Critical Thinking

The Sensitivity of Politics in Today’s Contentious Climate

March 9, 2020 By Nagesh Belludi 1 Comment

If you feel like you’ve been overdosing on news and conversations related to politics and Trump, much to the exclusion of other meaningful subjects, try the “No Trump Rule” evoked by essayist Joseph Epstein in the Wall Street Journal:

Every Friday I meet for lunch with three or four friends from high school days. I instituted at these lunches what I called the No Trump Rule: ‘No’ not in the sense of being against Trump’s politics but against talking about him at all, for doing so seems to get everyone worked up unduly. The rule, I have to report, has been broken more than the Ten Commandments. No one, apparently, can stop talking about our president. The Trump talk quickly uses up most of the oxygen in any room where it arises, and can bring an argument to the shouting stage more quickly than a divorce settlement.

Look, I understand that everybody has been amped up to eleven since Trump emerged as the Republican Party’s nominee in May 2016, but some of us don’t want to talk about him—or politics.

I, for one, don’t think it’s a good idea for so much of our news, talk shows, and social media feeds to be devoted to a single subject for this long. Yes, Trump is a polarizing figure, and our country is so divided. But we don’t need to let him, and the anger he provokes, besiege every moment of our lives.

Awareness and activism are vital to civic duty, but hatred isn’t meaningful activism

I’m happy to listen to everybody’s opinions, but I’m fatigued by the extent to which politics dominates present-day exchanges. Ordinary conversations about routine topics tend to degenerate quickly with any evocation of the current state of affairs. Even banter about the weather (“the last refuge of the unimaginative” per Oscar Wilde) can quickly spiral into climate change, the environment, fossil fuels, oil, Russia, Putin, and so on.

More than anything else, I can’t bear the way most people currently think about politics—in particular, how ill-informed they tend to be. I am dismayed at people’s shallow understanding of the significant issues of the day—immigration, trade, nationalism, economic inequality, healthcare, etc. The stakes are high, and, given the depth of people’s political convictions, their anger is understandable. Nevertheless, the propensity to lash out against those with different views and dehumanize them is deplorable.

I will talk about politics with people who aren’t as much interested in winning an argument and convincing opposing people of the wrongness of their positions as they are about understanding more fully why others hold a particular conviction.

Our values, not politicians, should mold the policies and positions we support

Sarah Stewart Holland and Beth Silvers’ commendable I Think You’re Wrong (But I’m Listening): A Guide to Grace-Filled Political Conversations (2019) proposes a framework for having productive political conversations with those you love and yet disagree with.

Somewhere along the way we stopped disagreeing with each other and started hating each other. We are enemies, and our side is engaged in an existential battle for the very soul of the country. We are no longer working toward common goals. We are no longer building something together. Our sole objective is tearing the other side down. Nothing short of total victory is acceptable.

…

The reality is that we never stopped talking politics altogether—we stopped talking politics with people who disagree with us. We changed “you shouldn’t talk about politics” to “you should talk only to people who reinforce your worldview.” Instead of giving ourselves the opportunity to be molded and informed and tested by others’ opinions, we allowed our opinions and our hearts to harden.

The authors, hosts of a popular discussion-podcast, invite readers “to hear each other’s thoughts, to test our own beliefs against each other’s philosophies, and to better appreciate our own core beliefs by having to articulate and challenge those beliefs.” They emphasize an earnest curiosity for the counterargument and the open-mindedness to leave room for nuance:

Engaging with other people is never easy, but it always will be worth it. Engaging with other people about politics is no different. Let yourself take that chance. Let yourself rise to the challenge. Your ability to stretch and grow will surprise you, and so will the people around you. Once people see you as a person willing to have thoughtful, curious, calm discussions, you will have all kinds of interesting conversations that seemed impossible a year ago.

Postscript: Things are far more awkward in the workplace. Politics has always been a sensitive topic—but in today’s contentious climate, such conversations can rapidly escalate into arguments.

