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Innovation

Fall in Love with the Problem, Not the Solution

March 25, 2022 By Nagesh Belludi Leave a Comment

Fall in Love with the Problem, Not the Solution Entrepreneurs, don’t get so excited talking about your solution that you forget to emphasize how it solves a problem at all.

Which problem are you solving for the user? What pain-point are you alleviating? Why is your solution relevant to your customers? How will it make their life easier, faster, and cheaper?

After all, every great company starts by solving a painful problem. Focus more on that problem when you’re selling. Not only will this persuade your investors and customers, but it also rallies your team around a shared understanding of the problem and prepares you to ask for the level of resources it should receive.

Idea for Impact: Sell the problem first, not your idea. Often, jumping too quickly to a solution makes you lose sight of the nuances of the problem.

Wondering what to read next?

  1. The #1 Clue to Disruptive Business Opportunity
  2. Make ‘Em Thirsty; or, Master of the Art of the Pitch
  3. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  4. Always Be Ready to Discover What You’re Not Looking For
  5. Creativity & Innovation: The Opportunities in Customer Pain Points

Filed Under: Mental Models, The Great Innovators Tagged With: Creativity, Entrepreneurs, Innovation, Persuasion, Problem Solving, Thinking Tools

Ideas Evolve While Working on Something Unrelated

March 10, 2022 By Nagesh Belludi Leave a Comment

In the ’90s, Japanese conglomerate Hitachi, through its subsidy Hitachi-Omron Terminal Solutions, introduced the Clean ATM, which cleaned the bank notes during transactions. The Baltimore Sun (11-Dec-1996) notes,

Hitachi has turned its talents to money-laundering of a literal kind, with an automated teller machine that sterilizes and irons yen notes before dispensing them.

Hitachi did not set out to sanitize the money; its engineers were trying to solve the problem of crumpled bills, which tended to jam machines, a company spokesman says. They solved the problem by running the bills through rollers heated to 392 degrees [Fahrenheit, 200 degrees Celsius]—any hotter would singe paper money—and discovered that the process also killed bacteria.

Idea for Impact: Serendipity is central to the creative process. Many ideas evolve when you’re working on something unrelated. Always be ready to discover what you’re not looking for.

Wondering what to read next?

  1. Always Be Ready to Discover What You’re Not Looking For
  2. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  3. The #1 Clue to Disruptive Business Opportunity
  4. Make ‘Em Thirsty; or, Master of the Art of the Pitch
  5. How to Bring Your Ideas to Life

Filed Under: Business Stories, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Innovation, Luck, Problem Solving, Thinking Tools

Many Creative People Think They Can Invent Best Working Solo

January 19, 2022 By Nagesh Belludi Leave a Comment

Many Creative People Think They Can Only Create Working Solo

Apple co-founder Steve “Woz” Wozniak writes in his memoir, iWoz: Computer Geek to Cult Icon: How I Invented the Personal Computer, Co-Founded Apple, and Had Fun Doing It (2006):

Most inventors and engineers I’ve met are like me—they’re shy and they live in their heads. They’re almost like artists. In fact, the very best of them are artists. And artists work best alone—best outside of corporate environments, best where they can control an invention’s design without a lot of other people designing it for marketing or some other committee. I don’t believe anything really revolutionary has ever been invented by committee… I’m going to give you some advice that might be hard to take. That advice is: Work alone.

Teams aren’t automatically better at creativity. In what’s termed “collaborative inhibition,” everyone needs to be happy, so team members talk and talk until they’ve reached a consensus on a decision which is usually the lowest common denominator—something tepid that everyone, worn out from the prolonged discussion, can endorse.

Idea for Impact: The best creative decisions often reflect a unique, opinionated perspective. Look for ways to increase organizational creativity by building better environments in which individual creativity can thrive.

Wondering what to read next?

