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Nuts! The Story of Southwest Airlines’ Maverick Culture // Book Summary

May 30, 2022 By Nagesh Belludi Leave a Comment

Kevin & Jackie Freiberg’s Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success (1996) is a popular tome about the history and culture of Southwest Airlines and the fun-loving antics of its colorful co-founder and CEO Herb Kelleher (see my tribute.)

Despite its Pollyannaish tone and repetitive narratives, Nuts| is a very enjoyable cheerleaders’ account of how an underdog overcame roadblocks and thrived in a competitive industry.

Nuts| focuses on the people-oriented culture that Herb and his secretary Colleen Barrett established based on Herb’s well-known dictum, “The business of business is not business. The business of business is people.” To Herb, Southwest was a cause—never just a company. The Freibergs write,

If there is an overarching reason for Southwest Airlines’ success, it is that the company has spent far more time since 1971 focused on loving people than on the development of new management techniques. The tragedy of our time is that we’ve got it backwards. We’ve learned to love techniques and use people. This is one of the reasons more and more people feel alienated, empty, and dehumanized at work. Many organizations today would be surprised at how much more people would be willing to give of themselves if only they felt loved.

Nuts| is dreadfully out-of-date. Southwest and the airline industry have changed a lot since the mid-90s. Southwest even stopped handing out peanuts to protect passengers from peanut-related allergies.

The miracle at Southwest Airlines could keep on only so long. As long as Herb was the CEO, employees would go the extra mile for the sake of Herb. Until his retirement in 2001, Herb preserved Southwest’s unique cost structure and work rules. Kelleher’s successor, Jim Parker, presided over mounting labor tensions and quit after just three years. CFO Gary Kelly replaced Parker in 2004. Bob Jordan became CEO in 2022.

The going has not been smooth for Kelly. Southwest has become more like the other carriers regarding employee relationships and cost structure. The rehabilitated legacy airlines and a new breed of ultralow cost carriers have chipped away gradually at many of Southwest’s apparent competitive advantages. Yes, customers still rave about Southwest’s friendly staff, unpretentious service, and flexibility in travel planning. However, Southwest hardly ever has the lowest fares on most routes. In fact, Southwest’s average fares have outpaced the industry by 12% since 2009.

Recommendation: Speed-read Nuts! … it’s full of original insights, upbeat stories, and concrete suggestions for principle-centered leadership and how to inspire people to achieve incredible results. Here are the key takeaway lessons:

Even a little respect goes a long way. Give employees responsibility and entrust them to take that responsibility.
Set the ground rules—and let employees be creative. “Culture is one of the most precious things a company has, so you must work harder at it than at anything else.”
Give your employees some skin in the game, and they’ll go the distance. Southwest claims, “We have credibility because we tell people what we’re going to do and then we do it.”
Empower workers to make decisions at the customer level. Employees who feel they have leeway in their jobs to make the “right decision” depending on circumstances are happier, more confident, and more productive. They’ll even give extra—because they believe their work has special meaning and is not just a job.
Make sure people feel they can be themselves and have opportunities to express individuality.
See yourself as a motivator and a positive force. When things go wrong, accentuate the positive and focus on a path to a solution. It’s an approach that employees will admire and want to emulate.
Build a sense of community. Foster the feeling of a “family” in which employees can count on each other professionally and personally.
Recognize that employees have lives outside of work. Celebrate every milestone to establish and strengthen relationships. The walls of Southwest’s headquarters are covered with pictures and commemorative plaques of picnics, community service awards, customers’ commendation letters, service employee milestones, and tributes to important cultural events.

Deliver The Punchline First

May 12, 2022 By Nagesh Belludi Leave a Comment

When Sergey Brin and Larry Page set about to secure early funding for Google, they initiated a presentation at Sequoia Capital, one of the world’s premier venture capital firms, with the logline “Google organizes the world’s information and makes it universally accessible.”

Most busy executives don’t want to sit through a 50-slide presentation. They don’t have the patience to wait for the punchline.

