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Starbucks’s Comeback // Book Summary of Howard Schultz’s ‘Onward’

May 19, 2015 By Nagesh Belludi Leave a Comment

Starbucks founder, Chairman, and CEO Howard Schultz’s “Onward: How Starbucks Fought for Its Life without Losing Its Soul” is an interesting case study of organizational change as orchestrated by a passionate entrepreneur. The book covers the first two years of the turnaround of Starbucks after Schultz returned as CEO.

'Onward: How Starbucks Fought for Its Life without Losing Its Soul' by Howard Schultz, Joanne Gordon (ISBN 1609613821) In 2007, in the face of falling consumer spending and the upcoming Great Recession, the consumer discretionary sector was hit hard. Like other companies in that realm, Starbucks’ sales and profitability had dropped. The company’s stock price plummeted after Wall Street pared the rich valuations (high price-to-earning) of the company’s once-hot growth stock. Through these trials, Schultz worked at the company’s Seattle headquarters as chairman. Even after retiring as CEO in 2001, he had never left the company entirely and had even interjected often during Starbucks’ presentations to investors.

Starbucks’ financial under-performance was likely as much due to the economic slowdown as it was self-inflicted. In an apparent instance of misplaced cause-and-effect, Schultz blamed the company’s leadership for focusing too much on rapid expansion, opening too many stores, and diluting the in-store Starbucks experience. Behind the CEO’s back, Schultz started working with strategy consultants and other board members to develop a “transformational agenda” centered on the core values of the company he had founded in 1982.

In January 2008, Schultz invited the CEO home on a Sunday evening, fired him, and assumed the CEO position for a second stint. Over the next two years, Schultz rejuvenated the company’s mojo by making operational improvements and focusing on employee engagement, Starbucks’ specialty coffee products and its distinctive in-store customer experience.

Schultz’s vision, focus, and execution of this transformation makes up the bulk of “Onward”. One dominant theme in the book is founder’s syndrome—the intense reluctance of entrepreneurs like Schultz to cede control of their businesses.

Towards the end of 2009 (when “Onward” was authored,) the economy started to improve. A measured recovery in consumer confidence invigorated the fortunes of most consumer discretionary companies that had suffered during the downturn. At Starbucks, customers returned to stores and spent more. Sales and profitability improved. The company’s valuation on Wall Street soared again. Conceivably, Starbucks may have enjoyed a comeback even if Schultz had remained just the chairman, retained and supported the CEO, and worked with the company’s leadership team to initiate course corrections.

That Starbucks continues to be an American success story and has done extraordinarily well to date under Schultz’s leadership is one more instance of a beloved fairy tale in the world of business—that of a company in distress rescued by the return of its visionary founder.

“Onward” is Schultz’s somewhat grandiose narrative of his return as CEO. The 350-page book is brimming with peripheral details, self-congratulatory superlatives, recurring claims, and Pollyanna-isms that are illustrative of a charismatic entrepreneur and a brilliant corporate cheerleader.

Recommendation: Skim. (For Starbucks aficionados: Read.)

Wondering what to read next?

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  3. How Starbucks Brewed Success // Book Summary of Howard Schultz’s ‘Pour Your Heart Into It’
  4. Don’t Be A Founder Who Won’t Let Go
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Filed Under: Leadership Reading Tagged With: Books, Change Management, Entrepreneurs, Starbucks, Winning on the Job

Inspirational Quotations #580

May 17, 2015 By Nagesh Belludi Leave a Comment

An Italian philosopher said that “time was his estate” an estate indeed which will produce nothing without cultivation, but will always abundantly repay the labors of industry, and generally satisfy the most extensive desires, if no part of it be suffered to lie in waste by negligence, to be overrun with noxious plants, or laid out for show rather than for use.
—Samuel Johnson (British Essayist)

Good leaders make people feel that they’re at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens people feel centered and that gives their work meaning.
—Warren Bennis (American Scholar)

I had rather have a fool to make me merry than experience to make me sad.
—William Shakespeare (British Playwright)

