Sharpening Your Skills

Picasso’s Blue Period: A Serendipitous Invention

November 27, 2015 By Nagesh Belludi Leave a Comment

The Soup, 1902 by Pablo Picasso (from his Blue Period)

In October 1900, Pablo Picasso (1881–1973) moved to Paris and opened a studio there at age 19. Shortly thereafter, Picasso was deeply affected by a close friend and fellow artist’s suicide. Art historians believe this event marked the onset of Picasso’s Blue Period (1901–1904,) during which he produced many stoic and sentimental paintings in mostly monochromatic shades of blue and blue-green. The Art Institute of Chicago remarks,

Picasso’s Blue Period … was triggered in part by the suicide of his close friend Carlos Casagemas in 1901. The works of this period are characterized by their blue palette, somber subject matter, and destitute characters. His paintings feature begging mothers and fathers with small children and haggard old men and women with arms outstretched or huddled in despair.

Perhaps Picasso’s Blue Period is an instance of serendipity. Legend has it that one day Picasso had only blue paint to work with. When he started toying with the effects of painting with one color, he discovered the potential to produce interesting paintings that conveyed a sense of melancholy.

In what would become the hallmark of this greatest artist of the 20th century, thanks to serendipity, Picasso leveraged an apparent constraint into an unintended creative outcome. As such serendipity goes, the confluence of many factors helped Picasso initiate a new art genre showcasing themes of alienation, poverty, and psychological depression that, though now considered marvelous, then kept potential patrons away.

How Johnson’s Baby Powder Got Started: Serendipity and Entrepreneurship

November 24, 2015 By Nagesh Belludi Leave a Comment

Making Fortunate Discoveries Accidentally

Alexander Fleming, the Scottish biologist famous for his 1922 discovery of penicillin, once said, “Have you ever given it a thought how decisively hazard—chance, fate, destiny, call it what you please—governs our lives?”

Serendipity is the accidental discovery of something that, post hoc, turns out to be valuable.

The history of science is replete with such serendipitous discoveries. “Happy findings” made when scientists accidentally discovered something they were not explicitly looking for led to the discovery or invention of the urea, dynamite, saccharin, penicillin, nylon, microwave ovens, DNA, implantable cardiac pacemaker, and much more … even the ruins of Pompeii and Newton’s law of universal gravitation. (I recommend reading Royston Roberts’s Serendipity: Accidental Discoveries in Science)

In each of these instances, the crucial role of discovery or insight occurred in accidental circumstances. Therefore, we must understand serendipity’s role in terms of the circumstances that surround it.

Serendipity has also played a pivotal role in establishing many successful businesses. In fact, serendipity is a rich idea that is very central to the entrepreneurial process. As the following case study will demonstrate, many experimental ideas are born by chance and are often reinforced by casual observation and customer input.

Johnson & Johnson Got into the Baby Powder Business by Accident

In 1885, entrepreneur Robert Wood Johnson was deeply inspired by a lecture of Joseph Lister, a British surgeon well known for his advocacy of antiseptic surgery. Johnson started tinkering with several different ideas in an effort to make sterile surgery products.

A year later, Johnson joined his two brothers to establish Johnson & Johnson (J&J) in New Brunswick, New Jersey. Their first commercial product was a sterile, ready-to-use, medicated plaster-bandage that promised to reduce the rate of infections after surgical procedures. As business developed, the Johnson brothers compiled the latest medical opinions about surgical infections and distributed a booklet called Modern Methods of Antiseptic Wound Treatment as part of their marketing efforts.

Within a few years, a doctor complained to J&J that their bandages caused skin irritation in his patients. In response, J&J’s scientific director Dr. Frederick Kilmer sent the doctor a packet of scented Italian talcum powder to help soothe the irritation. Since the doctor liked it, J&J started to include a small sample of talc powder with every package of medicated bandages.

By 1891, consumers discovered that the talc also helped alleviate diaper rash. They asked to buy it separately. The astounded J&J’s leadership quickly introduced Johnson’s Baby Powder “for toilet and nursery.” Over the years, J&J built on that huge initial success and created the dominant Johnson’s Baby product line with creams, shampoos, soaps, body lotions, oils, gels, and wipes.

