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Assertiveness

Pulling Off the Impossible Under Immense Pressure: Leadership Lessons from Captain Sully

May 25, 2020 By Nagesh Belludi Leave a Comment

I recently watched Sully (2016,) the overrated Clint Eastwood-directed drama about the US Airways Flight 1549 incident, aka the “Miracle on the Hudson.”

Sully Movie (2016) with Tom Hanks, Clint Eastwood In summary, on 15-Jan-2009, Captain Chesley “Sully” Sullenberger (played by Tom Hanks) heroically dead-sticked his Airbus A320 aircraft in New York City’s Hudson River after both the aircraft’s engines failed from a bird strike. He then helped get passengers and crew off uninjured.

Sully centers on Sullenberger’s post-decision dissonance. To spin the real-life six-minute flight and the 24-minute swift rescue into a 96-minute Holyrood extravaganza, the filmmakers devised an antagonist in the form of National Transportation Safety Board (NTSB) investigators who try hard to blame Sullenberger for the mishap.

Overdramatized Portrayal of the NTSB Investigators

On the screen, the smirking NTSB investigators use flight simulators and computer analysis to second-guess Sullenberger’s lightning-quick decisions. They would have rather he made it to an airport nearby—a possibility that he had instantly judged was not viable given his 40 years of flying experience.

Contrary to Sully‘s portrayal, the NTSB was unequivocal that landing the aircraft on the Hudson was the right call. In his memoir, Highest Duty: My Search for What Really Matters (2009,) Sullenberger mentions that he was “buoyed by the fact that investigators determined that [first officer] Jeff and I made appropriate choices at every step.”

In the course of the real-life 18-month investigation of Flight 1549, the NTSB did investigate the odds of landing the aircraft in a nearby airport. Exploring all possible flaws that contribute to a crash is part of the NTSB’s charter. The NTSB, like other accident-investigation agencies, concerns itself principally with preventing future accidents. It rarely seeks to assign blame, nor does it make the pilots justify their actions.

The Complex Leadership Requirements of Flying

Apart from the sensationalized portrayal of the NTSB investigators, Sully misses the opportunity to call attention to the complex leadership requirements of aviation. Flying a civil aircraft is characterized by a high level of standardization and automation, while still placing a strong emphasis on formal qualification and experience.

Today, highly trained pilots have to work with ever more complicated and autonomous technology. The routinization must be weighed up against deliberate action. On Flight 1549, the A320’s much-studied fly-by-wire system allowed the pilots to concentrate on trying to resurrect the engines, starting the auxiliary power unit (APU,) and deciding the flight path in the direction of the Hudson. Airbus’s legendary computer controls will not allow the pilots to override the computer-imposed limits even in an urgent situation. Sullenberger and others have commented that lesser human-machine interaction may perhaps have allowed him a more favorable landing flare and helped him temper the aircraft’s impact with the water.

Aircrews now consist of ad hoc teams working together typically only for a few flights. They build their team quickly and rely on the crew’s collective knowledge and experience to round out the high levels of standardization.

Due to the complex demands for leadership in aircrews, specialized training programs such as Crew Resource Management (CRM) are in place to improve crew communication, situational awareness, and impromptu decision-making. These systems were established to help crews when technical failures and unexpected events disrupt highly procedualized normal operations.

Furthermore, individual and organizational learning from accidents was institutionalized through mandatory reporting of incidents—not only within the airline involved but also across the aviation community.

Leadership Lessons on Acting Under Immense Pressure: The Context of Success

Owing to intuition, experience, and quick coordination, Sullenberger was able to “land” the aircraft on the Hudson within four minutes following the bird strike and have his passengers and crew quickly evacuated onto the aircraft’s wings and onto rafts.

The rapid and highly complex coordination required for this extraordinary achievement was only achievable because of exceptional leadership, exemplary decision-making under stress, and the technical skills of both the cockpit- and cabin-crew.

