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Don’t Overemphasize Hitting Financial Targets

August 24, 2023 By Nagesh Belludi Leave a Comment

Research shows placing too much focus on hitting financial targets can have negative effects on employee morale. It can even lead to unethical behavior, such as cutting corners or falsifying data, which can ultimately harm the company’s reputation and financial performance.

When conversations constantly revolve around financial metrics, employees may feel like they’re reduced to mere cogs in the company machine, solely responsible for driving up profits to satisfy shareholders. Instead, foster a connection between employees and the organization’s purpose. Emphasize the intrinsic value of their work and remind them that it’s not just about monetary rewards. Personal growth, meaningful experiences, and recognition are equally important.

Let one message resonate throughout the organization: Your work holds significance beyond financial targets.

Wondering what to read next?

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  2. People Do What You Inspect, Not What You Expect
  3. When Work Becomes a Metric, Metrics Risk Becoming the Work: A Case Study of the Stakhanovite Movement
  4. Be Careful What You Count: The Perils of Measuring the Wrong Thing
  5. Why Incentives Backfire and How to Make Them Work: Summary of Uri Gneezy’s Mixed Signals

Filed Under: Leadership, Managing People Tagged With: Ethics, Goals, Motivation, Persuasion, Targets

Expanding the Narrative: Servant Leadership beyond Christianity

August 21, 2023 By Nagesh Belludi Leave a Comment

During the 1970s, Robert Greenleaf, an executive at AT&T, began popularizing a concept that challenged the idea of a heroic leader. He advocated for leaders who embraced humility and empowered their followers to lead.

According to Greenleaf, great leaders see themselves as servants first, and this fundamental understanding sets them apart. He taught, “Servant leadership begins with the natural feeling that one wants to serve, to serve first. Then conscious choice brings one to aspire to lead. That person is sharply different from one who is leader first, perhaps because of the need to assuage an unusual power drive or to acquire material possessions.”

Interestingly, this notion of “leader as a servant” aligns closely with the principles and teachings found in Christian scriptures, where Jesus Christ is often regarded as the ultimate example of a servant leader. Jesus exemplified humility, compassion, and selflessness in his interactions with others. In the Gospel of Mark, he declared, “For even the Son of Man did not come to be served, but to serve, and to give his life as a ransom for many” (Mark 10:45, NIV.)

While Christianity inspires its leaders to emulate the servant leadership model by prioritizing people, valuing service, and fulfilling their role as stewards, it is essential to note that servant leadership is not exclusive to Christianity. The concept can be found in other religious traditions as well. For instance, even the Śvētāmbara Jain Jñātādharmakathāḥ Sūtra (“Stories of Knowledge and Righteousness”) monastic texts contain elements of servant leadership.

In a past life, the monk Megha was an elephant. Frightened by a forest fire, he created a clearing to provide refuge when the fire next hit. He rushed to the clearing with all the other animals during a future fire. At one stage, he lifted his foot to scratch himself, and when he came to put it down again, he saw that a hare had squeezed into the space. So he stood on three legs for the entire duration of the fire — several days — and as a result, he fell over and died. This exceptionally compassionate act resulted in a human rebirth.

The Mahākapi Jātaka relates Buddha-to-be on his Bodhisattva path:

The story runs that the Bodhisattva was born as a monkey, ruler of over 80,000 monkeys. They lived near the Ganges and ate the fruit of a great mango tree. King Brahmadatta of Benares, desiring to possess the mangoes, surrounded the tree with his soldiers to kill the animals, but the Bodhisattva formed a bridge over the stream with his own body and, by this means, enabled the whole tribe to escape into safety.

Devadatta, the jealous and wicked cousin of the Buddha, was one of the monkeys in that life and, thinking it was a good chance to destroy his enemy, jumped on the Bodhisattva’s back and broke his heart.

The king, seeing the good deed of the Bodhisattva and repenting of his own attempt to kill him, tended to him with great care when he was dying and afterward gave him royal obsequies.