J&J Got into the Sanitary Protection Products Business Too by Accident

Serendipity also played the key role in establishing J&J’s sanitary napkin business. In 1894, J&J launched midwife’s maternity kits to make childbirth safer for mothers and babies. These kits included twelve “Lister’s Towels,” sanitary napkins to staunch post-birth bleeding. Before long, J&J received hundreds of letters from women who wanted to know where they could buy just the sanitary napkins. In response, J&J introduced disposable sanitary napkins as part of its consumer products line. J&J thus became the first company in the United States to mass-produce sanitary protection products for women.

When Getting a Great Deal Might Not Be Worth Your Time

November 20, 2015 By Nagesh Belludi 1 Comment

Most consumers love a deal. However, some of us spend untold time searching for the best possible bargains.

If you’re one of these obsessive bargain-hunters, unless you derive some hedonistic pleasure in snatching deals, you may not have considered the possibility that you’re putting too low a value on your time.

Perhaps you could benefit from some perspective: the time you spend hunting for deals and trying to save that last penny may not be worth it. While you can quantify how much money you save by shopping around, you may not realize the opportunity costs of deal-hunting: it often comes at the cost of your time.

You may have a vague sense of the fact that “time is money,” but this might not be telling enough. You can find the approximate value of an hour of your time by dividing your annual income by 2,000 (or, more easily, by disregarding the last three digits of your annual income and dividing the result by 2.)

Obsessive Bargain-Hunters, Coupon Craziness Set a cost threshold based on the value of your time, say $15 per hour, for deal-hunting. If you’re not saving at least this amount, deal-hunting might just waste your time and money. So, refrain from scouring the internet for a better deal on a weeklong vacation or bidding on eBay if you’re not saving $15 per hour. Likewise, don’t drive across town to Costco just to save a dime per gallon on 20 gallons of gas.

I’ve written previously that life is all about values and the priorities you assign to those values. Therefore, decide which choices in your life really matter and focus your time and energy there. Let numerous other opportunities pass you by.

Another part of leading a wise and meaningful life is not always seeking the best but instead making good-enough choices about the things that matter and not concerning yourself too much about the things that don’t.

Idea for Impact: Don’t spend more time on a task unless it really warrants this in terms of “time-is-money.” As the American Philosopher Henry David Thoreau said, “The price of anything is the amount of life you exchange for it.”

Clever Marketing Exploits the Anchoring Bias

November 17, 2015 By Nagesh Belludi Leave a Comment

In the ’70s, psychologists Amos Tversky and Daniel Kahneman were the first to study a cognitive phenomenon called “anchoring” and its influence on decision-making. Over the decades, extensive research on anchoring has explained that the way and context in which we receive information profoundly influence how we synthesize it.

The effects of anchoring are very visible in marketing, sales, merchandising, and product pricing as it profoundly influences consumer behavior. By offering clever price contrasts, marketers can shape customers’ purchasing decisions. For example,

By offering lower prices and promotional sales, department stores induce customers to compare the sale price against the original price—the “anchor”—and think they’re getting a bargain.
By displaying shiny, expensive new cars in the showroom, car dealerships encourage customers to accept the prices displayed on their used cars or less flashy models.
Patrons at restaurants tend to order the second least-expensive bottle of wine in an attempt to avoid looking cheap. Therefore, restaurants tend to put the highest markup on that very bottle.

The Case of the $429 Breadmaker

Anchoring Bias: Williams-Sonoma $429 Breadmaker Customers are usually more likely to purchase a product when competing alternatives are included, as opposed to having only one product option.

Consider a classic example of this “single-option aversion” phenomenon. A few years ago, Williams-Sonoma couldn’t get customers to buy their $279 breadmaker. They cleverly added a spiffier-and-slicker deluxe breadmaker model to their product line for $429. While Williams-Sonoma didn’t sell many of the new and expensive breadmaker, they doubled sales of the original and less-expensive model.

When the $279 breadmaker was the only model available for sale, customers couldn’t tell whether the price was competitive because there was nothing to compare it to. By introducing a better product for a higher price, Williams-Sonoma provided an anchor upon which its customers could compare the two models; they naturally sided with the $279 model as an attractive alternative.