The pilots were highly experienced—Sullenberger even had experience as a glider pilot. Further contextual factors—the calm weather on that afternoon and the proximity of NY Waterway ferries—helped bring this accident to a good end. All this facilitated the almost immediate rescue of passengers and crew from the rapidly sinking aircraft and the frigid water.

'Highest Duty What Really Matters' by Chesley Sullenberger (ISBN 0061924695) On Another Note, Sullenberger’s memoir, Highest Duty (2009,) is passable. The most interesting part of the book is the last fourth, where he discusses Flight 1549 and what went through his mind. Interestingly, Sullenberger writes that even after he realized that the plane was in one piece after hitting the water, he worried about the difficulties that still lay ahead. The aircraft was sinking: everyone had to be evacuated quickly. The passengers could survive only for a few minutes in the frigid waters of the Hudson.

Wondering what to read next?

  1. Lessons from the World’s Worst Aviation Disaster // Book Summary of ‘The Collision on Tenerife’
  2. Under Pressure, The Narrowing Cognitive Map: Lessons from the Tragedy of Singapore Airlines Flight 6
  3. “Fly the Aircraft First”
  4. How Contributing Factors Stack Up and Accidents Unfold: A Case Study of the 2024 Delta A350 & CRJ-900 Collision
  5. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235

Filed Under: Leadership, Project Management, Sharpening Your Skills Tagged With: Assertiveness, Aviation, Biases, Conflict, Decision-Making, Mindfulness, Problem Solving, Stress, Teams

The Costs of Perfectionism: A Case Study of A Two Michelin-Starred French Chef

March 30, 2020 By Nagesh Belludi Leave a Comment

Marc Veyrat, a top-rated French chef, sued the Michelin Guide in 2019 for downgrading his world-renowned restaurant in the French Alps from three to two stars. Just the previous year, Michelin had awarded Veyrat the highest ranking. That achievement had marked his comeback after he had given up cooking for several years following a skiing accident and a 2015 fire at his restaurant.

Just Excellent …

In an infamous court case, now known as ‘Cheddargate,’ Veyrat speculated he was downgraded after an “incompetent” Michelin inspector with an unrefined palate mistook the ingredients.

Veyrat claimed the anonymous inspector thought Veyrat had used English Cheddar in place of French Reblochon, Beaufort, and Tomme cheese in one of his signature soufflé dishes. “I put saffron in it, and the gentleman who came thought it was cheddar because it was yellow,” Veyrat contended.

“It’s worse than a wound. It’s profoundly offensive. It’s worse than the loss of my parents, worse than anything. It gave me a depression.”

Michelin’s review had commended Veyrat for being “true to his reputation” and described his cuisine as a “pastoral symphony” that blends “woodland fragrances and Alpine herbs.” But Veyrat would have nothing less than three stars.

… Not Exceptional

At the court hearing, Veyrat demanded a symbolic €1 in damages. He asked for proof that the Michelin inspectors had even dined at his restaurant. He demanded to see their judging notes and clarify how they had come to their decisions. (The Michelin Guide’s evaluation criteria are perhaps the biggest trade secrets in the restaurant business.)

In reply, Michelin denied the Cheddar-related allegations and accused Veyrat of acting like a “narcissistic diva” suffering from “pathological egotism.”

Veyrat lost the court case.

Nobody Likes Rejection, Certainly Not a Perfectionist

Veyrat’s wounded pride is understandable. The Michelin Guide is arguably the world’s foremost arbiter of haute cuisine. Many chefs base their entire identity on getting three Michelin stars, the ultimate culinary accolade, and, in so doing, self-inflict extreme pressure to be labeled “exceptional.”

The Michelin Guide is not without controversies. Michelin stars can bring significant prestige, but also intense pressure on chefs. The unrelenting psychological stress and the financial demands of producing ever more creative dishes have even led a few chefs to suicide. Over the last decade, several renowned chefs have also requested Michelin to revoke their stars and opted out of the system in a quest for better work-life balance.

