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MBA in a Nutshell

Talk to Your Key Stakeholders Every Week

May 21, 2024 By Nagesh Belludi Leave a Comment

Stay Connected, Stay Informed: Weekly Conversations with Key Stakeholders Get into the routine of catching up with your key stakeholders from various roles regularly.

You don’t need to have long meetings—even just a quick ten-minute chat can do wonders.

Think of it like doing regular walk-abouts to keep your ear to the ground. You’ll stay in the loop and spot any areas that need attention.

Plus, you’ll strengthening relationships. Being accessible and open to listening encourages people to speak up and deal with issues then and there. You’ll nip problems in the bud.

Idea for Impact: Stay connected, stay informed. Being open goes a long way.

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Filed Under: Effective Communication, Leading Teams, MBA in a Nutshell Tagged With: Coaching, Conversations, Critical Thinking, Delegation, Great Manager, Problem Solving, Quality, Relationships

Pretotype It: Fail Fast, Learn Faster

May 20, 2024 By Nagesh Belludi Leave a Comment

'The Right It' by Alberto Savoia (ISBN 0062884654) Inundated with promising ideas but craving a quick method to distinguish the gems from the duds? Consider Pretotyping, an idea validation technique, championed by Silicon Valley entrepreneur Alberto Savoia.

Think mockups, landing pages, conjectures, or role-playing. Unlike prototyping, where you build functional or semi-functional versions of your product- or service-idea, pretotyping keeps it cheap and low-fidelity. It’s all about figuring out who your idea’s really for and getting their take on it pronto.

Idea for Impact: Try pretotyping—it’s the quickest way to learn how not-so-good your ideas really are.

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Filed Under: MBA in a Nutshell, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Customer Service, Innovation, Problem Solving, Thinking Tools, Thought Process

Innovation Without Borders: Shatter the ‘Not Invented Here’ Mindset

March 11, 2024 By Nagesh Belludi Leave a Comment

Jack Welch's Solution to Innovation: Breaking Down 'Not Invented Here' Barriers at GE

Jack Welch’s leadership during his tenure at General Electric (GE) has faced fair criticism, particularly for his overemphasis on financial engineering and short-term shareholder value over long-term investments in research and development. This scrutiny has intensified in recent years, especially following the challenges seen in other companies like Boeing, evidenced by the issues with its 737 MAX product line. However, amidst these concerns, some aspects of Welch’s management playbook remain worthy of emulation by other managers.

From Closed Doors to Open Minds: Jack Welch’s Approach to ‘Not Invented Here’ at GE

Upon assuming the role of CEO in 1981, Jack Welch wasted no time in addressing deep-rooted cultural issues within GE. Drawing from his intimate understanding of GE’s internal dynamics and bureaucratic hurdles, Welch was determined to transform the company into an environment where meritocracy and innovation thrived, regardless of the source of ideas.

'Jack-Straight from the Gut' by Jack Welch (ISBN 0446690686) One significant obstacle was the pervasive “Not Invented Here” (NIH) syndrome, wherein GE teams believed that good ideas could come only from within. Across GE, managers disregarded external ideas, even from other divisions within the company, stifling innovation and teamwork.

To counteract this mindset, Welch advocated for a culture that welcomed external ideas. He formed teams tasked with studying successful strategies employed by companies like Ford, Dell, and HP, and sought input from leaders at other notable firms such as AlliedSignal and Cisco. One famous instance of this approach was Welch’s adoption of Six Sigma, a quality management technique developed by Motorola, which he seamlessly incorporated into GE’s practices.

Beyond Boundaries: Winning with External Ideas

Welch cultivated an environment at GE where employees were urged to observe and glean insights from competitors, fostering a culture of continual improvement and adaptability. He placed special importance on simplifying processes and making decisions swiftly.

