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People Work Best When They Feel Good About Themselves: The Southwest Airlines Doctrine

August 20, 2025 By Nagesh Belludi Leave a Comment

When People Feel Good, They Work Best: Herb Kelleher and Colleen Barrett's Southwest Way Southwest Airlines didn’t rise to prominence through spreadsheets or sycophancy. It was built by a jolly, chain-smoking Texas lawyer named Herb Kelleher (1931–2019,) who believed that business didn’t have to be boring—or cruel. A maverick in pinstripes, Kelleher co-founded the airline in 1967 with a cocktail napkin sketch and a rebellious grin, determined to inject his irreverent spirit into every corner of the company. He didn’t just want to run an airline—he wanted to run one that laughed in the face of corporate pomposity.

Kelleher’s philosophy was as unorthodox as it was effective. He rejected the sacred cow of “customer first” and instead declared, “If employees are treated well, they’ll treat the customers well. If the customers are treated well, they’ll come back, and the shareholders will be happy.”

This wasn’t a slogan—it was a strategy. And it worked. He understood what too many executives still miss: the happiness of a company’s employees is vital to its business success. At the heart of this culture was Colleen Barrett (1944–2024,) who began as Kelleher’s legal secretary and rose to become president and COO. She was the steward of Southwest’s soul, and she made it her mission to ensure employees felt not just respected, but loved. When Southwest went public in 1971, it chose the stock ticker LUV—a nod to its home base at Dallas Love Field and a cheeky emblem of its people-first ethos.

We almost demand that you have fun and you enjoy yourself. I spend probably seventy to eighty percent of my time trying to assure that our employees feel good about their work environment, feel that we care about them as people, and feel that they are empowered and really encouraged to make decisions from the heart. We really want people to do the right thing versus doing things right. If you enjoy what you’re doing, you will probably do it better.

'Nuts- Southwest Airlines' by Kevin and Jackie Freiberg (ISBN 0767901843) Barrett wasn’t just a leader—she was “Mom” to the workforce. Her office was adorned with a “wall of hearts,” a floor-to-ceiling collage of photos, thank-you notes, and memories. The Dallas headquarters itself was a shrine to joy: walls plastered with snapshots of birthdays, barbecues, community service, and cultural celebrations. Parties weren’t distractions—they were doctrine. They reminded everyone that work could be human. The power of giving employees the freedom to be themselves wasn’t just tolerated—it was institutionalized. As Kevin and Jackie Freiberg wrote in Nuts! Southwest Airlines’ Crazy Recipe for Business and Personal Success (1995; my summary):

Love conquers the defensiveness that closes people to influence. When people feel loved, the walls come down. When people look out for their colleagues’ interests, their colleagues are more open to accepting new ideas and behaving in prescribed ways.

A lot of people at Southwest Airlines believe that the reason Herb and Colleen have so much influence within the company has less to do with their positions than with the way that they consistently demonstrate their love for employees. Leading through love means you’ve got to care. Love is a source of influence.

But time, like altitude, changes perspective. In recent years, Southwest has begun to resemble the very industry it once mocked. The camaraderie remains, but the warmth has cooled. The parties are fewer, the policies more rigid, and the once-radical culture has been diluted by the gravity of scale and the pressures of Wall Street.

Still, the lesson endures: the happiest worker is not the one most surveilled, but the one most trusted to think. And in a world where most companies treat morale as a line item, Southwest’s early years stand as a reminder that a culture that celebrates its people will outlast one that merely exploits them.

That’s not sentimentality—it’s strategy. And it’s one worth defending.

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Filed Under: Business Stories, Leading Teams, Managing People, MBA in a Nutshell, The Great Innovators Tagged With: Employee Development, Great Manager, Human Resources, Leadership, Likeability, Motivation, Performance Management, Persuasion

Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo

July 25, 2025 By Nagesh Belludi Leave a Comment

Lessons in Leadership and Decline: CEO Debra Crew and the Rot at Diageo Another heavyweight in consumer goods, Diageo, has entered a state of churn. CEO Debra Crew exited last week in a “mutual agreement”—a phrase that barely disguised the inevitability of her departure. It wasn’t a shock, but a slow unraveling: a tenure marked more by erosion than evolution.

Leadership is often a hostage of timing. Crew’s two-year stint was defined as much by strategic drift as by the lingering shadow of her predecessor’s legacy. She rose to the top in June 2023 following the sudden death of Sir Ivan Menezes—who had built Diageo’s fortunes on “premiumization,” a strategy that padded margins during the pandemic’s home-drinking boom. That success, however, ossified into institutional bloat.