Begin with the conclusion and then go through the rest of your slide deck: your proposals, theses, assumptions, your line of thinking, and the arguments, pro and con.

Meaning, Then Details

Cognitive psychologists have argued that the brain pays more attention to the core of an idea than to its details.

According to the University of Washington molecular biologist John Medina, the human brain craves meaning before details. In Brain Rules (2014,) Medina notes, “Normally, if we don’t know the gist–the meaning–of information, we are unlikely to pay attention to its details. The brain selects meaning-laden information for further processing and leaves the rest alone.”

When listeners comprehend the overarching idea of a pitch, they’ll find it easier to synthesize and digest the information.

Begin Your Next Executive Presentation with the Final Summary Slide First

Most executives have limited willpower and suffer “decision fatigue.” Don’t overload them with less-important details before asking them to decide in your favor. Your “executive summary” slide may be the only one that will get full attention. So make it perfect!

Practice, practice, practice. Few people, if any, have the rhetorical ability to make a persuasive 15-second speech about their significant ideas. The best speakers are the best because they rehearse and get feedback.
Less is more. After getting prized facetime with executives, many talented young professionals produce large slide decks to dazzle the executives with their intelligence and ingenuity. Don’t.
Simplify your “executive summary” message. Perceptive executives tend to be somewhat skeptical of things that ought to be simple but have become too complicated.
Meaning, then detail. The brain processes meaning before detail, and the brain likes hierarchy. Start with the general idea and then present information in a structured, hierarchical approach. Make sure that each detail you communicate traces back to the core concept of your presentation.

Idea for Impact: Get to the Point

Tell busy people what they need to know upfront. Communicate like a newsperson: What’s the number one thing your audience needs to know? Say that first. Then build out from there, keeping the most essential particulars up top.

There’s another smart—if devious—benefit of putting the cart before the horse: delivering your “punchline” first can hook your audience with a compelling proposal first, and then cash in on the confirmation bias to sway them to your case.

Spy thriller novelist Graeme Shimmin offers this excellent guide to writing a killer punchline, logline, or elevator speech.

Get Unstuck and Take Action Now

March 3, 2022 By Nagesh Belludi Leave a Comment

From Sharon Lebell’s interpretations of Epictetus in Art of Living: The Classical Manual on Virtue, Happiness, and Effectiveness (2007,)

Now is the time to get serious about living your ideals. How long can you afford to put off who you really want to be? Your nobler self cannot wait any longer.

Put your principles into practice—now. Stop the excuses and the procrastination. This is your life! You aren’t a child anymore. The sooner you set yourself to your spiritual program, the happier you will be. The longer you wait, the more you’ll be vulnerable to mediocrity and feel filled with shame and regret, because you know you are capable of better.

From this instant on, vow to stop disappointing yourself. Separate yourself from the mob. Decide to be extraordinary and do what you need to do—now.

If you’re like most people who want more from life than what they’re getting, remember that cutting through the stupor of life often starts with gaining clarity.

What do you value? What matters most?

Does your life align with your proclaimed values and priorities? If not, now’s the perfect time to lean into small actions that could set you on the right path.

Progress is within reach, but you’ll need to find clarity and restructure how you think about goals.

Stop procrastinating now. Recognize that you can be better. Without hesitation, decide to be the person that only you can be.

Idea for Impact: What’s one brave decision you can make now to get unstuck and move in the direction of your goals?

Nothing Like a Word of Encouragement to Provide a Lift

February 7, 2022 By Nagesh Belludi Leave a Comment

Like many young-and-struggling writers, Stephen King and his wife Tabitha “Tabby” King toiled to make ends meet in their early 20s. They lived in a trailer with two young children. They drove an old, rusty Buick held together by baling wire and duct tape.

Tabby worked second-shift at Dunkin’ Donuts, and Stephen taught English at a private high school. He also moonlighted on odd jobs and worked summers at an industrial laundry to scrape by.

In his time off, Stephen worked hard at building a career as a writer and developed ideas for many novels. He sold short stories to men’s magazines.