Question Success More Than Failure

March 5, 2020 By Nagesh Belludi Leave a Comment

Katrina “Kat” Cole, formerly CEO of the American baked goods-chain Cinnabon, in an interview for Adam Bryant’s “Corner Office” column in the New York Times:

I’ve learned to question success a lot more than failure. I’ll ask more questions when sales are up than I do when they’re down. I ask more questions when things seem to be moving smoothly, because I’m thinking: “There’s got to be something I don’t know. There’s always something.” This approach means that people don’t feel beat up for failing, but they should feel very concerned if they don’t understand why they’re successful. I made mistakes over the years that taught me to ask those questions.

People tend to attribute failure to external factors and success to their own abilities and performance (see self-serving bias and Dunning-Kruger effect.) The human brain is indeed riddled with cognitive and memory biases that are conducive to making people feel like they’re good and capable, regardless of reality.

Idea for Impact: Luck is so much more important than we acknowledge. Most successes and failures in life combine both skill and luck. Understanding the relative contributions of skill and luck in failure—and success, as Cole suggests above—can help you judge past and present results and, more significantly, prepare for future results.

The Myth of the First-Mover Advantage

February 20, 2020 By Nagesh Belludi Leave a Comment

If you’re an entrepreneur entering a new market with a product or service that nobody else offers, you’ll seek the first-mover advantage.

You’ll move quickly to get established as a market leader. If your business idea has the potential to succeed, other entrepreneurs are possibly working on it at the same time or will be quick to emulate when they see what you’re doing.
You’ll validate your concepts quickly by identifying and partnering with a few enthusiastic “guinea pig” customers who can test your product or service early on and give you feedback regarding what customers really want.
You’ll create some barriers (“establish an economic moat” in Warren Buffett-speak) to inhibit other aspirants from entering the market—you’ll secure patents on your intellectual property, lock-in key locations, or negotiate longer-term contracts with customers.

Alas, many first-mover advantages are not sustainable, and many first-movers are as successful as what the superstars will have you believe.

First-to-Market is often First-to-Fail

New ventures have higher failure rates than more established businesses.

Creating market awareness, sustaining market acceptance, fending away aggressive competitors are often easier said than done for many new ventures, not to mention lining up suppliers and distributors. Besides, unless you’re well-capitalized by patient investors, you’re likely to face higher-than-foreseen marketing costs on top of lower-than-anticipated sales.

Instead, if you are the second—or later—entrepreneur to market, you’ll stand a better chance of success by learning from the forerunner’s mistakes. You’ll also earn better credence from your customers, suppliers, distributors, employees, and investors to help create a better product or service.

Idea for Impact: There’s an American adage that “many pioneers died with arrows in their backs.” The best time for an entrepreneur to offer a new product or service is after others have already gotten there and laid some groundwork.

Better Than Brainstorming

February 8, 2020 By Nagesh Belludi Leave a Comment

Most brainstorming sessions suck. Facilitators aren’t often skilled enough to direct the creative process and overcome interpersonal and intrapersonal barriers to idea-generation. Participants are not as organized as they need to be. One or two “meeting-hogs,” who lack self-awareness and self-control, dominate the conversations with their pet ideas and shut everyone else down. And then there’s groupthink and self-censorship based on responses to earlier suggestions by others. Consequently, bold ideas seldom survive a group discussion.

If you want to buck the odds, try “brainwriting” instead of brainstorming.

In its simplest form, brainwriting has the participants quietly reflect upon an open-ended prompt of appropriate scope, for example, “how could we improve our design process,” and write down their ideas. A group leader can organize the responses by combining identical ideas, grouping thematically-related ideas, and posting them on a wall for the group to appraise them further. Then, the participants vote on their favorites, and the top ‘n’ number of ideas or priorities are identified for future discussion and exploration.

Idea for Impact: Teams Don’t Think—Individuals Do

In essence, brainwriting isolates idea generation from the instantaneous discussion and evaluation that can hamper the creative process.

Brainwriting, when followed by discussion, combines the benefits of both individual and group creativity. Studies have repeatedly shown that people think of more new—and practical—ideas on their own than they do in a group.

In my experience, this creative thinking process is inclusionary, engaging, time-effective, non-judgmental, and mostly free from pressures to conform to others’ ideas. Brainwriting is particularly useful with a group of people who are reserved and would be unlikely to offer many ideas in an open group session.

