• Skip to content
  • Skip to primary sidebar

Right Attitudes

Ideas for Impact

The Great Innovators

Innovation’s Valley of Death

December 20, 2022 By Nagesh Belludi Leave a Comment

Bombardier's CSeries Commercialization Failure: The Innovation Valley of Death 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. Your Product May Be Excellent, But Is There A Market For It?
  4. Evolution, Not Revolution
  5. Constraints Inspire Creativity: How IKEA Started the “Flatpack 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: Elizabeth Holmes Sentenced, Directors Walk Away Scot-Free? 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, would seem to be 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 lives of patients. (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. Success Conceals Wickedness

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

3 Ways to … Manage for Creativity

October 21, 2022 By Nagesh Belludi Leave a Comment

How to Manage for Creativity Managers can create the conditions for innovation by encouraging a culture of being creative—not just productive—and razing barriers that stifle individual expression.

  1. Get less formal. Foster a culture characterized by a tolerance for failure and a willingness to experiment. Involve everyone and welcome great ideas from everywhere. Make sure everyone feels free to speak out: people will own solutions if they’ve been involved in the decision-making.
  2. Simplify the workplace. Look at things with a fresh eye, as an outsider might—sometimes you’re too close to things to see the truth. Drop unnecessary work, and explore what routines can be phased out or improved. Work with coworkers to eliminate extraneous loops and redundancies if your organization has far too many rules, approvals, and forms. Streamline decision-making.
  3. Defy tradition. If no one can recall why your team does something a particular way, the task is likely more convoluted than it needs to be. Hold a ‘why do we do it that way?’ challenge. Invite colleagues from different teams to come in and look at things in a detached way. Figure out what’s relevant and necessary (and what’s not) and frequently reevaluate the priority list as new things are added.

Idea for Impact: Managing for creativity is a conscious effort in experimentation.

Wondering what to read next?

  1. Overcoming Personal Constraints is a Key to Success
  2. Creativity—It Takes a Village: A Case Study of the 3M Post-it Note
  3. Many Creative People Think They Can Invent Best Working Solo
  4. Four Ideas for Business Improvement Ideas
  5. Evolution, Not Revolution

Filed Under: Mental Models, The Great Innovators Tagged With: Creativity, Critical Thinking, Innovation, Problem Solving, Teams, Thought Process

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

September 24, 2022 By Nagesh Belludi Leave a Comment

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

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

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

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

Wondering what to read next?

  1. Two Leadership Lessons from Oscar Munoz, United Airlines CEO
  2. Tylenol Made a Hero of Johnson & Johnson: A Timeless Crisis Management Case Study
  3. This is Not Responsible Leadership: Boeing’s CEO Blames Predecessor
  4. Book Summary: Jack Welch, ‘The’ Man Who Broke Capitalism?
  5. Dear Customer, Speak Early and Have it Your Way!

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

Make the Problem Yours

September 21, 2022 By Nagesh Belludi Leave a Comment

Ownership & Stewardship: Think and Act Like an Owner From a profile of The Gillette Company’s then-CEO Jim Kilts in the 20-Dec-2002 issue of Fortune magazine:

At a meeting with all his division chiefs, Kilts asked for a show of hands: “How many of you think our costs are too high?” Everyone in the room immediately raised his hand. Then he asked, “How many of you think costs are too high in your department?” Not a single hand went up. According to Kilts, it’s a common response among managers of companies in trouble: Everyone knows there’s a problem, it’s just that nobody thinks it’s his problem. And that’s where Kilts comes in: He’ll make it his problem–and yours, if you plan on keeping your job.

Idea for Impact: Make the problem yours. Think and act like an owner.

One of the most underrated skills most employees lack is ownership/stewardship—taking responsibility for results, recognizing when things aren’t working, and getting problems solved.

Plus, teams mirror initiative-takers. When someone starts to take ownership, other people see that, and they’re likely to take ownership of their bits as well.

Wondering what to read next?

