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Critical Thinking

What Elon Musk and Jeff Bezos Learn “On the Floor”

November 26, 2020 By Nagesh Belludi Leave a Comment

Leaders can learn a great deal on the frontlines, not only about the inner workings of the products they produce and the services they offer but also about their employees:

  • Tesla CEO Elon Musk sees being on the production line and understanding it an integral part of his job. Musk famously declared, “I have a sleeping bag in a conference room adjacent to the production line, which I use quite frequently.” He has helped his California factory hit its production goals—even “real-time triaging cars at the end of the line trying to get to the root cause of what the issues were.”
  • Amazon requires its deskbound managers to attend two days of call-center training. CEO Jeff Bezos said in 2007, “Every new employee, no matter how senior or junior, has to go spend time in our fulfillment centers within the first year of employment. Every two years they do two days of customer service. Everyone has to be able to work in a call center. … I just got recertified about six months ago. The fact that I did a lot of customer service in the first two years has not exempted me.”
  • Subway Restaurants’ chief development officer Don Fertman appeared incognito as a “sandwich artist” for a week on the popular CBS Undercover Boss reality TV show in 2010. Fertman remarked that this ground-level perspective offered managerial empathy and led to better decisions. Subway’s senior-level executives are now required to spend a week every year in the field, becoming aware of how their choices influence franchisees and customers.

Idea for Impact: The frontlines offer leaders unfiltered information

Leaders, don’t risk the ego trap of losing touch with the frontline experience.

Venture out of the office and work directly with frontline employees. Even do the work of those they lead for a while. You’ll break down the hierarchy and glean a valuable new perspective.

Don’t forgo the frontline advantage—that’s where problems are discovered, and solutions are born.

Wondering what to read next?

  1. Lessons from Toyota: Go to the Source and See for Yourself
  2. How Toyota Thrives on Imperfection
  3. How Smart Companies Get Smarter: Seek and Solve Systemic Deficiencies
  4. Learning from the World’s Best Learning Organization // Book Summary of ‘The Toyota Way’
  5. Do Your Employees Feel Safe Enough to Tell You the Truth?

Filed Under: Business Stories, Leadership, Managing People, MBA in a Nutshell Tagged With: Amazon, Critical Thinking, Leadership, Management, Problem Solving, Quality, Toyota

Don’t Surround Yourself with People Like Yourself

November 9, 2020 By Nagesh Belludi Leave a Comment

It’s easier to hire people you naturally feel comfortable with, and you’ll feel most comfortable with people who remind you of yourself and your in-group. This is instinctive—it’s part of what psychologists identify as implicit bias.

However, clone-hiring initiates groupthink. There’s much value in surrounding yourself with others who are not like you—people who may make you feel a little uncomfortable and bring a different perspective. As the Bay-Area career coach Marty Nemko cautions, “We find comfort among those who agree with us, growth among those who don’t.”

To build a team with diverse talents, look for people with complementary skills and agreeable temperaments. As I explained in my article on competency modeling, identify the traits, characteristics, and behaviors in the star performers on your team and not in the average performers. Then, hire and promote people who have demonstrated the distinct traits and behaviors of the star performers.

Idea for Impact: Don’t try to hire clones. Instead, look for people who’re a complement. You need people less like you and more of a complement to you. Compatibility is not about being similar in nature; it’s about co-existing and thriving in harmony.

Wondering what to read next?

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Filed Under: Managing People, Mental Models Tagged With: Critical Thinking, Decision-Making, Diversity, Hiring & Firing, Human Resources, Social Skills

Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”

November 2, 2020 By Nagesh Belludi Leave a Comment

In the mid-1950s, Gillis Lundgren (1929–2016) was a draftsman living in a remote Swedish village of Älmhult. He was the fourth employee of a fledging entrepreneur named Ingvar Kamprad.

Kamprad’s business was called IKEA, an acronym combining his initials and those of his family’s farm and a nearby village. He had founded IKEA in 1943 and got his start selling stationery and stockings at age 17. In the 1950s, Kamprad had launched a low-cost mail-order furniture retailer to cater to farmers.