One night, when working as a janitor in a school locker room, King struck an idea that eventually became his blockbuster first novel Carrie. It was about an eccentric high schooler who, with newly-discovered telekinetic powers, goes on a killing spree to exact revenge on her bullies.

Carrie almost didn’t make it beyond three pages!

When King started writing Carrie, he wrestled with acute self-doubt. He didn’t yet feel confident in his work’s quality or marketability.

One evening, just three pages into the draft of Carrie, King sat hunched over his desk littered with crumpled up bits of paper and cigarette butts. In frustration, he decided to give up on his idea for the novel. He slammed his fist on the table, hurled the first three pages of his book in a trashcan, and stomped out of the room.

Later that evening, Tabby saw the wrinkled balls of paper in the bin. She pulled them out, shook off the cigarette ashes, smoothed out the wrinkles, and sat down to read them.

When she was done, Tabby told Stephen, “I think you’ve got something here. I really do. You ought to keep it going.”

Tabby’s glimmer of hope surprised Stephen.

Tabby continued, “You can’t write about women. You’re scared of women.” She pledged to support him and offered suggestions on the main character and how she’d think.

Over the next few weeks, Tabby guided her husband through the world of women. She gave him guiding principles on forming the characters and helped him write the now-famous shower scene.

Nine months later, the final draft of Carrie was finished

Carrie became a 25,000-word novella. It was turned down for 30 publishers before Bill Thompson, an editor at Doubleday Publishing, offered King a $2,500 advance to publish the book.

King had gotten rid of his phone to save on expenses, so Thompson sent a telegram that read, “Congrats, kid—the future lies ahead.”

Yet, Carrie only sold 13,000 copies as a hardback. Dispirited, King grudgingly signed a new teaching contract for the 1974 school year.

Soon, Thompson was back with more significant news, “The paperback rights to Carrie went to Signet Books for $400,000 … 200K of it is yours. Congratulations, Stephen.”

As a paperback, Carrie sold over 1 million copies in its first year despite a mixed critical response. It became one of the most popular novels of all time.

Tabby encouraged Stephen King to keep going at that pivotal moment

Tabby’s simple action changed the trajectory of Stephen King’s career. Carrie launched one of the most successful careers in modern American writing. King is now one of the world’s most well-renowned and prolific authors.

King won the 2003 Medal of Distinguished Contribution to American Letters. In his acceptance speech at the National Book Awards Ceremony, King didn’t talk about his success or literary style. He spoke about how Tabby had rescued Carrie from the rubbish and inspired him to keep going:

There is a time in the lives of most writers when they are vulnerable—when the vivid dreams and ambitions of childhood seem to pale in the harsh sunlight of what we call the real world. In short, there’s a time when things can go either way. That vulnerable time for me came during 1971 to 1973. If my wife had suggested to me, even with love and kindness and gentleness, that the time had come to put my dreams away and support my family, I would have done that with no complaint. But the thought never crossed her mind. And if you open any edition of Carrie, you’ll read the same dedication: “This is for Tabby, who got me into it—and then bailed me out of it….”

A nudge of encouragement goes a long way!

As with Stephen King, a little boost of encouragement can lift somebody else’s spirits and help them move forward.

Encouragement is about believing in people, particularly when they don’t believe in themselves.

What’s one thing you can do today to boost somebody’s spirits beyond whatever is holding them back? Is there someone who needs you to believe in them today? Someone you can get unstuck today with a bit of nudge of encouragement?

Could you offer a sympathetic ear to a colleague in a spell of self-doubt or in a tangle and ask, “How can I help?”
Could you talk to a teenager who has suffered a setback, remind her of her virtues, and cheer her up by saying, “you’re a strong, confident person, and I know you’ll get through this.”

Idea for Impact: Everyone needs hope. Look for honest ways to offer even a little nudge of encouragement.