Her term began with a bruising profit warning in November 2023. A nosedive in Latin America—blamed on distributor overstocking—exposed a startling disconnect from ground-level dynamics. Crew’s attempts to localize the crisis at a capital markets day rang hollow. The Times later described the company’s consumer blind spot as having “the whiff of incompetence.”

By early 2024, Diageo’s valuation had halved from its pandemic highs. CFO Lavanya Chandrashekar resigned in May. Months earlier, Crew had abandoned the company’s 5–7% medium-term growth target, citing tariff uncertainty and posting a 0.6% sales decline. Chair Javier Ferrán—long a patient steward—stepped down soon after. His departure, followed by the arrival of Sir John Manzoni, left Diageo’s leadership in flux just as the ship was listing and she had asked the board to quell speculation about her job.

Perhaps Crew was less a culprit than a proxy. Every leader is bound by the winds of their season. Spirits makers now face a hostile cocktail: Gen Z’s waning interest in alcohol, the rise of weight-loss drugs, and renewed risk of tariff whiplash. Pernod Ricard and Rémy Cointreau have suffered even steeper stock slides.

This episode offers another case study in how leadership narratives flatten complexity. Good times are hailed as proof of executive brilliance; bad times, as evidence of personal failure. The truth is messier: prosperity often arises from external tailwinds—technological shifts, market cycles, latent consumer trends—already in motion. Leaders rarely engineer them. They inherit them.

The trouble with leadership is that it is most praised—or punished—when least responsible. Strategic decisions marinate across fiscal years. Today’s success often echoes yesterday’s bets, while macroeconomic forces—unpredictable, impersonal, indifferent—reshape the field faster than any executive can pivot. Yet our mythology demands heroism. We cast leaders as masterminds of triumph or scapegoats for collapse, forgetting that most simply ride the wave.

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Filed Under: Business Stories, Great Personalities, Leadership, Leadership Reading, MBA in a Nutshell Tagged With: Change Management, Icons, Integrity, Leadership, Leadership Lessons, Leadership Reading, Performance Management, Wisdom

FedEx’s ZapMail: A Bold Bet on the Future That Changed Too Fast

June 24, 2025 By Nagesh Belludi Leave a Comment

The Federal Express ZapMail Service: Innovation is always a wager against the unknown Fred Smith, the visionary founder of Federal Express (now FedEx,) passed away this past Sunday. His legacy was forged in audacity—first with a Yale term paper proposing overnight delivery, then with a weekend at the Las Vegas blackjack tables that kept his faltering company alive. He didn’t just dream big—he bet on it.

In 1984, he placed one of his boldest wagers yet: ZapMail. Years before email and office fax machines became commonplace, ZapMail offered near-instant document delivery—up to five pages, in under two hours, for $35. It was a pioneering attempt to leap beyond physical logistics into the realm of electronic communication, powered by Federal Express’s own couriers, custom-built fax machines, and a private digital network.

For individuals or companies with low volumes, the process was hands-on. A Federal Express courier would collect the document and deliver it to a local depot. From there, it was transmitted over the company’s proprietary network to another depot near the recipient, where a second courier printed, packaged, and hand-delivered it. For higher-volume clients, Federal Express streamlined the process by installing a “Zapmailer” fax machine directly on the customer’s premises, enabling direct electronic transmission to other ZapMail-equipped locations.

But ZapMail collapsed under the weight of rapid change. Fax machines soon became affordable, allowing businesses to bypass Federal Express and send documents themselves. The middleman role—and its premium fee—no longer made sense. Add privacy concerns about documents being handled by third parties, and ZapMail’s fate was sealed. The service shut down just two years later.

It’s a powerful reminder that innovation is always a wager against the unknown. Even in failure, ZapMail embodied the spirit that defined Fred Smith. He glimpsed tomorrow’s possibilities and pursued them with conviction. Innovation demands nerve—and Smith had it in spades.