In 2019, South Korean chef Eo Yun-gwon sued Michelin for including his restaurant in the Michelin Guide after he’d told them not to. He declared, “The Michelin Guide is a cruel system. It’s the cruelest test in the world. It forces the chefs to work around a year waiting for a test [and] they don’t know when it’s coming.” Some chefs closed their restaurants and launched lower-key eateries that still cater to discerning epicures.

Idea for Impact: Challenge the Perfectionist, “All-or-Nothing” Thinking

This Marc Veyrat-Michelin Guide episode is yet another reminder that being a perfectionist—and insisting on excellence at all costs—has a dark side. Perfectionism can cause adverse outcomes such as excessive procrastination, low self-esteem, depression, and anxiety.

Perfectionists tend to engage in “all-or-nothing thinking”—that they are either perfect or worthless. In reality, most of us operate on the continuum between these two extremes. We’re neither perfect nor worthless, just “good enough.”

If you’re struggling with perfectionism, it’s crucial to take in the concept of being and doing “good enough.”

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Filed Under: Living the Good Life, Sharpening Your Skills Tagged With: Assertiveness, Balance, Getting Things Done, Perfectionism, Psychology, Time Management, Work-Life

Lessons from the World’s Worst Aviation Disaster // Book Summary of ‘The Collision on Tenerife’

November 5, 2019 By Nagesh Belludi 1 Comment

Jon Ziomek’s nonfiction history book Collision on Tenerife (2018) is the result of years of analysis into the world’s worst aviation disaster on Tenerife Island in the Canary Islands of Spain.

Distinct Small Errors Can Become Linked and Amplified into a Big Tragedy

On 27-March-1977, two fully loaded Boeing 747 passenger jets operated by Pan American World Airways (Pan Am) and KLM Royal Dutch Airlines collided on the runway, killing 583 passengers and crew on the two airplanes. Only 61 survived—all from the Pan Am jet, including its pilot.

These two flights, and a few others, were diverted to Tenerife after a bomb went off at the Gran Canaria Airport in Las Palmas, their original destination. Tenerife was not a major airport—it had a single runway, and taxi and parking space were limited. After the Las Palmas airport reopened, flights were cleared for takeoff from Tenerife, but the fog rolled in over Tenerife reducing visibility to less than 300 feet. Several airplanes that had been diverted to Tenerife had blocked the taxiway and the parking ramp. Therefore, the KLM and Pan Am jets taxied down the single runway in preparation for takeoff, the Pan Am behind the KLM.

At one end of the runway, the KLM jet turned 180 degrees into position for takeoff. In the meantime, the Pan Am jet was still taxiing on the runway, having missed its taxiway turnoff in the fog. The KLM pilot jumped the gun and started his take-off roll before he got clearance from traffic control.

When the pilots of the two jets caught sight of each other’s airplanes through the fog, it was too late for the Pan Am jet to clear out of the runway into the grass and for KLM jet to abort the takeoff. The KLM pilot lifted his airplane off the runway prematurely, but could not avoid barreling into the Pan Am’s fuselage at 240 kmph. Both the jets exploded into flames.

The accident was blamed on miscommunication—breakdown of coordinated action, vague language from the control tower, the KLM pilot’s impatience to takeoff without clearance, and the distorted cross-talk of the KLM and Pan Am pilots and the controllers on a common radio channel.

Breakdown of Coordination Under Stress

Sweeping changes were made to international airline regulations following the accident: cockpit procedures were changed, standard phrases were introduced, and English was emphasized as a common working language.

'Collision on Tenerife' by Jon Ziomek (ISBN 1682617734) In Collision on Tenerife, Jon Ziomek, a journalism professor at Northwestern University, gives a well-written, detailed account of all the mistakes leading up to the crash and its aftermath.

The surviving passengers’ first- and second-hand accounts recall the horror of those passengers on the right side of the Pan Am jet who saw the lights of the speeding KLM 747, just as the Pan Am pilot was hastily turning his airplane onto the grass to avoid the collision.