When something does not insist on being noticed, when we aren’t grabbed by the collar or struck on the skull by a presence or an event, we take for granted the very things that most deserve our gratitude.
—Cynthia Ozick

In the hope of reaching the moon men fail to see the flowers that blossom at their feet.
—Albert Schweitzer (French Theologian)

It is not only what we do, but also what we do not do for which we are accountable.
—Moliere (French Playwright)

Faith is a living and unshakable confidence, a belief in the grace of God so assured that a man would die a thousand deaths for its sake.
—Martin Luther (German Protestant Theologian)

If the pain wanders, do not waste your time with doctors.
—Mignon McLaughlin (American Journalist)

Filed Under: Inspirational Quotations

Inspirational Quotations #579

May 10, 2015 By Nagesh Belludi Leave a Comment

Many talk like philosophers yet live like fools.
—Common Proverb

To do the useful thing, to say the courageous thing, to contemplate the beautiful thing: that is enough for one man’s life.
—T. S. Eliot (American-born British Poet)

Embraces are cominglings from the head even to the feet, and not a pompous high priest entering by a secret place.
—William Blake (English Poet)

For knowledge, too, is itself power.
—Francis Bacon (English Philosopher)

Everybody can be great. Because anybody can serve. You don’t have to have a college degree to serve. You don’t have to make your subject and verb agree to serve. You don’t have to know about Plato and Aristotle… (or) Einstein’s Theory of Relativity … (or) the Second Theory of Thermodynamics in physics to serve. You only need a heart full of grace. A soul generated by love.
—Martin Luther King, Jr. (American Civil Rights Leader)

When thinking won’t cure fear, action will.
—W. Clement Stone (American Businessperson)

Positive thinking will let you do everything better than negative thinking will.
—Zig Ziglar (American Author)

When we know how to read our own hearts, we acquire wisdom of the hearts of others.
—Denis Diderot (French Philosopher)

What a man knows should find its expression in what he does; the value of superior knowledge is chiefly in that it leads to a performing manhood.
—Christian Nestell Bovee

Big ideas are little ideas that no-one killed too soon.
—Seth Godin (American Entrepreneur)

An angry man is again angry with himself when he returns to reason.
—Publilius Syrus (Syrian-born Latin Writer)

It is impossible on reasonable grounds to disbelieve miracles.
—Blaise Pascal (French Catholic Mathematician)

Just as courage imperils life; fear protects it.
—Leonardo da Vinci (Italian Polymath)

A great literature is chiefly the product of inquiring minds in revolt against the immovable certainties of the nation.
—H. L. Mencken (American Journalist)

It is ridiculous for any man to criticize the works of another if he has not distinguished himself by his own performances.
—Joseph Addison (English Essayist)

If you want to be important – that’s wonderful. If you want to be great – that’s wonderful. But recognize that he who is greatest among you shall be your servant. That’s your new definition of greatness – it means that everybody can be great because everybody can serve. You don’t have to know about Plato and Aristotle to serve. You don’t have to know the second law of thermodynamics to serve. You only need a heart full of grace, a soul generated by love…
—Martin Luther King, Jr. (American Civil Rights Leader)

Those people who are uncomfortable in themselves are disagreeable to others.
—William Hazlitt (English Essayist)

Filed Under: Inspirational Quotations

Inspirational Quotations #578

May 3, 2015 By Nagesh Belludi Leave a Comment

In contemplation, if a man will begin with certainties, he shall end in doubts; but if he will be content to begin with doubts, he shall end in certainties. They are ill discoverers that think there is no land, when they can see nothing but sea.
—Francis Bacon (English Philosopher)

It is change, continuing change, inevitable change, that is the dominant factor in society today. No sensible decision can be made any longer without taking into account not only the world as it is, but the world as it will be. This, in turn, means that our statesmen, our businessmen, our every man must take on a science fictional way of thinking.
—Isaac Asimov (Russian-born American Children’s Books Writer)

Truth will ultimately prevail where there are plans taken to bring it to light.
—George Washington (American Head of State)

All men have happiness as their object: there are no exceptions. However different the means they employ, they aim at the same end.
—Blaise Pascal (French Catholic Mathematician)

