Decision-Making

When Getting a Great Deal Might Not Be Worth Your Time

November 20, 2015 By Nagesh Belludi 1 Comment

Most consumers love a deal. However, some of us spend untold time searching for the best possible bargains.

If you’re one of these obsessive bargain-hunters, unless you derive some hedonistic pleasure in snatching deals, you may not have considered the possibility that you’re putting too low a value on your time.

Perhaps you could benefit from some perspective: the time you spend hunting for deals and trying to save that last penny may not be worth it. While you can quantify how much money you save by shopping around, you may not realize the opportunity costs of deal-hunting: it often comes at the cost of your time.

You may have a vague sense of the fact that “time is money,” but this might not be telling enough. You can find the approximate value of an hour of your time by dividing your annual income by 2,000 (or, more easily, by disregarding the last three digits of your annual income and dividing the result by 2.)

Obsessive Bargain-Hunters, Coupon Craziness Set a cost threshold based on the value of your time, say $15 per hour, for deal-hunting. If you’re not saving at least this amount, deal-hunting might just waste your time and money. So, refrain from scouring the internet for a better deal on a weeklong vacation or bidding on eBay if you’re not saving $15 per hour. Likewise, don’t drive across town to Costco just to save a dime per gallon on 20 gallons of gas.

I’ve written previously that life is all about values and the priorities you assign to those values. Therefore, decide which choices in your life really matter and focus your time and energy there. Let numerous other opportunities pass you by.

Another part of leading a wise and meaningful life is not always seeking the best but instead making good-enough choices about the things that matter and not concerning yourself too much about the things that don’t.

Idea for Impact: Don’t spend more time on a task unless it really warrants this in terms of “time-is-money.” As the American Philosopher Henry David Thoreau said, “The price of anything is the amount of life you exchange for it.”

How to Make Tough Choices // Book Summary of Suzy Welch’s 10-10-10 Rule

November 13, 2015 By Nagesh Belludi 1 Comment

In “10-10-10”, Suzy Welch offers a simple, straightforward thought process for decision-making.

The fundamental premise of Welch’s “10-10-10 Rule” is that our decisions define us. Each of our choices has consequences, both now and in the future.

Welch advocates making decisions thoughtfully by considering the potential positive and negative consequences in the immediate present, the near term, and the distant future: or in 10 minutes, 10 months, and 10 years.

… there is nothing literal about each ten in 10-10-10. The first 10 basically stands for “right now” as in, one minute, one hour, or one week. The second 10 represents that point in the foreseeable future when the initial reaction to your decision has passed but its consequences continue to play out in ways you can reasonably predict. And the third 10 stands for a time in a future that is so far off that its particulars are entirely vague. So, really, 10-10-10 could just as well be referring to nine days, fifteen months, and twenty years, or two hours, six months, and eight years. The name of the process is just a totem meant to directionally suggest time frames along the lines of: in the heat of the moment, somewhat later, and when all is said and done.

Welch reiterates that decision-making should involve a clear understanding of all the attributes and the long-term implications of your dilemma, crisis, problem, or question.

10-10-10 does have a way of galvanizing people into forward-thinking action and out of a fixation on the present. … The third 10 in 10-10-10 has a powerful way of mitigating that tendency. It helps us decide whether (or not) it’s worth it to endure short-term flame-outs in the service of our larger, more deeply held goals in life.

The bulk of the book offers trite, protracted, and tiresome examples of people using 10-10-10 to make decisions related to friendships, dating, marriage, children, work, and career and life planning.

Welch explains that the perspective that accompanies considering our decisions’ immediate and long-term consequences can be very helpful.

“By having us methodically sort through our options in various time frames, the process … forces us to dissect and analyze what we’re deciding and why, and it pushes us to empathize with who we might become.”
“The process invariably led me to faster, cleaner, and sounder decisions.”
“The process also gave me a way to explain myself to all the relevant “constituents”—my kids or parents or boss with clarity and confidence.”

