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Lessons from David Dao Incident: Watch Out for the Availability Bias!

August 23, 2021 By Nagesh Belludi Leave a Comment

In the weeks and months after the United Airlines’David Dao incident and the ensuing customer service debacle, news of all kinds of disruptive airline incidents, coldblooded managers, and inconsiderate airline staff showed up everywhere.

The United incident raised everyone’s awareness of airline incidents. Expectedly, the media started drawing attention to all sorts of airline incidents—fights on airplanes, confusion and airports, seats taken from small children, insects in inflight meals, snakes on the plane—affecting every airline, large and small. However, such unpleasant incidents rarely happen, with thousands of flights every day experiencing nothing of the sort.

Parenthetically, the underlying problem that led to the David Dao incident wasn’t unique to United. The incident could have happened at other airlines. All airlines had similar policies regarding involuntary-denied boarding and prioritizing crew repositioning. Every other airline, I’m sure, felt lucky the David Dao incident didn’t happen on their airline.

In the aftermath of the incident, many people vowed to boycott United. Little by little, that negative consumer sentiment faded away while the backlash—and media coverage—over the incident diminished.

Availability bias occurs when we make decisions based on easy or incomplete ideas.

The David Dao incident’s media coverage is an archetypal case of the Availability Bias (or Availability Heuristic) in force. Humans are inclined to disproportionately assess how likely something will happen by how easy it is to summon up comparable–and recent–examples. Moreover, examples that carry a fierce emotional weight tend to come to mind quickly.

The availability heuristic warps our perception of real risks. Therefore, if we’re assessing whether something is likely to happen and a similar event has occurred recently, we’re much more liable to expect the future possibility to occur.

What we remember is shaped by many things, including our beliefs, emotions, and things like intensity and frequency of exposure, particularly in mass media. When rare events occur, as was the case with the David Dao incident, they become evident. Suppose you’re in a car accident involving a Chevy, you are likely to rate the odds of getting into another car accident in a Chevy much higher than base rates would suggest.

If you are aware of the availability bias and begin to look for it, you will be surprised how often it shows up in all kinds of situations. As with many other biases, we can’t remove this natural tendency. Still, we can let our rational minds account for this bias in making better decisions by being aware of the availability bias.

Idea for Impact: Don’t be disproportionately swayed by what you remember. Don’t underestimate or overestimate a risk or choosing to focus on the wrong risks. Don’t overreact to the recent facts.

Wondering what to read next?

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  3. Situational Blindness, Fatal Consequences: Lessons from American Airlines 5342
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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Aviation, Biases, Change Management, Critical Thinking, Decision-Making, Psychology, Thought Process

If You’re Looking for Bad Luck, You’ll Soon Find It

August 16, 2021 By Nagesh Belludi Leave a Comment

Consider a woman who complained that her neighborhood dry cleaner ruined her expensive slacks. “Last month, he spoiled my wool blazer. Last Christmas, he … . It always happens,” she grumbled.

This woman knew she was taking chances with this dry cleaner. She allowed it to happen.

Luck is sometimes the result of taking appropriate action. And, bad luck is sometimes the result of tempting fate.

Say, you’ve been planning for weeks for your next big trip. You got an incredible deal on the day’s very last flight to your destination. On the day of departure, your late-night flight gets canceled. Sure, you’re a victim of back luck—but you invited it. Think about it. Odds are, you’re more likely to have a flight delay or cancellation later in the day because airlines schedule their rosters tightly to maximize aircraft and flight crew utilization. Delays and disruptions from earlier in the day propagate onward to the late flights.

Often, luck has nothing to do with bad luck. “The fault,” as Shakespeare wrote, “is not in our stars, but in ourselves.”

Sometimes you can be your own worst enemy. Don’t self-sabotage yourself by tempting fate.

Idea for Impact: Bad choices beget bad luck

You have to be lucky to get lucky. You have no control over many outcomes in life, but you can always increase the odds of getting lucky by taking appropriate action. More importantly, you can minimize the chance of bad luck by decreasing its odds.

Remember, a good mathematics student never buys a lottery ticket, and if he does, he never grumbles about not winning the jackpot!

Wondering what to read next?

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Filed Under: Mental Models Tagged With: Biases, Critical Thinking, Decision-Making, Luck, Risk, Wisdom

Best/Worst Analysis: A Mental Model for Risk Aversion

August 2, 2021 By Nagesh Belludi Leave a Comment

Dr. Ben Carson, who was part of the Trump Cabinet, established his reputation as a groundbreaking neurosurgeon in the Johns Hopkins medical system. In Take the Risk: Learning to Identify, Choose, and Live with Acceptable Risk (2009,) Carson reflects on fear, hesitation, and facing the risks he took for himself and his patients:

You don’t go into a field that requires cracking people’s heads open or operating on something as delicate as the spinal cord unless you are comfortable with taking risks.