Focus on Rituals, Not Goals

December 9, 2021 By Nagesh Belludi Leave a Comment

My biggest takeaway from James Clear’s Atomic Habits: An Easy & Proven Way to Build Good Habits & Break Bad Ones (2018) is the importance of shifting your focus from your end goal to what your need to do regularly to reach that goal.

Though goals can provide orientation and motivation, Clear notes that committing to the system makes all the difference. Goals aren’t necessarily the best way to ensure things are done. Thinking about only goals tends to make people believe, “I’m not good enough yet, but I will be when I reach my goal.” This impedes their long-term progress.

Instead, Clear recommends centering on the routines and things you need to do regularly to reach the goal. For example: If you’re a swim team coach, and your goal is to win a championship, the system that you should focus on is training every day, “You should be far more concerned with your current trajectory than with your current results.”

Idea for Impact: A systems-first mentality beats a goal-oriented mindset. “Fall in love with the process rather than the product.”

Book Summary of Verne Harnish’s ‘The Greatest Business Decisions of All Time’

December 6, 2021 By Nagesh Belludi Leave a Comment

The Greatest Business Decisions of All Time (2012) is a flatfooted anthology of 18 engaging—and oversimplified—business stories that influenced the course of business. Edited by management consultant Verne Harnish, this tome contains long articles by nine Fortune magazine journalists.

Apple and the Return of Steve Jobs. The 1996 decision by Apple’s board of directors to bring back Jobs revived the company, transformed the consumer electronics industry, and made Apple one of the most valuable companies in the world.
Zappos and Free Shipping. Zappos’s decision to offer free shipping and 365-day free returns lured more mainstream buyers onto the internet. Other retailers had no choice but to provide free shipping (albeit with some restrictions) and absorb the costs.
Samsung and Global Immersion. In the early 1990s, Chairman Lee Kun-Hee instituted a policy to send his brightest young employees on international sabbaticals that exposed them to the local cultures and build business networks. This program later fuelled Samsung’s global ambitions.
Johnson & Johnson and the Tylenol Comeback. Consistent with the company’s “patients come before profit” credo, CEO James E. Burke set the benchmark for crisis management when he decided to pull Tylenol off the shelves nationwide and create a tamper-proof bottle at the cost of $100 million. Johnson & Johnson cemented its reputation for responsible management.
3M’s 15% Free Time Rule and Innovation. 3M Company CEO William McKnight’s extraordinary idea of giving employees free time for “experimental doodling” yielded such innovative products as Post-It notes. 3M quickly diversified its portfolio and entered many consumer- and industrial-businesses. 3M inspired Google’s 20% rule.
The “Intel Inside” Marketing Campaign. To forestall the commoditization of the computer chip, CEO Andy Grove shifted Intel’s image from that of a microprocessor company to that of a producer of a coveted, brand-name product that stood for performance. Intel became a household name that consumers sought when they purchased a computer.
General Electric’s Jack Welch and Crotonville. Welch transformed GE’s sprawling management-training institute in Crotonville, New York, into a focal point of learning for the company.
Bill Gates and His “Think Weeks.” The Microsoft founder’s twice-yearly retreat in rural isolation allowed him to read, reflect, and map out ideas—away from the distractions and the noise of business life.
Softsoap and Impeding Competition. A small Minnesota company called Minnetonka Corp. developed liquid hand soap in the early 1980s. When Softsoap started flying off the shelves, deep-pocked behemoths like Procter & Gamble began to prototype their own variants. Minnetonka’s CEO Robert Taylor developed a smart strategy to block his giant competitors and keep his company’s market share. He purchased the entire U.S. supply of plastic pumps used in the liquid soap bottles for one year—that’s 100 million units from the only supplier. By the time his competitors had access to the plastic pumps, Taylor’s Softsoap’s brand was well established.
Toyota and the Quality Revolution. Toyota’s institutional obsession with waste-reduction, zero defects, and process improvement has transformed manufacturing and inspired excellence in every service industry—including hospitals.
Nordstrom and Customer Service Excellence. Nordstrom built its brand on “above-and-beyond” customer service and problem-solving. The entirety of the Nordstrom Employee Handbook fits on a 5×8 card and contains precisely one rule, “Use the best judgment in all situations. There will be no additional rules.”
Tata Steel and Labor Relations. During a turbulent period of India’s leading steelmaker, Managing Director Jamshed J Irani confronted a bloated cost structure by reducing his 78,000-strong workforce to 40,000 by 2005. In keeping with the Tata Group’s rich philanthropic legacy, Irani offered decent pension plans and invested in labor welfare.
Boeing 707 and the Jet Age. Boeing’s decision to develop the Boeing 707 at the cost of $185 million (more than the company’s market capitalization) “remade a company, an industry, and the very culture of its time.” The 707 was the first transatlantic commercial jetliner in an era of prop planes. It kicked off the Jet Age, revolutionized air travel, and established Boeing as a dominant airliner manufacturer.
IBM and the Customer-Centric Makeover. In 1993, Lou Gerstner became CEO and embarked on an “Operation Bear Hug” to launch new communication pipelines between top executives and IBM’s customers. This helped transform IBM from an inwardly focused bureaucracy to a customer-centric market-driven innovator.
Sam Walton and Walmart’s Saturday Morning Meeting. Walton’s energetic 6:00 A.M. meeting was a pep rally, merchandising workshop, and financial update—all rolled into one. He brainstormed with his store managers on how to improve things week after week and helped metamorphose Walmart from a single, small-town variety store in 1962 into the world’s largest retailer.
Eli Whitney and the Dawn of American Technology. Whitney’s invention of the “saw gin” that worked well with short-staple cotton helped transform Southern agriculture (and sustain the institution of African slavery!) Whitney then popularized the use of interchangeable parts in making firearms.
Bill Hewlett and David Packard and the “HP Way.” The essence of Hewlett-Packard’s management philosophy was an openness and respect for the employees. With a framework of principles and the simplicity of their management methods, they established many progressive management practices that prevail even today.
Henry Ford and the Factory- and Wage-Revolution. When Ford introduced the moving assembly line, his fledging factory was confronting a dispirited workforce, declining workmanship and quality, absenteeism, and annual labor turnover of 370 percent. Then Ford decided to raise wages from $2.50 to $5 a day. The following week, Ford Motors had more than 26,000 job applicants. Ford increased production rates and slashed the per-unit cost of the Model T. Annual labor turnover fell to 16 percent, and Ford’s profits doubled within two years. Every time Ford increased the productivity of car production, he continued to raise wages. His well-paid workers had more to spend—and could afford the very cars they built.