Constraints have played a role in many of the most revolutionary products

In 1956, Lundgren designed a veneered, low coffee table. He built the table at home but realized that the table was too big to fit into the back of his Volvo 445 Duett station wagon. Lundgren cut off the legs, packed them in a flat box with the tabletop, and rushed to a photoshoot for the IKEA furniture catalog.

And in so doing, Lundgren unintentionally birthed the flatpack furniture industry. He modified his simple design and drew up plans for a disassembled version of the table. Lundgren’s Lövet table (now called Lövbacken) became IKEA’s first successful mass-produced product.

IKEA and Its Flatpacking Took Over the World

IKEA’s trademark, easy-to-follow assembly instructions are a central ingredient to the company’s success. Manufacturing and distributing prefabricated furniture via flatpacking has proved enormously successful. It has dramatically facilitated the shipment and storage of pieces that otherwise took up much more space.

According to Bertil Torekull’s Leading by Design—The IKEA Story (1998,) the concept of ready-to-assemble furniture is much earlier than that. But IKEA was the first to systematically develop and sell the idea commercially.

Flatpacking contributed to many of IKEA’s products’ enduring popularity—they’re affordable, sleek, functional, and brilliantly efficient. In 1978, Lundgren designed the iconic Billy bookcase, the archetypical IKEA product that currently sells one in three seconds.

IKEA’s aesthetic of simplicity and efficiency reflects in its exclusive design and marketing approach. IKEA constantly questions its design, manufacturing, and distribution to create low-cost and acceptably good products.

The method has been adopted by numerous other business enterprises, transforming how products are made and sold globally.

Out of Limitations Comes Creativity

One problem with creativity is that sometimes people face an open field of creative possibilities and become paralyzed. Constraints can be the anchors of creativity [see more examples here, here, and here.]

Constraints fuel rather than limit creativity. Use constraints to break through habitual thinking and promote spontaneity. The mere experience of playing around with different constraints can stretch your imagination and open your mind’s eye for ingenuity.

Idea for Impact: Use constraints to help stimulate creativity. As the British writer and art critic G. K. Chesterton once declared, “Art consists of limitation. The most beautiful part of every picture is the frame.”

Wondering what to read next?

  1. Van Gogh Didn’t Just Copy—He Reinvented
  2. Overcoming Personal Constraints is a Key to Success
  3. How You See is What You See
  4. Restless Dissatisfaction = Purposeful Innovation
  5. Unlocking Your Creative Potential: The Power of a Quiet Mind and Wandering Thoughts

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Adversity, Artists, Creativity, Critical Thinking, Entrepreneurs, Innovation, Parables, Problem Solving, Resilience, Thinking Tools

Never Cast a Blind Aye

October 17, 2020 By Nagesh Belludi Leave a Comment

Rep. Tom Moore Jr. (1918–2017) of the Texas House of Representatives was dismayed at how often his legislative colleagues in the Texas House of Representatives passed bills without reading and understanding them. For an April Fools’ Day prank in 1971, he sponsored this resolution honoring Albert de Salvo:

This compassionate gentleman’s dedication and devotion to his work has enabled the weak and the lonely throughout the nation to achieve and maintain a new degree of concern for their future. He has been officially recognized by the state of Massachusetts for his noted activities and unconventional techniques involving population control and applied psychology.

The resolution passed unanimously.

Albert de Salvo was actually the Massachusetts serial killer known as the “Boston Strangler.”

Having made his point, Rep. Moore withdrew the resolution.

Idea for Impact: Don’t endorse anything you haven’t read and understood thoroughly. Abstention, even denial, is much preferable to a blind aye!

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  2. Accidents Can Happen When You Least Expect Them: The Overconfidence Effect
  3. Starbucks’ Oily Brew: Lessons on Innovation Missing the Mark
  4. Optimize with Intent
  5. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation

Filed Under: Business Stories, Sharpening Your Skills Tagged With: Critical Thinking, Decision-Making, Parables

The Waterline Principle: How Much Risk Can You Tolerate?