Idea for Impact: Innovation isn’t about being a trendsetter just for the sake of it. Instead, embrace the idea of being a proud copycat! Swipe those great ideas from the top players in the game and don’t forget to give credit where it’s due. After all, success often comes from embracing the brilliance of others.

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Filed Under: Business Stories, Leadership, Leading Teams, MBA in a Nutshell, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Critical Thinking, General Electric, Icons, Jack Welch, Leadership Lessons, Mental Models, Thinking Tools

Bringing out the Best in People through Positive Reinforcement

February 5, 2024 By Nagesh Belludi Leave a Comment

Aubrey C. Daniels’s Bringing out the Best in People: How to Apply the Astonishing Power of Positive Reinforcement (2016) stands out as one of the most practical and comprehensive handbooks I’ve encountered on effective management techniques by a behavioral psychologist.

'Bringing Out the Best in People' by Aubrey Daniels (ISBN 1259644901) Central to Daniels’s approach is a management system rooted in positive reinforcement, which he argues leads to significant and measurable outcomes in both the short and long term. He contrasts this with traditional methods of punishment and criticism, which he finds to be ineffective and counterproductive. Instead, he advocates for praise and rewards to drive lasting behavioral change and enhance productivity. Drawing on principles from behavioral psychology, the book provides actionable strategies for implementing positive reinforcement effectively, fostering an environment of appreciation and support, and unlocking individuals’ full potential. Now in its third edition, it also offers insights into organizational change and establishing fair performance standards tailored to each person.

Here are some key takeaways from the book:

  • Incentives Drive Behavior. People don’t do what you tell them; they do what gets them a reward. “Managers must understand why people behave as they do with the same depth that scientists understand gravity” and align desired behavior with organizational objectives. Don’t “find fault or place blame, but analyze why people are behaving as they are, and modify the incentives to promote the behavior you need.”
  • Value What They Value. Positive reinforcement proves to be the most effective method for motivating individuals. It extends beyond mere monetary rewards or verbal praise; it encompasses anything of value to an employee. For instance, allowing an employee to dedicate some time to working on a favorite feature can serve as a form of reinforcement.
  • Consistency Shapes Behavior. Positive reinforcement has to be an everyday affair. It is most effective when it occurs immediately, is specific, and happens frequently. (Studies indicate that children with ADD and learning disabilities can maintain focus for extended periods while playing video games that offer 85 positive reinforcements per minute.)
  • Pure Praise, No Prompts. Positive reinforcement loses its effectiveness when followed by criticism (such as in “but, you need to improve X, Y, Z”) or suggestions for improvement because it dilutes the impact of the praise and can create confusion or mixed signals for the individual receiving feedback. “Do not use the occasion for praise as an opportunity to prompt or instruct.” The popular sandwich feedback technique has many pitfalls.
  • Bringing out the Best in People through Positive Reinforcement Regular Talks = Better Performance. Plan, give feedback, and adapt weekly. Hold weekly planning and feedback sessions. Relying solely on monthly reinforcement offers only 12 chances per year to influence someone’s performance. The annual review and bonus process doesn’t give employees the chance to make adjustments when it’s most crucial.
  • Reward High Performers; Redirect Others. Managers should prioritize recognizing and reinforcing the efforts of high-performing employees rather than solely focusing on addressing issues with underperformers. When dealing with employees who are not performing well, allocate a limited amount of time to address factors such as lack of necessary skills or abilities, inherent personality traits, or deep-seated behavioral patterns. However, if despite considerable effort there is only marginal improvement, it’s best to minimize losses by suggesting that their strengths may be better utilized in a different role. Assist them in finding a position that suits them better.
  • Continuously Refreshed Goals = Fresh Motivation. After reaching a goal, individuals may lose motivation due to complacency, like students after an “A” grade. To combat this, set new goals, offer feedback, recognition, and incentives, and foster a culture of continuous improvement to sustain motivation and drive progress.
  • Coercion Kills Motivation. An authoritarian or coercive “do it or else” demand typically only prompts individuals to perform at the minimum level required because it instills fear or compliance rather than genuine motivation. When faced with threats or coercion, people often focus on avoiding punishment rather than striving for excellence. This approach stifles creativity, initiative, and intrinsic motivation, resulting in minimal effort and limited engagement.
  • Clear Targets, Unstoppable Momentum. To motivate employees, establish a transparent method for measuring achievement. This encourages self-motivation. For instance, a software programmer’s performance could be measured by the number of bugs fixed, with extra recognition for addressing severe issues, or by the volume of documentation produced.