Ziomek describes how passengers escaped. Some had to make the difficult choice of leaving loved ones or friends and strangers behind.

Dorothy Kelly … then spotted Captain Grubbs lying near the fuselage. Badly burned and shaken by his jump from the plane, he could not move. “What have I done to these people?” he yelled, pounding the ground in anguish. Kelly grabbed him under his shoulders and urged “Crawl, Captain, crawl!”

Recommendation: Read Jon Ziomek’s Collision on Tenerife

Some of the bewildering details make for difficult reading—especially the psychological effects (post-traumatic stress syndrome) on the surviving passengers. But Jon Ziomek’s Collision on Tenerife is important reading, providing a comprehensive picture of the extensive coordination required in aviation, the importance of safety and protocols, and how some humans can freeze in shock while others spring into action.

The key takeaway is the recognition of how small errors and problems (an “error chain”) can quickly become linked and amplified into disastrous outcomes.

Wondering what to read next?

  1. “Fly the Aircraft First”
  2. Under Pressure, The Narrowing Cognitive Map: Lessons from the Tragedy of Singapore Airlines Flight 6
  3. How Contributing Factors Stack Up and Accidents Unfold: A Case Study of the 2024 Delta A350 & CRJ-900 Collision
  4. What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress
  5. How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235

Filed Under: Business Stories, Effective Communication, Sharpening Your Skills Tagged With: Anxiety, Assertiveness, Aviation, Biases, Books for Impact, Conflict, Decision-Making, Mindfulness, Problem Solving, Stress, Thinking Tools, Worry

Here’s a Tactic to Sell Change: As a Natural Progression

October 10, 2019 By Nagesh Belludi Leave a Comment

In Venice: The Hinge of Europe, 1081–1797 (1974,) the eminent University of Chicago historian William McNeill outlined how the Venetian Republic shaped European history. Describing the notion of trans-cultural diffusion, he wrote,

When a group of men encounter a commodity, technique, or idea that seems superior to what they had previously known, they will try to acquire and make their own whatever they perceive to be superior, but only as long as this does not seem to endanger other values they hold dear.

University of Washington’s Roger Soder quotes McNeill’s remarks in The Language of Leadership (2001) and supplies a case in point:

This is best illustrated by the technique of Jesuits who brought “new math” [including astronomy and mechanics] to China in the 1600s. They created the myth that the new Western mathematics had in fact evolved out of ancient Chinese ideas. The new ideas, they felt, would be accepted much more readily if they were seen as a natural progression of previously accepted methods.

That’s an important lesson on how to sell change: as a natural progression of the status quo.

Idea for Impact: People find themselves unable or unwilling to make fundamental changes in their lives. They tend to be particularly unwelcoming of ideas that they fear will alienate them from their core values. Tread delicately if you want effective change.

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Filed Under: Effective Communication, Sharpening Your Skills Tagged With: Assertiveness, Communication, Critical Thinking, Likeability, Negotiation, Persuasion, Relationships, Thought Process

Do You Have an Unhealthy Obsession with Excellence?

September 10, 2019 By Nagesh Belludi Leave a Comment

Yes, you must develop the habit of excellence, even in little matters. However, the price of perfection can be prohibitive. A maniacal emphasis on excellence can lead to a blind obsession that can drain productivity.

If you’re a manager, insisting on perfection everywhere can hurt workplace morale, reduce employee engagement, and decrease opportunities for innovation and change.

Managers too often call for excellence in the small things because they’re unable to prioritize what matters most. These managers tend to be the ones who also struggle with delegation—given their exacting standards, it makes sense that they would have difficulty letting others do their job. And because monitoring people’s efforts is often time-consuming and difficult, perfectionist managers tend to just decide that it’s easier and quicker to do the job themselves.

Smart Managers Have the Self-Discipline to Turn Excellence On and Off

The smart managers I know of accomplish great things because they often have a “sixth sense” that reminds them that some activities matter more than others do and therefore merit more attention.

They give themselves permission to produce second-rate work on the road to doing a first-rate job.