Servant leadership goes beyond any specific faith and encompasses a broader philosophy of putting others and organizations before oneself. It emphasizes the importance of valuing and prioritizing the interests and well-being of others. As the apostle Paul wrote in his letter to the Philippians, “Do nothing out of selfish ambition or vain conceit. Rather, in humility value others above yourselves, not looking to your own interests but each of you to the interests of the others” (Philippians 2:3-4, NIV.)

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  4. Power Inspires Hypocrisy
  5. Why Are There No ‘How to Be a Great Follower’ Classes?

Filed Under: Leadership, Managing People, Mental Models Tagged With: Assertiveness, Buddhism, Getting Along, Humility, Integrity, Leadership, Parables, Persuasion, Role Models

The Enron Scandal: A Lesson on Motivated Blindness

July 19, 2023 By Nagesh Belludi Leave a Comment

The fallout from the Enron fiasco had far-reaching effects on the economy and the public’s trust in corporations. It serves as a powerful lesson in the dangers of motivated blindness—when individuals have a personal stake in unethical actions, they often look the other way or find ways to rationalize their behavior.

The folks at Arthur Andersen, serving as Enron’s external auditor, found themselves in a precarious situation. On the one hand, they were supposed to ensure financial integrity, but on the other hand, they acted as consultants, aiding Enron in manipulating financial transactions to deceive investors and manipulate earnings. Enron generously poured hefty fees their way, with auditing fees exceeding $25 million and consulting fees reaching $27 million in 2001. So, why would they want to put an end to this lucrative gravy train? To complicate matters further, many auditors from Andersen were eagerly vying for coveted positions at Enron, just like their fortunate colleagues.

To combat motivated blindness, it’s crucial to reflect on our biases, hold ourselves accountable, and actively seek out diverse perspectives to gain a broader understanding of any given issue. Max Bazerman, a professor at Harvard Business School and author of The Power of Noticing: What the Best Leaders See (2014,) asserts that individuals can overcome their inclination to overlook vital clues by fostering a “noticing mindset.” This involves consistently asking oneself and others, both within and outside the organization, the question: “Which critical threats and challenges might we be neglecting?”

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  4. Power Corrupts, and Power Attracts the Corruptible
  5. Virtue Deferred: Marcial Maciel, The Catholic Church, and How Institutions Learn to Look Away

Filed Under: Business Stories, Leadership, Mental Models, Sharpening Your Skills Tagged With: Discipline, Ethics, Getting Along, Integrity, Leadership, Motivation, Psychology, Risk

Beware of the Leadership Trap: Losing Moral Bearings

July 18, 2023 By Nagesh Belludi Leave a Comment

Some leaders fall into a dangerous trap, succumbing to temptations along their paths. These leaders deviate from their ethical responsibilities and shield themselves from fair criticism, considering themselves exempt from the rules. Such behavior can stem from an inflated ego or narcissism, a lack of self-awareness, a fear of vulnerability, or an intense emotional attachment to their ideas or beliefs.

These leaders often operate within a culture of flattery, where disagreement is seen as disloyalty, and no one dares to challenge or bring attention to issues within the organization. The leader’s circle of enablers grows as time passes, making honest dialogue impossible.

Idea for Impact: Steer clear of these pitfalls by establishing a clear “inner compass”—your values and priorities that revolve around serving a purpose. Live by these values, advocate for them, and ensure they are deeply ingrained in the fabric of your team.

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  2. Power Corrupts, and Power Attracts the Corruptible
  3. Power Inspires Hypocrisy
  4. Why Groups Cheat: Complicity and Collusion
  5. Ethics Lessons From Akira Kurosawa’s ‘High and Low’

Filed Under: Leadership, Mental Models, Sharpening Your Skills Tagged With: Decision-Making, Ethics, Getting Ahead, Humility, Integrity, Psychology

Don’t Hide Bad News in Times of Crisis

April 21, 2023 By Nagesh Belludi Leave a Comment

When a crisis hits, suppressing or obscuring bad news is often an impulsive reaction. Leaders can even exacerbate a crisis if bad news is marginalized, unaddressed, or ignored until it’s too late.

If you don’t frequently communicate with your key constituency, somebody else will. In the absence of honest information, your employees can develop their own perceptions of the problem and its implications.