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Filed Under: Business Stories, Great Personalities, Leadership, The Great Innovators Tagged With: Creativity, Decision-Making, Entrepreneurs, Icons, Innovation, Leadership, Leadership Lessons, Parables

The Speed Trap: How Extreme Pressure Stifles Creativity

May 5, 2025 By Nagesh Belludi Leave a Comment

The Speed Trap: How Extreme Pressure Stifles Creativity

Speed is beneficial—until it isn’t. Moving faster often means becoming leaner, sharper, and more efficient. It fuels innovation and keeps you ahead of the competition. However, excessive speed can backfire. Managers pushing harder with increased workloads and tighter deadlines create rising pressure. As a result, creativity declines, insightful thinking stalls, and rushed work compromises quality, accuracy, and overall performance. In such environments, passion gradually fades.

Success is not solely about speed; it requires sustainability. Here’s how:

  • Set Realistic Deadlines: Commitment should not lead to exhaustion; it’s a sign of imbalance. Success must align with well-being by eliminating distractions and focusing on priorities that truly matter.
  • Be Honest About Urgency: Artificial deadlines damage trust and create chaos. When everything is urgent, nothing is. Push back against unnecessary demands, prioritize effectively, and remove distractions to maintain focus.
  • Explain the “Why”: People engage more when they understand the purpose. Without a clear explanation, urgency lacks meaning and motivation dwindles.

Idea for Impact: Sustainable success requires balance. Involve your team, prioritize wisely, and work smart—not just fast.

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Filed Under: Leading Teams, Managing People Tagged With: Coaching, Great Manager, Human Resources, Leadership, Motivation, Performance Management, Workplace

Why Are There No ‘How to Be a Great Follower’ Classes?

February 24, 2025 By Nagesh Belludi Leave a Comment

Why Are There No 'How to Be a Great Follower' Classes? It struck me recently: while we obsess over leadership—how to be a good leader, how to measure it, and so on—there’s barely a peep about being a good follower.

No one seems particularly interested in becoming a good follower. Step into a business school, and the hustle to prove leadership skills is as intense as caffeine consumption!

Think about it: leaders wouldn’t exist without followers. Both roles are vital for any group’s success.

Yet, leadership gets all the glory, while followership is often overlooked. Society praises leaders with power and prestige, while followers are seen as mere support staff. It’s as if followership is considered a less glamorous, passive role.

'The Art of Followership' by Ronald E. Riggio (ISBN 0787996653) So why the lack of buzz about following? Maybe there’s no market for it. But effective followership is just as vital. A bit more focus on it could lead to smoother, more balanced teams. After all, if everyone’s busy leading, who’s left to follow? Good leaders aren’t always out front.

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Being Situational

January 21, 2025 By Nagesh Belludi Leave a Comment

Situational Leadership: Effective Leaders Adjust Their Approach When someone asks, “What’s your leadership or managerial style?” the best response often comes down to, “It depends.”

Leadership doesn’t mean sticking to a fixed style—it requires adapting to what the situation demands. While leadership models like authentic, transformational, and servant leadership offer useful insights, taking a situational approach works best. You need to assess the moment and respond with the right style.

Evaluate what the situation calls for. When you need to set firm boundaries, showing frustration sends a clear message. If your team lacks the necessary skills, getting hands-on and micromanaging the tasks drives results. On the other hand, when your team knows what they’re doing, stepping back and offering periodic guidance keeps things on track. Using the same style everywhere rarely delivers the right results.

Idea for Impact: Right style, right time. That’s effective leadership.

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Starbucks’ Oily Brew: Lessons on Innovation Missing the Mark

January 20, 2025 By Nagesh Belludi Leave a Comment

Starbucks Olive Oil-infused Coffee: Lessons on Innovation Missing the Mark Last quarter, Starbucks pulled the plug on its olive oil-infused Oleato coffee line as part of a broader push to streamline the menu and impro1ve store operational efficiency.

Oleato was among Starbucks’ boldest and riskiest experiments in recent years. It was the brainchild of founder and then-CEO Howard Schultz, an assertive visionary. During a visit to the olive groves of Sicily, Schultz was inspired by the Mediterranean tradition of consuming a daily spoonful of olive oil. He envisioned merging this health practice with Starbucks’ coffee expertise, creating a unique fusion of wellness and indulgence.

Debuting in Italy in February 2023, Oleato expanded globally, offering lattes and cold brews infused with extra virgin olive oil, marketed as luxurious, innovative, and health-conscious. While some customers liked the smooth, velvety texture, many found the flavor odd or the concept hard to swallow. Scaling the product and educating consumers proved challenging, leaving many unsure of its benefits beyond novelty.