What James Watt and the Steam Engine Teach You about Creativity and Invention

December 9, 2019 By Nagesh Belludi Leave a Comment

Necessity is the Mother of Invention

The arc of development of the technique to harness the properties of steam to power mechanical devices embodies the notion that “necessity is the mother of invention” (Latin: “necessitas ingenium dedit.”)

Towards the end of the 17th century, Britain faced the problem of pumping and draining water out of mine shafts. In response, the military engineer Thomas Savery (1650–1715) invented an “engine to raise water by fire” in 1698. However, the “Savery Pump” was limited in practical usage to 20–25 feet of suction. Savery’s rudimentary pressurized boiler was liable to explode, particularly under high-pressure steam (over 8 to 10 atmospheres.)

Independently, and later in partnership with Savery, blacksmith Thomas Newcomen (1664–1729) developed the more practical—and more successful—atmospheric-pressure piston engine in 1698. Newcomen’s engine solved the limitation of the Savery Pump by having atmospheric pressure push the cylinder’s piston down after the condensation of steam had created a vacuum in the cylinder. Therefore, the pressure of the steam did not limit the intensity of pressure.

For five decades, Newcomen’s engine was the most complex technological object of its time anywhere in the world.

Difficulties Compel People to Found Creative Solutions to Problems

Then came along the Scottish instrument maker James Watt (1736–1819.) At age 21, Watt opened a shop in 1757 at the Glasgow University to make quadrants, compasses, scales, and other mathematical instruments.

Watt was tasked with repairing a Newcomen Engine at the university for a lecture-demonstration. He initially had difficulty getting the Newcomen Engine to work because its parts were poorly constructed. When he finally had it running, he was surprised at its efficiency. However, the engine was constantly running out of coal because every cycle required the heating and the cooling of the cylinder, thus resulting in a large waste of energy.

In 1769, Watt devised a system whereby the cylinder and the condenser were separate, making it unnecessary to heat and cool the cylinder with each stroke. Watt’s invention of the separate-condenser steam engine (also called the “double-acting” steam engine) decreased fuel costs by 75 percent.

Watt’s “steam engine” was able to produce continuous rotary motion and expanded its use far beyond pumping water. Continuous rotary motion sparked the transition from hand-production methods to machine-power and became the driving force of the Industrial Revolution. Playwright George Bernard Shaw even declared in Man and Superman (1903,) “those who admire modern civilization usually identify it with the steam engine.”

The steam engine continued to power industry and transportation during much of the 19th century and early 20th century, at the same time as engineers developed the internal-combustion engine. Towards the end of the 19th century, with the invention of the first practical steam turbine by English engineer Charles Parsons (1854–1931,) turbines started replacing reciprocating steam engines in power stations.

Reference: Richard L. Hills’s Power from Steam: A History of the Stationary Steam Engine (1989.)

Many Businesses Get Started from an Unmet Personal Need

October 21, 2019 By Nagesh Belludi 2 Comments

Many successful entrepreneurs never set out with the goal of launching a large company, let alone hiring scores of people. They are motivated enough to develop solutions to a direct problem they are facing. Before long, they discover that they are not the only ones with that problem—and, like so, a successful business is born.

How “The Cult of Lulu” Got Started

Consider the genesis of Lululemon, the Canadian athletic apparel company (from The Atlantic‘s narrative of how sports changed the way Americans dress.)

In 1997, a retail entrepreneur in British Columbia named Chip Wilson was having back problems. So, like millions of people around the world, he went to a yoga class. What struck Wilson most in his first session wasn’t the poses; it was the pants. He noticed that his yoga instructor was wearing some slinky dance attire, the sort of second skin that makes a fit person’s butt look terrific. Wilson felt inspired to mass-produce this vision of posterior pulchritude. The next year, he started a yoga design-and-fashion business and opened his first store in Vancouver. It was called Lululemon.

[Yes, that’s the Chip Wilson who gained notoriety for blaming in-poor-shape women for ruining their Lululemon yoga pants by rubbing their thighs together too much. “Quite frankly, some women’s bodies just actually don’t work for it [his apparel],” he condescendingly declared on Bloomberg TV.]

At present, Lululemon has the highest sales-per-square-foot of any American apparel retailer. Its pricey workout clothing has become a wardrobe staple, prompting other retailers to launch competing apparel lines to cash in on the growing market.