Idea for Impact: Wise managers recognize the power of transparency and self-disclosure. Speak up early and candidly. If necessary, take a reputational hit today by disclosing problems; it’ll earn dividends. With a candid appraisal, people can turn their attention away from assigning blame to understanding the problem’s nature and helping you develop solutions.

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  2. Leadership is Being Visible at Times of Crises
  3. A Superb Example of Crisis Leadership in Action
  4. Heartfelt Leadership at United Airlines and a Journey Through Adversity: Summary of Oscar Munoz’s Memoir, ‘Turnaround Time’
  5. Taking Responsibility Means Understanding That Your Actions Can Make a Difference

Filed Under: Effective Communication, Leadership, Managing People Tagged With: Crisis Management, Decision-Making, Leadership, Leadership Lessons, Problem Solving

How to … Plan in a Time of Uncertainty

January 25, 2023 By Nagesh Belludi Leave a Comment

In periods of uncertainty and ambiguity, move away from annual plans and focus on the next three months. Reflect on the unpredictability of the future and stay on your toes by forging plans for unexpected scenarios so you won’t be caught flat-footed when that time comes.

Establish “trigger points” and “accelerate, maintain, or terminate criteria” in advance and keep an eye on key indicators to “wait and see” or “stay the course” should one of your planned-for scenarios materialize.

Idea for Impact: When the horizon is much shorter, operate with agility and allocate your resources in real time.

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  3. Under Pressure, The Narrowing Cognitive Map: Lessons from the Tragedy of Singapore Airlines Flight 6
  4. After Action Reviews: The Heartbeat of Every Learning Organization
  5. The “Ashtray in the Sky” Mental Model: Idiot-Proofing by Design

Filed Under: Leadership, MBA in a Nutshell, Mental Models Tagged With: Adversity, Conflict, Decision-Making, Persuasion, Problem Solving, Risk

Are Layoffs Your Best Strategy Now?

November 28, 2022 By Nagesh Belludi Leave a Comment

We’re in a demand slump; if you think downsizing will cut costs and shore up the bottom line, consider the unexpected consequences of layoffs.

Hefty severance pay, outplacement services, and other direct costs can add up quickly, and indirect costs can be substantial. E.g., losing experienced employees can precipitate lasting damage to your business. The direct costs can wipe out any short-term financial benefit if new hard-to-find employees are to be hired and trained within six to twelve months when the downtrend stops.

Then there’s the trap of believing that things will get better soon and downsizing the smallest number of people in anticipation of a quick turnaround. And when that expected miracle doesn’t materialize, you’ll wind up making successive cuts. That’s awful for the morale of the employees spared. The best employees won’t feel indebted to soldier on and may start casting around for new offers, terrified that they will be among the next to be cut.

Idea for Impact: Layoffs may not be the best strategy for grappling with hard times. Examine not just the cost of labor but also the value created by labor. Consider the trade-offs and try furloughs, pay cuts, job sharing, and scaled-down hours instead, depending on when you foresee business rebounding. You’ll spread the pain of the downturn more broadly, keep talented employees, earn loyalty, and better position your company for recovery.

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  3. The Speed Trap: How Extreme Pressure Stifles Creativity
  4. People Work Best When They Feel Good About Themselves: The Southwest Airlines Doctrine
  5. Lessons from Peter Drucker: Quit What You Suck At

Filed Under: Leadership, Leading Teams, Managing People Tagged With: Hiring & Firing, Human Resources, Leadership, Management, Performance Management, Strategy

Books in Brief: ‘Flying Blind’ and the Crisis at Boeing

September 24, 2022 By Nagesh Belludi Leave a Comment

'Boeing Flying Blind' by Peter Robison (ISBN 0385546491) Bloomberg investigative journalist Peter Robison’s thoroughly researched Flying Blind: The 737 MAX Tragedy and the Fall of Boeing (2022) offers noteworthy lessons about corporate responsibility and leadership problem-solving.

In a nutshell, starting in the late 1990s, Boeing shifted from a company run by engineers who emphasized product integrity to one run by MBA-types who prized shareholder value over long-term product planning. Inspired by General Electric’s Jack Welch, the company embraced cost-cutting, outsourcing, financial engineering, union-busting, and co-opting regulators. These miscalculated strategies culminated in the 737 MAX disasters and disgraceful corporate responses.