They are very selective about when they push their teams to the max—only when the stakes are big enough and when it’s entirely justified.

Idea for Impact: Be Excellent Occasionally

Expecting excellence in every detail uses up a lot of bandwidth.

Get comfortable with a little bit of lower quality now and then. Less-than-excellent is a satisfactory outcome. As the British novelist W. Somerset Maugham once warned, “only a mediocre person is always at his best.”

Making a conscious decision about where excellence matters and where it doesn’t is particularly pertinent to managerial success.

In the real world of limited resources, perfection is hard to achieve. The quest for excellence sucks up time, energy, and money that could generate better results elsewhere.

Managers, step back and look at the whole picture. You don’t have enough resources to do everything, so commit them where they’ll bring the greatest overall improvement (use the lens of opportunity costs.)

Have exacting standards, but don’t demand excellence in every idea.

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Filed Under: Leading Teams, Managing People, Sharpening Your Skills Tagged With: Assertiveness, Coaching, Delegation, Getting Things Done, Goals, Likeability, Perfectionism, Time Management

How to Make Others Feel They Owe You One: Reciprocity and Social Influence

September 18, 2018 By Nagesh Belludi Leave a Comment

Reciprocity, as described below, is a manipulative technique. My aim for this article is twofold: firstly, it sensitizes you to one of the many things people can do to get you to do their bidding. Secondly, reciprocity is a handy technique for those circumstances where certain ends can justify certain means.

Reciprocity is treating other people as they treat you, or for the purpose of this article, as you wish to be treated—specifically with the expectation that they will reciprocate your favor in the future.

In other words, reciprocity is a sneaky trick that permits deliberate interpersonal influence. Do something for other people and they will be willing to do something for you, partly because they’ll be uncomfortable feeling indebted to you.

The concept of reciprocity is ingrained in human nature. As part of our upbringing, we are taught to give something back to people who give us something. Reciprocity and cooperation are the underpinnings of a civilized society—they allow us to help people who need it and to hope that they will help us when we need it. Research suggests that the desire to repay goodwill is hard-wired in the human brain.

Jack Schafer’s The Like Switch: An Ex-FBI Agent’s Guide to Influencing, Attracting, and Winning People Over (2015) offers a clever technique to put reciprocity into action:

The next time someone thanks you for something, don’t say, “You’re welcome.” Instead, say, “I know you’d do the same thing for me.” This response invokes reciprocity. The other person is now predisposed to help you when you ask them for a favor.

The effects of goodwill are short-lived. A long-forgotten reputation for helpfulness gets you nothing. You have to renew your reputation by helping others regularly.

To learn more about reciprocity, read social psychologist Robert Cialdini’s Influence: The Psychology of Persuasion (1984.) He identified reciprocity as one of six principles that can help get others’ compliance to your requests.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Assertiveness, Biases, Ethics, Likeability, Negotiation, Persuasion, Psychology, Relationships, Social Life, Social Skills

To Micromanage or Not?

June 12, 2018 By Nagesh Belludi Leave a Comment

Micromanagement—any unnecessary meddling in someone else’s responsibilities, decision-making, and span of authority—is one of the most common gripes that employees have about their managers. No manager’s participation, influence, and authority should chip value away from an employee’s work.

Nobody Likes a Meddling Boss

There’s a thin line between appropriate questioning and micromanaging. What characterizes micromanaging is not whether a manager is questioning the minutiae, but whether the fine points are significant enough to be probed into and to what end the manager is probing.

For instance, is a manager making a point of a certain inconsistent operating expense, or is the manager examining bookkeeping details that may help bring to light a bigger-level problem such as a defective accounting system? Asking questions doesn’t in and of itself signify micromanaging, as long as those questions lead to insights of some substance.

If a manager hones into some trivial detail and challenges it with an intention of establishing an employee’s error, it’s reasonable to assume that the manager is micromanaging.