Recommended: Quick read. The Greatest Business Decisions of All Time is a concise and entertaining read, especially if you like getting into heads, the thoughts, and the motivations of well-known business luminaries. The 18 case studies lack rigor and are beset with recency biases, narrative fallacies, and a misplaced sense of causes and effects. Some stories, e.g., the Softsoap one, aren’t well known.

Daniel Gross’s Forbes Greatest Business Stories of All Time (1997) is significantly more engrossing and instructional.

How Jeff Bezos is Like Sam Walton

November 1, 2021 By Nagesh Belludi Leave a Comment

Walmart founder Sam Walton’s brilliant autobiography, Made in America (my summary,) was published a few weeks before his death in 1992. The penultimate page reads,

Could a Wal-Mart-type story still occur in this day and age? My answer is of course it could happen again. Somewhere out there right now there’s someone—probably hundreds of thousands of someones—with good enough ideas to go all the way. It will be done again—over and over, providing that someone wants it badly enough to do what it takes to get there. It’s all a matter of attitude and the capacity to constantly study and question the management of the business.

Jeff Bezos started Amazon just two years later. After eight years on Wall Street, Bezos dreamt up Amazon during a drive from New York to Seattle in 1994. His wife (now ex-wife) MacKenzie drove, and Jeff “tapped out a business plan on his computer along the way.”