Lululemon kindled the prevailing fixation on a healthy appearance. Its brand continues to be an elite fitness status symbol for the skinny and wealthy set. More broadly, over the last two decades, Lululemon has redefined how the current generation dresses and lives. The company pioneered the “athleisure” fashion revolution, which has blurred the lines between yoga-and-spin-class outfits and regular street clothes.

Sara Blakely’s Personal Undertaking Morphed Spanx into a Big Business

In a similar vein, entrepreneur Sara Blakely started the Spanx hosiery company after searching for a solution to improve the way she looked in a pair of her cream-colored pants. Blakely started her wildly successful entrepreneurial journey by making sure that the specific type of undergarment she ideated to solve her clothing problem did materialize commercially. From her biography on Wikipedia,

Forced to wear pantyhose in the hot Floridian climate for her sales role, Blakely disliked the appearance of the seamed foot while wearing open-toed shoes, but liked the way that the control-top model eliminated panty lines and made her body appear firmer. For her attendance at a private party, she experimented by cutting off the feet of her pantyhose while wearing them under a new pair of slacks and found that the pantyhose continuously rolled up her legs, but she also achieved the desired result.

Idea for Impact: Learn to Pay Attention to the Subtle Clues to Opportunities All-Around

Many entrepreneurs initially got their start by first recognizing and responding to a personal need or a localized problem and later discovering that they struck a universal chord.

If you want to become an entrepreneur, find out if you can solve a problem that you’ve personally experienced. Uncover opportunities that you may otherwise have missed by asking, “Does this have to be time-consuming, arduous, expensive, or annoying?” “How can I improve on this?” and “Can I do this better or different from the other fellow doing it over there?” Then expand your opportunity by asking, “Who else may be experiencing the same problem?”

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.

Accidents Can Happen When You Least Expect Them: The Overconfidence Effect

September 3, 2019 By Nagesh Belludi Leave a Comment

In the context of decision-making and risk-taking, the “overconfidence effect” is a judgmental bias that can affect your subjective estimate of the likelihood of future events. This can cause you to misjudge the odds of positive/desirable events as well as negative/undesirable events.

As the following Zen story illustrates, experience breeds complacency. When confidence gives way to overconfidence, it can transform from a strength to a liability.

A master gardener, famous for his skill in climbing and pruning the highest trees, examined his disciple by letting him climb a very high tree. Many people had come to watch. The master gardener stood quietly, carefully following every move but not interfering with one word.

Having pruned the top, the disciple climbed down and was only about ten feet from the ground when the master suddenly yelled: “Take care, take care!”

When the disciple was safely down an old man asked the master gardener: “You did not let out one word when he was aloft in the most dangerous place. Why did you caution him when he was nearly down? Even if he had slipped then, he could not have greatly hurt himself.”

“But isn’t it obvious?” replied the master gardener. “Right up at the top he is conscious of the danger, and of himself takes care. But near the end when one begins to feel safe, this is when accidents occur.”

Reference: Irmgard Schlögl’s The Wisdom of the Zen Masters (1976.) Dr. Schlögl (1921–2007) became Ven. Myokyo-ni in 1984, and served as Rinzai Zen Buddhist nun and headed the Zen Centre in London.

Charlie Munger’s Iron Prescription

May 22, 2019 By Nagesh Belludi Leave a Comment

Intellectual inquiry is effortful, and you need a durable internal push to engage in it.

An inflexible approach impedes critical-thinking. I’ve discussed previously (here, here, here, and here) that a sophisticated critical-thinker considers alternative world-views that may cause him/her to philosophize differently.

For example, if you cling rigidly to a “raise taxes on the wealthiest people” position, you are possibly unwilling to contemplate that, among other problems, higher taxes disincentivize productivity, promote economic behaviors to dodge taxes, and contribute to class warfare. Examining all sensible inferences and considering a variety of possible viewpoints or perspectives may help you to arrive at more moderate, practical positions that are conceivably within acceptable limits.

Charlie Munger’s Iron Prescription: Avoid Intense Ideology

One of the central wisdoms of Charlie Munger, Berkshire Hathaway’s Vice-Chairman and the distinguished beacon of multi-disciplinary thinking, is to keep an eye open for dangers that accompany in submitting to a particular ideology.