Oleato’s flop revealed the risks of niche innovation. Starbucks thrives on pushing boundaries, but not all bold ideas hit the mark. Smart innovation requires knowing when to nurture an idea and when to cut losses. Schultz’s vision of Oleato kept Starbucks daring, but disciplined decision-making is key to ensuring innovation remains a strength, not a liability.

The Oleato dud highlights the perils of leadership driven by unchecked conviction. Schultz’s love affair with Italian espresso bars during a visit to Milan sparked the creation of Starbucks. However, visionary leaders like Schultz often turn bold ideas into untouchable pet projects. Even a passing thought can rapidly evolve into a sweeping directive, leaving little room for dissent. In such environments, feedback is stifled, and ideas can quickly take on a life of their own.

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Filed Under: Leading Teams, Mental Models, Project Management, The Great Innovators Tagged With: Creativity, Critical Thinking, Decision-Making, Entrepreneurs, Innovation, Leadership, Leadership Lessons, Parables, Persuasion, Starbucks

Heartfelt Leadership at United Airlines and a Journey Through Adversity: Summary of Oscar Munoz’s Memoir, ‘Turnaround Time’

December 16, 2024 By Nagesh Belludi Leave a Comment

Leadership is a delicate balancing act where success and failure can hinge on perception. When a company thrives, traits like optimism and active listening are celebrated as visionary, and leaders who engage with their teams are hailed as collaborative, inclusive, and forward-thinking. But when things go wrong, those same qualities come under attack—optimism’s dismissed as naivety, and “listening” gets criticized as indecisiveness or an overreliance on consensus. Ultimately, results shape the narrative, transforming managerial traits into strengths or weaknesses based on the outcome.

'Turnaround Time' by Oscar Munoz (ISBN 0063284286) Oscar Munoz, former CEO of United Airlines, waited more than four years after handing the reins to Scott Kirby before publishing his business memoir, Turnaround Time: Uniting an Airline and Its Employees in the Friendly Skies (2023.) With United now performing well despite the harsh challenges it faced over the past five years—such as the COVID-19 pandemic, operational disruptions, Boeing’s issues, and various supply chain problems—Munoz’s retrospective lens casts his “people-first leadership” in a favorable light.

At United, Munoz was more of a caretaker CEO than an industry visionary. He was elevated from the board to CEO following his predecessor’s scandal-driven resignation, with his main charge being to find a competent successor with deep industry experience. He succeeded spectacularly by recruiting Scott Kirby after Kirby was abruptly dismissed from American Airlines in 2016. When Munoz handed over the CEO role to Kirby just before Christmas 2019, on the eve of the COVID pandemic, analysts believed Munoz’s legacy would largely rest on hiring Kirby and his rocky initial response to the David Dao incident, followed by a dramatic course correction. To his credit, Munoz used the Dao debacle as a turning point, overseeing an acceleration in significant changes to United’s operations and employee culture.

However, Turnaround Time, which emphasizes the “human aspect of leadership,” lacks the tactical depth expected from a CEO memoir. It’s filled with anecdotes about “listening to employees” rather than providing detailed business strategies or a comprehensive portrayal of the complexities of running a major airline during a challenging time for the industry, with countless variables and uncontrollable factors shaping outcomes.

A key moment in the book recounts Munoz’s seemingly insightful interaction with a flight attendant named Amy Sue, who tearfully told him, “I’m just tired of always having to say, ‘I’m sorry.'” Her words underscored the burden frontline employees face—apologizing for service flaws and management decisions beyond their control. This encounter, claims Munoz, crystallized his leadership mission: to empower employees by aligning resources and support with their professional pride. United’s morale had been battered by financial struggles following 9/11, bankruptcy, and a slow-moving “merger” with Continental Airlines. Change was overdue, and Munoz’s employee-first approach aimed to revive a dispirited workforce.

Leadership Lessons from United Airlines' CEO, Oscar Munoz Yet, one can’t help but ask: Why hadn’t Munoz engaged with employees during his decade on the board of United’s parent company (and another five years at the acquiring company, Continental Airlines)? Wise board members often gain an unfiltered understanding of company culture by connecting with employees directly rather than relying on polished C-suite reports, which can skew the board’s perceptions of the organization’s internal climate.

The real strength of Munoz’s memoir lies in his personal story, which brings a human depth to the book. Just 38 days into his CEO role, Munoz was hospitalized with coronary artery disease and underwent emergency heart surgery, followed by a heart transplant two months later. In Munoz’s telling, this harrowing experience reshaped his approach to leadership, infusing it with compassion and an awareness of the personal struggles many employees likely faced. With Kirby and the rest of the leadership team handling the daily operations and improvements of the airline, Munoz focused on creating a supportive company culture. Frontline employees I’ve interacted with often describe Munoz as personable and genuinely interested in their well-being and professional satisfaction.