Admonish your friends privately, but praise them openly.
—Publilius Syrus (Syrian-born Latin Writer)

Achievement is not always success while reputed failure often is. It is honest endeavor, persistent effort to do the best possible under any and all circumstances.
—Orison Swett Marden (American New Thought Writer)

The ultimate reason for setting goals is to entice you to become the person it takes to achieve them.
—Jim Rohn (American Entrepreneur)

The tender friendships one gives up, on parting, leave their bite on the heart, but also a curious feeling of a treasure somewhere buried.
—Antoine de Saint-Exupery (French Novelist, Aviator)

Don’t lower your expectations to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.
—Ralph Marston

Many people would be more truthful were it not for their uncontrollable desire to talk.
—E. W. Howe (American Novelist)

Filed Under: Inspirational Quotations

Collegial Goal-Setting and Goal-Monitoring?

April 28, 2015 By Nagesh Belludi Leave a Comment

An article in The Economist (7-Mar-2015 Issue) mentions a new trend in setting and monitoring goals. The “Quantified Work” system lets employees collaborate with each other to set targets for their peers.

Apparently, this collegial system has improved performance and transparency at Google, Twitter, Intel, and Kroger, among other organizations. “Quantified Work” is a checks-and-balances system which allows peers to set and monitor goals for each other. This both enforces accountability and ensures that goals are neither too hard nor too easy.

Kris Duggan, CEO of BetterWorks, the Silicon Valley startup behind “Quantified Work,” argues, “The traditional once-a-year setting of employee goals and performance review is totally out of date. To really improve performance, goals need to be set more frequently, be more transparent to the rest of the company, and progress towards them measured more often.” Amen to that.

Interestingly, the article mentions that achieving 60–70% of the goals thus set is considered normal rather than a failure. The article also cautions that salary raises and bonuses should not be linked to these goals. I deduce that “Quantified Work” is more for collaborative task-and-deadline management than for meaningful employee performance assessment.

In my consulting practice, I have tested collaborative task management. It’s not as efficient as it purports to be: employees tend to get carried away and spend more time adding goals and checking performance than doing actual work.

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Filed Under: Managing People Tagged With: Delegation, Goals, Performance Management, Workplace

Inspirational Quotations #577

April 26, 2015 By Nagesh Belludi Leave a Comment

Ability is important in our quest for success, but dependability is critical.
—Zig Ziglar (American Author)

Life is like sailing. You can use any wind to go in any direction.
—Robert Brault

To keep the body in good health is a duty, for otherwise we shall not be able to trim the lamp of wisdom, and keep our mind strong and clear. Water surrounds the lotus flower, but does not wet its petals.
—Buddhist Teaching

The more connections you and your lover make, not just between your bodies, but between your minds, your hearts, and your souls, the more you will strengthen the fabric of your relationship, and the more real moments you will experience together.
—Barbara De Angelis (American Lecturer)

Treat your body like a temple, not a woodshed. The mind and body work together. Your body needs to be a good support system for the mind and spirit. If you take good care of it, your body can take you wherever you want to go, with the power and strength and energy and vitality you will need to get there.
—Jim Rohn (American Entrepreneur)

Some people do not become thinkers simply because their memories are too good.
—Friedrich Nietzsche (German Philosopher, Scholar)

We all have possibilities we don’t know about. We can do things we don’t even dream we can do.
—Dale Carnegie (American Author)

Next to ingratitude, the most painful thing to bear is gratitude.
—Henry Ward Beecher (American Protestant Clergyman)

Use your health, even to the point of wearing it out. That is what it is for. Spend all you have before you die; do not outlive yourself.
—George Bernard Shaw (Irish Playwright)

The hardest tumble a man can make is to fall over his own bluff.
—Ambrose Bierce (American Editor)

It is those who have this imperative demand for the best in their natures, and who will accept nothing short of it, that holds the banners of progress, that set the standards, the ideals, for others.
—Orison Swett Marden (American New Thought Writer)

You do not wake up one morning a bad person. It happens by a thousand tiny surrenders of self-respect to self-interest.
—Robert Brault