  1. The Myth of the First-Mover Advantage
  2. How to Stimulate Group Creativity // Book Summary of Edward de Bono’s ‘Six Thinking Hats’
  3. Consensus is Dangerous
  4. The Curse of Teamwork: Groupthink
  5. Overcoming Personal Constraints is a Key to Success

Filed Under: Managing People, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Entrepreneurs, Innovation, Meetings, Social Dynamics, Teams, Thought Process

Invite Employees to Contribute Their Wildest Ideas

December 13, 2021 By Nagesh Belludi Leave a Comment

When Hewlett-Packard (HP) Norway appointed Anita Krohn Traaseth managing director in 2012, she implemented a “speed date the boss” program. She invited every employee from every organization level for an informal, five-minute conversation based on three themes. She encouraged people to bring their big ideas on innovating individually and collectively.

  • Who are you, and what do you do at HP?
  • Where do you think we should change, and what should we keep focusing on?
  • What do you want to contribute beyond fulfilling your job responsibilities? Or, do you have a talent or skill you don’t get to use now in your position?

Invite Employees to Contribute Their Wildest Ideas - Speed Date the Boss

Everyone’s an Innovator: Ramp up creativity with your frontline employees

Krohn Traaseth’s initiative defined the roadmap for her tenure. It pushed HP to become one of Norway’s top workplaces within three years. HP Norway improved every major organizational performance measure, such as staff turnover, customer satisfaction, top-line growth, and bottom-line performance.

Not only that, her discussions uncovered that there were 30 skilled musicians on her payroll. HP Norway formed a band, which played live to 1,800 company executives in Barcelona in 2013, gaining better visibility to her Norwegian outpost.

Following Krohn Traaseth’s success, other HP divisions and employers have now introduced the concept of ‘Speed Date the Boss’ initiatives in other countries.

Idea for Impact: Value the frontline people in your organization as talented assets, not cheap cogs.

Krohn Traaseth’s program was so successful because, as the top boss, she showed that she was willing to listen. She also openly modeled her willingness to listen to her management teams and foster their engagement.

  • When employees see the boss willing to receive honest feedback and no one’s head rolls, they’re more likely to speak up.
  • Soliciting ideas directly from employees individually, rather than holding brainstorms, takes the edge off group dynamics. Group settings aren’t where all employees feel free to share their best–and bold—ideas.
  • Rank-and-file employees can be a great source of innovation if only their leaders listen to them. Organizational innovation doesn’t have to trickle top-down or emanate from the R&D team. The best way to produce great ideas is to start by generating many ideas. Encourage everyone on your team to think, contribute, and participate.

————

'Good Enough for the Bastards' by Anita Krohn Traaseth (ISBN B00MVXFK4K) PS: Anita Krohn Traaseth is now the CEO of Innovation Norway, a state-sponsored project focused on promoting innovation and economic development. She’s the author of Good Enough for the Bastards (2014,) a Norwegian version of Sheryl Sandberg‘s Lean In: Women, Work, and the Will to Lead (2013.)

Cf: See my guide on preparing an action plan at a new job by collecting the expectations of all the people with whom your new role interacts.

Wondering what to read next?

  1. Fear of Feedback: Won’t Give, Don’t Ask
  2. Eight Ways to Keep Your Star Employees Around
  3. Never Criticize Little, Trivial Faults
  4. How to Stop “Standing” Meetings from Clogging Up Your Time
  5. No Boss Likes a Surprise—Good or Bad

Filed Under: Career Development, Managing People, The Great Innovators Tagged With: Conversations, Goals, Great Manager, Innovation, Leadership, Questioning, Winning on the Job

Book Summary of Verne Harnish’s ‘The Greatest Business Decisions of All Time’

December 6, 2021 By Nagesh Belludi Leave a Comment

'The Greatest Business Decisions' by Verne Harnish (ISBN 1603209786) The Greatest Business Decisions of All Time (2012) is a flatfooted anthology of 18 engaging—and oversimplified—business stories that influenced the course of business. Edited by management consultant Verne Harnish, this tome contains long articles by nine Fortune magazine journalists.

