remain in them.

Idea for Impact: Don’t blindly place much faith in today’s experts and celebrities. Realize the truth yourself.

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The Fermi Rule: Better be Approximately Right than Precisely Wrong

August 28, 2017 By Nagesh Belludi 1 Comment

What’s the size of the market for razors in China? How many golf balls does it take to fill a Boeing 747 aircraft? How many piano tuners are there in the world?

Non-standard problems such as these are called “Fermi problems” after the distinguished Italian-American nuclear physicist Enrico Fermi (1901–54.) Fermi delighted not only in creating and solving them, but also in challenging his fellow scientists with similar problems.

Physicist Enrico Fermi Was a Master of Guesstimation

Fermi was celebrated for his ability to make fast, excellent approximate calculations with little or no concrete data. In one well-known example, when the first atomic bomb was detonated during the Manhattan Project, Fermi dropped a few scraps of paper as the shock wave from the detonation passed. After some coarse calculation, Fermi estimated the power of the blast from the motion of the scraps as they fell. Fermi’s guesstimate of 10 kilotons of TNT was remarkably close to the now-established value of 20 kilotons. Even though Fermi’s estimate appears 50% off, it was a reasonable order-of-magnitude estimate.

Fermi believed that the ability to guesstimate was an essential skill for physicists. A good way to solve physics problems—and complex problems in any line of work—is by coming up with simple shortcuts to make approximate, but meaningful, calculations.

Teaching Physics Students the Fermi Way of Contemplating Open, Non-Standard Problems

Based on Fermi’s technique, at the beginning of many physics courses, professors pose problems such as “how many piano tuners are there in Chicago?” Such questions require students to employ quick reasoning and unsophisticated numerical methods to attack problems without the knowledge of any core physics concepts.

The historical emphasis on the order-of-magnitude calculation was propelled by the lack of computing power available to solve complex problems. Such approximate calculations were considered necessary to decide if an onerous and lengthy full-blown calculation was required.

Classic Fermi Problem: Number of Piano Tuners in the City of Chicago

'Guesstimation' by Lawrence Weinstein (ISBN 069115080X) Fermi problems are typically restructured by breaking them up into smaller problems that are easier for the students to approach than the original problem.

The challenge of estimating the number of piano tuners in the city of Chicago is the classical example of a Fermi Problem. A problem-solver guesstimates the total population of Chicago, then the fraction of families in Chicago that may own a piano, and the frequency of piano-tuning, the time it takes to tune a piano, and so on. This sequence of thinking, accompanied by a few conversion factors, can lead to an adequate assessment of the number of piano tuners in Chicago.

Back-of-Envelope Calculations for Fermi Problems

The Fermi technique is so popular that math buffs organize competitions in Fermi’s honor. Contestants are asked to estimate unusual assessments (the fraction of the surface area of the United States that’s covered by automobiles, the number of cells in the human body, the number of pizzas ordered this year in the state of California, for example) as closely as they can.

One distinctive feature of Fermi problems is that precision is impossible to achieve quickly, but it’s easier to arrive at a fast estimate of the range for the right answer. Before investing a big effort to measure something with precision, problem-solvers can estimate the answer approximately—and only then determine if it’s sensible to do the extra steps to calculate the accurate answers.

The Ability to Guesstimate: A Key Problem-Solving Aptitude

The ability to reach first-order estimations is an important skill in daily life. In a world where we are continuously bombarded with qualitative and quantitative information (and disinformation,) acquiring a solid grounding in numeric literacy has almost become an important intellectual obligation.

'Street-Fighting Mathematics' by Sanjoy Mahajan (ISBN 026251429X) Many problems are too complicated for you to come up with an accurate answer immediate. In analyzing such problems, precision may be impossible, but you can quickly estimate a range for the right answer. Guesstimation enables anyone with basic math and science skills to estimate virtually anything quickly using realistic assumptions and elementary mathematics.

Microsoft, McKinsey Consulting, Google, Goldman Sachs, and many leading businesses use guesstimate questions in job interviews to judge the ability of the applicants’ intelligence, their flexibility to think on their feet, and to apply their numerical skills to real-world problems.

Idea for Impact: Use Effective Guesstimation Techniques Before Undertaking a More Complete and Formal Investigation

Learn to do a first approximation of value and then, if the problem merits, refine your estimate further for much nuanced decision-making. Before putting much effort into calculating anything with precision, make a rough estimate of the answer, then decide whether it’s worth investigating further.

In my line of work as an investor, for example, I use fund manager Eddy Elfenbein’s “simple stock valuation measure”:

Growth Rate/2 + 8 = PE Ratio

Let me emphasize that this is simply a quick-and-dirty valuation tool and it shouldn’t be used as a precise measure of a stock’s value. But when I’m first looking at a stock and want to see roughly how it’s priced, this is what I’ll use.

For example, let’s look at Pfizer ($PFE). Wall Street expects the company to earn $2.34 per share next year. They also see the company’s 5-year growth rate at 2.79%. If we take half the growth rate and add 8, that gives us a fair value P/E Ratio of 9.40. Multiplying that by the $2.34 estimate gives us a fair price for Pfizer of $21.98. The current price for Pfizer is $22.98, so it’s about fairly priced.

Let’s look at IBM ($IBM) which has a higher growth rate. Wall Street sees IBM earning $16.61 next year. They peg the five-year growth rate at 10.58%. Our formula gives us a fair value multiple of 13.29, and that multiplied by $16.61 works out to a value of $220.75. IBM is currently at $201.71.