Every day I make critical, split-second decisions that affect the longevity and the quality of other people’s lives. Taking such risks gives me pause. It forces me to think about my own life and the risks I face. Those experiences enable me to move forward and avoid becoming paralyzed by fear. As a result, I probably do a lot of things that more cautious people would never attempt.

Next time you’re fretting over how to proceed in a dicey situation, Carson suggests using a mental model he calls the ‘Best/Worst Risk Analysis.’

Putting on the optimist/pessimist hats and imagining the best-case/worst-case scenarios, ask yourself these questions:

  • What’s the best thing that can happen if I do it?
  • What’s the worst thing that can happen if I do it?
  • What’s the best thing that can happen if I don’t do it?
  • What’s the worst that can happen if I don’t do it?

It’s a variation of Ben Franklin’s humble “pro et contra” (“for and against”) system for decision-making.

Research has shown that this Best/Worst Risk Analysis mental model promotes shared decision-making. In the surgical environment, it helps surgeons organize challenging treatment dialogs to support patients and their families. This mental model helps surgeons communicate by turning the refocus of decision-making conversations from a surgical problem’s uncertainties to discussing treatment alternatives and potential outcomes.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Anxiety, Decision-Making, Mindfulness, Risk, Thinking Tools, Wisdom, Worry

More Data Isn’t Always Better

July 23, 2021 By Nagesh Belludi Leave a Comment

The hype around so-called ‘big data’ seems to have convinced many that unless the data and analytics are ‘big,’ they won’t have a big impact.

In reality, though, your organization can generate tons of value from the prudent use of smallish data.

Furthermore, you just don’t need big data tools such as Hadoop to solve every data analytics challenge you’ll face. In many cases, humble Microsoft Excel is all you’ll want.

More Data Isn't Always Better - Big Data. Often the missing gap isn’t in big data technologies but in data science skills. The rapid rise in your ability to collect data needs to be seconded by your ability to support, manage, filter, and interpret the data.

Idea for Impact: With data, more isn’t necessarily better. Small data can still have a significant impact. Rather than collecting data for the sake of it, identify why you need data and then go get the most meaningful data that can answer the questions you have.

Focus not on whether the data is small or big but on the problem you’re trying to solve.

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

More from Less // Book Summary of Richard Koch’s ’80/20 Principle’

May 10, 2021 By Nagesh Belludi Leave a Comment

The Italian sociologist Vilfredo Pareto (1848–1923) recorded a “maldistribution” between causes and effects in economic statistics. It’s an observable fact that a minority of reasons—nominally around 20%—tends to produce a majority—80%—of the results.

Most Effects Come from Relatively Few Causes

More than a century later, the Romanian-American quality control pioneer Joseph Juran (1904–2008) embraced Pareto’s notion and demonstrated that 80% of all manufacturing quality defects are caused by 20% of reasons. Juran urged managers to identify and address the “vital few” or the “critical few “—the small fraction of elements that account for this disproportionally large fraction of the effect.

This Pareto Law, 80/20 Rule of Thumb, Zipf’s Principle of Least Effort, Juran’s Law of the Vital Few, 80-20 Thinking—call it what you want—permeates every aspect of business and life. Now that you know about it, you’ll start seeing it everywhere.

A fifth of your customers accounts for four-fifths of your sales. 20% of your employees are responsible for the majority of your firm’s productivity. 20% of your stocks will be responsible for 80% of your future gains. You tend to favor 20% of your clothes and wear them 80% of the time. You spend 80% of your socializing time with 20% of your friends. 20% of the decisions you’ve made during your life have shaped 80% of your current life. 80 percent of the wealth tends to be concentrated with 20 percent of the families.

The Pareto principle is a state of nature (the way things happen) and a process (a way of thinking about problems.) The 20% are the sources of the most significant potential impact.

The Remarkable Variance of Contributors and Effects

Richard Koch’s 80/20 Principle: The Secret to Achieving More with Less (1999) elaborates on using this seminal prioritization principle. “The 80/20 Principle asserts that a minority of causes, inputs, or effort usually leads to a majority of the results, outputs, or rewards. … The winners in any field have … found ways to make 20% of effort yield 80% of results.”