Recommendation: Quickread Aubrey C. Daniels’s Bringing out the Best in People. The book thoroughly reinforces principles and highlights the transformative impact of recognizing and reinforcing desired behaviors, benefiting both individuals and organizations. Enhance your team management by implementing systems and structures that effectively reinforce individuals in alignment with organizational goals.

Wondering what to read next?

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  2. General Electric’s Jack Welch Identifies Four Types of Managers
  3. Fostering Growth & Development: Embrace Coachable Moments
  4. How to Manage Overqualified Employees
  5. Why Hiring Self-Leaders is the Best Strategy

Filed Under: Leading Teams, Managing People, MBA in a Nutshell Tagged With: Coaching, Employee Development, Feedback, Great Manager, Human Resources, Mentoring, Performance Management

Fostering Growth & Development: Embrace Coachable Moments

November 21, 2023 By Nagesh Belludi Leave a Comment

Fostering Growth & Development: Embrace Coachable Moments To make coaching a dynamic part of your workplace culture, encourage managers to seamlessly weave coaching and feedback into their daily interactions with employees. This not only saves time by preventing avoidable issues but also propels employee growth.

Coaching opportunities often spring up when there are unexpected twists or triumphant moments. Managers should invest time observing team members in action, whether they’re in the field or on the phone, engaging with customers and prospects. This observation uncovers hidden insights and provides an impartial view. It’s a tricky task for individuals to self-diagnose while deeply immersed in their tasks.

In addition to these impromptu coaching moments, managers can schedule coaching sessions to create a safe space for individuals to explore their thoughts and challenges. This fosters self-awareness, precise self-evaluation, and enhanced problem-solving skills.

To identify coachable moments with staff, managers should consider questions like, “Is this situation urgent?,” “Could it offer valuable learning?,” “Is the individual receptive to this conversation right now?,” and “Am I available for this discussion?”

Moreover, celebrating achievements, no matter their size, provides an exciting opportunity for coaching to strengthen the behaviors that led to success.

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  3. A Guide to Your First Management Role // Book Summary of Julie Zhuo’s ‘The Making of a Manager’
  4. How to Manage Overqualified Employees
  5. General Electric’s Jack Welch Identifies Four Types of Managers

Filed Under: Leading Teams, Managing People, MBA in a Nutshell Tagged With: Coaching, Conversations, Employee Development, Feedback, Great Manager, Mentoring, Performance Management

Employee Surveys: Perceptions Apart

October 28, 2023 By Nagesh Belludi Leave a Comment

Employee Surveys: The View From The Top, And The View From The Bottom Employee engagement surveys offer a stark illustration of the disconnect between the viewpoints of lower-ranking employees and top management. The Economist notes that bosses often believe their companies are compassionate, but their subordinates tend to hold a different perspective.

A [meta study on engagement surveys] found that bosses often believe their own guff, even if their underlings do not. Bosses are eight times more likely than the average to believe that their organisation is self-governing. (The cheery folk in human resources are also much more optimistic than other employees.) Some 27% of bosses believe their employees are inspired by their firm. Alas, only 4% of employees agree. Likewise, 41% of bosses say their firm rewards performance based on values rather than merely on financial results. Only 14% of employees swallow this.