  1. The #1 Clue to Disruptive Business Opportunity
  2. A Guaranteed Formula for Success: Identify Your #1 Priority and Finish It First
  3. Keep Your Eyes on the Prize [Two-Minute Mentor #9]
  4. Small Steps, Big Revolutions: The Kaizen Way // Summary of Robert Maurer’s ‘One Small Step Can Change Your Life’
  5. Ask This One Question Every Morning to Find Your Focus

Filed Under: Leading Teams, Sharpening Your Skills, The Great Innovators Tagged With: Entrepreneurs, Getting Things Done, Problem Solving, Procrastination, Winning on the Job

Dear Customer, Speak Early and Have it Your Way!

September 12, 2022 By Nagesh Belludi Leave a Comment

Development of the Boeing 777 Program: 'Working Together' Initiative

At the heart of every successful product is the ability to address a real need or circumstance of struggle—a “job to be done”—in consumers’ lives. Identification of this “job” happens early in the innovation process, as it forms the core insight around innovation development and execution.

Feedback-Influenced Design is a Key Point of Differentiation

Long before its current mess, Boeing was once the pioneer in aspects of product development. No example illustrates Boeing’s inventive stills than the groundbreaking Boeing 777 program, particularly in its use of iterative, paperless computer-aided design, assembly process-planning, and agile product development. Not only that, the Boeing 777 program offers the most high-profile examples of companies tapping consumers as never before to help them create new products.

Knowing very well that the secret to long-term success starts very early in the innovation process, director of engineering Alan Mulally led a “working together” initiative to organize product development around customer input. (Mulally left Boeing after not being named CEO in 2006 and engineered a dramatic turnaround at Ford Motor Co.)

Alan Mulally: Boeing 777 Program's Director of Engineering and Later Vice-president and General Manager

Concept Testing at Every Stage of Development

In the late 1980s, just as the 777 program was being launched, Mulally made a consequential decision to involve its major potential customers in the development of the aircraft specifications. Mulally made up a “gang of eight” comprising All Nippon Airways, American Airlines, British Airways, Cathay Pacific, Delta Air Lines, Japan Airlines, Qantas, and United Airlines. At the group’s first meeting in January 1990, Mulally’s team distributed a 23-page questionnaire asking what each customer wanted in the design. Within two months, Boeing and the airlines decided on a basic design configuration.

The “working together” initiative was a radical departure from the bureaucratic project organization. Internally, Boeing had become bureaucratic and department-focused. Specialists in various departments would design their parts. Then, it was up to the manufacturing team (the system integrators) to figure out how to make it all come together. It was a “throw-it-over-the-wall” environment where the disconnect was a persistent problem.

Having customer input implied that development was centered on customer needs. This would also tear down the walls between departments—designers, suppliers, and assemblers usually separated by organizations or development phases would now be engaged collaboratively and talking and collaborating in real-time.

Boeing and the In an industry where manufacturers classically designed aircraft with only token customer input. Rather than presenting the market with what Boeing perceived as their idea of what was required, customers had direct input. Over the decades, the Boeing 777 became one of the world’s most successful commercial aircraft and continues to be the workhorse of many a customer fleet.

Idea for Impact: Create Something People Want

Whether selling products or services, fast food, or experiential travel, the most innovative companies organize their offerings around customers’ needs. From the very beginning, they tap consumers as never before to help them create new products, and they’re embedding customer knowledge into the business. Early and frequent feedback is one way to cope with the pressure for shorter product cycles and to be prudent about not investing time and resources in unpromising ideas. It also augurs well for the experiences-over-possessions shift in consumer values.

Wondering what to read next?

  1. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  2. Your Product May Be Excellent, But Is There A Market For It?
  3. Innovation’s Valley of Death
  4. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation
  5. Creativity by Imitation: How to Steal Others’ Ideas and Innovate

Filed Under: Business Stories, Leading Teams, Mental Models, The Great Innovators Tagged With: Aviation, Creativity, Innovation, Leadership Lessons, Marketing, Mental Models

Evolution, Not Revolution

August 1, 2022 By Nagesh Belludi Leave a Comment

Innovation often transpires from synthesizing existing ideas in new ways, as the following case study on the iPod will illuminate.