  1. Apple and the Return of Steve Jobs. The 1996 decision by Apple’s board of directors to bring back Jobs revived the company, transformed the consumer electronics industry, and made Apple one of the most valuable companies in the world.
  2. Zappos and Free Shipping. Zappos’s decision to offer free shipping and 365-day free returns lured more mainstream buyers onto the internet. Other retailers had no choice but to provide free shipping (albeit with some restrictions) and absorb the costs.
  3. Samsung and Global Immersion. In the early 1990s, Chairman Lee Kun-Hee instituted a policy to send his brightest young employees on international sabbaticals that exposed them to the local cultures and build business networks. This program later fuelled Samsung’s global ambitions.
  4. Johnson & Johnson and the Tylenol Comeback. Consistent with the company’s “patients come before profit” credo, CEO James E. Burke set the benchmark for crisis management when he decided to pull Tylenol off the shelves nationwide and create a tamper-proof bottle at the cost of $100 million. Johnson & Johnson cemented its reputation for responsible management.
  5. 3M’s 15% Free Time Rule and Innovation. 3M Company CEO William McKnight’s extraordinary idea of giving employees free time for “experimental doodling” yielded such innovative products as Post-It notes. 3M quickly diversified its portfolio and entered many consumer- and industrial-businesses. 3M inspired Google’s 20% rule.
  6. The “Intel Inside” Marketing Campaign. To forestall the commoditization of the computer chip, CEO Andy Grove shifted Intel’s image from that of a microprocessor company to that of a producer of a coveted, brand-name product that stood for performance. Intel became a household name that consumers sought when they purchased a computer.
  7. General Electric’s Jack Welch and Crotonville. Welch transformed GE’s sprawling management-training institute in Crotonville, New York, into a focal point of learning for the company.
  8. Bill Gates and His “Think Weeks.” The Microsoft founder’s twice-yearly retreat in rural isolation allowed him to read, reflect, and map out ideas—away from the distractions and the noise of business life.
  9. Softsoap and Impeding Competition. A small Minnesota company called Minnetonka Corp. developed liquid hand soap in the early 1980s. When Softsoap started flying off the shelves, deep-pocked behemoths like Procter & Gamble began to prototype their own variants. Minnetonka’s CEO Robert Taylor developed a smart strategy to block his giant competitors and keep his company’s market share. He purchased the entire U.S. supply of plastic pumps used in the liquid soap bottles for one year—that’s 100 million units from the only supplier. By the time his competitors had access to the plastic pumps, Taylor’s Softsoap’s brand was well established.
  10. Toyota and the Quality Revolution. Toyota’s institutional obsession with waste-reduction, zero defects, and process improvement has transformed manufacturing and inspired excellence in every service industry—including hospitals.
  11. Nordstrom and Customer Service Excellence. Nordstrom built its brand on “above-and-beyond” customer service and problem-solving. The entirety of the Nordstrom Employee Handbook fits on a 5×8 card and contains precisely one rule, “Use the best judgment in all situations. There will be no additional rules.”
  12. Tata Steel and Labor Relations. During a turbulent period of India’s leading steelmaker, Managing Director Jamshed J Irani confronted a bloated cost structure by reducing his 78,000-strong workforce to 40,000 by 2005. In keeping with the Tata Group’s rich philanthropic legacy, Irani offered decent pension plans and invested in labor welfare.
  13. Boeing 707 and the Jet Age. Boeing’s decision to develop the Boeing 707 at the cost of $185 million (more than the company’s market capitalization) “remade a company, an industry, and the very culture of its time.” The 707 was the first transatlantic commercial jetliner in an era of prop planes. It kicked off the Jet Age, revolutionized air travel, and established Boeing as a dominant airliner manufacturer.
  14. IBM and the Customer-Centric Makeover. In 1993, Lou Gerstner became CEO and embarked on an “Operation Bear Hug” to launch new communication pipelines between top executives and IBM’s customers. This helped transform IBM from an inwardly focused bureaucracy to a customer-centric market-driven innovator.
  15. Sam Walton and Walmart’s Saturday Morning Meeting. Walton’s energetic 6:00 A.M. meeting was a pep rally, merchandising workshop, and financial update—all rolled into one. He brainstormed with his store managers on how to improve things week after week and helped metamorphose Walmart from a single, small-town variety store in 1962 into the world’s largest retailer.
  16. Eli Whitney and the Dawn of American Technology. Whitney’s invention of the “saw gin” that worked well with short-staple cotton helped transform Southern agriculture (and sustain the institution of African slavery!) Whitney then popularized the use of interchangeable parts in making firearms.
  17. Bill Hewlett and David Packard and the “HP Way.” The essence of Hewlett-Packard’s management philosophy was an openness and respect for the employees. With a framework of principles and the simplicity of their management methods, they established many progressive management practices that prevail even today.
  18. Henry Ford and the Factory- and Wage-Revolution. When Ford introduced the moving assembly line, his fledging factory was confronting a dispirited workforce, declining workmanship and quality, absenteeism, and annual labor turnover of 370 percent. Then Ford decided to raise wages from $2.50 to $5 a day. The following week, Ford Motors had more than 26,000 job applicants. Ford increased production rates and slashed the per-unit cost of the Model T. Annual labor turnover fell to 16 percent, and Ford’s profits doubled within two years. Every time Ford increased the productivity of car production, he continued to raise wages. His well-paid workers had more to spend—and could afford the very cars they built.