Amazon began as a loss-making book e-tailer at the dawn of the commercial Internet and as the dot-com poster child in the late ’90s. It has since evolved into one of the world’s most valuable companies. Amazon has come a long way from its genesis as the curse of bricks-and-mortar booksellers and has diversified broadly into just about every adjacent business it could get its hands on.

Bezos’s and Amazon’s dominant leadership values echo those of Sam Walton and Wal-Mart: frugality, a bias for action, long-term focus, motivating staff to think like owners, and customer obsession.

The Everything Store (2013,) Brad Stone’s excellent chronicle of the rise of Amazon notes, “In his autobiography, Walmart’s founder expounds on the principles of discount retailing and discusses his core values of frugality and a bias for action—a willingness to try a lot of things and make many mistakes. Bezos included both in Amazon’s corporate values.” On an earnings call, Bezos famously declared, “there are two kinds of retailers: there are those folks who work to figure how to charge more, and there are companies that work to figure how to charge less, and we are going to be in the second, full-stop.”

All along, Bezos has made big bet-decisions that hurt it in the short term but created value in the long term. Amazon’s market capitalization has rocketed up from $4.55 billion in 2001 to $1.08 trillion before the Coronavirus/COVID-19 infected the stock markets. Amazon’s secret, in Bezos’s words, is,

We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent. Most companies are not those things. They are focused on the competitor, rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don’t work in two or three years they will move on to something else. And they prefer to be close-followers rather than inventors, because it’s safer. So if you want to capture the truth about Amazon, that is why we are different.

Amazon has not been consistently profitable over the years, and that is a deliberate upshot of how Bezos approaches business. Amazon cycles through periods of substantial investments that beget future revenue growth (with low profits) and periods of increasing profits as its investments ebb.

Bezos has maneuvered Wall Street into believing that he is just getting started—his “Day 1” philosophy has become something of a legend. “A big piece of the story we tell ourselves about who we are is that we are willing to invent … and very importantly, we are willing to be misunderstood for long periods of time,” Bezos asserted at Amazon’s 2011 annual shareholders meeting.

Not all of Bezos’s bets have succeeded. However, investors have come to acknowledge that his long-term initiatives will produce rich results several years down the road. Little wonder, then, that Amazon’s stock has defied short-termism by continually progressing upward even during quarters of little or no earnings.

Postscript: Bezos has been, until recently, the world’s wealthiest person since about 2018. Walton was the richest man from 1985 until his death in 1992. His inheritors, the Walton family, are collectively more affluent than Bezos!

Rules Are Made to Be Broken // Summary of Francesca Gino’s ‘Rebel Talent’

August 9, 2021 By Nagesh Belludi Leave a Comment

Rebels have a bad rep. When you think of them, you imagine trouble. However, all rebels really do is take the habits that could hold the rest of us back and break them.

Instead of leaning toward the comfortable and the familiar, rebels ask questions and look at problems from unexpected perspectives. They aren’t afraid to question assumptions, stick their necks out, make themselves vulnerable in front of others, or experiment and fail.

Harvard social scientist Francesca Gino’s Rebel Talent: Why it Pays to Break the Rules in Work and in Life (2018) aims to explain the merits of breaking the rules and showing how to see challenges from new perspectives.

When we challenge ourselves to move beyond what we know and can do well, we rebel against the comfortable cocoon of the status quo, improving ourselves and positioning ourselves to contribute more to our partners, coworkers, and organizations.

The anecdotes and case studies that Gino pulls together to illuminate her “rebel talent” narrative are hardly convincing. In fact, they’re no more than examples of creative—perhaps unconventional—thinking. To take a prominent example Gino cites in the book, Captain Sully Sullenberger (of the US Airways Flight 1549 incident) did nothing rebellious. With 40 years of flying experience and situational awareness, he made lightning-quick decisions to land in the Hudson and not return to a nearby airport.

Recommendation: Read the introduction of Francesca Gino’s Rebel Talent, and skim the rest. The book’s introduction has a few useful concepts that merit an article, but the book lacks the rigor and utility to be expected from a Harvard Business School professor. The key takeaways (codified as the “eight principles of rebel leadership”) are relatively clear-cut: be curious and open-minded, never be satisfied, embrace discomfort, think unconventionally, and break established norms.