The disconnect between senior management and rank and file employees often arises from limited direct interaction, information filtering, hierarchical barriers, and differing workplace cultures. Senior leaders don’t always fully grasp the day-to-day challenges and concerns of front-line workers.

From my viewpoint, many HR professionals tend to be overly optimistic when evaluating employee engagement, which can diverge from reality. This is partly because rank-and-file employees often perceive HR as less reliable in addressing their concerns, given the belief that HR prioritizes the organization’s interests. Concerns about transparency and inconsistent policy enforcement within HR exacerbate this perception.

Idea for Impact: From the lofty heights where they preside, leaders (and HR folk) can’t make out a world from which they hide.

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  4. These are the Two Best Employee Engagement Questions
  5. Don’t Manage with Fear

Filed Under: Leading Teams, Managing People, MBA in a Nutshell Tagged With: Conversations, Feedback, Group Dynamics, Human Resources, Leadership, Workplace

Shrinkflation: It’s All About How We Conceive the Changes We Perceive

October 27, 2023 By Nagesh Belludi Leave a Comment

Shrinkflation: It's All About How We Conceive the Changes We Perceive Shrinkflation is a pricing tactic where manufacturers covertly reduce the size or quantity of familiar products while keeping the package price the same, or even slyly increasing it. Shrinkflation is a subtle means for consumer goods producers to conceal a rise in unit prices by giving customers less product at the same cost. This strategy is frequently deployed during periods of inflation and impending economic downturns.

But why not simply raise the prices outright? Consumers are generally understanding of price hikes if they perceive them as reasonable. However, when it comes to products like food and shampoo, they might not fully comprehend the reasons behind these pricing adjustments. As they feel the economic pressure mounting, consumers tend to find shrinkflation and the preservation of familiar package prices more palatable than a direct price increase.

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Filed Under: MBA in a Nutshell, Mental Models Tagged With: Biases, Innovation, Marketing, Persuasion, Psychology

Job Crafting: Let Your Employees Shape Their Roles

October 23, 2023 By Nagesh Belludi Leave a Comment

Job Crafting: Let Your Employees Shape Their Roles Employees invest a quarter of their lifetime in the realm of work; therefore it becomes a moral imperative to allow some of their waking hours to be a canvas upon which they paint the strokes of purpose and significance.

Isaac Getz, professor at Paris’s ESCP Europe Business School and author of the bestselling book Freedom Inc. (2012,) asserts that granting employees autonomy can tailor their learning and development and unlock the doors to realizing their full potential: “A company is liberated when the majority of employees have complete freedom and responsibility to take any action they themselves—not their boss—see as being best for the company’s vision and purpose.”

Idea for Impact: Encourage job crafting. Within reason, allow employees to take the initiative to actively and intentionally shape the contents of their jobs to better align with their skills, interests, and motivations and make them more purposeful. It’s a key talent retention strategy.

Wondering what to read next?

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Filed Under: Leading Teams, Managing People, MBA in a Nutshell Tagged With: Human Resources, Likeability, Mentoring, Motivation, Performance Management, Workplace

From the Inside Out: How Empowering Your Employees Builds Customer Loyalty

August 7, 2023 By Nagesh Belludi Leave a Comment

At a time when apathy and distrust are so endemic in many organizations, some companies have nurtured employee loyalty to create customer loyalty flourish. The following case studies will substantiate the cultivation of a positive work environment that prioritizes employee recognition and support invariably results in exceptional customer service.

The Nordstrom Way: Enabling Employees to Have the Freedom and Vision to Become Self-Directing

Nordstrom’s founders created a culture that prioritized a “worshipful relationship” with its luxury department store customers and empowered employees to do everything they could to please them. The Nordstrom Handbook emphasizes outstanding customer service and encourages employees to set high personal and professional goals, expressing confidence in their abilities. The company’s Rule 1 reads: “Use good judgment in all situations. There will be no additional rules. Please feel free to ask your department manager, store manager, or division manager any question at any time.” Nordstrom’s success is a testament to empowering employees and supporting policies prioritizing exceptional customer service.

