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Ideas for Impact

The Great Innovators

Innovation: Be as Eager to Stop Zombie Projects as You Are to Begin the New

October 26, 2023 By Nagesh Belludi Leave a Comment

Be as Eager to Stop Zombie Projects as You are to Begin the New Innovation entails not only the disciplined creation and implementation of new ideas that add value but also the acumen to identify and cease zombie projects.

Has a project consistently failed to deliver expected outcomes despite substantial investments? Could the project’s objectives be achieved more efficiently through alternative means? Have shifts in strategic direction made the initial goals irrelevant?

Idea for Impact: Instead of pouring additional resources into a zombie project in the hope of eventual success and payback, consider the risk of squandering more funds. In an era of limited resources and unmet demands, making careful resource allocation is a crucial aspect of effective innovation.

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  3. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation
  4. Five Where Only One is Needed: How Airbus Avoids Single Points of Failure
  5. You Never Know What’ll Spark Your Imagination (and When)

Filed Under: Leading Teams, Mental Models, Project Management, The Great Innovators Tagged With: Creativity, Decision-Making, Innovation, Mental Models, Parables, Problem Solving, Thought Process

Ethics Lessons From Akira Kurosawa’s ‘High and Low’

October 5, 2023 By Nagesh Belludi Leave a Comment

The celebrated Japanese filmmaker Akira Kurosawa is known for crafting movies that grapple with moral dilemmas. In his highly regarded work, High and Low (1962,) a successful self-made millionaire faces a wrenching ethical conundrum: his son has been abducted, and he must give up everything he has worked hard for to secure the ransom. However, he soon discovers that the kidnapper mistakenly took his chauffeur’s son instead. The question now becomes: is the life of the worker’s child worth the same sacrifice as his own? In a powerful scene, the millionaire and the chauffeur lock eyes, and the viewers are left to ponder if all lives are equally valuable.

What makes this movie a standout is its portrayal of the intricacies involved in making difficult moral choices. Our conscience cannot always provide us with the necessary guidance to navigate the complex ethical issues we face in modern society, particularly when competing values and interests are at play. Ethical decisions are about more than just meeting a specific standard, as many dilemmas are so multifaceted that it’s difficult to distinguish good from evil or determine which choice is most worthy of preference.

The key takeaway is that tackling complicated moral problems requires continuous effort and investment in researching and contemplating the proper response. Seeking input from trusted colleagues who can provide a secure space to explore the nuances and implications of difficult decisions, particularly those you might not feel comfortable discussing openly due to societal pressures, is critical.

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  5. The Unthinking Habits of Your Mind // Book Summary of David McRaney’s ‘You Are Not So Smart’

Filed Under: Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Attitudes, Biases, Conflict, Conviction, Critical Thinking, Decision-Making, Ethics, Integrity, Philosophy, Psychology

You Never Know What’ll Spark Your Imagination (and When)

August 31, 2023 By Nagesh Belludi Leave a Comment

Children find all sorts of unexpected ways to nurture their imagination. With uninhibited curiosity and creativity for fantasy, they can create and connect concepts without inner judgment. What children discover with their active imagination often molds how they see the world and fuels their dreams, as the following cases will illuminate.

Albert Einstein (1879–1955) hardly spoke until he was three. His delayed verbal development made him curious about ordinary things that most grown-ups take for granted—such as the nature of space and time. When he was five and sick in bed, Einstein’s father brought him a contraption that stirred his mind no end. It was the first time he had seen a magnetic compass. Laying in bed, Einstein tried waving and turning the little gadget in vain to trick it into pointing off in a new direction. He later wrote, “A wonder … this experience made a deep and lasting impression upon me. Something deeply hidden had to be behind things.”

Bertrand Russell (1872–1970) was born into a notable aristocratic family. His parents were progressive thinkers and atheists. They chose philosopher John Stuart Mill as Russell’s secular godfather. When Russell’s parents died when he was four, they designated in their will that their progressive friends should look after young Russell and bring him up as an agnostic. But his grandparents intervened, abandoned the parents’ stipulation, and raised Russell and his brother Frank in a strict Christian household. As an adolescent, Russell kept a diary expressing his misgivings about God and concepts of free will. He kept his diary in Greek letters so that his grandparents couldn’t read it. When he went to Cambridge, he bumped into many people who thought the way he did. He actively engaged in debates and discussions. When Russell was eleven, Frank introduced him to the work of Euclid, which Russell described in his autobiography as “one of the great events of my life, as dazzling as first love. I had not imagined there was anything so delicious in the world. From that moment until I was thirty-eight, mathematics was my chief interest and my chief source of happiness.” Russell became the 20th century’s most important agnostic, philosopher, and mathematician.