Recommendation: Skim. If you must, read the first two chapters for a long-form description of what I’ve summarized. You’ll find little of value in the rest of the chapters. Alternatively, read The Oprah Magazine article in which Welch first introduced her 10-10-10 idea.

Postscript: In 2002, Suzy Welch was launched into spotlight after getting fired as an editor of the Harvard Business Review following a scandalous affair with former General Electric CEO Jack Welch, who was still married to his second wife. Subsequently, Jack’s enraged wife revealed embarrassing details of his post-retirement compensation from General Electric, claimed a significant share of his wealth, and divorced him. Suzy and Jack got married in 2004 and have since authored two best-selling books, “Winning” and “The Real-Life MBA”.

Make a Difficult Decision Like Benjamin Franklin

October 30, 2015 By Nagesh Belludi Leave a Comment

Benjamin Franklin, American inventor, journalist, printer, diplomat, author, and founding father Benjamin Franklin (1706–1790) was renowned for his lifelong quest for self-improvement, as he thoroughly documented in his “Autobiography” (1791.)

In my previous article on Benjamin Franklin’s “Plan for Conduct,” I noted that Franklin had a methodical mindset.

As a young adult, Franklin developed a method for making complex decisions. At age 66, in a letter to his close friend Joseph Priestley (a London chemist who, in 1774, isolated the element oxygen,) Franklin described this method.

In this letter written on September 19, 1772, Franklin mentions one of the key challenges of fact-collecting and decision-making:

In the affair of so much importance to you, wherein you ask my advice, I cannot for want of sufficient premises, advise you what to determine, but if you please I will tell you how. When these difficult cases occur, they are difficult chiefly because while we have them under consideration all the reasons pro and con are not present to the mind at the same time; but sometimes one set present themselves, and at other times another, the first being out of sight. Hence the various purposes or inclinations that alternately prevail, and the uncertainty that perplexes us.

Make a Difficult Decision Like Benjamin Franklin - T-charts

Then, Franklin describes how to weigh the “pro et contra” (Latin for “for and against”) in any situation:

To get over this, my way is, to divide, half a sheet of paper by a line into two columns, writing over the one pro, and over the other con. Then during three or four day’s consideration I put down under the different heads short hints of the different motives that at different times occur to me for or against the measure. When I have thus got them all together in one view, I endeavor to estimate their respective weights; and where I find two, one on each side, that seem equal, I strike them both out: if I find a reason pro equal to some two reasons con, I strike out the three. If l judge some two reasons con equal to some three reasons pro, I strike out the five; and thus proceeding I find at length where the balance lies; and if after a day or two of farther consideration nothing new that is of importance occurs on either side, I come to a determination accordingly. And though the weight of reasons cannot be taken with the precision of algebraic quantities, yet when each is thus considered separately and comparatively, and the whole lies before me, I think I can judge better, and am less likely to make a rash step; and in fact I have found great advantage from this kind of equation, in what may be called moral or prudential algebra.

Ben Franklin’s humble tool for decision-making is now known as the T-Chart. It is widely used to examine two opposing facets of a topic, object, situation, circumstance, or event under consideration. T-Charts are particularly helpful for analyzing advantages and disadvantages, as well as strengths and weaknesses.

Recommended Reading: For a great collection of the writings of Benjamin Franklin, including his “Autobiography”, see Walter Isaacson’s “A Benjamin Franklin Reader”.

The Truth Can Be Bitterer than a Sweet Illusion

October 6, 2015 By Nagesh Belludi Leave a Comment

Bitter Pill - The truth can be bitterer than a sweet illusion

In 1998, as CEO of 1-800-Flowers.com, Jim McCann could not bring himself to let one of his senior executives go. McCann and the rest of his leadership team understood that this senior executive was neither right for the job nor performing well.

For McCann, the biggest hindrance was that he was friends with this executive and had spent time with his family. McCann agonized over being heartless to a friend and couldn’t bring himself to dismiss the executive.

Unexpectedly, McCann met General Electric’s CEO Jack Welch at a dinner party and discussed this dilemma. Welch advised, “When was the last time anyone said, ‘I wish I had waited six months longer to fire that guy?’ Always err on the side of speed.”