Steve Jobs introduces the iPod---Innovation is Evolution Not Revolution In some sense, the iPod wasn’t a breakthrough innovation at all. It emerged from Steve Jobs’s “digital hub” approach to integrating iMac software for playing, editing, and managing photos, music, and movies. According to Walter Isaacson’s masterful biography of Steve Jobs (2011,) when Apple designers learned that Toshiba had newly prototyped a tiny 1.8-inch hard drive that could hold five gigabytes of storage (that’s about a thousand songs,) they conjured up a digital music player. Apple found that existing gadgets were “big and clunky or small and useless” with “unbelievably awful” user interfaces.

Sony’s Walkman had previously proven the market potential of portable audio players, having sold 200 million units in the two decades before Apple conceived the iPod. Napster had offered digital audio file distribution for over five years. Finger-driven touchscreens were pioneered in the 1960s, and Citibank rolled out touchscreen ATMs in the 1980s. (Apple didn’t offer touchscreens until 2007 with the iPhone.) Hence, the iPod’s innovation was in bringing all these capabilities together in a way that was easier to use and relevant to the consumer. Dartmouth’s strategy professor Ron Adner writes in The Wide Lens: What Successful Innovators See That Others Miss (2013.)

Apple was three years late [behind Creative, SanDisk, Sony, and Samsung, who had previously launched portable music players]. As we’ll see again in the case of the iPhone, Jobs tended to be late for everything because he wanted everything to be ready for him. Reflecting on catching technology waves in 2008, he said, “Things happen fairly slowly, you know. They do. These waves of technology, you can see them way before they happen, and you just have to choose wisely which ones you’re going to surf. If you choose unwisely, then you can waste a lot of energy, but if you choose wisely, it actually unfolds fairly slowly. It takes years.” Jobs’s discipline paid off.

Idea for Impact: Innovation often builds on existing technological competencies or as a synthesis of smaller innovations.

Wondering what to read next?

  1. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  2. The Myth of the First-Mover Advantage
  3. Innovation’s Valley of Death
  4. Fall in Love with the Problem, Not the Solution
  5. 3 Ways to … Manage for Creativity

Filed Under: Business Stories, Mental Models, The Great Innovators Tagged With: Apple, Creativity, Critical Thinking, Entrepreneurs, Innovation, Problem Solving, Steve Jobs

Why Investors Keep Backing Unprofitable Business Models

July 29, 2022 By Nagesh Belludi Leave a Comment

Why Investors Keep Backing Unprofitable Business Models Investors have heaped billions into Q-Commerce—especially the rapid grocery startups—hoping to hook consumers on the convenience of groceries that would turn up immediately, sometimes in minutes.

I’ve never really fathomed how the small-basket orders of low-margin groceries can endlessly compensate for the labor costs and overheads, even after discontinuing the generous referral bonuses, discount codes, and freebies enticing customers. The prospects may evolve if these startups subsist on ever more funding and develop massive businesses with efficiencies from scale. But then they’re right in Amazon’s wheelhouse.

Idea for Impact: Some business models are never created to be profitable, and investors should be wary of encouraging—and funding—loss-making propositions. The lure of backing an initial entrant, capturing market share, and then selling out to a more determined fool isn’t viable! Who needs goods delivered in such a rush for such charges, anyway?

Wondering what to read next?

  1. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  2. Your Product May Be Excellent, But Is There A Market For It?
  3. The Myth of the First-Mover Advantage
  4. A Real Lesson from the Downfall of Theranos: Silo Mentality
  5. Innovation’s Valley of Death

Filed Under: Business Stories, The Great Innovators Tagged With: Entrepreneurs, Ethics, Innovation, Marketing, Persuasion, Strategy, Thought Process

Book Summary: No Filter & The Inside Story of Instagram

July 18, 2022 By Nagesh Belludi Leave a Comment

'No Filter Instagram' by Sarah Frier (ISBN 1982126809) No Filter: The Inside Story of Instagram (2020) narrates the civil networking service’s ascendance from a Silicon Valley startup to a cultural phenomenon with an ever-present feature of everyday life and an advertising juggernaut.