The Case of the $69 Hot Dog and the $1000 Chocolate Sundae

Usually, absurdly expensive premium goods are less of publicity stunts and more of strategic marketing tactics.

Consider the case of Serendipity 3’s menu anchors. In 2010, the popular New York eatery introduced a $69 hot dog called “Foot-Long Haute Dog” with dressings as exotic as medallions of duck liver, ketchup made from heirloom tomatoes, Dijon mustard with truffle shavings, and caramelized Vidalia onions to justify the high price. Of course, Serendipity 3 gained plenty of publicity when The Guinness Book of World Records certified this hot dog as the most expensive wiener of all time.

The true purpose of these ridiculously priced premium items is to make the next most expensive item seem cheaper. Customers who were drawn by the Haute Dog’s publicity gladly ordered the menu’s $17.95 cheeseburger. Even if $17.95 was too pricey elsewhere, Serendipity 3 customers deemed it reasonable in comparison to the $69 hot dog.

A few years previous, Serendipity 3 similarly offered a $1000 “Golden Opulence Sundae” that was only available with a 48 hour-notice. They sold only one Sundae per month. Nevertheless, this was just a shrewd marketing ploy to convince customers to spend more on high-profit margin desserts such as the $15.50 “fruit and fudge” confection or the $22.50 “Cheese Cake Vesuvius.”

Unsuspecting customers ended up paying too much for other meals at Serendipity 3 while believing they were getting a great deal.

Idea for Impact: Be Sensitive of Anchoring Bias

In both the above case studies, even if the companies sold almost none of their highest-priced models despite the publicity they generated, the companies reaped enormous benefits by exploiting the anchoring bias to induce customers to buy cheaper-than-most-expensive high-profit products.

In summary, anchoring exploits our tendency to seek out comparison and our reliance on context. The anchoring bias describes our subconscious tendency to make decisions by relying heavily on a single piece of information.

Call to Action: Sensitize yourself to how anchoring and anchoring bias may subconsciously affect your decision-making. If you’re in marketing or sales, investigate how you could use anchoring bias to influence your customers.

For more on cognitive biases and behavioral economics, read 2002 Nobel Laureate Daniel Kahneman’s bestselling Thinking, Fast and Slow. Also read Nir Eyal’s Hooked: How to Build Habit-Forming Products on how to influence customer behaviors and build products and offer services that people love.

How to Make Tough Choices // Book Summary of Suzy Welch’s 10-10-10 Rule

November 13, 2015 By Nagesh Belludi 1 Comment

In “10-10-10”, Suzy Welch offers a simple, straightforward thought process for decision-making.

The fundamental premise of Welch’s “10-10-10 Rule” is that our decisions define us. Each of our choices has consequences, both now and in the future.

Welch advocates making decisions thoughtfully by considering the potential positive and negative consequences in the immediate present, the near term, and the distant future: or in 10 minutes, 10 months, and 10 years.

… there is nothing literal about each ten in 10-10-10. The first 10 basically stands for “right now” as in, one minute, one hour, or one week. The second 10 represents that point in the foreseeable future when the initial reaction to your decision has passed but its consequences continue to play out in ways you can reasonably predict. And the third 10 stands for a time in a future that is so far off that its particulars are entirely vague. So, really, 10-10-10 could just as well be referring to nine days, fifteen months, and twenty years, or two hours, six months, and eight years. The name of the process is just a totem meant to directionally suggest time frames along the lines of: in the heat of the moment, somewhat later, and when all is said and done.

Welch reiterates that decision-making should involve a clear understanding of all the attributes and the long-term implications of your dilemma, crisis, problem, or question.

10-10-10 does have a way of galvanizing people into forward-thinking action and out of a fixation on the present. … The third 10 in 10-10-10 has a powerful way of mitigating that tendency. It helps us decide whether (or not) it’s worth it to endure short-term flame-outs in the service of our larger, more deeply held goals in life.

The bulk of the book offers trite, protracted, and tiresome examples of people using 10-10-10 to make decisions related to friendships, dating, marriage, children, work, and career and life planning.