October 15, 2020 By Nagesh Belludi 1 Comment

American engineer and entrepreneur Wilbert L. “Bill” Gore (1912–86) was the founder (with wife Genevieve (Vieve)) of W. L. Gore & Associates, the maker of such innovative products as Gore-Tex fabrics, Elixir guitar strings, and a variety of medical products.

Gore’s open and creative workplace emphasized autonomy, fairness, commitment, and experimentation. He instituted a mental model for risk-tolerance called the “Waterline Principle.”

Gore compared the level of allowable risk to the waterline on a boat.

  • Sanction risks above the waterline since they wouldn’t sink the boat—you have ample autonomy above the waterline. If a decision goes bad and produces a hole in the side of the boat above the waterline, you can fix the hole, learn from the experience, and carry on.
  • Risks that fell below the waterline, in contrast, can blow a hole that can sink the boat. Below-the-waterline risks need prior approval from the “captain.” Your team can be prepared for such risks, investigate potential solutions, or buy appropriate insurance coverage.

Commenting about Bill Gore and his Waterline Principle, business consultant Jim Collins noted in his How the Mighty Fall (2009,)

When making risky bets and decisions in the face of ambiguous or conflicting data, ask three questions:

  • What’s the upside, if events turn out well?
  • What’s the downside, if events go very badly?
  • Can you live with the downside? Truly?

The Waterline Principle encourages prudent experimentation and conscientious risk-taking by lowering the risk waterline.

Idea for Impact: Risk analysis and risk reduction should be one of the primary goals of any intellectual process. Invite your team to identify risks that can sink the boat and those that can cause survivable damages.

Wondering what to read next?

  1. Smart Folks are Most Susceptible to Overanalyzing and Overthinking
  2. Protect the Downside with Pre-mortems
  3. In Praise of Inner Voices: A Powerful Tool for Smarter Decisions
  4. What Airline Disasters Teach About Cognitive Impairment and Decision-Making Under Stress
  5. Accidents Can Happen When You Least Expect Them: The Overconfidence Effect

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Critical Thinking, Decision-Making, Mindfulness, Problem Solving, Risk, Thinking Tools

Lessons from Toyota: Go to the Source and See for Yourself

October 8, 2020 By Nagesh Belludi Leave a Comment

Firsthand, on-the-frontlines observation can offer critical insights that facilitate informed—and inspired—decision-making.

The Japanese approach to problem-solving calls this Genchi Genbutsu (literally “go and see for yourself.”) Sometimes called “get your boots on,” it’s not unlike the notion of management by walking about (MBWA.)

Genchi Genbutsu Refers to a Disposition Than a Specific Action

Genchi Genbutsu is rooted in the idea that any report, say, about a problem on the shop floor, is an abstraction. It’s separated from its context, and therefore generalized and relativized.

Secondhand information tends to misrepresent reality enough to give you a false sense of conviction. The only real way to understand a problem is to see it on the shop floor and get the full breadth and depth of information to make the right decision.

For that reason, any solution concocted at headquarters, where the report is received and the problem diagnosed from a distance, is doubly abstracted from the source.

Genchi Genbutsu isn’t a license for management interference, but to understand the problem, unearth the root cause, and help those doing it to resolve the issue.

Genchi Genbutsu Case Study: Toyota Sienna and the 53,000-Mile Roadtrip

When Yuji Yokoya was appointed the chief engineer for the 2004 Toyota Sienna minivan, he had never designed a vehicle purposely for the North American market. He traveled 53,000 miles across North America to monitor and discover what was wrong with the previous Sienna models. He drove the Sienna and competitor’s minivans through every state in America, every province in Canada, and every state in Mexico. in February 2003, Forbes noted,

In Memphis, Yokoya’s minivan was blown into the next lane crossing the Mississippi from Tennessee to Arkansas. Fix: Yokoya reduced the van’s wind resistance by narrowing the gaps between panels and adding plastic shields under the wheel wells to redirect air.

In Yukon Territory, road noise on the Alaska Highway prevented conversation between the driver and rear passengers. Fix: Yokoya stiffened undercarriage to reduce twisting and added sound-dampening material to the frame.