The book’s author, Bloomberg journalist Sarah Frier, says, “On social media, the average user is scrolling passively, wanting to be entertained and updated on the latest. They are therefore even more susceptible to suggestions by the companies, and by the professional users on a platform who tailor their behavior to what works well on the site.”

Instagram evolved from Burbn, a mobile check-in app. The founders Kevin Systrom and Mike Krieger refocused their app on photo-sharing, which had become a well-liked feature among Burbn’s users. Most cellphone cameras were pretty shoddy then, so Systrom and Krieger implemented filters to make the pictures prettier.

The founders didn’t, however, consider the downside of their innovation—reality-adjusting filters made not only users’ pictures but their lives, by extension, look more appealing. “Instagram’s early popularity was less about the technology and more about the psychology—about how it made people feel. The filters made reality look like art. And then, in cataloging that art, people would start to think about their lives differently, and themselves differently.”

Reality-adjusting Filters and Consequences for Society No Filter author Frier shines in analyzing how Instagram rewired society and ushered far-reaching consequences for society, especially on young people’s mental health. Instagram and its ilk have stolen self-esteem and our attention span, leaving us with a needy dependency on strangers’ affirmation for a scripted-reality form of our lives. “The more you give up who you are to be liked by other people, it’s a formula for chipping away at your soul. You become a product of what everyone else wants, and not who you’re supposed to be.” The ability to rework photos to perfection has spread insecurity—even leading to a surge in filter-inspired plastic surgery.

No Filter also fixates on the battle for Instagram’s soul, following its purchase by Facebook for a then-absurd $1 billion, but seemingly a bargain today. There’s considerable corporate drama and cultural clash, but nothing like the co-founder infighting retold in Nick Bilton’s Hatching Twitter (2013; my summary.) Facebook founder Mark Zuckerberg emerges controlling and rather callous. In seeking incessant growth, he continually thwarts the Instagram team. Paranoid that Instagram’s advance could “cannibalize” and replace Facebook in cultural relevance someday, Zuckerberg held them back. As Instagram grew bigger and cooler, Facebook acted “like the big sister that wants to dress you up for the party but does not want you to be prettier than she is.” In 2018, Systrom and Krieger left Facebook.

Recommendation: Quick read No Filter: The Inside Story of Instagram (2020) for a compelling founding story and a relevant primer on the sweeping socio-cultural impacts ushered by the heavy use of social media.

Wondering what to read next?

  1. Many Creative People Think They Can Invent Best Working Solo
  2. Why Investors Keep Backing Unprofitable Business Models
  3. Bill Gates and the Browser Wars: A Case Study in Determination and Competitive Ferocity
  4. How Johnson’s Baby Powder Got Started: Serendipity and Entrepreneurship
  5. Evolution, Not Revolution

Filed Under: Business Stories, Health and Well-being, The Great Innovators Tagged With: Entrepreneurs, Social Dynamics

Book Summary: Jack Welch, ‘The’ Man Who Broke Capitalism?

June 23, 2022 By Nagesh Belludi Leave a Comment

The Man Who Broke Capitalism (2022) by New York Times columnist David Gelles contends that the pernicious greed spawned by former General Electric CEO Jack Welch is exceptionally responsible for exposing the structural failings of capitalism in recent decades.

'The Man Who Broke Capitalism' by David Gelles (ISBN 198217644X) The danger inherent in any ideology grows stronger when it starts to thrive because it swiftly morphs into temptation—a voracious appetite for ever better “returns” in the present case. Welch was indeed the most visible catalyst and a much-imitated champion of brutal capitalism. But Gelles’s narrative draws his book’s lengthy subtitle (“How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America”) excessively, thrusting ad nauseam the well-founded thesis against Welch’s ploys and “the personification of American, alpha-male capitalism.” See my previous articles (here, here, and here) about how the faults of Welch’s strategy become evident many years after his retirement.