Recommended: Quick read. The Greatest Business Decisions of All Time is a concise and entertaining read, especially if you like getting into heads, the thoughts, and the motivations of well-known business luminaries. The 18 case studies lack rigor and are beset with recency biases, narrative fallacies, and a misplaced sense of causes and effects. Some stories, e.g., the Softsoap one, aren’t well known.

Daniel Gross’s Forbes Greatest Business Stories of All Time (1997) is significantly more engrossing and instructional.

Wondering what to read next?

  1. Your Product May Be Excellent, But Is There A Market For It?
  2. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  3. Always Be Ready to Discover What You’re Not Looking For
  4. Don’t Try to Convince Every Potential Customer
  5. Creativity by Imitation: How to Steal Others’ Ideas and Innovate

Filed Under: Business Stories, Leadership Tagged With: Creativity, Innovation, Leadership Lessons, Thinking Tools

How to See Opportunities Your Competition Doesn’t

November 19, 2021 By Nagesh Belludi Leave a Comment

'Different' by Youngme Moon (ISBN 0307460851) Harvard strategy professor Youngme Moon’s Different: Escaping the Competitive Herd (2010) describes how many companies pursue the same opportunities that every other company is chasing and thus miss the same opportunities that everyone else is missing.

In category after category, companies have gotten so locked into a particular cadence of competition that they appear to have lost sight of their mandate—which is to create meaningful grooves of separation from one another. Consequently, the harder they compete, the less differentiated they become … Products are no longer competing against each other; they are collapsing into each other in the minds of anyone who consumes them.

Moon argues that the companies and brands that see a different game win big. Such innovators don’t just try to outcompete their rivals at the margin. Instead, they redefine the competitive landscape by embracing unique ideas in a world crammed with me-too thinking.

European airline Ryanair unleashed a new wave of relentless cost- and price-leadership by charging customers extra for everything beyond a seat itself. If you want to check a bag, you pay extra. If you want an airport agent to check you in and print your boarding pass, you pay extra. If you want food and drink, you pay extra. Later on, Spirit Airlines took the price-obsession further by charging for carry-on bags too. After a rough rollout and customer defiance, paying for carry-on bags has become the new normal.

Idea for Impact: Being different is what makes all the difference. If you do things the same way everyone else in your field does things, why would you expect to do any better? What are you doing to raise your game—not just to stay in place, but to get ahead?

Wondering what to read next?

  1. Lessons from Lockheed Martin’s Skunk Works: Autonomy Can Create Innovative Workplaces
  2. Five Where Only One is Needed: How Airbus Avoids Single Points of Failure
  3. Fail Cheaply
  4. Find out What Your Customers Want and Give it to Them
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Competition, Customer Service, Getting Ahead, Innovation, Leadership, Risk, Strategy

How to Bring Your Ideas to Life

October 4, 2021 By Nagesh Belludi Leave a Comment

No matter how good an idea is, it’ll probably need some work before it can evolve into a helpful innovation. I’ve previously drawn attention to this aspect of the creative process in my 3M Post-it Note case study.