Urged by Welch’s counsel, McCann deftly dealt with the situation. Initially, McCann felt that being tough was unjustifiable and was pained by the loss of a friendship. He was hurt but relieved because firing the executive was the right decision for everyone.

On a happier note, the former executive soon got a new job that better suited his background. Their friendship stood the test of time and they eventually made up.

Firing is awful—indeed, it’s the most difficult thing managers have to do, especially for those who encourage camaraderie and treasure loyalty. As in McCann’s case, if you think an employee isn’t up to par and you may fire him/her within the next year, it’s always better for management, the employee in question, and other employees to take the right actions promptly.

Idea for Impact: Don’t Be Conflict-Avoidant

Confront the Bitter Truth The truth is that the truth hurts sometimes. Even if the truth can be bitterer than a sweet illusion, delaying action will only make things harder.

Making the right decision and taking the action may involve unpleasant confrontations. Though conflict can be emotionally distressing, being decisive and doing what’s best eventually works out well for everyone.

Instead of being hyperconscious of other’s possible judgments and avoiding conflict, do difficult things as soon as practically possible.

When dealing with difficulties involving others, there is nothing more insidious than unresolved conflict and inaction. Read “Five Dysfunctions of a Team” (by Patrick Lencioni) to understand how to engage in conflict in a way that nurtures (rather than harms) relationships. Also, read “Crucial Conversations” (by Kerry Patterson, et al.) on how to conduct effective discussions by stating the facts, speculating possible remedies, and then skillfully leading the other person to a course of action. Stick with facts to reduce defensiveness. Have the other person develop and commit to a course of action on his/her own.

Lessons from the Princeton Seminary Experiment: People in a Rush are Less Likely to Help Others (and Themselves)

June 16, 2015 By Nagesh Belludi 3 Comments

Vincent van Gogh's The Good Samaritan (after Delacroix)

In the parable of the Good Samaritan (Luke 10:29–37 in the New Testament,) a Samaritan helps a traveler assaulted by robbers and left half dead by the side of the road. Prior to the Samaritan, a priest and a Levite pass the injured traveler and fail to notice him. Conceivably, the priest and Levite’s contempt was because they didn’t sincerely follow those same virtues they espoused as religious functionaries. Possibly, they were in a hurry or were occupied with busy, important—even religious—thoughts. Perhaps the Samaritan was in less of a hurry since he wasn’t as socially important as the priest or Levite and was therefore not expected to be somewhere.

The Princeton Seminary Experiment

Inspired by the parable of the Good Samaritan, Princeton social psychologists John Darley and Dan Batson conducted a remarkable experiment in the 1970s on time pressure and helpful behavior. They studied how students of the Princeton Theological Seminary conducted themselves when asked to deliver a sermon on the parable of the Good Samaritan.

The students were to give the sermon in a studio a building across campus and would be evaluated by their supervisors. The researchers were curious about whether time pressure would affect the seminary students’ helpful nature. After all, the students were being trained to become ordained priests; they are presumably inclined to help others.

As each student finalized his preparation in a classroom, the researchers inflicted an element of time constraint upon them by giving them one of three instructions:

“You’re late. They were expecting you a few minutes ago…You’d better hurry. It shouldn’t take but just a minute.” This was the high-hurry condition.
“The (studio) assistant is ready for you, so please go right over.” This was the intermediate-hurry condition.
“It’ll be a few minutes before they’re ready for you, but you might as well head on over. If you have to wait over there, it shouldn’t be long.” This was the low-hurry condition.

As each student walked by himself from the preparation classroom to the studio, he encountered a ‘victim’ in a deserted alleyway just like the wounded traveler in the parable of the Good Samaritan. This victim (actually an associate of the experimenters) appeared destitute, was slouched and coughing and clearly in need of assistance. The seminarians were thus offered a chance to apply what they were about to preach.

“Conflict, rather than callousness, can explain their failure to stop.”

