Mental Models

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.

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.

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.

Don’t Be Deceived by Others’ Success

November 15, 2021 By Nagesh Belludi Leave a Comment

Imitating successful competitors is a leading pathway to business innovation. Benchmarking can offer meaningful insights into comparative performance and help discover learnings for improvement. However, adopting others’ best practices can be surprisingly misleading and ineffective.

Four perception biases that come with benchmarking other companies can fail to make yours any better.

Many companies luck into success.

As I’ve noted before, you can’t reproduce others’ luck. Successful companies tend to significantly overvalue the effect of their leaders’ deliberate decisions on their performance and understate the role of chance—being at the right time, at the right place, with the right people. Alas, what worked in their circumstances may not work in yours.

The set-up-to-fail syndrome.

Benchmarking can be remarkably misleading when you make oversimplified comparisons to superstars who may not represent your situation. You could sink your business if you blindly copy celebrity leaders’playbooks in the wrong context, product, strategy, or market.

Companies that benchmark Apple and Steve Jobs and sidestep market research often disappoint themselves when their product launches fail. The leaders of these companies neither have Jobs’s brilliant intuition nor his extraordinarily talented creative team to build what customers want but didn’t know they wanted yet.

In the same way, companies that imitate the 20-70-10 “rank and yank” processes from Jack Welch’s playbook often fail to realize that several factors contributed to their success at General Electric. Welch had a robust organizational culture that insisted on regular and candid employee feedback and robust personnel processes for recognizing and developing the best talent within the company.

Corporate culture is a tricky business.

Your company’s culture—the prevailing way your people feel, think, behave, and relate to one another—cannot be changed easily. One industrial company aborted trying to imitate Google’s culture. This company couldn’t get its managers and employees to be more autonomous and innovative because the company’s and the industry’s ingrained culture did not lend itself to experimentation, risk-taking, and the celebration of fast failure.

Benchmarks look backward, not forwards.

In a competitive, ever so fast-changing world, what has succeeded in the past ten years may not necessarily do so in the next 10. The management guru Tom Peters once warned, “Benchmarking is stupid! Because we pick the current industry leader, and then we launch a five-year program, the goal of which is to be as good as whoever was best five years ago, five years from now.”

A strong focus on “quick wins” can turn out long-term losers.

Benchmarking can make short-term gains but have adverse long-term effects that may not manifest until many years later. By imitating an industry leader, a capital goods company decided to boost efficiency by outsourcing design to its suppliers. Years later, it discovered the debilitating effects of the loss of vital technical knowledge.

Idea for Impact: Best practices only add value when applied in the proper context

Applying best practices in the wrong context is a sure-fire way to hold your company back.

Pay attention to all ideas, mull them over, test what makes sense, adopt what works, and discard what doesn’t.

Sure, help yourself to great ideas wherever you can get them, but be mindful of the context. Try to understand how the top performers’ circumstances and culture may be causing their success. Think through the long-term consequences of any decision you take or any practice you adopt.

Lessons from Airline Entrepreneur David Neeleman: Staff Your Weaknesses

November 8, 2021 By Nagesh Belludi Leave a Comment

Airline serial entrepreneur David Neeleman has Attention Deficit Hyperactivity Disorder (ADHD.) School was torture. He couldn’t focus, and he procrastinated constantly.

“I felt like I should be out doing things, moving things along, but here I was, stuck studying statistics, which I knew had no application to my life,” Neeleman once said. “I knew I had to have an education, but at the first opportunity to start a business, I just blew out of college.”

Despite his own struggles, Neeleman went on to build a stellar business career in the airline industry. He started Morris Air, WestJet, JetBlue Airways, Azul Brazilian Airlines, and Breeze Airways. He’s even led the revival of TAP Air Portugal.

Through it all, Neeleman made the best of his strengths—original thinking, high energy, and the ability to draw the best out in people.

Far from lamenting his ADHD, David Neeleman celebrated it

Early on, Neeleman realized that he must manage his ADHD carefully. Throughout his career, he got help with his weaknesses.

People with ADHD tend to possess rare talents and gifts. They can be extraordinarily creative and original. They display ingenuity, and they encourage that trait in others. They can improvise well under pressure.

However, ADHD confers disadvantages too. People with ADHD are likely to be incredibly forgetful, disorganized, impulsive, and hyperactive. They drag their feet and miss deadlines. Their performance can be inconsistent. They can drift away mentally unless, oddly enough, they’re under stress or handling multiple inputs.