When micromanaging happens in the area of the manager’s expertise, his nitpicking is usually provoked by an egotistical need to emphasize his knowledge or experience on the subject, especially if the manager is insisting on his pet course of action.

Idea for Impact: When tactically applied, micromanaging can be a powerful tool to get the right things done

The ability to pose broad, open-ended questions (try the Socratic Method) and help an employee uncover crucial details—and to do this without creating the perception of micromanaging—is a particularly valuable managerial skill.

The smartest managers I know of do away with as many unnecessary reports, reviews, and approvals as possible. They ask the right questions about the right subjects in the right tone to help refocus an employee’s attention while deferring to the employee’s decision-making prerogative. They don’t delve into the fine points of everything—they selectively micromanage only if they must.

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Filed Under: Leading Teams, Managing People Tagged With: Assertiveness, Coaching, Conversations, Delegation, Feedback, Likeability, Persuasion

How to Combat Burnout at Work

October 11, 2017 By Nagesh Belludi 1 Comment

Employee burnout, the slow and steady physical and psychological fatigue and depletion caused by one’s work-life, reflects a fundamental challenge of working life.

Burnout is characterized by reduced personal accomplishment, physical exhaustion and unremitting weariness, feelings of despair and helplessness, and cynical attitudes toward work, life, and people.

Many people work in situations that are conducive to burnout. The prevalence of demanding job characteristics and the pressures of collegial and supervisory relationships, together with inadequate job resources and motivational job characteristics can trigger burnout.

If you’re feeling worn out, overwhelmed, even depressed at work, here’s how to nurse your exhaustion before it escalates into a burnout:

  • Investigate ways to limit or disconnect exposure to stress-initiators. First, understand and rank all the triggers of stress. Reflect on your existing responsibilities and relationships at work, and identify any element that strains your enthusiasm or diminishes your energy.
  • Restructure your work. If you’re dealing with excessive job demands and are provided with inadequate job resources, try to discard low-gain and high-pain tasks and responsibilities. Ask for more resources, and reach out to people you find supportive and motivating. If all else fails, lower your standards.
  • Seek opportunities for psychological detachment from work. Stop thinking about work during your leisure time and disengage yourself mentally from work.
  • Nurture yourself. Your needs belong to the top. As you make your way through a busy life, don’t ignore prioritizing taking care of yourself. Don’t surrender, settle, or lose hope. Don’t compromise yourself and become what you can settle for.

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Filed Under: Career Development, Living the Good Life Tagged With: Assertiveness, Balance, Mindfulness, Stress

Everything in Life Has an Opportunity Cost

August 8, 2017 By Nagesh Belludi Leave a Comment

“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”
—Charlie Munger, Investor

Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

In economics, opportunity cost is the cost of not choosing the next best alternative for your money, time, or some other resource.

One of the foundational principles in economics is affirmed by the popular American aphorism, “There ain’t no such thing as a free lunch.” Resources are scarce. When resources (time, money, mindshare, autonomy, and all that) are scarce, selecting one opportunity necessitates forgoing other opportunities.

Life is all about values and priorities. You face trade-offs. Life requires of you to make choices among mutually exclusive alternatives. Every time you select something, you forfeit other alternatives and the concomitant benefits. The cost of something is what you will give up to get it. This is opportunity cost.

You Can Do Anything but Not Everything … What Will You Sacrifice When You Choose One Option Over the Others?

When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.

In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.

Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs. For example, you don’t have to spend money to go for a hike or watch a sunset, but there is an opportunity cost there too. You could have used that time to do something else you value—visiting a friend or reading a book, perhaps.

  • If you decide to invest two years and some $100,000 getting an MBA at a brand-name business school, there’s an opportunity cost; it costs you lost wages and all the things you could have pursued during that time and with that money. But you anticipate that getting your MBA will pay off by way of a better job in a better company with a better salary.
  • If you spend your weeklong vacation taking your parents to a beach destination in Florida, there’s the opportunity cost of not going to Paris with your spouse.
  • If you decide to wake up twenty minutes earlier in the mornings to leave home sooner to work and beat the horrendous traffic, there’s the opportunity cost of twenty minutes of extra snoozing.
  • When the refrigerator at home breaks down and needs replacement, you will have to give up buying that latest big-screen TV you’ve been coveting.
  • There’s an opportunity cost to even reading this article at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.