At his celebrated commencement address to the graduates of the University of Southern California Law School on May 13, 2007, Munger affirmed,

In my mind, I got a little example I use whenever I think about ideology and it’s these Scandinavian canoeists who succeeded in taming all the rapids of Scandinavia and they thought they would tackle the whirlpools in the Aaron Rapids here in the United States. The death rate was 100 percent. A big whirlpool is not something you want to go into and I think the same is true about a really deep ideology.

I have what I call an “iron prescription” that helps me keep sane when I naturally drift toward preferring one ideology over another. And that is I say, “I’m not entitled to have an opinion on this subject unless I can state the arguments against my position better than the people do who are supporting it.” I think only when I reach that stage am I qualified to speak.

…

This business of not drifting into extreme ideology is a very very important thing in life if you want to have more correct knowledge and be wiser than other people. A heavy ideology is very likely to do you in.

In the era of social media and group polarization, it’s easy to slip into confirmation bias by committing yourself to a self-imposed ideology.

As I’ve mentioned previously, studies have shown that associating with likeminded folks can make you even more disdainful of contradictory viewpoints. Nothing will ruin you faster than an ideology burrowing deeper in a closed mind.

Idea for Impact: Nothing deceives you as much as extreme passion

Stay away from intense ideologies until you’ve examined the opposing viewpoint. Don’t ignore the counterevidence. Consider the other side of any thought as carefully as your own.

Postscript: Munger’s other iron prescription concerns avoiding the victim mentality: “Whenever you think that some situation or some person is ruining your life, it is actually you who are ruining your life… Feeling like a victim is perfectly disastrous way to go through life. If you just take the attitude that however bad it is in any way, it’s always your fault and you just fix it as best you can—the so called iron prescription—I think that really works.” See my previous article on Charlie Munger and lessons on adversity.

Four Ideas for Business Improvement Ideas

November 1, 2018 By Nagesh Belludi Leave a Comment

Seek fresh eyes. Ask new employees and interns to make a note of every question they have about how things get done in your organization. If anything—reports, approvals, meetings, reviews—doesn’t seem sensible, let them record those inefficiencies. After a few weeks, when they’ve become familiar with the organization and its workflow, have them reassess and report their observations. The best improvement ideas come from people who aren’t stuck in the established ways.
Notice something? Fix it quickly or delegate. Never walk absentmindedly by something that could be improved. A cluttered instruments cabinet in a warehouse? A loose tile in a walkway? A broken link on your customer service website? Don’t take inconveniences and unpleasant situations for granted.
Explore the outsider’s perspective. Notice how trivial stuff can really frustrate you when you’re standing in line at the Bureau of Motor Vehicles or dealing with a slow bureaucracy? While running errands, do others’ rules, regulations, and procedures annoy you? Bump into something that doesn’t have to be laborious, arduous, expensive, or annoying, but is? Examine if your business imposes any of those inconveniences on your customers.
Make it easy for customers to complain. Seek customer feedback in such a way that it encourages people to share their negative experiences. As I’ve illuminated before, many innovative ideas have their roots in prudent attention to and empathy with customers’ experiences.

Idea for Impact: Problem-finding is one of the most significant—and overlooked—parts of innovation. Learn to pay attention to the subtle clues to opportunities all around.

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Critical Thinking

Awareness and activism are vital to civic duty, but hatred isn’t meaningful activism

Our values, not politicians, should mold the policies and positions we support

Wondering what to read next?

Wondering what to read next?

First-to-Market is often First-to-Fail

Wondering what to read next?

Idea for Impact: Teams Don’t Think—Individuals Do

Wondering what to read next?

Necessity is the Mother of Invention

Difficulties Compel People to Found Creative Solutions to Problems

Wondering what to read next?

How “The Cult of Lulu” Got Started

Sara Blakely’s Personal Undertaking Morphed Spanx into a Big Business

Idea for Impact: Learn to Pay Attention to the Subtle Clues to Opportunities All-Around

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

Intellectual inquiry is effortful, and you need a durable internal push to engage in it.

Charlie Munger’s Iron Prescription: Avoid Intense Ideology

Idea for Impact: Nothing deceives you as much as extreme passion

Wondering what to read next?

Wondering what to read next?