There is one thing one has to have: either a soul that is cheerful by nature, or a soul made cheerful by work, love, art, and knowledge.
—Friedrich Nietzsche (German Philosopher, Scholar)

Filed Under: Inspirational Quotations

How to Process that Pile of Books You Can’t Seem to Finish [+ 5 Other Reading Hacks]

April 21, 2015 By Nagesh Belludi 1 Comment

If you’re an avid reader, you most likely have a stack of books you’ve started reading but never seem to complete. You may have the habit of eagerly devouring a book until another arrives. Consumed by enthusiasm, you start reading that new book and set the first aside. Continually finding more to read, this shortcoming repeats itself. Inevitably, you are left with a pile of books on your nightstand.

The following tips will help you read more than one book at a time, process a pile of books, and finish all the works you’ve ever wanted to read.

  1. Rotate your reading and stick to a pile before adding more books to your reading list. To process a pile of three to five books, use this disciplined system: when you’re in the mood to read, choose the book on top of your pile. Then, read it as long as you feel like reading it. When you’re done reading, don’t put back the book back on the top of your pile. Instead, put the book at the bottom of the pile. During your next reading session, pick up the second book, which is now at the top of the pile. Rotate your reading. In this way, you can progressively read every book and finish everything before taking on a new pile.
  2. Don’t add new books to your reading list until you’ve finished the texts at hand. As you process each group of books, don’t add anything to your reading list before you’ve finished everything in the existing pile. Focus on one pile of books at a time.
  3. You may not need to read every page or chapter to “read” a book. Pre-read a book by finding its summary on the Internet. Customer reviews on Amazon.com often have useful summaries or a list of significant ideas. To read a book quickly, first skim through its preface, table of contents, and index. Next, browse its substance by scanning section titles, subtitles and chapters, and by glossing over any pictures and illustrations. Read the first and last paragraphs of each chapter, and executive summaries. If you feel like reading any section of the book, read each paragraph’s first line to develop a conceptual understanding before reading the content more closely. Consider taking a speed-reading course to improve reading speed and comprehension.
  4. Give up if you find a volume uninteresting or unnecessary. You’re not obligated to finish a book just because you’ve committed to reading it.
  5. Choose books with a variety of topics, themes, or genres. The variety will keep your interest.
  6. Abraham Lincoln reading to his son Tadd at the White House Review what you’ve read. If you’re not sure which book to read next, instead of choosing from a wealth of new titles, consider rereading a book that you’ve previously read and found useful. A good book’s valuable concepts can’t be entirely absorbed with just one reading. As film critic Dana Stevens once wrote, “Going back to a book is a way of daring that past self to find new evidence for that old love.” Some books invite periodic perusing for further intellectual stimulation or for reinforcement of various insights. Moreover, it often takes multiple exposures to a useful concept for you to store it in your “little brain attic” (to borrow Sherlock Holmes’s term for mental models) and incorporate it in your behavior.

If you’re looking for something good to read, here’s a list of books I read in 2014 and recommended in an earlier article.

While we’re on the topic of reading, I recommend How to Read a Book, American educator Mortimer Adler’s classic guide to intelligent reading.

Wondering what to read next?

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Books, Reading

Inspirational Quotations #576

April 19, 2015 By Nagesh Belludi Leave a Comment

Living is being born slowly. It would be a little too easy if we could borrow ready-made souls.
—Antoine de Saint-Exupery (French Novelist, Aviator)

Up to a point a man’s life is shaped by environment, heredity, and the movements and changes in the world around him. Then there comes a time when it lies within his grasp to shape the clay of his life into the sort of thing he wishes to be. Only the weak blame parents, their race, their times, lack of good fortune, or the quirks of fate. Everyone has it within his power to say, ‘This I am today; that I will be tomorrow.’ The wish, however, must be implemented by deeds.
—Louis L’Amour

Creativity means believing you have greatness.
—Wayne Dyer (American Motivational Writer)

A good conscience fears no witness, but a guilty conscience is solicitous even in solitude.—If we do nothing but what is honest, let all the world know it.—But if otherwise, what does it signify to have nobody else know it, so long as I know it myself?—Miserable is he who slights that witness.
—Seneca the Younger (Lucius Annaeus Seneca) (Roman Philosopher)