Ansel Adams (1902–84) had a difficult time in school. An unruly boy, he was hyperactive and dyslexic. He was ousted from several schools. He later wrote, “Education without either meaning or excitement is impossible. I longed for the outdoors, leaving only a small part of my conscious self to pay attention to schoolwork.” His parents eventually gave up and began homeschooling him. When he was 14, they gave him two gifts: a Kodak #1 Box Brownie camera and a trip to Yosemite National Park (the National Parks Service had just been established.) On that family trip, Adams was so captivated by the charm of the mountains and the woods that he would revisit the park every summer for the rest of his life. Adams began experimenting with cameras, solidifying a lifelong connection between his two passions—photography and the natural world. He set the gold standard for art photography in the 20th century. His extraordinary photographs of Yosemite and other wilderness areas became familiar to millions worldwide.

Idea for Impact: You never knew what would spark the imagination. Build your creative muscle. Emphasize effort over the results of creative endeavors and enjoy new experiences. Play. Wander. Rebel. Experiment. Challenge. Indulge. Question. Absorb.

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  5. How to Solve a Problem By Standing It on Its Head

Filed Under: Business Stories, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Artists, Creativity, Mental Models, Problem Solving, Thinking Tools, Thought Process

There’s Always Competition

July 6, 2023 By Nagesh Belludi Leave a Comment

There’s always competition, even if you’re introducing an industry-first solution. Let the following case studies serve as a cautionary tale.

Consider launching a new upmarket coffee shop in a bustling location. You might assume that establishing it in a neighborhood without other fine-coffee purveyors guarantees success, but competition still exists. Your intended clientele is already brewing their own top-notch coffee at home or patiently waiting to satisfy their caffeine cravings at work. By introducing your shop, you’re challenging their comfortable routine of enjoying coffee in their pajamas or at their work desks.

Don’t imagine the iPod didn’t face competition when it first launched. In fact, it faced a significant challenge from multiple fronts. Not only did it have to compete with other MP3 players, which were arguably less convenient, but it also had to outdo the storage capacity and convenience of CDs and the variety of radio stations. However, the iPod proved to be a game-changer with its ground-breaking 1.8-inch hard drive, a revolution in music-listening technology. With that iconic click wheel, you could shuffle through songs and switch from classical to heavy metal in the blink of an eye. And let’s not forget how cool it was to play with!

Back in the day, Southwest Airlines started with just three routes in Texas and no big-shot airlines to compete with. They had to convince folks that flying was better than hitting the road in their trusty jalopy. They hyped up the time-saving factor and ensured passengers knew they could still chow down on some grub at home. They also showered their passengers with free booze and had flight attendants rocking hot pants and go-go boots.

When Spirit Airlines decided to focus heavily on the Visiting Friends and Relatives (VFR) Market in Latin America, it had to compete against other high-priced airlines and face a new and challenging competitor. As technology advanced, Hispanic and Latino Americans could video-chat with their loved ones instead of splurging on expensive flights. Why bother with the hassle of international travel when you could easily catch up with your family while lounging in your jammies and munching on some Cheetos?

Remember, competition is everywhere—focus not just on direct competition but also on changing consumer preferences and hidden alternatives. You can’t just create customers out of thin air. Your product or service has to be compelling enough to make people choose you over your competition. You must offer something dramatically better, faster, cheaper, more powerful, or cooler than your established competitors.

Wondering what to read next?

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  2. Your Product May Be Excellent, But Is There A Market For It?
  3. Make ‘Em Thirsty
  4. Why Investors Keep Backing Unprofitable Business Models
  5. Find out What Your Customers Want and Give it to Them

Filed Under: Business Stories, The Great Innovators Tagged With: Customer Service, Entrepreneurs, Innovation, Marketing, Parables

Sock Success: How THORLO’s Customer Focus Led to Big Wins

July 3, 2023 By Nagesh Belludi Leave a Comment

Jim Throneburg made socks. Innovative socks. “Activity-specific” padded socks. THORLO, his family-owned sock manufacturing company based in Statesville, North Carolina, is known for its innovative padded socks for various activities such as running, hiking, walking, skiing, and more.

Throneburg’s innovation didn’t come from a flash of genius but from a personal experience. In 1953, Throneburg founded THORLO after seeing his father suffer from foot pain caused by poor-quality socks. He started selling socks out of the trunk of his car. As the quality of the socks gained recognition, the company began to expand. In the 1960s, the product line expanded to include socks for hiking and mountaineering, and in the 1970s, THORLO developed a specialized padding system that could be customized for different activities.