Munoz’s heart transplant and recovery add emotional resonance to what might’ve been a typical corporate memoir. Turnaround Time highlights the emotional and psychological resilience that underpinned his leadership at United, showing how his personal journey mirrored his professional one. It’s a fast, engaging read worth picking up for the human story behind the corporate challenges.

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Filed Under: Business Stories, Leadership, Leadership Reading, Leading Teams, Managing People Tagged With: Aviation, Books, Change Management, Conversations, Great Manager, Leadership, Leadership Lessons, Performance Management, Problem Solving, Teams

‘Use it or Lose it’ Budget Syndrome

November 26, 2024 By Nagesh Belludi Leave a Comment

The Problem with 'Use it or Lose it' Budgeting As the fiscal year draws to a close, the annual spectacle of “use it or lose it” budget mayhem unfolds.

Caught in this whirlwind, departmental managers rush to burn through their budgets to avoid potential cuts in the upcoming year. This frenzy results in impulsive purchases, rushed projects, excess inventory, temporary hires, lavish team-building events, and premature contract renewals—all while the essential task of creating value for the company gets sidelined.

This rush-job approach stems from an outdated planning system that values appearances over genuine fiscal responsibility.

Idea for Impact: Consider a move towards more flexible, performance-based budgeting approaches by loosening rigid budget structures.

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Filed Under: Business Stories, Leading Teams, MBA in a Nutshell Tagged With: Budgeting, Decision-Making, Leadership, Managing the Boss, Targets

Lessons from Tito’s Leadership of Yugoslavia

November 18, 2024 By Nagesh Belludi Leave a Comment

Lessons from Tito's Leadership of Yugoslavia This year, I took two long trips across the Balkans, focusing on the region’s turbulent 20th-century history.

Understanding the role of Yugoslav revolutionary leader Josip Broz Tito has been instrumental in grasping the complex ethnic relations, historical grievances, and aspirations that continue to shape the region’s identity and politics.

Tito’s regime demonstrates how a coercive leader can unite a fragmented people through sheer willpower. However, it also highlights how the absence of sustainable systems and institutions can lead to collapse once that leader is gone, as evidenced by the violent conflicts of the 1990s. Encyclopædia Britannica encapsulates on Tito’s legacy thus:

The irony of Tito’s remarkable life is that he created the conditions for the eventual destruction of his lifelong effort. Instead of allowing the process of democratization to establish its own limits, he constantly upset the work of reformers while failing to satisfy their adversaries. He created a federal state, yet he constantly fretted over the pitfalls of decentralization. He knew that the Serbs, Croats, Slovenes, and others could not be integrated within some new supranation, nor would they willingly accept the hegemony of any of their number; yet his supranational Yugoslavism frequently smacked of unitarism. He promoted self-management but never gave up on the party’s monopoly of power. He permitted broad freedoms in science, art, and culture that were unheard of in the Soviet bloc, but he kept excoriating the West. He preached peaceful coexistence but built an army that, in 1991, delivered the coup de grâce to the dying Yugoslav state. At his death, the state treasury was empty and political opportunists unchecked. He died too late for constructive change, too early to prevent chaos.

Tito was a charismatic and strong leader whose personal authority and presence were key to maintaining national cohesion. His doctrine of “Brotherhood and Unity” aimed to bridge Yugoslavia’s deep ethnic and national divides. However, the political institutions he left behind were weak and overly reliant on his personal authority, creating a power vacuum that no one could fill after his death in 1980.

The poem “Comrade Tito, from your path we will not stray!” written at the time of his death, was soon forgotten. It instead underscored the instability of the region’s political landscape and the futility of suppressing deep-seated ethnic and nationalist divisions through authoritarian rule. The federal structure Tito had established began to unravel, leading to violent conflicts.

Idea for Impact: Many leaders are skilled at rallying people around a common vision, instilling purpose and urgency. However, this often creates a dependency on the leader’s presence, making the system vulnerable to collapse once they are gone.

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Filed Under: Great Personalities, Leadership, Leadership Reading Tagged With: Attitudes, Books, Icons, Integrity, Leadership, Leadership Lessons, Parables, Role Models, Wisdom

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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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