The realist sees reality as concrete. The optimist sees reality as clay.
—Robert Brault

Everything is possible for him who believes.
—The Holy Bible (Scripture in the Christian Faith)

There is an ongoing battle between conscience and self-interest in which, at some point, we have to take sides.
—Robert Brault

Our happiness depends on the habit of mind we cultivate. So practice happy thinking every day. Cultivate the merry heart, develop the happiness habit, and life will become a continual feast.
—Norman Vincent Peale (American Clergyman, Self-Help Author)

Logic teaches rules for presentation, not thinking.
—Mason Cooley

Be more aware of responsibility than you are of your rights.
—Unknown

Great crises produce great men and great deeds of courage.
—John F. Kennedy (American Head of State)

To love and be loved is the great happiness of existence.
—Sydney Smith (English Anglican Writer)

I’m a slow walker, but I never walk back.
—Abraham Lincoln (American Head of State)

Filed Under: Inspirational Quotations

Creativity by Synthesis (Combining Ideas): A Case Study on the Darwin & Mendel Theorems in Biology

April 14, 2015 By Nagesh Belludi Leave a Comment

One of the fascinating aspects of invention is tracking the continuity of ideas across an arc of time and tracing the progression of ideas over time. My previous article examined how blending antecedent ideas to form new ones led to the invention of the Gutenberg’s press, the rotary steam engine, and the Wright Brothers‘ first powered flight. In this article, we will explore a related mental model for creativity.

A fundamental component of creative thinking is combining whole ideas (or just certain elements of ideas) to create a new concept. When we synthesize—i.e. fuse ideas to forge new ones—we mirror the footsteps of some of humankind’s most imaginative breakthroughs.

James Maxwell’s work on electromagnetic radiation developed from the synthesis of seemingly unrelated concepts such as electricity, magnetism, light, and motion. His theory of electromagnetism was one of the most significant discoveries of the nineteenth century. Albert Einstein described Maxwell’s work on electromagnetism as “the most profound and the most fruitful that physics has experienced since the time of Newton.”

Even more profoundly, Darwin and Mendel’s work exemplifies the most groundbreaking synthesis of ideas. Combined more than four decades after their deaths, their ideas shaped the foundation of life sciences, as we know it. Allow me to elaborate.

Theory of the Descent of Man - Darwin's Theories of Evolution

Charles Darwin’s Theory of Evolution

The word “evolution” was first used in English as early as 1647. Long before that, pre-Socratic Greek philosopher Anaximander (611–546 B.C.E) speculated that humans must have evolved from an animal and that this evolution must have sprung from the sea. By the end of the 18th century, naturalists conjectured that different life forms develop progressively from more primitive forms. They also hypothesized that all life forms were interrelated. Erasmus Darwin (1731–1802,) Charles Darwin’s grandfather and a natural philosopher and physiologist, as well as the French naturalist Jean-Baptiste Lamarck (1744–1829) argued along those lines. However, most of their thoughts on evolution and the relatedness of all life forms were purely speculative.

'The Origin of Species' by Charles Darwin (ISBN 0451529065) Darwin’s most notable scientific contribution was his vast body of evidence supporting the aforementioned hypotheses. Even more significantly, Darwin identified natural selection as the mechanism that determines evolutionary change. In his seminal treatise, “Origin of Species” (1859,) Darwin distilled the theory of evolution through two foundational concepts:

  1. In any ecosystem, individuals of the same species are likely to differ in their measurable characteristics. Such variations tend to be inherited.
  2. Living beings—plants and animals—reproduce more quickly than nature can impart the resources for their survival. Individuals of a species must therefore compete in order to live and reproduce in a competitive ecosystem.

Charles Darwin’s work on evolution was really a synthesis of concepts from comparative anatomy, paleontology, geology, geography, and animal breeding.

Advancing his theories further, in “The Descent of Man” (1871,) Darwin described humans as an outcome of evolution. Humans have the same general anatomical and physiological principles as animals and are in fact an advanced animal form whose superior traits are a consequence of evolutionary progression. Darwin hypothesized that humans share a common ancestry with animals, more specifically evolving from primates.