Three Lessons from Clayton Christensen’s ‘How Will You Measure Your Life?’

March 22, 2021 By Nagesh Belludi Leave a Comment

Each term, on the last day of his management class, Harvard strategy professor Clayton M. Christensen had the habit of asking his students to apply the principles of management business to their personal lives.

“Don’t reserve your best business thinking for your career,” he would push them to ask the difficult questions and pursue purpose and meaning in their careers and their personal lives.

Toward the end of his life, after suffering a stroke and contracting cancer, Christensen published a Harvard Business Review article, which he expanded as How Will You Measure Your Life (2012.) This New York Times bestseller struck a chord with many business leaders, especially in favor of Christensen’s reflections on pursuing fulfillment.

Lesson #1: Don’t over-invest in work or under-invest in relationships.

Christensen talks about various motivators at work and encourages you to think about how you want to be remembered. He argues that ultimately your most significant sources of joy in life will be your family and your close friends. Devote time to these relationships, and they’ll enrich your life:

The relationships you have with family and close friends are going to be the most important sources of happiness in your life. But you have to be careful. When it seems like everything at home is going well, you will be lulled into believing that you can put your investments in these relationships on the back burner. That would be an enormous mistake. By the time serious problems arise in those relationships, it often is too late to repair them.

Lesson #2: Don’t lose track of the essential things. Allocate resources appropriately.

Christensen recalls some of his business school classmates entered the school with a noble cause—many of them wanted to change the world. But when they graduated with student debt, they took jobs for money to pay off their debts. And that was just going to be a temporary thing. But, over time, they got caught up in their careers, making money and chasing possessions. Their original pursuit of the noble cause petered out and, along the way, they lost track of what was important in their lives.

Christensen encourages building and implementing strategies in your career and your personal life to achieve your goals. The underlying tenet of that success is how you allocate your time, money, and other resources. How you spend these resources will determine your life’s outcomes.

How you allocate your resources is where the rubber meets the road. Real strategy—in companies and in our lives—is created through hundreds of everyday decisions about where we spend our resources. As you’re living your life from day to day, how do you make sure you’re heading in the right direction? Watch where your resources flow. If they’re not supporting the strategy you’ve decided upon, then you’re not implementing that strategy at all.

Lesson #3: “Decide what you stand for. And then stand for it all the time.”

Three lessons from Clayton Christensen's 'How Will You Measure Your Life?' Christensen tells a story from his college days when he played university basketball. His team worked hard all season and made it to the finals of some big tournament. The championship game was scheduled on a Sunday. For Christensen, a deeply religious Mormon, playing on the Sabbath (the “seventh day”) was against his religious beliefs.

Christensen did not comply with the coach’s demand to break the Sabbath statute “just this one time” for the big game. Christensen did not want to violate his religious principles. His team won the tournament anyway.

Because life is just one unending stream of extenuating circumstances. Had I crossed the line that one time, I would have done it over and over and over in the years that followed. … Many of us have convinced ourselves that we are able to break our own personal rules “just this once.” In our minds, we can justify these small choices. None of those things, when they first happen, feels like a life-changing decision. The marginal costs are almost always low. However, each of those decisions can roll up into a much bigger picture, turning you into the kind of person you never wanted to be. If you give in to “just this once,” based on a marginal-cost analysis, you’ll regret where you end up. It’s easier to hold to your principles 100 percent of the time than it is to hold to them 98 percent of the time.

Idea for Impact: Intentionally choose the kind of person you want to become. Commit to that path.

Read Clayton M. Christensen’s How Will You Measure Your Life (2012.) It’s not a long book—perhaps overly worded in parts—but it’s a intense and thought-provoking book.

Christensen and his co-authors don’t provide answers. Instead they present guiding principles that make you put things in perspective and help you become intentional about building a contented life. The parallels between running a successful business and running life are worthwhile.

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