In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline. Thinking about opportunity costs may not change the decision you make, but it will give you a more rational assessment of the full implications of your decision.

Opportunity Costs Apply to All Your Choices—Big and Small

Opportunity cost is a concept of great magnitude. It is one of those apparently simple concepts in social sciences that are difficult to master and tough to put into consistent practice. Tim Harford, the British author of The Undercover Economist offers a particularly instructive example of appreciating opportunity costs in his Financial Times column:

Consider the following puzzle, a variant of which was set by Paul J Ferraro and Laura O Taylor to economists at a major academic conference back in 2005. Imagine that you have a free ticket (which you cannot resell) to see Radiohead performing. But, by a staggering coincidence, you could also go to see Lady Gaga—there are tickets on sale for £40. You’d be willing to pay £50 to see Lady Gaga on any given night, and her concert is the best alternative to seeing Radiohead. Assume there are no other costs of seeing either gig. What is the opportunity cost of seeing Radiohead? (a) £0, (b) £10, (c) £40 or (d) £50.

…

Answer: Going to see Lady Gaga would cost £40 but you’re willing to pay £50 any time to see her; therefore the net benefit of seeing Gaga is £10. If you use your free Radiohead ticket instead, you’re giving up that benefit, so the opportunity cost of seeing Radiohead is £10.

Charlie Munger’s Wisdom on Opportunity Cost

  • On the subject of making choices in life based on opportunity costs, Munger stated at a 2010 lecture at Harvard-Westlake preparatory school, “The right way to make decisions in practical life is based on your opportunity cost. When you get married, you have to choose the best spouse you can find that will have you. The rest of life is the same damn way.”
  • Explaining how Warren Buffett and Berkshire Hathaway use opportunity costs to make investment decisions, Munger detailed stated at the aforementioned Harvard-Westlake lecture, “Berkshire Hathaway is constantly kicking off ideas in about two seconds flat. We know we’ve got opportunity X, which is better than the new opportunity. Why do we want to waste two seconds thinking about the new opportunity? Many of you come from places that don’t do that. You’ve got to have one horse, one rabbit, one something or rather, and that rabbit is going to be thinking about something which would be ruled out immediately by an opportunity cost available generally to the place—but, it’s a different department. You have to be diversified and so on and so on. It’s easy to drift into this idea that opportunities don’t matter, you’ve got so many different ways of doing things that are better. It isn’t better.”
  • Putting the concept of opportunity cost into operation requires benchmarking any prospective decision to other available alternatives. At the 2006 Berkshire Hathaway annual meeting, Munger advised, “In the real world, you have to find something that you can understand that’s the best you have available. And once you’ve found the best thing, then you measure everything against that because it’s your opportunity cost. That’s the way small sums of money should be invested. And the trick, of course, is getting enough expertise that your opportunity cost—meaning your default option, which is still pretty good—is very high…. Most people aren’t going to find thousands of things that are equally good; they’re going to find a few things where one or two of them are way better than anything else they know. And the right way to think about investing is to act thinking about your best opportunity cost.”

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs—The Stakes Become Clearer

You live in a world of scarcity and must therefore make choices. You cannot avoid regret since there are opportunity costs for every choice you will make.

Everything in life is about opportunity costs. Every time you say “yes” to a choice, you are also saying “no” to everything else you may have accomplished with your time, money, and resources.

Opportunity cost is a commanding tool that you should be wise to apply to all decision-making. If you integrate this concept into your thought process, you will not only make judicious choices, but also better understand the world in which you live.