Welch explains that the perspective that accompanies considering our decisions’ immediate and long-term consequences can be very helpful.

“By having us methodically sort through our options in various time frames, the process … forces us to dissect and analyze what we’re deciding and why, and it pushes us to empathize with who we might become.”
“The process invariably led me to faster, cleaner, and sounder decisions.”
“The process also gave me a way to explain myself to all the relevant “constituents”—my kids or parents or boss with clarity and confidence.”

Recommendation: Skim. If you must, read the first two chapters for a long-form description of what I’ve summarized. You’ll find little of value in the rest of the chapters. Alternatively, read The Oprah Magazine article in which Welch first introduced her 10-10-10 idea.

Postscript: In 2002, Suzy Welch was launched into spotlight after getting fired as an editor of the Harvard Business Review following a scandalous affair with former General Electric CEO Jack Welch, who was still married to his second wife. Subsequently, Jack’s enraged wife revealed embarrassing details of his post-retirement compensation from General Electric, claimed a significant share of his wealth, and divorced him. Suzy and Jack got married in 2004 and have since authored two best-selling books, “Winning” and “The Real-Life MBA”.

Avoid Mundane Tasks Like Richard Feynman

November 6, 2015 By Nagesh Belludi Leave a Comment

In “The Pleasure of Finding Things Out,” physicist Richard Feynman shares his thoughts and feelings about life, career, curiosity, scientific discovery, life-philosophy, and everything else.

In one essay, based on a 1981 interview for the BBC series Horizon (a video that went viral on YouTube,) Feynman shares his technique of “active irresponsibility” i.e. feigning irresponsibility to avoid mundane work in order to dedicate himself to productive work:

To do the kind of real good physics work, you do need absolutely solid lengths of time. When you’re putting ideas together which are vague and hard to remember … it needs a lot of concentration—solid time to think. If you’ve got a job administrating anything, say, then you don’t have the solid time. So I have invented another myth for myself—that I’m irresponsible. “I am actively irresponsible,” I tell everybody. “I don’t do anything.” If anybody asks me to be on a committee to take care of admissions … “No! I’m irresponsible. … I don’t give a damn about the students!” Of course I give a damn about the students, but I know that somebody else’ll do it! … because I like to do physics, and I want to see if I can still do it. I am selfish, okay? I want to do my physics.

Idea for Impact: Avoid Mundane Tasks

Delegate, defer, or avoid the ordinary and mundane elements of work that your work-life imposes upon you. These don’t contribute directly to your long-term goals and aspirations.

Often, the consequences of saying ‘no’ to things you don’t want to do aren’t as bad as you may fear.

For more on investing your time where your priorities are, read my “World’s Shortest Course on Time Management.” Refer also to my articles on time logging and time analysis for a methodical approach to find how you’re currently spending (or wasting) your time.

Make a Difficult Decision Like Benjamin Franklin

October 30, 2015 By Nagesh Belludi Leave a Comment

Benjamin Franklin, American inventor, journalist, printer, diplomat, author, and founding father Benjamin Franklin (1706–1790) was renowned for his lifelong quest for self-improvement, as he thoroughly documented in his “Autobiography” (1791.)

In my previous article on Benjamin Franklin’s “Plan for Conduct,” I noted that Franklin had a methodical mindset.

As a young adult, Franklin developed a method for making complex decisions. At age 66, in a letter to his close friend Joseph Priestley (a London chemist who, in 1774, isolated the element oxygen,) Franklin described this method.

In this letter written on September 19, 1772, Franklin mentions one of the key challenges of fact-collecting and decision-making:

In the affair of so much importance to you, wherein you ask my advice, I cannot for want of sufficient premises, advise you what to determine, but if you please I will tell you how. When these difficult cases occur, they are difficult chiefly because while we have them under consideration all the reasons pro and con are not present to the mind at the same time; but sometimes one set present themselves, and at other times another, the first being out of sight. Hence the various purposes or inclinations that alternately prevail, and the uncertainty that perplexes us.