Recommended Resources for Guesstimation

If you’re interviewing with one of those companies that use guesstimate questions in job interviews, or if you’re interested in developing your ability to make rough, common-sense estimates starting from just a few basic facts, I recommend the following learning resources:

  • Guesstimation: Solving the World’s Problems on the Back of a Cocktail Napkin by Lawrence Weinstein and John A. Adam is a fun introduction to guesstimation.
  • Sanjoy Mahajan teaches a course on “down-and-dirty, opportunistic problem solving” at MIT. His Art of Approximation in Science and Engineering course is accessible free of charge on OpenCourseWare. Mahajan has also written the resourceful textbook Street-Fighting Mathematics: The Art of Educated Guessing and Opportunistic Problem Solving.

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Become a Smart, Restrained Communicator Like Benjamin Franklin

July 11, 2017 By Nagesh Belludi Leave a Comment

Benjamin Franklin, America’s founding father, statesman, and polymath, was a doyen of the self-improvement movement. His methods for self-mastery are worth taking a serious look at if you’re interested in getting better at anything in life.

In his wonderful Autobiography (1791,) Franklin discusses his once-foolish delight in spinning artful arguments and doggedly winning over his opponents.

Winning an Argument Aggressively is but a Short-term Ego Victory

'The Autobiography of Benjamin Franklin' by Benjamin Franklin (ISBN 1492720941) As a young man, Franklin had a habit of fervently arguing his case in all matters and alienating people around him. He frequently ensnared his challengers with hard-hitting rhetoric:

I found this method safest for myself and very embarrassing to those against whom I used it; therefore I took a delight in it, practis’d it continually, and grew very artful and expert in drawing people, even of superior knowledge, into concessions, the consequences of which they did not foresee, entangling them in difficulties out of which they could not extricate themselves, and so obtaining victories that neither myself nor my cause always deserved.

However, Franklin ultimately recognized that his take-no-prisoners approach of arguing was by no means endearing him to other people. His realized that his brash way of outwitting his challengers had been self-defeating.

Benjamin Franklin, Doyen of the Self-improvement Movement

Arguing, if it is to Be Constructive, Must Be Done Tactfully

In an attempt to develop amenable character traits, Franklin radically improved the way he interacted with others. He let go of all expressions of conceit and bold self-confidence. He stopped using words such as “certainly” and “undoubtedly” in his speaking and replaced them with phrases that signified personal opinions—for instance, “It appears to me, or I should think it so or so for such & such Reasons, or I imagine it to be so, or it is so if I am not mistaken.”

I continu’d this method some few years, but gradually left it, retaining only the habit of expressing myself in terms of modest diffidence; never using, when I advanced any thing that may possibly be disputed, the words certainly, undoubtedly, or any others that give the air of positiveness to an opinion; but rather say, I conceive or apprehend a thing to be so and so; it appears to me, or I should think it so or so, for such and such reasons; or I imagine it to be so; or it is so, if I am not mistaken. This habit, I believe, has been of great advantage to me when I have had occasion to inculcate my opinions, and persuade men into measures that I have been from time to time engag’d in promoting; and, as the chief ends of conversation are to inform or to be informed, to please or to persuade, I wish well-meaning, sensible men would not lessen their power of doing good by a positive, assuming manner, that seldom fails to disgust, tends to create opposition, and to defeat every one of those purposes for which speech was given to us, to wit, giving or receiving information or pleasure. For, if you would inform, a positive and dogmatical manner in advancing your sentiments may provoke contradiction and prevent a candid attention. If you wish information and improvement from the knowledge of others, and yet at the same time express yourself as firmly fix’d in your present opinions, modest, sensible men, who do not love disputation, will probably leave you undisturbed in the possession of your error. And by such a manner, you can seldom hope to recommend yourself in pleasing your hearers, or to persuade those whose concurrence you desire. [Alexander] Pope says, judiciously:

“Men should be taught as if you taught them not,
And things unknown propos’d as things forgot;”

farther recommending to us

“To speak, tho’ sure, with seeming diffidence.”

Learn to Resolve Important Issues through Sensible Discourse

'How to Win Friends & Influence People' by Dale Carnegie (ISBN 0671027034) Franklin realized that this measured conversation and gentler interactions was helpful in preventing conflicts and softening resistance in those he wanted to influence. He writes, “This Habit, I believe, has been of great Advantage to life, when I have had occasion to inculcate my Opinions & persuade Men into Measures I have been from time to time engag’d in promoting.”

This rule of skilful conversation and interpersonal relationships later became one of the foundational principles in Dale Carnegie’s masterful self-help manual How to Win Friends and Influence People—specifically, that our ticket to success in life is the ability to make others feel good about themselves.

Persuasion is Not About Outmaneuvering Others and Proving Them Wrong

The ability to communicate effectively, plead your case, and influence others is one of the most useful skills for succeeding in the modern world.

  • Learn to resolve important issues through sensible and mindful discourse.
  • Be assertive where you must, but never aggressive.
  • Be open-minded, understand the other person’s perspective, and keep your emotions under control.
  • Never insult, disgrace, or cause the other person to lose face.

Views, opinions, and judgments can differ, and these can and should be discussed civilly. However, to debate such differences vigorously so as to cause bad feelings toward is not necessary and is almost always counterproductive.

Idea for Impact: Arguing for the sake of deciding a winner is never constructive. When an argument starts, persuasion stops.

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Filed Under: Effective Communication, Great Personalities, Mental Models, Sharpening Your Skills Tagged With: Communication, Conflict, Getting Along, Mindfulness, Negotiation, Personal Growth, Persuasion, Skills for Success, Wisdom

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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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