Idea for Impact: Whether you’re choosing graduate school, mulling over switching careers, starting a business, investing your money, buying a car, or frittering away your evening watching TV, considering the value of forgone alternatives will help you make better choices. Make the lens of opportunity costs the underpinning of your decision-making processes.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Assertiveness, Balance, Clutter, Decision-Making, Discipline, Negotiation, Perfectionism, Persuasion, Procrastination, Simple Living, Stress, Targets, Thought Process, Time Management, Wisdom

Weak Kindness & The Doormat Phenomenon: Balance Kindness with Strength

March 17, 2017 By Nagesh Belludi Leave a Comment

Kindness Can Be a Weakness

'The Art of Being Kind' by Stefan Einhorn (ISBN 0749940565) I’m currently reading Swedish oncologist Stefan Einhorn’s The Art of Being Kind (2006.) Arguing that being a good person is the key to a happier and fulfilled life, Einhorn stresses (watch his TED talk) the need to distinguish ‘true’ kindness from ‘false’ kindness.

Einhorn describes three forms of false kindness:

  • Manipulative kindness where deceitful kindness masquerades as goodness. This superficial kindness is driven by some ulterior motive—to shrewdly obtain something, rather than to be genuinely helpful.
  • Stupid kindness that lacks appropriateness—trying to help someone who doesn’t want to be helped, for instance.
  • Weak kindness is thinking that being kind sometimes means yielding and being a doormat to others’ demands.

Weak Kindness Will Make You a Doormat

The doormat phenomenon is the outcome of weak kindness where a doormat bends over backwards to desperately satisfy others, often resorting to do whatever it takes to try to make others happy, no matter how badly the others treat him/her. In the name of kindness, the doormat allows others to walk over him/her due to lack of strength, fear of conflict, or fear of rejection.

The doormat phenomenon is perpetuated primarily by an inability to say “no” effectively. Here are the consequences of being too gullible, too empathetic, and too timid.

  • Doormats neglect their own self-interests.
  • Doormats often resort to passive aggression and/or resentment. Eventually, they find themselves silently annoyed by others.
  • Doormats don’t enjoy spending time in a social context, since they resent the people they assist.
  • Doormats often face more demands than they can handle. Hence, being fully conscious of how they’re taken advantage of and unable of standing up for themselves, they suffer from stress and depression.

Don’t Be Duped by your Own Kindness

Weak Kindness & The Doormat Phenomenon: Balance Kindness with StrengthThe key to leading a wise and purposeful life is to balance kindness with strength. To be wise and kind,

  • Be profusely kind and obliging but never weak. Don’t give up your power to another person. Don’t become a people-pleaser. Don’t put everyone else before yourself.
  • Be vigilant for nefarious people and their hidden motives. Be alert and aware of the many negative ploys and manipulations you could confront.
  • Be assertive and stand up for yourself. Don’t say “yes” when you really want to say “no”. Don’t be so desperate to please others as to ignore your own priorities. Keep your own interests at the forefront of your mind.
  • Be on the lookout for win-win opportunities to be kind and giving. Don’t always prioritize other people’s needs above your own; seek opportunities to help out where you can expect some reciprocity. Successful people tend to ask for what they want.

The Chinese use a “flower and sword metaphor” to illustrate the need to balance kindness with strength. For the most part, present the world a flower—a symbol of kindness and compassion. However, when people try to take advantage of your kindness, that is to say when they try to crush the flower, wield the sword—a sign of protection and strength. The sword exists to protect the flower.

Idea for Impact: Wise kindness entails judiciously subjugating some of your self-interests sometimes in aid of others’ welfares, while still having the courage to stand up your values when necessary. Be kind when you can, and tough when you must. Remember, a wise person’s own happiness matters as much to him or her as the happiness of others—no more and no less.

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  3. Avoid the Trap of Desperate Talk
  4. Balancing Acts: Navigating ‘Good’ Addictions
  5. The One Person You Deserve to Cherish

Filed Under: Living the Good Life Tagged With: Altruism, Assertiveness, Attitudes, Balance, Kindness, Mindfulness, Negotiation, Relationships, Virtues

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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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