Sadly, modern society (including parents, schools, workplaces, and career counselors) tends to linger upon the negative symptoms and encourages people with ADHD to learn to cope with them. Strengths are more likely to go unnoticed.

Idea for Impact: Don’t let your weaknesses stop you from reaching your life goals.

In your work-life and outside, seek environments that allow you to bring more of your strengths to play. But don’t ignore your weaknesses (or the downsides of your strengths.)

Staff your weaknesses. Identify two or three key job activities that you don’t do well. Determine how you can delegate those responsibilities to others or seek help. This way, your weaknesses don’t become the Achilles heel that can hamper the strengths that make you effective.

Don’t Suppress Your Emotions

November 4, 2021 By Nagesh Belludi Leave a Comment

The Buddha taught that emotions are part of being human. Redemption comes solely from knowledge, the root of which lies in the awareness of the reasons for suffering.

Buddhism discourages you from ignoring unpleasant emotions so that you don’t have to experience them.

Acknowledging the way things are—and that they can’t change—may be the most challenging step toward happiness. It’s worth trying because you really can be happy, even when your life looks nothing like you thought it would.

Don’t try to quash your emotions; let yourself feel them. Yes, even the unpleasant ones. This attitude enables you to process them and challenge the dread that you won’t handle them.

Idea for Impact: Acceptance helps you work with the life you have. You can feel contentment in life without berating yourself for not feeling what you think you’re supposed to feel.

Decision-Making Isn’t Black and White

October 30, 2021 By Nagesh Belludi Leave a Comment

Most decisions aren’t “good” or “bad;” most fall somewhere in the middle.

Coming to terms with this reality is a big part of allowing yourself to trust your decisions, especially when dealing with uncertainty. Besides, more thinking can’t always be better thinking.

Let go of decisions you made in the past that you weren’t entirely satisfied with. Don’t let them haunt you in the present. Don’t let them second-guess yourself after a decision has been made.

Idea for Impact: When decisions don’t work out as expected, give yourself a break. Not all bad outcomes result from bad decisions. There are positive and negative implications to everything. And that’s OK.

Reinvent Everyday

October 26, 2021 By Nagesh Belludi Leave a Comment

General Electric supremo Jack Welch’s advice to Indian-American investor and businessman Vivek Paul:

Every time I land in New York after an international business trip, I imagine that I’ve just been appointed chairman and that this is my first day in the role, and the guy before me was a real dud. Every time I think, “What would I do that was different than the guy before? What big changes would I make?”

When you can think about expectations from a more detached point of view, rather than an immersed point of view, you aren’t overly invested in an entrenched pattern of thinking.

A period of rest, entertainment, or exposure to an alternative environment can dissipate fixation and help you gain a fresh perspective. It makes you think big. Subconsciously, you can push yourself harder and go after bigger, loftier, harder goals.

Idea for Impact: Don’t limit yourself by past expectations.

Seek a Fresh Pair of Eyes

October 14, 2021 By Nagesh Belludi Leave a Comment

When was the last time your team stopped to ask, “Why”?

“Why are we doing this?”

“Why are we doing it that way?”

You can ask this important question about everything—in your business or life!

We humans are creatures of habit—unquestioned and unexamined. Unless you intentionally ask “why,” you’ll just do things the same way because that the default mode for how you’ve always done it, or that’s how somebody showed you.

Once you’re set in your habits, keep scrutinizing them.

The best improvement ideas often come from people who aren’t stuck in the established ways.

Encourage new hires and interns to challenge the “that’s just how things are done around here” mentality when they disagree with it. Until they’ve been housetrained, they’re the ones with the freshest perspective.

Ask them to make a note of everything that they see and doesn’t make sense. After a few weeks, when they’ve become familiar with the organization and its workflow, have them reassess their initial opinions, reflect, and report their observations. Invite them to spend time on the internet looking for how these things are done at other companies and provide suggestions for improvement.

Idea for Impact: Sometimes people are too close to things to see the truth. To get a new perspective on the status quo, seek a fresh pair of eyes.

How to Mediate in a Dispute

October 11, 2021 By Nagesh Belludi Leave a Comment

In mediation, the parties in disagreement work out a mutually acceptable solution with the help of a neutral, third party mediator.