In the late 1970s, Throneburg realized that as the function of shoes changed, so should the design of the socks that complemented them. Drawing from his experience at a weight-loss clinic where he needed thicker-soled socks, he transformed Throneburg Hosiery Mill from a commodity business into an innovative sock manufacturer that became THORLO. He invested in new designs, yarns, and technology that he had perfected, making padded socks for the military. The company has since created dozens of sport-specific sock varieties.

THORLO’s R&D happens where the foot meets the sock and the shoe, addressing everyday problems ordinary people face. Throneburg developed a ladies’ rolltop sock for golf and tennis after a woman golfer complained about her socks slipping down. When a man with a rare foot condition found relief from THORLO’s socks and asked if Throneburg could make socks for his young daughters, Throneburg forwarded the request to product development.

Throneburg held more than 25 patents in the United States and internationally, and he was one of the most prolific inventors in the sock, insole, and shoe industries. His success demonstrated that innovation does not require a flashy tech startup or a billion-dollar budget.

Idea for Impact: Innovation could happen anywhere and at any time. It was not just about new products or cutting-edge technologies but about seeing things differently and understanding customers’wants and needs.

Wondering what to read next?

  1. Dear Customer, Speak Early and Have it Your Way!
  2. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  3. Your Product May Be Excellent, But Is There A Market For It?
  4. Innovation’s Valley of Death
  5. Evolution, Not Revolution

Filed Under: MBA in a Nutshell, Mental Models, The Great Innovators Tagged With: Creativity, Entrepreneurs, Innovation, Marketing, Mental Models

Learning from Amazon: Getting Your House in Order

June 12, 2023 By Nagesh Belludi Leave a Comment

Jeff Bezos is known for his far-sighted perspective and willingness to take bold risks that may not pay off for years. One of his most noteworthy ideas, which we can all learn from and integrate into our own mental frameworks, is the importance of streamlining processes and systems and preparing for expansion.

During the dot-com crash, Amazon’s stock price plummeted an astonishing 90%, hitting a low of just $6 per share in September 2001, down from its peak of $107 per share in December 1999. Bezos remained resolute despite the market’s instability and decreasing confidence in tech startups. Instead of losing his nerve, he doubled down on his long-term vision for the company. He saw an opportunity to reevaluate Amazon’s strategy and focus on achieving financial sustainability.

To this end, Bezos made numerous changes to Amazon’s operations, abandoning the “Get Big Fast” mentality of the startup culture in favor of a new approach focused on “Getting Our House in Order (GOHIO.)” According to Eugene Wei, who worked at Amazon as a strategy analyst from 1997 to 2004, Bezos insisted that his team concentrate on improving the company’s internal systems and processes, eschewing quick fixes or superficial solutions implemented during the company’s early, rapid growth phase. Every decision was aimed at achieving scale, discipline, and efficiency. Bezos also hired new managers to help guide the company toward financial stability.

Thanks to this strategic shift, Amazon weathered the dot-com crash and emerged as one of the most successful corporations in the world. And Bezos came to be widely regarded as one of the most brilliant and accomplished entrepreneurs of modern times.

Idea for Impact: By taking advantage of lull periods to get your affairs in order, you can set yourself up for success in the long run. Whether yearly, monthly, or even weekly, taking the time to get organized, clarify your vision, and establish efficient workflows can help you stay focused and achieve your goals more effectively. And by preparing your physical and digital spaces, mindsets, and personnel, you can create an environment that supports your aspirations and helps you reach your full potential.

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  4. Why Amazon Banned PowerPoint
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Filed Under: Mental Models, The Great Innovators Tagged With: Amazon, Creativity, Discipline, Entrepreneurs, Innovation, Jeff Bezos, Leadership Lessons, Parables, Simple Living, Thinking Tools

Don’t Outsource a Strategic Component of Your Business

May 11, 2023 By Nagesh Belludi Leave a Comment

The prescription eyeglasses retailer Warby Parker was launched by four drinking buddies at the Wharton School of the University of Pennsylvania. The founders intended to disrupt a high-profit margin industry by taking out the intermediary.

Selling prescription eyeglasses online (Warby Parker mostly sells via brick-and-mortar today) would also defy skeptics who preferred to see certain things—shoes, diamond rings, cars—in person and were disinclined to get them online. Warby Parker’s incumbent competitors, 39DollarGlasses.com and EyeBuyDirect.com, had sloppy websites. A crucial part of Warby Parker’s startup plan was to start a user-friendly website where shoppers could upload a photograph of themselves and try on glasses virtually.