Another notable example of what transforms ideas into innovation is the “discovery” of penicillin and its curative effect on infectious diseases.

Alexander Fleming Late to Penicillin

The Scottish bacteriologist Sir Alexander Fleming discovered penicillin. More specifically, Fleming found that a specific mold produced penicillin. This substance was previously known to inhibit the growth of bacteria.

In 1928, Fleming was working on cultures of Staphylococcus, a bacterium that induces blood poisoning. Upon returning from a vacation, he saw a discarded Petri dish that he had left behind without sterilizing. It had a zone around an invading fungus where his bacterium culture didn’t grow. A mold spore from another lab in Fleming’s building had unexpectedly fallen on one of his cultures. The spore had spread over the Petri dish while Fleming was away. Instead of throwing the dirty Petri dish away, he isolated the mold and identified it as Penicillium chrysogenum, which kills bacteria by inhibiting new cell walls.

Fleming suggested his discovery might be used as an antiseptic in wounds. He published an account of this work in 1929. However, he couldn’t find a way of extracting enough penicillin needed to be curative enough without it becoming ineffective.

In itself, Fleming’s discovery was thus not a substantial leap in terms of penicillin’s use as a pharmaceutical. After Fleming’s discovery, penicillin proved unstable and difficult to produce in pure form for almost a decade. It took two Oxford University scientists, Sir Howard Walter Florey and Dr. Ernst Boris Chain, to realize its full potential only in the 1940s. They showed how to prepare penicillin in usable form and demonstrated that it could be favorably applied to the treatment of disease.

How to Bring Your Ideas to Life From the time when its medical application was established, penicillin has saved millions of lives by stopping the growth of the bacteria responsible for poisoning the blood and causing many once-fatal diseases. Fleming, Florey, and Chain shared the 1945 Nobel Prize for Medicine to recognize their complementary achievements.

Idea for Impact: Often, there’s a divergence between an idea and its tangible application that the original creator can’t bridge by himself. The creator will have to expose the concept to others who can evaluate and trial the discovery in new contexts.

In other words, the creative process doesn’t end with an idea or a prototype. A happy accident often undergoes multiple iterations and reinterpretations that can throw light on the concept’s new applications.

Wondering what to read next?

  1. Ideas Evolve While Working on Something Unrelated
  2. Make ‘Em Thirsty; or, Master of the Art of the Pitch
  3. Overcoming Personal Constraints is a Key to Success
  4. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  5. Always Be Ready to Discover What You’re Not Looking For

Filed Under: Sharpening Your Skills, The Great Innovators Tagged With: Creativity, Innovation, Luck, Parables, Problem Solving, Teams

We Need to Unlearn Not Being Creative

August 26, 2021 By Nagesh Belludi Leave a Comment

Creativity is a fundamental tenet of being. Every idea, no matter how trivial, is a spontaneous association between established earlier ideas.

Creativity is how we think and reason. It’s how we understand and explore. Everything else—education, upbringing, social conditioning, cultural mores—confines our creativity.

The principal villain is that little voice inside our heads that holds us back because a creative activity is disruptive. Originality begets instability. Creativity takes time, effort, and courage. Being imaginative is more unpredictable than the comfort of the repetitive pattern of everyday existence.

We Need to Unlearn Not Being Creative

Watch children at play. They can invent new worlds, compose new narratives, and fantasize in double-quick with an endless stream of creativity. Children don’t hold back—to them, all things are possible because they haven’t learned that some things are impossible.

In other words, children are less hindered by prior patterns of thought. They don’t judge the quality of their creations. Nor must they “save face” if others think their ideas to be stupid. They simply move on to something else.

Alas, this high level of creativity isn’t necessarily sustained throughout childhood and into adulthood. By high school, most children have their creativity gently squeezed out by those (adults, undeniably) who think more conventionally.

Idea for Impact: We adults don’t need to learn to be creative. We need to unlearn not being creative. As Albert Einstein once said, “To stimulate creativity, one must develop the childlike inclination for play.”

Wondering what to read next?