Researchers were interested in determining if their imposed time pressure affected the seminarians’ response to a distressed stranger. Remarkably, only 10% of the students in the high-hurry situation stopped to help the victim. 45% of the students in the intermediate-hurry and 63% of the students in the low-hurry situations helped the victim.

The researchers concluded, “A person not in a hurry may stop and offer help to a person in distress. A person in a hurry is likely to keep going. Ironically, he is likely to keep going even if he is hurrying to speak on the parable of the Good Samaritan, thus inadvertently confirming the point of the parable… Thinking about the Good Samaritan did not increase helping behavior, but being in a hurry decreased it.”

In light of their training and calling, the seminarians’ failure of bystander intervention is probably not due to indifference, self-centeredness, or contempt. (Compare with the plot of the series finale of American sitcom Seinfeld, where Jerry and friends are prosecuted for failure of duty to rescue.) The dominant cause is time pressure. Most of the students who believed they had enough time to stop did so. In contrast, the vast majority of those who thought they were late did not stop to help. In other words, the perception of time pressure or “having limited time” resulted in behaviors incongruent to their education and career: the devotion to help others. Time pressure triggered these well-intentioned students to behave in ways that, upon reflection, they would find disgraceful. The weight of a time constraint caused the students to put their immediate concern of being on time before the wellbeing of someone in need.

We’re in such hurry that we don’t stop to help ourselves

“I’m Late, I’m Late for a very important date,
No time to say hello. Goodbye.
I’m late, I’m late, I’m late, and when I wave,
I lose the time I save.”
—White Rabbit in the Disney musical “Alice in Wonderland” (1951)

The Princeton Seminary Experiment offers an even more personal lesson. As the researchers in this experiment expound, when we speed up and feel rushed, we experience a phenomenon known as “narrowing of the cognitive map.” That is, we miss details, we are not present enough in the moment to notice what is really important and we do not make the most beneficial choices for ourselves.

As we make our way through life, not only do we not stop to help others—we also do not stop to help ourselves. We neglect our own needs. We fail to nurture ourselves. We surrender, we settle, we lose hope. We compromise ourselves and become what we often settle for.

Our noisy world and busy lives constantly make us hurry as somebody always depends on us being somewhere. We constantly rush from place to place as if our lives depended upon it. We rush while doing just about everything. We are at the mercy of commitments often imposed by others.

Life moves quickly. And we’ll have missed it.

We fail to nurture ourselves We’re too busy, we’re too hurried and we’re too rushed. When people place demands on our time, our first resort is to cut out that which is most valuable. We are so busy meeting deadlines that we cannot make time for our loved ones. We abandon physical exercise to get to meetings on time. We avoid medical checkups critical to our well-being. We engage in behaviors that can put ourselves at risk for negative consequences in the future.

As our world continues to accelerate and our pace of life picks up speed, the clock’s finger turns inescapably. Life moves on by quickly, and soon enough we’ll have missed it entirely.

Idea for Impact: Be ever-conscious of the fact that time is the currency of your life

The German theologian and anti-Nazi descendent Dietrich Bonhoeffer (1906–1945) wrote in his “Letters and Papers from Prison”, “As time is the most valuable thing that we have, because it is the most irrevocable, the thought of any lost time troubles us whenever we look back. Time lost is time in which we have failed to live a full human life, gain experience, learn, create, enjoy, and suffer; it is time that has not been filled up, but left empty.”

Make the best use of your time. Interrupt your busy life to help yourself by living more fully in the present. Nurture yourself. Your needs belong to the top.

Seven Ways to Motivate Yourself

April 7, 2015 By Nagesh Belludi Leave a Comment

Most people often know what they should do, but can’t seem to make themselves follow through. Here are seven quick and easy ways that might help you get motivated.