Make a Difficult Decision Like Benjamin Franklin - T-charts

Then, Franklin describes how to weigh the “pro et contra” (Latin for “for and against”) in any situation:

To get over this, my way is, to divide, half a sheet of paper by a line into two columns, writing over the one pro, and over the other con. Then during three or four day’s consideration I put down under the different heads short hints of the different motives that at different times occur to me for or against the measure. When I have thus got them all together in one view, I endeavor to estimate their respective weights; and where I find two, one on each side, that seem equal, I strike them both out: if I find a reason pro equal to some two reasons con, I strike out the three. If l judge some two reasons con equal to some three reasons pro, I strike out the five; and thus proceeding I find at length where the balance lies; and if after a day or two of farther consideration nothing new that is of importance occurs on either side, I come to a determination accordingly. And though the weight of reasons cannot be taken with the precision of algebraic quantities, yet when each is thus considered separately and comparatively, and the whole lies before me, I think I can judge better, and am less likely to make a rash step; and in fact I have found great advantage from this kind of equation, in what may be called moral or prudential algebra.

Ben Franklin’s humble tool for decision-making is now known as the T-Chart. It is widely used to examine two opposing facets of a topic, object, situation, circumstance, or event under consideration. T-Charts are particularly helpful for analyzing advantages and disadvantages, as well as strengths and weaknesses.

Recommended Reading: For a great collection of the writings of Benjamin Franklin, including his “Autobiography”, see Walter Isaacson’s “A Benjamin Franklin Reader”.

Successful People Earn Trust Using These Ten Cs

October 27, 2015 By Nagesh Belludi Leave a Comment

One of the most important aspects of being effective at work—as professionals, managers, or leaders—is earning and upholding others’ trust through our actions, not through our words. We earn trust by making and honoring commitments. We earn trust slowly but can lose it in an instant.

Here are ten elements that can help you earn your constituencies’ trust:

Competency. Develop your expertise in everything that is fundamentally important to your role, team, organization, company, or industry. Be knowledgeable and resourceful.
Cause. Develop, articulate, and agree on a vision of meaning, purpose, fulfillment, and empowerment. Define a path and guide your organization’s way forward.
Challenge. Stretch yourself. Push the boundaries to help people accomplish more. Channel people’s collective strengths and capabilities. Push the limits of their thoughts and actions. Expect excellence.
Connectedness. Foster an environment of collaborative commitment. Build spirited teams. Value and celebrate diversity. Provide inclusion. Build team cohesion.
Concern. Get to know the people you work with. Be approachable. Create a workplace where people feel genuinely cared. Grow, train, and retain people. Recognize their individuality and encourage them to strive to do their best.
Credibility. Act with integrity. Do what you commit to. Do the right things for the right reasons.
Consistency. Be steady in your purpose. Be open and honest. Set clear standards. Communicate and act consistently so others don’t need to guess what your motivations or intentions are. Communicate and lead from the front. Be visible. Be transparent and forthright, especially during tough times.
Continuity. Respect and honor the past. Be willing to learn from past failures and successes.
Commitment. Fully dedicate your resources to a task, especially when times are tough. Once you’ve undertaken to do something, invest the necessary effort and actions to make it happen.
Celebration. Recognize employees for all levels of achievement—for big projects, service milestones, and day-to-day accomplishments. Celebration helps fuel human accomplishment.

Leaves … Like the Lives of Mortal Men

October 23, 2015 By Nagesh Belludi Leave a Comment

Spring and Autumn not only call to mind the renewal of the elements of nature but also remind us of the brevity of life and the temporal advancement of life.

The past is immutable and the future is yet tenuous and undefined. Memories of the past are full of triumphs and regrets while anticipations of the future are full of hopes and fears.

If we lose ourselves in memories of the past or fantasies about the future, we lose valuable experiences that take place in the present moment. As I mentioned in my previous article “Present Perfect,” we don’t remain completely in the present.

The change of seasons reminds us of the Buddhist concepts of transience and impermanence—that everything is impermanent—everything, including our own selves. Somehow, we refrain from acknowledging our own impermanence and resist confronting our own mortality.

In Homer’s epic The Iliad, men die at an astonishing pace in various battles. During the Trojan War, when the Achaean commander Diomedes confronts the Trojan lieutenant Glaucus, the latter reflects,

Like the generation of leaves, the lives of mortal men.
Now the wind scatters the old leaves across the earth,
now the living timber bursts with the new buds
and spring comes round again. And so with men:
as one generation comes to life, another dies away.