Koch explains ad nauseam that most of us work much too hard and produce much less in relation to what could be produced. If trying harder hasn’t worked, perhaps it’s time to try less.

  • Invest your time and effort more wisely. Don’t address the less significant elements. “Most things always appear more important than the few things that are actually more important.” Examine what you do of low value. In other words, eliminate or reduce the 80% of efforts that produce less-significant results.
  • Know when to stop. Once you’ve solved the 20% of the issue to deliver 80% of the impact, any further effort can only achieve diminishing returns.

Idea for Impact: In most areas of human activity, just 20% of things will be worthwhile.

Recommendation: Speed-read Richard Koch’s 80/20 Principle. It’s an excellent reminder that not all effort is equal, so it pays to focus on what matters most.

Embrace the “80-20” frame of mind in everything you do—at work and home. Unless you want to spend every waking hour working, it’s essential to learn how to focus your efforts on the most promising, impactful aspects of what needs to be done.

  • Realize that few things really matter in life, but they count a tremendous amount. These vital things may be challenging to discover and realize, but once you find these things that really matter, they give you immense power—the power that gives you more from less. Spend a disproportionate amount of time and energy making sure these decisions are made well, and you put yourself in the best position you can in the process.
  • If you want to improve your effectiveness at anything, focus only on what matters most. Be extraordinarily selective—spend time resourcefully on the few essentials that matter the most and little or no time on the massive trivia that engulfs most of your time.

Wondering what to read next?

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  4. The Simple Life, The Good Life // Book Summary of Greg McKeown’s ‘Essentialism’
  5. Hofstadter’s Law: Why Everything Takes Longer Than Anticipated

Filed Under: Effective Communication, Mental Models, Sharpening Your Skills Tagged With: Assertiveness, Decision-Making, Getting Things Done, Goals, Negotiation, Perfectionism, Targets, Time Management

Don’t Ruminate Endlessly

May 6, 2021 By Nagesh Belludi Leave a Comment

Say you’re in the market for a laptop but just can’t bring yourself to pick out the right model. You’ve spent countless hours comparing different models, visiting various websites, reading reviews, exploring stores, and researching all the available features, even though you’re unlikely to use most of them. Draining indeed!

Too Much Choice Can Stress You Out

Choice may be a great “problem” to have. Books such as Barry Schwartz’s The Paradox of Choice (2004) and Sheena Iyengar’s The Art of Choosing (2011) have exposed how increased choice may be bad for you.

Sometimes, the only thing worse than never having a choice is always having to choose.

Overthinking can trip you up. You can get confused when you have too much information or overthink about what you should be doing. Behavioral scientists such as Schwartz and Iyengar call this phenomenon “choice paralysis.”

Combat your indecisive nature by limiting your search, say, by establishing a cut-off time. Tell yourself that you’ll look around for two hours and then you’ll buy the best laptop you’ve come across in that time.

Use opportunity cost as a filter. Don’t poke around the internet for a better deal on an airfare or follow an eBay auction if you’re saving less than, say, $15 per hour spent deal-hunting.

Idea for Impact: Choose to Reduce Choice. Simplify and Prioritize.

Overthinking everything can make everyday life a challenge. Unnecessary analysis costs time and money and causes psychological wear.

The benefits of forgoing further rumination and acting on available information often offset the from needing to do everything perfectly.

  • Choosing when to choose is important. Rethink which choices in your life really matter and focus your time and effort there. Life is all about values and priorities.
  • In decision-making, simple beats complex. Reject complexity and accept that you’ll be sure that you’ve made the right choice. Make a decision, and then change course if it ends up being horribly wrong. As Amazon founder Jeff Bezos has written in his 2016 letter to shareholders, “If you’re good at course correcting, being wrong may be less costly than you think.”

Wondering what to read next?

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  3. Let Go of Sunk Costs
  4. Avoid Decision Fatigue: Don’t Let Small Decisions Destroy Your Productivity
  5. The Simple Life, The Good Life // Book Summary of Greg McKeown’s ‘Essentialism’

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Assertiveness, Decision-Making, Discipline, Perfectionism, Procrastination, Simple Living, Thinking Tools, Thought Process, Time Management, Wisdom

Ask for Forgiveness, Not Permission

April 20, 2021 By Nagesh Belludi Leave a Comment

A long time ago, I heard the managerial maxim, “you will move as fast as you can make decisions.” Amen to that.

That complements the mantra “’tis better to seek forgiveness than to ask permission”—that’s the oft-repeated rallying cry of entrepreneurial thinking.