Be decisive. Avoid analysis paralysis. The best way to get unstuck is to start somewhere. Don’t wait for the right answer and the golden path to present themselves. Focus on action, which will get you started and build momentum. You can adjust your course of action later. See my previous article: “When in Doubt, Do.”
Avoid the desire to prove yourself. The need to prove yourself to others can be off-putting because you may foresee them disapproving of your work. Let go of the need to prove yourself to everyone else, and free yourself to accomplish what matters most to you. Overcome the fear of failure. Consider low-risk actions.
Develop a Plan B. The most successful people are those who acknowledge when their current plans aren’t working and switch to Plan B.
Accelerate. If things seem under control, you are probably not approaching your goal quickly enough.
If you have made mistakes, don’t be shackled by regret. Things will eventually work out. If you are chained up by a worrisome activity and can’t seem to make progress, switch to another productive activity. Try my ’10-minute Dash’ technique to beat procrastination.
Play favorite scenes in your mind. Envisioning triumph, moments with a loved one or images of playing with a pet have an incredible ability to inspire you.
Try something new and befriend the unfamiliar. Break away from your comfort zone. You will only grow when you let go of discomfort, explore a different path, and try something new.

When in Doubt, Do

February 20, 2012 By Nagesh Belludi 1 Comment

One of the most insidious obstacles to achievement is our tendency to give in to the pessimistic voices in our heads that advocate caution and forethought before making decisions. Instead of accepting failure as an inherent possibility in any undertaking, we tend to espouse inaction in order to weigh every fact against possible outcomes. We are thus predisposed to devising excuses for our indolence.

Admittedly, further deliberation is justified in some cases, but with a vast majority of our decisions, we tend to overestimate the stress we might experience after making a difficult choice. The longer we spend on making a decision, the less productive we are. Beyond a reasonable amount, obsessing over choices causes analysis paralysis, as in the fable of the fox and the cat.

Idea for Impact: No good comes from hesitation and inaction. The only things you will regret in the future are the things you don’t do today. So, instead of dragging it out, act decidedly on an opportunity before it ceases to be one. Take a few low-risk steps and watch your confidence grow. The consequences are likely to be far less extreme than the cost of comfortable inaction.

Follow the “10-Minute Dash” technique to get a task going and overcome procrastination.

General Electric’s Jack Welch on Acting Quickly

March 9, 2007 By Nagesh Belludi Leave a Comment

General Electric's Jack Welch on Acting Quickly

Jack Welch was the Chairman and CEO of General Electric (GE) from 1981 to 2001. During Welch’s twenty-year tenure, GE grew into one of the largest and most admired companies in the world. Jack Welch is widely recognized as one of the greatest business leaders of our time. In 1999, Fortune magazine named him the ‘Manager of the Century.’

In an interview with Spencer Stuart executive headhunters Thomas Neff and James Citrin for the book “Lessons from the Top”, Jack Welch regrets not taking action quickly during his tenure at General Electric.

I think the biggest mistake I made is a fundamental one. I went too slow in everything I did. … If I had done in two years what took five, we would have been ahead of the curve even more.

You rarely do things too fast. If you think about your life and the decisions you’ve made, you can’t come up with too many where you said, “I wish I took another year to do it.” But you can sure come up with a list where you say, “I wish I had done a bunch of things six months earlier.”

Call for Action

Procrastinators sabotage themselves. However, procrastination is a learned behavior and therefore can be unlearned.

In all spheres of life, competition has transitioned from “big-eat-small” to “fast-eat-slow.” Good ideas are relatively easy to come up with. However, quick and efficient execution is primary to the success of these ideas. When a hundred people probably have the same idea, execution in a fast timeframe is just about the only thing that matters.

Are you holding back on your ideas? Do the tasks look daunting? Do you lack confidence? Are you uncertain of the direction or afraid of failure? How can you overcome these hesitations? Develop a set of ideas to reach your goals, prioritize them, and commence working on your ideas right away. Why delay?

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Decision-Making

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Idea for Impact: Don’t Be Conflict-Avoidant

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The Princeton Seminary Experiment

“Conflict, rather than callousness, can explain their failure to stop.”

We’re in such hurry that we don’t stop to help ourselves

Life moves quickly. And we’ll have missed it.

Idea for Impact: Be ever-conscious of the fact that time is the currency of your life

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Call for Action

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