If you’ve been called to serve as a go-between in a dispute, here’s what you can do to help promote mutual understanding and resolution:

Set ground rules. Agree on how much time you’ll give to the mediation meeting. Keep the meeting close-ended. If there’re more than two parties, each with different views of a dispute, engage more than one mediator.
Have each party prepare a brief summary of their positions before the mediation and send them to you, and, ideally, to each other. The brief can explain positions, rationale, and motivation. The brief can also contain each party’s summary understanding of the opposing party’s arguments and counterarguments.
Insist that the each party have a clear understanding of their underlying intentions. What’s their best understanding of the basic objectives? What do they want to achieve? What’s rigid? What’s flexible? What are they willing to bargain?
At the start of the mediation meeting, remind each party that mediation is a voluntary process. Your role is to help the parties reach an agreement, not to reach an agreement for them. Say, “Nothing lasting will happen unless each of you participates in the solution. Any agreement you’re able to reach must be your own.”
Announce that your intention is to foster the interaction by helping each party understand one another’s perspectives and expectations. Encourage them to consider a wide range of solutions and to shun false dilemmas (“either-or” approach.) Push them to understand the other party’s underlying interests, not just their stated positions.
Outline how they’ll work together during the process. Get them to agree that they’ll deal with matters in a non-confrontational way and be open-minded about what the other wants.
Let each party make a preliminary presentation without interruption from the other parties. Then, encourage each party to respond directly to the other’s opening statements.
If the communications break down completely, restart the mediation process by separating the parties and talking to each party separately. Go between the two rooms to discuss the strengths and weaknesses of each position and to exchange offers. Continue the interchange until you’ve helped define an agreeable compromise.
When you’re talking to each party separately during a break down in the discussions, help each party hear the views of the other and identify areas of common ground for a resolution. After independent caucuses, if possible, bring the parties back together to negotiate directly.
Don’t stop each party from venting their frustrations, but try to keep them under control. If there’s rambling, gently pull the conversation back. Refocus on what needs to be achieved. Encourage them to remain open to persuasion.
Even with a well thought-out approach, some disagreements turn ugly. Re-focus the dialogue on the future. Remind the parties that they can’t fight over something that’s already happened, but they can set a course for going forward.
If the parties come to a resolution, draft the terms of a binding agreement and have both parties review it and sign it. Make sure the parties own the resolution, because they’re the ones who’ll live with the consequences.
If the parties don’t reach an agreement, help them decide whether it’d be helpful to meet again later, use a different mediator, or try other ways to resolve the issues.

These books are most helpful in negotiations, either when you’re the mediator or one of the parties in conflict: Roger Fisher et al’s Getting to Yes (1991, 2011; my summary) and Kerry Patterson et al’s Crucial Conversations (2011.)

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.

Compartmentalize and Get More Done

September 16, 2021 By Nagesh Belludi Leave a Comment

One way you can achieve “living in the moment” is by putting your emotional issues into “compartments” within your head and your heart. You can deal with those feelings on your own when you need to.

Many aspects of life can get you sidetracked and distraught. Finding a place to retreat within yourself can be challenging. By compartmentalizing, you can put your feelings where they belong, and you can earmark one challenge to tackle another challenge.

You can focus on the one task at hand and deal with the rest when appropriate.

Mental compartmentalization has a darker side, however. Psychologists identify extreme compartmentalization as a major defense mechanism by which some evade the acute anxiety that can spring from the clash of contradictory values or conflicting emotions. (A very pious scientist, for instance, could hold opposing beliefs about the Judeo-Christian and scientific notions of life’s origins. Compartmentalizing, she may live different value sets depending on whether she’s at church or her laboratory.) Some individuals also fall back on compartmentalization to cope with the lingering trauma of childhood abuse, neglect, and other emotional conflicts.

The day-to-day compartmentalization I’m talking about isn’t denial or avoidance. It isn’t evading conflicts and sidestepping problems—instead, it’s putting things out of the way for the moment and not letting them impede the rest of your life.

You can’t just ignore your issues and expect them to go away, but obsessing on them won’t help either.

Idea for Impact: Compartmentalize and get more done. Putting away the things that hurt or upset you, even if just for a short time, can also help you gain valuable perspective on dealing with them.

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Mental Models

Wondering what to read next?

Many companies luck into success.

The set-up-to-fail syndrome.

Corporate culture is a tricky business.

Benchmarks look backward, not forwards.

A strong focus on “quick wins” can turn out long-term losers.

Idea for Impact: Best practices only add value when applied in the proper context

Wondering what to read next?

Far from lamenting his ADHD, David Neeleman celebrated it

Idea for Impact: Don’t let your weaknesses stop you from reaching your life goals.

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Once you’re set in your habits, keep scrutinizing them.

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?