  1. The Myth of the First-Mover Advantage
  2. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  3. The #1 Clue to Disruptive Business Opportunity
  4. Creativity & Innovation: The Opportunities in Customer Pain Points
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Sharpening Your Skills Tagged With: Asking Questions, Creativity, Innovation, Learning, Pursuits

Always Be Ready to Discover What You’re Not Looking For

July 19, 2021 By Nagesh Belludi Leave a Comment

Corn flakes were born (1894) when the Kellogg brothers inadvertently left a pot of boiled wheat overnight on a stove. They passed the flaky dough through bread rollers and baked the flakes to create a crunchy snack.

Always Be Ready to Discover What You're Not Looking For The Penicillin mold was discovered (1928) by Sir Alexander Fleming, who, upon returning from a vacation, saw a Petri dish that he had left behind without disinfecting. That Petri dish had a zone around an invading fungus where his Staphylococcus bacterium culture had not grown. A mold spore from another lab in the building had accidentally fallen on this culture. The spore had grown while Fleming was away. Rather than throw the dirty Petri dish away, he isolated the mold and identified it as belonging to the Penicillium genus, which kills bacteria by inhibiting new cell walls.

The microwave oven was invented (1945) unintentionally during an experiment by Percy Spencer of Raytheon Corporation. Electromagnetic waves from a new vacuum tube melted a chocolate bar in his pocket while standing next to a magnetron.

Viagra had been developed (1989) as the chemical compound sildenafil citrate to treat hypertension and angina pectoris. Researchers found during the first phase of clinical trials that the compound was good for something else. It was approved for medical use in 1998.

Serendipity is a rich idea that is very central to the creative process. Lots of ideas evolve when you’re working on something unrelated. Physiologist Julius H. Comroe Jr. once said, “Serendipity is looking in a haystack for a needle and discovering a farmer’s daughter.”

Idea for Impact: Creativity is a disorderly journey. Much of the time, you may never get where you’re going. You may never find what you hope to find. Yet still, you must stay open to the new and the unexpected.

Explore how to transform serendipitous ‘mistakes’ into breakthroughs.

Wondering what to read next?

  1. Constraints Inspire Creativity: How IKEA Started the “Flatpack Revolution”
  2. Ideas Evolve While Working on Something Unrelated
  3. The #1 Clue to Disruptive Business Opportunity
  4. Fall in Love with the Problem, Not the Solution
  5. Overcoming Personal Constraints is a Key to Success

Filed Under: Business Stories, Mental Models, Sharpening Your Skills Tagged With: Creativity, Entrepreneurs, Innovation, Luck, Problem Solving, Thinking Tools

Don’t Try to Convince Every Potential Customer

June 16, 2021 By Nagesh Belludi Leave a Comment

Many entrepreneurs believe that their innovation is so unique and valuable that the whole world will want it, and if a potential customer won’t get it within seconds, it’s only a question of hammering it into their heads.

Don’t try to convince every potential customer to buy your product or service. If they get your innovation within, say, three minutes—excellent. If not, move on.

As you go about selling your product or service in the early stages of your business, you may find specific customers who will get what you’re doing. They’ll cheerfully buy your solution if they could be convinced that your solution can solve a problem they have (or if you can help them recognize a problem that they have but don’t see it yet.)

If you’re starting out, such customers will be your early adopters. At this stage, they’re the ones that are your biggest fans (or critics) and can be an enormous asset for gaining traction by word-of-mouth.

Idea for Impact: Instead of misusing your marketing efforts on convincing all those who don’t get it and may never get it, laser-focus on identifying, courting, and engaging the early adopters.

Wondering what to read next?

  1. Your Product May Be Excellent, But Is There A Market For It?
  2. Make ‘Em Thirsty; or, Master of the Art of the Pitch
  3. The Myth of the First-Mover Advantage
  4. The #1 Clue to Disruptive Business Opportunity
  5. Fall in Love with the Problem, Not the Solution

Filed Under: Leadership, MBA in a Nutshell Tagged With: Creativity, Customer Service, Entrepreneurs, Innovation, Thinking Tools

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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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