A culture of on-the-spot problem solving is so ingrained in the Toyota culture. According to company lore,

In the mid-’70s, Toyota had just introduced a four-speed automatic transmission. It was very unusual to have an automatic transmission fail, if ever. It seemed indestructible. When Dr. Shoichiro Toyoda [scion of the founding family and chairman of Toyota 1992–99] visited a dealership, the dealer complained that a car just came in with a transmission that had failed. Dr. Toyoda, in his pressed suit, walked over to the technician, got in a dialogue with him, walked over to the oil pan where he’d drained the oil from the transmission, rolled his sleeve up, and put his hand in this oil, and pulled out some filings. He put the filings on a rag, dried them off, and put them in his pocket to take back to Japan for testing. He wanted to determine if the filings were the result of a failed part or if it was residue from the machining process.

Genchi Genbutsu Case Study: Medtronic and the Bloody Catheter

In the late ’80s, when Bill George became CEO of medical equipment manufacturer Medtronic, he discovered that its catheter sales weren’t good enough. His engineers had said the product was first-rate and improving.

When George visited an operating room to observe a surgical procedure, Medtronic’s catheter fell apart in the surgeon’s hands as soon as he inserted the balloon catheter into the patient’s femoral artery. The surgeon extracted the catheter from the patient. In a fit of rage, he hurled the blood-spattered device across at George, who ducked to avoid injury.

This “Bloody Catheter” incident helped Medtronic fix faulty products and spurred a thorough overhaul of Medtronic’s engineering, sales, and problem-solving processes. George later recalled,

Field reports are a dime a dozen. There’s no emotional association with them. But when you’re in a medical environment like an operating room, all your senses-sight, sound, smell, taste-are working. It’s a totally different experience than reading a field report.

Idea for Impact: If you haven’t experienced something firsthand, your knowledge about it is probably suspect

Even in the information age, not all knowledge you need can be at your fingertips. Go to the source. Be where the action happens. Don’t forego the power of emotional input.

Wondering what to read next?

  1. What Elon Musk and Jeff Bezos Learn “On the Floor”
  2. How Toyota Thrives on Imperfection
  3. How Smart Companies Get Smarter: Seek and Solve Systemic Deficiencies
  4. Learning from the World’s Best Learning Organization // Book Summary of ‘The Toyota Way’
  5. Making Tough Decisions with Scant Data

Filed Under: MBA in a Nutshell, Mental Models, Sharpening Your Skills Tagged With: Critical Thinking, Japan, Leadership, Management, Problem Solving, Quality, Toyota

Easy Solutions

September 19, 2020 By Nagesh Belludi Leave a Comment

This Buddhist joke evokes the old saying, “If you find yourself in a hole, first, stop digging.”

Prince Gautama, who had become the Buddha, saw one of his followers meditating under a tree at the edge of the Ganges River. Upon inquiring why he was meditating, the follower stated he was attempting to become so enlightened he could cross the river unaided. Buddha gave him a few pennies and said: “Why don’t you seek passage with that boatman. It is much easier.”

The Stoic philosopher Epictetus said, “Don’t seek for everything to happen as you wish it would, but rather wish that everything happens as it actually will—then your life will be serene.”

Wondering what to read next?

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  3. How to Turn Your Fears into Fuel
  4. Are You Ill-Prepared for Being Wrong?
  5. Situational Blindness, Fatal Consequences: Lessons from American Airlines 5342

Filed Under: Mental Models Tagged With: Confidence, Critical Thinking, Humor, Mindfulness, Parables, Problem Solving, Wisdom

Moderate Politics is the Most Sensible Way Forward

September 17, 2020 By Nagesh Belludi Leave a Comment

A sharp observation on political extremism in this 1987 TV ad by comedian John Cleese for the Social Democratic Party-Liberal Party Alliance (1981–88) in the United Kingdom:

Extremism has its advantages … the biggest advantage of extremism is that it makes you feel good because it provides you with enemies. The great thing about having enemies is that you can pretend that all the badness in the whole world is in your enemies, and all the goodness in the whole world is in you. If you have a lot of anger and resentment in you anyway, and you, therefore, enjoy abusing people, then you can pretend that you’re only doing it because these enemies of yours are such very bad persons and that if it wasn’t for them, you’d actually be good-natured and courteous and rational all the time.