At first, the founders outsourced the website, resulting in disastrous consequences. In an interview with Fortune magazine (1-Jun-2019,) co-founder & co-CEO David Gilboa reflected on the pitfalls of outsourcing critical business components:

None of us [the founders] was qualified to build the website, so we solicited proposals and got a handful of bids from agencies. We chose the cheapest option, but a few months in, we realized it was a mistake. Their execution wasn’t what they promised. So we ended up firing them.

Now we develop most of the technology we use in-house to ensure we maintain as much control over the customer experience as possible. We’ve developed our website and both of our apps internally.

Idea for Impact: Don’t outsource what you’re supposed to do best.

Outsourcing a core function may give you a short-term uplift, but you’ll fail to create the core expertise within your company. That’s necessary to build a sustainable competitive advantage. The vendor just isn’t as invested in your success.

Building know-how internally is more challenging, but it’ll pay off in the long run. Sure, you may need to tap an outsourced hire for specialized expertise that you lack. But concentrate on developing your core functions in-house. In fact, be as micro-managey as possible in the early days.

Leverage outside help for bookkeeping, legal, and everything else that doesn’t generate a competitive advantage.

Wondering what to read next?

  1. Your Product May Be Excellent, But Is There A Market For It?
  2. Evolution, Not Revolution
  3. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  4. The #1 Clue to Disruptive Business Opportunity
  5. Innovation’s Valley of Death

Filed Under: Business Stories, Mental Models, The Great Innovators Tagged With: Creativity, Delegation, Entrepreneurs, Innovation, Leadership Lessons, Problem Solving

Never Make a Big Decision Without Doing This First

February 9, 2023 By Nagesh Belludi Leave a Comment

In 1943, General Motors (GM) brought in Peter Drucker to conduct a two-year social-scientific examination of what was then the world’s largest corporation. Drucker conducted many interviews with GM’s corporate leaders, divisional managers, department chiefs, and line workers. He analyzed decision-making and production processes. The resultant landmark study, Concept of the Corporation (1946,) laid the foundations of scientific management as a formal discipline.

One anecdote that Drucker liked to share from his GM research involved how his client, GM supremo Alfred P. Sloan, Jr., generally encouraged disagreements:

During a meeting in which GM’s top management team was considering a weighty decision, Sloan closed the meeting by asking, “Gentlemen, I take it we are all in complete agreement on the decision here?”

Sloan then waited as each member of the assembled committee nodded in agreement.

Sloan continued, “Then, I propose we postpone further discussion of this matter until our next meeting to give ourselves time to develop disagreement and perhaps gain some understanding of what this decision is about.”

Concrete Disagreement Stimulates Thought

Strong leaders encourage their team members to challenge them and question consensus. Leaders so counter the tendency toward synthetic harmony that emanates from group thinking and the risk of unchallenged leadership.

A team member with a difference of opinion or contrary position that’s well rooted in rationale is not to be reprimanded. He may have judgments worth listening to or recommendations worth heeding. Every team needs at least one to keep the team from falling into complacency. A team’s culture shouldn’t shun discouragement and conflict.. Look out, though, for team members who merely pay lip service to allow for the counterargument.

There are three reasons why dissent is needed. It first safeguards the decision maker against becoming the prisoner of the organization. Everybody is special pleader, trying—often in perfectly good faith—to obtain the decision he favors. Second, disagreement alone can provide alternatives to decision. And decision without an alternative is desperate gamblers’ throw, no matter how carefully thought through it might be. Above all, disagreement is needed to stimulate the imagination.

The Best Leaders Encourage Disagreements

Dissent and disagreement are critical to combat confirmation bias—the human tendency to readily seek and accept ostensible facts that match our existing worldview rather than objectively considering alternative viewpoints and unintended consequences.

'Management Tasks, Responsibilities, Practices' by Peter F. Drucker (ISBN 0887306152) What’s worse, leaders tend to surround themselves with like-minded individuals—people they trust and people who think alike. Drucker later wrote in his wide-ranging treatise on Management: Tasks, Responsibilities, Practices (1974,)

Sloan always emphasized the need to test opinions against facts and the need to make absolutely sure that one did not start out with the conclusion and then look for the facts that would support it. But he knew that the right decision demands adequate disagreement.

An effective decision-maker organizes dissent. This protects him against being taken in by the plausible but false or incomplete. It gives him the alternatives so that he can choose and make a decision, but also ensures that he is not lost in the fog when his decision proves deficient or wrong in execution. And it forces the imagination—his own and that of his associates. Dissent converts the plausible into the right and the right into the good decision.