Source: “The Iliad” (6:171) by Homer, tr. Robert Fagles

Idea for Impact: The passage of time induces us to confront our own mortality. Considering our own morality is a useful tool to guide our present actions. It reminds us to appreciate and live each moment purposefully and wisely.

Recharge Your Self-Growth through a “Plan of Conduct” à la Benjamin Franklin

October 16, 2015 By Nagesh Belludi 1 Comment

In Boston at age 12, Young Benjamin Franklin became a printer's apprentice with his brother James Franklin Young Benjamin Franklin’s formal schooling was incomplete. He pursued education through voracious reading. In Boston at age 12, he became a printer’s apprentice with his brother James. At age 17, Franklin ran away to Philadelphia seeking a fresh start and initially worked in several printer shops around town.

At age 18, Franklin traveled to London to acquire some equipment for establishing a new newspaper in Philadelphia. However, the sponsor soon withdrew from the project; so a disappointed Franklin remained in London working as a typesetter. In 1726, at age 20, he decided to return to Philadelphia to strike out on his own.

Benjamin Franklin’s Organized Action Plan for Efficiency and Success

At the threshold of adulthood, Franklin ruminated on the kind of man he wanted to be. During his time in London, he was deeply unhappy that his life had so far been disorderly because he had never outlined a design for how to conduct himself. During his 11-week voyage from London to Philadelphia, he applied his methodical mindset to develop some rules for self-improvement and called them his “Plan of Conduct.”

Those who write of the art of poetry teach us that if we would write what may be worth the reading, we ought always, before we begin, to form a regular plan and design of our piece: otherwise, we shall be in danger of incongruity. I am apt to think it is the same as to life. I have never fixed a regular design in life; by which means it has been a confused variety of different scenes. I am now entering upon a new one: let me, therefore, make some resolutions, and form some scheme of action, that, henceforth, I may live in all respects like a rational creature.

It is necessary for me to be extremely frugal for some time, till I have paid what I owe.

To endeavor to speak truth in every instance; to give nobody expectations that are not likely to be answered, but aim at sincerity in every word and action—the most amiable excellence in a rational being.

To apply myself industriously to whatever business I take in hand, and not divert my mind from my business by any foolish project of growing suddenly rich; for industry and patience are the surest means of plenty.

I resolve to speak ill of no man whatever, not even in a matter of truth; but rather by some means excuse the faults I hear charged upon others, and upon proper occasions speak all the good I know of every body.

Franklin’s “Plan of Conduct” was a precursor to his constant quest in self-improvement, as documented in his “Autobiography” (1791.) A few years later, he supplemented his plan with a “Moral Perfection Project,” 13 guidelines to motivate himself to be more virtuous and strive for moral perfection.

These first few pursuits of self-improvement and reflection weren’t a passing fad for Franklin—he adhered to these rules for the rest of his life. He was proud that he had the wisdom to develop and commit to them so early in life. He reflected in his “Autobiography” (1791,) “It is the more remarkable, as being formed when I was so young, and yet being pretty faithfully adhered to quite through to old age.”

Idea for Impact: Create Your ‘Plan of Conduct’

Create your own rules for living and commit to them for a life of success and wisdom. The values you establish for yourself will align your actions with your goals and dreams and so reduce regrets of overlooked opportunities.

Recommended Reading: For a great collection of the writings of Benjamin Franklin, including his “Autobiography”, see Walter Isaacson’s “A Benjamin Franklin Reader”.

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Sharpening Your Skills

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Making Fortunate Discoveries Accidentally

Johnson & Johnson Got into the Baby Powder Business by Accident

J&J Got into the Sanitary Protection Products Business Too by Accident

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The Case of the $429 Breadmaker

The Case of the $69 Hot Dog and the $1000 Chocolate Sundae

Idea for Impact: Be Sensitive of Anchoring Bias

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Idea for Impact: Avoid Mundane Tasks

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Benjamin Franklin’s Organized Action Plan for Efficiency and Success

Idea for Impact: Create Your ‘Plan of Conduct’

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