I don’t belong to a political party, and I don’t think I’ll ever join one. Partisan talking points irritate me no end. I’ll watch the upcoming debates, though, because I’ll find all the onstage mudslinging and the impulsive provocations very entertaining.

In politics, everyone tries to push emotional buttons. Few seem to talk about an evidence-based attitude for making decisions and allocating society’s resources where they’ll make the most impact.

Besides, the media today have made the exchange of ideas particularly charged and increasingly polarized. The only way to be heeded to in a screaming vortex is to scream louder and resort to premeditated ad hominum.

Idea for Impact: Wisdom doesn’t reside solely on one side of the center. I am partial to those moderates whose political stance often varies with the issue. Contrary to popular perception, they aren’t tuned-out or ill-informed. Instead, they’re disposed to see both sides of the complex problems, disregard the left and the right’s excessively ideological positions, and seek the middle ground.

Wondering what to read next?

  1. To Make an Effective Argument, Explain Your Opponent’s Perspective
  2. How to Gain Empathic Insight during a Conflict
  3. The Problem of Living Inside Echo Chambers
  4. Presenting Facts Can Sometimes Backfire
  5. Don’t Ignore the Counterevidence

Filed Under: Managing People, Mental Models Tagged With: Conflict, Critical Thinking, Getting Along, Persuasion, Politics, Thinking Tools, Thought Process

How You See is What You See

August 15, 2020 By Nagesh Belludi Leave a Comment

So very often, we don’t give ourselves to allow for new understandings, new perspectives, and new interpretations to emerge.

Three people were visiting and viewing the Grand Canyon—an artist, a pastor and a cowboy. As they stood on the edge of that massive abyss, each one responded with a cry of exclamation. The artist said, “Ah, what a beautiful scene to paint!” The minister cried, “What a wonderful example of the handiwork of God!” The cowboy mused, “What a terrible place to lose a cow!”

Idea for Impact: Work to overcome the strong waves of conditioning that you’ve been exposed to your whole life.

Take a step back and consider how you’re responding to a situation emotionally and intellectually.

Free up your mind from the conditioning that may be restraining it.

Don’t let your narrow perspectives—those comfortable walls within which you confine yourself—to make you lose touch with what’s possible.

Explore. Discover. Discern. Open your mind to new frontiers.

Wondering what to read next?

  1. Overcoming Personal Constraints is a Key to Success
  2. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  3. What the Duck!
  4. Restless Dissatisfaction = Purposeful Innovation
  5. Four Ideas for Business Improvement Ideas

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Parables, Problem Solving, Resilience, Success, Thinking Tools, Thought Process

Overcoming Personal Constraints is a Key to Success

August 14, 2020 By Nagesh Belludi Leave a Comment

Why do some people reach ever-higher levels of achievement, while others struggle or just plug along?

Norman Vincent Peale, the doyen of the think-positive mindset, provides a particularly illustrative example in You Can If You Think You Can (1987):

In Tokyo, I once met an American, an inspiring man, from Pennsylvania. Crippled from some form of paralysis, he was on a round-the-world journey in a wheelchair, getting a huge kick out of all his experiences. I commented that nothing seemed to get him down. His reply was a classic: “It’s only my legs that are paralyzed. The paralysis never got into my mind.”

No matter how formidable your talents, you’ll be held back by certain attitudes and behaviors that limit your achievements.

Your personal constraints—some of them beyond your control—will determine your level of success. Identify those constraints and make a plan to triumph over them.

Idea for Impact: The more you can reframe your attitudes toward the past, future, and present, the more likely you’ll find a meaningful life. Don’t let your constraints lay down what you can achieve.

Wondering what to read next?

  1. Restless Dissatisfaction = Purposeful Innovation
  2. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation
  3. How You See is What You See
  4. The Arrogance of Success
  5. Four Ideas for Business Improvement Ideas

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Attitudes, Creativity, Critical Thinking, Innovation, Mental Models, Parables, Problem Solving, Thinking Tools, Thought Process

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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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