Gelles does an agreeable job of outlining the socioeconomic paradigm that has made modern western capitalism’s shortcomings ever more apparent. Starting with influential economist Milton Friedman’s decree in the ’70s that the one and only social responsibility of a business is to maximize profits, Gelles explains the revering of Welch’s “downsizing, deal-making, and financialization” strategy. Without balance, it provided short-term benefits for shareholders, but the long-term well-being of corporations and society lost out. A sense of restraint is most pertinent to the power of capitalism.

Summary of 'The Man Who Broke Capitalism' by David Gelles Capitalism isn’t irretrievably bound to fail, as Gelles rightly argues, but it needs to be rethought. It’s morally incumbent upon the social order to inhibit the embedded incentives that create powerful tendencies towards short-termism. Gelles offers no more realistic, objective insights than the familiar solutions prescribed by our career politicians.

Overall, Gelles’s pro-Fabian polemic falls short of a fair-minded assessment of the epoch’s economic forces. Indeed, many of Welch’s tactics were timely and necessary, but he pushed them farther and longer. Too, Gelles fails to study counterexamples of many corporate leaders who’ve thoughtfully copied Welch’s playbook and helped their businesses and communities prosper, not least because they were restrained enough to avoid Welchism’s blowbacks.

Recommendation: Speed Read The Man Who Broke Capitalism for a necessary reappraisal of the legacy of Jack Welch. There isn’t much eye-opening here, but author Gelles affords a relevant parable about the power of restraint and the time- and context-validity of ideas.

Wondering what to read next?

  1. Power Corrupts, and Power Attracts the Corruptible
  2. The Checkered Legacy of Jack Welch, Captain of Wall Street-Oriented Capitalism
  3. Lessons from Peter Drucker: Quit What You Suck At
  4. The Cost of Leadership Incivility
  5. Shrewd Leaders Sometimes Take Liberties with the Truth to Reach Righteous Goals

Filed Under: Business Stories, Leadership Reading, Mental Models, The Great Innovators Tagged With: Decision-Making, Discipline, Ethics, General Electric, Getting Ahead, Humility, Icons, Jack Welch, Leadership Lessons, Role Models, Targets

Next Page »

Primary Sidebar

Popular Now

Anxiety Assertiveness Attitudes Balance Biases Books Coaching Conflict Conversations Creativity Critical Thinking Decision-Making Discipline Emotions Entrepreneurs Etiquette Feedback Getting Along Getting Things Done Goals Great Manager Leadership Leadership Lessons Likeability Mental Models Mentoring Mindfulness Motivation Networking Parables Performance Management Persuasion Philosophy Problem Solving Procrastination Relationships Simple Living Social Skills Stress Thinking Tools Thought Process Time Management Winning on the Job Wisdom Worry

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.

Get Updates

Signup for emails

Subscribe via RSS

Contact Nagesh Belludi

RECOMMENDED BOOK:
Think Wrong

Think Wrong: John Bielenberg

Software firm Future Partner's exclusive problem-solving system that helps see through siloes and bottlenecks in the decision-making process.

Explore

  • Announcements
  • Belief and Spirituality
  • Business Stories
  • Career Development
  • Effective Communication
  • Great Personalities
  • Health and Well-being
  • Ideas and Insights
  • Inspirational Quotations
  • Leadership
  • Leadership Reading
  • Leading Teams
  • Living the Good Life
  • Managing Business Functions
  • Managing People
  • MBA in a Nutshell
  • Mental Models
  • News Analysis
  • Personal Finance
  • Podcasts
  • Project Management
  • Proverbs & Maxims
  • Sharpening Your Skills
  • The Great Innovators
  • Uncategorized

Recently,

  • Racism and Identity: The Lie of Labeling
  • Why Your Partner May Be Lying
  • Inspirational Quotations #982
  • How to … Make Work Less Boring
  • How to … Communicate Better with Defensive People
  • How to … Deal with Meetings That Get Derailed
  • How to … Plan in a Time of Uncertainty

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!