Idea for Impact: The more you encourage healthy debate within your team, the better off you’ll be

The first rule in decision-making should be that you don’t make any decision unless you’ve sought out and contemplated the counterevidence. Consider the other side of any idea as carefully as your own.

Wise leaders proactively seek the truth they don’t want to find. Encourage authentic dissenting opinions to generate more—and better—solutions to problems.

Wondering what to read next?

  1. Consensus is Dangerous
  2. Couldn’t We Use a Little More Civility and Respect in Our Conversations?
  3. Confirm Key Decisions in Writing
  4. Cancel Culture has a Condescension Problem
  5. How to Stimulate Group Creativity // Book Summary of Edward de Bono’s ‘Six Thinking Hats’

Filed Under: Managing People, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Conflict, Conversations, Critical Thinking, Leadership Lessons, Social Dynamics, Teams

Innovation’s Valley of Death

December 20, 2022 By Nagesh Belludi Leave a Comment

The discovery and development of an invention are usually easier relative to the creativity and resources required to make it a commercial success. Indeed, many entrepreneurs and intrapreneurs struggle to commercialize their idea meaningfully—establish the idea’s marketability to prospective backers, engage potential customers, and price and promote their product or service for a favorable return on investment. Consider this case study of the Bombardier CSeries jets—fated for misfortune for many years only to morph into the successful Airbus A220 series:

As a country, we habitually underinvest in R&D. And, when domestic champions like Bombardier do emerge, they often prove unable to turn their great ideas into commercially successful, globally dominant businesses.

In a knowledge economy, a country’s future prosperity is increasingly tied to its ability to generate and capitalize on innovative new ideas.

“The paradox is that while there is innovation going on in Canada, we do not observe the same level of commercialization and ownership of those innovations [as in other countries]. In many cases, inventions developed in Canada are then commercialized by foreign companies that keep much of that benefit.”

Idea for Impact: Don’t let your idea fizzle because they can’t take your sizzle to market. Focus not just on overcoming internal barriers but also on how to commercialize your innovation. Hire outside capabilities if necessary.

Wondering what to read next?

  1. Fall in Love with the Problem, Not the Solution
  2. The #1 Clue to Disruptive Business Opportunity
  3. Don’t Outsource a Strategic Component of Your Business
  4. Your Product May Be Excellent, But Is There A Market For It?
  5. Evolution, Not Revolution

Filed Under: Mental Models, The Great Innovators Tagged With: Aviation, Creativity, Entrepreneurs, Innovation, Persuasion, Problem Solving

And the Theranos Board Walks Away Scot-Free

November 19, 2022 By Nagesh Belludi Leave a Comment

Theranos’s Elizabeth Holmes has finally been sentenced to over 11 years in prison. Too bad our corporate law is too narrow to attribute some criminal liability to the company’s board of directors. Such luminaries as former Secretaries of State George Shultz and Henry Kissinger, Marine Corps General James Mattis, and former Secretary of Defense William Perry, once famously portrayed as “the single most accomplished board in U.S. corporate history,” should be partly culpable for Holmes’s malfeasance.

When Holmes explained away her underlying technology as “a chemistry performed so that a chemical reaction occurs and generates a signal from the chemical interaction with the sample, which is translated into a result, which is then reviewed by certified laboratory personnel,” all the board had to do was demand, “Show me.” Determining how a device or service works—exists even—as purported, is the essential obligation of a board member. A truly engaged overseer may have preserved $945 million in investors’ capital and kept a naïve, immoral, and feckless entrepreneur from bullying the press, intimidating her employees, and gambling with the patients’ lives. (Read WSJ reporter John Carreyrou’s excellent chronicle, Bad Blood (2018; my summary.))

The board individually and collectively failed in their responsibilities as trustees of investors’ interests. Undoubtedly drafted as trophy directors to reinforce the company’s standing such as it was, not for any knowledge of blood testing, they now walk away with nothing more than a blot on their illustrated careers.

Wondering what to read next?

  1. Let’s Hope She Gets Thrown in the Pokey
  2. The Dramatic Fall of Theranos & Elizabeth Holmes // Book Summary of John Carreyrou’s ‘Bad Blood’
  3. Book Summary: Jack Welch, ‘The’ Man Who Broke Capitalism?
  4. Why Investors Keep Backing Unprofitable Business Models
  5. Beware of Key-Person Dependency Risk

Filed Under: Business Stories, News Analysis, The Great Innovators Tagged With: Entrepreneurs, Ethics, Icons, Questioning

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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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