The Big Gap in Darwin’s Theory: Lack of an Explanation for Heredity

'The Descent Of Man' by Charles Darwin (ISBN 1463645961) In the introduction to The Descent of Man, Darwin wrote, “It has often and confidently been asserted, that man’s origin can never be known: but ignorance more frequently begets confidence than does knowledge: it is those who know little, and not those who know much, who so positively assert that this or that problem will never be solved by science.”

Darwin’s theories about the evolution of humankind created an instant uproar among advocates of Christian theology and its concept of a wise, benevolent, and omnipotent Creator as laid out in the Book of Genesis. Since then, few scientific theories have been as hotly debated among nonscientists as evolution and its opponent, creationism (and recently, intelligent design.)

After The Descent of Man, it was more than a decade before Darwin’s work came to be scientifically established. Darwin’s work remained deficient—if natural selection was to have lasting effects, these advances had to be conserved and passed on from one generation to the next. He agreed with scientists who argued that his evolutionary theory failed to explain how variations are transmitted from parents to their offspring.

Mendelian Inheritance in Andalusian Fowls - Cross-breeding Experiments by Gregor Mendel

Cross-breeding Experiments by Gregor Mendel: Evidence of Heredity

Between 1856 and 1863, independent of Charles Darwin (1809–1882,) Moravian monk Gregor Mendel (1822–1884) conducted extensive pea plant breeding experiments in his monastery’s garden. He systematically studied what farmers had known for centuries: that crossbreeding animals and plants creates “hybrid” offspring with desirable traits. Based on his pea plant experiments, Mendel laid the foundational rules of genetic inheritance and heredity.

Synthesis of Darwin and Mendel’s Work as the Foundation of Life Sciences

It was not until the 1930s, long after both Darwin and Mendel’s deaths, that biologists started to study Mendel’s work on heredity in conjunction with Darwin’s theory of natural selection. Scientists were then able to understand how variation of characteristics is passed on to new generations and how evolution is a process of descent with modification. Mendel’s laws provided justification of inheritance, thereby completing Darwin’s theory of natural selection. Subsequently, Darwin’s theory became the basic mechanism of evolution—evolutionary genetics was established as biology’s central theorem and the bedrock concept of all life sciences. From that point on, Darwin became one of the most influential persons in human history.

Scientists continue to fine-tune humankind’s understanding of evolutionary biology as new evidence and fresh insights pour in from biochemistry, genetics, archaeology, neuroscience, and various other disciplines.

Wondering what to read next?

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  3. Question the Now, Imagine the Next
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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Scientists, Thought Process

Inspirational Quotations #575

April 12, 2015 By Nagesh Belludi Leave a Comment

The friend within the man is that part of him which belongs to you and opens to you a door which never, perhaps, is opened to another. Such a friend is true, and all he says is true; and he loves you even if he hates you in other mansions of his heart.
—Antoine de Saint-Exupery (French Novelist, Aviator)

Every day we slaughter our finest impulses. That is why we get a heart-ache when we read those lines written by the hand of a master and recognize them as our own, as the tender shoots which we stifled because we lacked the faith to believe in our own powers, our own criterion of truth and beauty. Every man, when he gets quiet, when he becomes desperately honest with himself, is capable of uttering profound truths. We all derive from the same source. There is no mystery about the origin of things. We are all part of creation, all kings, all poets, all musicians; we have only to open up, to discover what is already there.
—Henry Miller (American Novelist)

A leader, once convinced that a particular course of action is the right one, must be undaunted when the going gets tough.
—Ronald Reagan (American Head of State)

Any emotion, if it is sincere, is involuntary.
—Mark Twain (American Humorist)

No matter how reclusive we tend to be, we picture the after-life as a community of souls. It is one thing to seek privacy in this life; it is another to face eternity alone.
—Robert Brault

It is a mistake to try to look too far ahead. The chain of destiny can only be grasped one link at a time.
—Winston Churchill (British Head of State)

Filed Under: Inspirational Quotations

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!