Flying the Fun Skies at Southwest Airlines: Giving Employees the Freedom to Deliver a Great Brand Experience

Southwest Airlines achieved great success early on due to its committed and motivated workforce. Founder Herb Kelleher recognized the importance of prioritizing employee satisfaction to create a culture of caring for one another and providing excellent customer service. Kelleher famously said, “The business of business is people—yesterday, today, and forever. If the employees aren’t satisfied, they won’t provide the product we need.”

To create a positive work environment, Southwest Airlines encouraged fun among its employees, setting it apart from other airlines that were considered dull and unappealing. Celebrating employees and their families is deeply ingrained in Southwest Airlines’ culture, and it is evident in the prominent display of pictures capturing these special moments throughout their office spaces. This people-centric culture helped the company attract and retain talented workers passionate about their jobs and provide top-notch customer service, which made flying with the airline a fun experience. Despite the potential cost savings, Kelleher remained committed to celebrating employees with parties, banquets, gifts, birthday cards, and outings, citing the value of having the fewest customer complaints in the industry.

Beyond the Call of Duty: Ladies and Gentlemen Serving Ladies and Gentlemen at Ritz-Carlton

The Ritz Carlton is renowned for its exceptional customer service, with the empowerment of employees being a critical factor in their approach. The company’s philosophy of “Ladies and Gentlemen Taking Care of Ladies and Gentlemen” highlights the importance of treating customers and employees with respect and dignity. Regardless of their rank and title, employees can spend up to $2,000 per day per guest without seeking supervisor approval to solve problems and deliver personalized and unforgettable guest experiences. This approach may seem costly, but it empowers employees to use their judgment to create memorable and personal experiences for guests. One of my friends enjoyed staying at a Ritz-Carlton hotel a few months ago, where he ordered a burger and a milkshake. Unfortunately, the hotel did not offer milkshakes, so he settled for a glass of water. However, to his amazement, the waitress surprised him with a milkshake to accompany his burger. She went the extra mile without being prompted by scouring the kitchen for milk, ice cream, and cold milk to create the shake.

Idea for Impact: Empowering Employees is a Strategic Approach That Yields Significant Benefits

Empowering employees goes beyond providing the necessary tools and training; it fosters a culture of trust, autonomy, and ownership.

How you treat your employees directly impacts how they treat your customers. When you prioritize making your staff feel appreciated and supported, they are more likely to provide exceptional customer service. A positive work environment can foster innovation and creativity within your organization while attracting and retaining top talent.

Wondering what to read next?

  1. General Electric’s Jack Welch Identifies Four Types of Managers
  2. Seven Real Reasons Employees Disengage and Leave
  3. Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness
  4. Bringing out the Best in People through Positive Reinforcement
  5. Employee Engagement: Show Them How They Make a Difference

Filed Under: Business Stories, Leading Teams, Managing People, MBA in a Nutshell Tagged With: Coaching, Customer Service, Employee Development, Great Manager, Human Resources, Motivation, Performance Management, Persuasion

The Emotional Edge: Elevating Your Marketing Messaging

July 20, 2023 By Nagesh Belludi Leave a Comment

The Emotional Edge: Elevating Your Marketing Messaging

Messaging isn’t only about the product.

It isn’t solely about the problem.

It isn’t even just about the consequences of not solving that problem.

It’s about the emotional pain that you alleviate.

Good marketers highlight the benefits, value, or solutions that their product or service can offer. The best marketers often leverage emotional triggers to establish a deeper connection with consumers.

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  3. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms
  4. Restless Dissatisfaction = Purposeful Innovation
  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Business Stories, MBA in a Nutshell, Sharpening Your Skills Tagged With: Creativity, Innovation, Marketing, Parables, Persuasion, Problem Solving

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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!