Recommendation: Read Peter Robison’s Flying Blind, but be wary of the author’s broad-brush political biases, which, I found, sidetracked from the storyline. The internal organizational tensions that led to corporate deception and the fateful consequences of federal regulators’ consigning design approvals to Boeing are particularly interesting.

Key Takeaway: Negligent engineering to minimize costs and adhere to a delivery schedule is a symptom of ethical blight.

Wondering what to read next?

  1. Two Leadership Lessons from United Airlines’ CEO, Oscar Munoz
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  3. This is Not Responsible Leadership: Boeing’s CEO Blames Predecessor
  4. When Global Ideas Hit a Wall: BlaBlaCar in America
  5. Heartfelt Leadership at United Airlines and a Journey Through Adversity: Summary of Oscar Munoz’s Memoir, ‘Turnaround Time’

Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Ethics, Governance, Innovation, Integrity, Jack Welch, Leadership Lessons, Problem Solving

Why Groups Cheat: Complicity and Collusion

July 2, 2022 By Nagesh Belludi Leave a Comment

News broke out that Ernst & Young revealed this week that its employees cheated on ethics exams. The accounting behemoth is being fined $100 million. That’s one of the biggest fines ever levied against an audit firm.

It’s absurd that specialists responsible for keeping things straight and steering moral enterprise cheated on ethics exams! Ernst & Young’s leadership evidently disregarded the internal reports about the cheating. Perhaps because when people identify so strongly with a group, they’re much more swayed to view the group’s actions positively and accept that group’s norms.

Research by Vanderbilt University’s Jessica Kennedy and colleagues suggests that high-flying people are sometimes more inclined than low-ranking people to adopt what their group recommends, even when it represents an ethics breach. Power sometimes provokes people to so strongly want to identify with their group that they’re willing to overlook when the group’s collective actions cross an ethical line. This affinity is, therefore, urged to sustain transgression instead of stopping its spread, especially when the odds of being caught and punished are slim.

Wondering what to read next?

  1. Power Corrupts, and Power Attracts the Corruptible
  2. The Poolguard Effect: A Little Power, A Big Ego!
  3. Shrewd Leaders Sometimes Take Liberties with the Truth to Reach Righteous Goals
  4. The Enron Scandal: A Lesson on Motivated Blindness
  5. Power Inspires Hypocrisy

Filed Under: Business Stories, Leadership, Managing People, Mental Models Tagged With: Discipline, Ethics, Getting Ahead, Integrity, Leadership, Motivation, Psychology, Role Models

The Best Advice Tony Blair Ever Got: Finding the Time to Think Strategically

June 28, 2022 By Nagesh Belludi Leave a Comment

Former British Prime Minister Tony Blair reminisced, at a 2012 event at the Stanford Graduate School of Business, how easy it is to get so absorbed by the pressures of doing that you rarely ever disentangle yourself from the chock-full of activities and the clutter that can choke strategic thinking.

As the leader of the Opposition, when I went to see him in 1996 at the White House, he explained that one of the hardest things when you get into the government is finding the time to think strategically. It’s being able to create the space so that you’re focused on what you really know counts because otherwise, he said, the system will take you over. You’ll be in meetings from 8:00 in the morning till 10:00 at night, and you think you’re immensely busy, but the tactics and the strategy have all got mixed.

What happens in leadership is that things come at you the whole time. If you’re not careful, you’ll spend your time dealing with one situation after another. You lose your strategic grip on what’ll determine if you’re a successful government. Many of these crises are real, and you must deal with them. But when you judge your government in history, no one will remember any of them. You’ve got to create the space to be thinking strategically all the time to change the world.

Idea for Impact: It’s your strategic thinking, more than any other single activity, that can influence what you’ll achieve as a leader. Find ways to create more “head time” amid the busyness.

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  3. Creativity by Imitation: How to Steal Others’ Ideas and Innovate
  4. Better Than Brainstorming
  5. Intellectual Inspiration Often Lies in the Overlap of Disparate Ideas

Filed Under: Leadership, Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Leadership Lessons, Thinking Tools, Time Management

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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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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!