You need to know when you shouldn’t—and can’t—wait for someone else’s approval to do the things you need to do to succeed. Every time you ask for buy-in, approval, or agreement, you’ll slow yourself down.

Depending on what’s at stake, you’ve got to know when moving forward does need consent. As with everything, you want to know your manager, team, partner, or spouse, how they operate, and their expectations for the group effort. If something’s an important-enough decision with high stakes, they’ll want to be in the loop.

Idea for Impact: Live speed. Where possible, don’t let dilly-dallying for permission endanger your decision-making success. It’s not about taking advantage of situations but about knowing when to push the boundaries. Where possible, aggressively move forward on your own and “get it done.”

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Filed Under: Effective Communication, Managing People, Mental Models Tagged With: Change Management, Conflict, Conversations, Decision-Making, Getting Along, Procrastination, Social Skills, Teams, Thought Process

Why Your Judgment Sucks

April 5, 2021 By Nagesh Belludi Leave a Comment

Israeli-American psychologist Daniel Kahneman’s bestselling Thinking, Fast and Slow (2011) describes the finer points of decision-making. It’s an engaging showcase of the innate biases of the mind and unthinking approaches to decision-making.

Human Beings are Intuitive Thinkers

Kahneman is a behavioral economics pioneer and the winner of the 2002 Nobel Memorial Prize in Economic Sciences. His lifelong collaboration with Amos Tversky (1937—96) has molded humans’ thinking about human error, risk, judgment, decision-making, happiness, and more. Tversky died in 1996, so he did not share in the Nobel.

Thinking, Fast and Slow explores what Kahneman calls the “mind’s machinery” as two coexisting modes of thought (“fast and slow,” as the title says.) Kahneman splits the brain into two radically divergent ways, employing a two-tier model of cognition.

  • System One makes judgments instantly, intuitively, and automatically, as when a cricket batsman decides whether to cut or pull. A significant part of System One is “evolved heuristics” that lets us read a person’s expression in a microsecond from a block away, for example. And it can’t be switched off. System One’s thinking is fast and effortless. It often jumps to the wrong conclusions, relies on hunches and biases, and perhaps overconfident.
  • System Two is slower, conscious, calculated, and deliberate, like long division. Its operations require attention. System Two is what we think of as “thinking”—slow, tiring, and essential. It’s what makes us human. Even if System Two believes it is on top of things, System One makes many of our decisions.

System One Isn’t All Flawed

In a world that often necessitates swift judgment and rapid decision-making (e.g., fight or flight,) a person who solely relies on deliberative thinking (System Two) wouldn’t last long. Doctors and firefighters, for example, through training and repetition, develop what’s called “expert intuition” that helps them identify patterns and impulsively devise the right response to a complex emergency.

We as humans are not simple rational agents. Consequently, our thinking boils down to two “Systems” of thinking/processing. As we strive to make better decisions in our work and personal lives, it benefits us to slow down and use a more deliberate System 2 way of thinking. Learn to doubt your fast/quick way of thinking!

Human Intuition is Imperfect

Thinking, Fast and Slow is an eye-opener in various ways. It can be a frightening catalog of the biases, shortcuts, and cognitive illusions that come to err our judgment—the endowment effect, priming, halo effect, anchoring effect, conjugation fallacy, the narrative fallacy, and the rest. Such mental processes are not intrinsically flawed; they are heuristics—rules of thumb, stereotypes, shortcuts. They are strategies the mind embraces to find a path in a tsunami of data.

Kahneman teaches how to recognize situations that require slower, deliberative thinking. Kahneman asserts that the value of the book is to give people the vocabulary to spot biases and to criticize the decisions of others: “Ultimately, a richer language is essential to the skill of constructive criticism.”

Recommendation: Read Daniel Kahneman’s Thinking, Fast and Slow (2011.) As one of the most popular non-fiction books in the last decade, it’ll open your eyes to the quirky and error-prone ways in which you can be influenced in ways you don’t suspect.

The conceptions behind behavioral economics make Thinking, Fast and Slow a laborious read. Many chapters are bogged down by hair-splitting details of his rigorous scientific work and academic gobbledygook. It’s a commanding survey of this field, but it’s superbly written and intelligible to non-experts.

Complement with Rolf Dobelli’s accessible The Art of Thinking Clearly (2013.)

Wondering what to read next?

  1. The Unthinking Habits of Your Mind // Book Summary of David McRaney’s ‘You Are Not So Smart’
  2. Question the Now, Imagine the Next
  3. Lessons from David Dao Incident: Watch Out for the Availability Bias!
  4. Situational Blindness, Fatal Consequences: Lessons from American Airlines 5342
  5. Be Smart by Not Being Stupid

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Biases, Critical Thinking, Decision-Making, Psychology, Thinking Tools, Thought Process

The Unthinking Habits of Your Mind // Book Summary of David McRaney’s ‘You Are Not So Smart’

April 1, 2021 By Nagesh Belludi Leave a Comment

Psychologists have argued that many cognitive biases are rooted in mental shortcuts. They are heuristics—rules of thumb, stereotypes, instincts—that help you make sense of the world. They aren’t intrinsically flawed, but, they’re often quirky and error-prone. Your mental models can affect you in ways that you don’t suspect.

David McRaney’s You Are Not So Smart (2011) suggests a brief—if hurried—tour of 48 cognitive biases that can deceive you. Based on the author’s popular blog, the book is a satisfying assessment of understanding people’s—and your own—behavior a little bit better.

There is a growing body of work coming out of psychology and cognitive science that says you have no clue why you act the way you do, choose the things you choose, or think the thoughts you think. … From the greatest scientist to the most humble artisan, every brain within every body is infested with preconceived notions and patterns of thought that lead it astray without the brain knowing it. So you are in good company.

Each chapter starts with a brief statement of a misconception followed by the fact. Then a synopsis of a related behavioral study shows how our brains produce the counterpart deception and the truth. Some of the less-known preconceptions discussed are,

  • Confabulation. You tend to create unreliable narratives to explain away your choices post hoc. These reassuring perceptions can make you think you’re more rational than you actually are.
  • Groupthink. People tend to fall in with the rest of the group to minimize conflict and foster group cohesiveness and social acceptance. No one wants to be the one person with a dissenting opinion.
  • Social Loafing. That others in a team will pick up your slack may induce you to put in less effort if you think you’ll get away with it. This can curb your own performance, even if you’re a conscientious, hardworking type. If you don’t feel your participation will be noticed, why bother putting in the effort?
  • Availability Heuristic. You’re likely to estimate the likelihood of an event based on your ability to recall immediate and easily accessed examples.
  • Fundamental Attribution Error. You tend to assign external reasons for your own behavior but internal motives to other people. For instance, if you’re late for a meeting, you’ll blame it on public transport. If someone else is running late for a meeting with you, you’ll blame it on her poor time-keeping.

Recommendation: Read David McRaney’s You Are Not So Smart. It’s an engaging, easy-to-read primer to how the mind works. Read it as a lead up to Daniel Kahneman’s bestselling dissertation Thinking, Fast and Slow (2011; summary forthcoming.)

Idea for Impact: Once you learn to spot the cognitive biases we all grapple with, they’re easier to overcome.

Wondering what to read next?

  1. Why Your Judgment Sucks
  2. Lessons from David Dao Incident: Watch Out for the Availability Bias!
  3. The Upsides of Slowing Down
  4. Situational Blindness, Fatal Consequences: Lessons from American Airlines 5342
  5. Be Smart by Not Being Stupid

Filed Under: Mental Models, Sharpening Your Skills Tagged With: Biases, Critical Thinking, Decision-Making, Psychology, Thinking Tools, Thought Process

This Hack Will Help You Think Opportunity Costs

March 29, 2021 By Nagesh Belludi Leave a Comment

Making decisions is all about opportunity costs. For instance, every time you spend money to get something, you should ask yourself what else, perhaps of better value, you could get with that money—now or later.

The problem is, when forced to choose between something immediate and concrete and something else that’s comparatively abstract and distant, the opportunity cost could lack clarity.

Duke University behavioral economist Dan Ariely proposes the notion of “anti-goals” to help examine the trade-offs you’re forced to make. Ariely encourages pairing goals such that if you satisfy one, you’ll impede the other. For example, when choosing to spend $100 on an evening out today, you can consider a tangible anti-goal—say, saving for the family’s summer vacation—that’ll be held back.

Idea for Impact: Thinking about what you want to avoid—the anti-goal—is a potent tool. It allows you to focus on things that really matter.

Wondering what to read next?

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  4. The Simple Life, The Good Life // Book Summary of Greg McKeown’s ‘Essentialism’
  5. What Happens When You Talk About Too Many Goals

Filed Under: MBA in a Nutshell, Mental Models, Sharpening Your Skills Tagged With: Balance, Decision-Making, Discipline, Goals, Negotiation, Problem Solving, Risk, Simple Living, Targets

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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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