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Leadership Lessons

The #1 Tip for New Managers to Succeed

May 15, 2023 By Nagesh Belludi Leave a Comment

The #1 Tip for New Managers to Succeed New managers are under pressure. Most managers are underprepared for the transition into new roles—and undersupported during them. In fact, the revolving door is turning more swiftly as companies are seeking quick results. New managers must immediately tackle challenges and demonstrate their competencies instead of having a grace period to find their footing and mull changes.

When taking on a new management position, adaptability to the unique culture and ways of doing things is the key to success. You must quickly throw yourself into the work and learn who’s who, who does what, and how your company operates.

Idea for Impact: Balance the pressure to show results quickly, understanding what significant changes are needed. First, talk to your constituencies (internal and external customers, competitors, leaders, employees) and lay out a road plan for the next three months, one year, and three years. Manage expectations and don’t overcommit.

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Filed Under: Career Development, Managing People, MBA in a Nutshell Tagged With: Getting Ahead, Great Manager, Job Transitions, Leadership Lessons, Management, Mentoring, Winning on the Job

Don’t Outsource a Strategic Component of Your Business

May 11, 2023 By Nagesh Belludi Leave a Comment

Warby Parker Business Plan: To disrupt a high-profit margin industry by taking out the intermediary

The prescription eyeglasses retailer Warby Parker was launched by four drinking buddies at the Wharton School of the University of Pennsylvania. The founders intended to disrupt a high-profit margin industry by taking out the intermediary.

Selling prescription eyeglasses online (Warby Parker mostly sells via brick-and-mortar today) would also defy skeptics who preferred to see certain things—shoes, diamond rings, cars—in person and were disinclined to get them online. Warby Parker’s incumbent competitors, 39DollarGlasses.com and EyeBuyDirect.com, had sloppy websites. A crucial part of Warby Parker’s startup plan was to start a user-friendly website where shoppers could upload a photograph of themselves and try on glasses virtually.

At first, the founders outsourced the website, resulting in disastrous consequences. In an interview with Fortune magazine (1-Jun-2019,) co-founder & co-CEO David Gilboa reflected on the pitfalls of outsourcing critical business components:

None of us [the founders] was qualified to build the website, so we solicited proposals and got a handful of bids from agencies. We chose the cheapest option, but a few months in, we realized it was a mistake. Their execution wasn’t what they promised. So we ended up firing them.

Now we develop most of the technology we use in-house to ensure we maintain as much control over the customer experience as possible. We’ve developed our website and both of our apps internally.

Idea for Impact: Don’t outsource what you’re supposed to do best.

Warby Parker Startup Lessons Outsourcing a core function may give you a short-term uplift, but you’ll fail to create the core expertise within your company. That’s necessary to build a sustainable competitive advantage. The vendor just isn’t as invested in your success.

Building know-how internally is more challenging, but it’ll pay off in the long run. Sure, you may need to tap an outsourced hire for specialized expertise that you lack. But concentrate on developing your core functions in-house. In fact, be as micro-managey as possible in the early days.

Leverage outside help for bookkeeping, legal, and everything else that doesn’t generate a competitive advantage.

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Filed Under: Business Stories, Mental Models, The Great Innovators Tagged With: Creativity, Delegation, Entrepreneurs, Innovation, Leadership Lessons, Problem Solving

Don’t Hide Bad News in Times of Crisis

April 21, 2023 By Nagesh Belludi Leave a Comment

Don't Hide Bad News in Times of Crisis When a crisis hits, suppressing or obscuring bad news is often an impulsive reaction. Leaders can even exacerbate a crisis if bad news is marginalized, unaddressed, or ignored until it’s too late.

If you don’t frequently communicate with your key constituency, somebody else will. In the absence of honest information, your employees can develop their own perceptions of the problem and its implications.

Idea for Impact: Wise managers recognize the power of transparency and self-disclosure. Speak up early and candidly. If necessary, take a reputational hit today by disclosing problems; it’ll earn dividends. With a candid appraisal, people can turn their attention away from assigning blame to understanding the problem’s nature and helping you develop solutions.

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Filed Under: Effective Communication, Leadership, Managing People Tagged With: Crisis Management, Decision-Making, Leadership, Leadership Lessons, Problem Solving

Confirm Key Decisions in Writing

March 9, 2023 By Nagesh Belludi 1 Comment

Confirm Key Decisions in Writing All human dealings are subject to intended and (largely) unintended misunderstandings and misinterpretations. In fact, when an agreement is distasteful, it’s easy to misunderstand.

Confirm oral agreements, instructions, and understandings in writing at the first chance you get. Don’t rely on just memory.

After meetings, email all the participants recording what was discussed. That way, if there’s ever a debate about what was discussed in the meeting, there is a written record to review. Do this even for phone calls if what was discussed is important. A helpful template:

I am confirming the agreement we reached at our meeting this afternoon. We decided on the following provisions: A, B, and C. Let me know as soon as possible if this information is not accurate so we can finalize this part of our negotiations. Call me to discuss any necessary changes if this doesn’t reflect your understanding.

Idea for Impact: “If it wasn’t written down, it wasn’t said.” Documenting critical decisions—your interpretation of it at least—helps avoid future fracas. If you don’t receive a written protest or correction, your account of the meeting stands accepted.

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Filed Under: Effective Communication, Managing People, Mental Models Tagged With: Assertiveness, Conflict, Conversations, Critical Thinking, Leadership Lessons, Negotiation, Persuasion, Problem Solving

Never Make a Big Decision Without Doing This First

February 9, 2023 By Nagesh Belludi Leave a Comment

In 1943, General Motors (GM) brought in Peter Drucker to conduct a two-year social-scientific examination of what was then the world’s largest corporation. Drucker conducted many interviews with GM’s corporate leaders, divisional managers, department chiefs, and line workers. He analyzed decision-making and production processes. The resultant landmark study, Concept of the Corporation (1946,) laid the foundations of scientific management as a formal discipline.

Alfred P. Sloan, Jr., who built General Motors into one of the world's largest companies One anecdote that Drucker liked to share from his GM research involved how his client, GM supremo Alfred P. Sloan, Jr., generally encouraged disagreements:

During a meeting in which GM’s top management team was considering a weighty decision, Sloan closed the meeting by asking, “Gentlemen, I take it we are all in complete agreement on the decision here?”

Sloan then waited as each member of the assembled committee nodded in agreement.

Sloan continued, “Then, I propose we postpone further discussion of this matter until our next meeting to give ourselves time to develop disagreement and perhaps gain some understanding of what this decision is about.”

Concrete Disagreement Stimulates Thought

Strong leaders encourage their team members to challenge them and question consensus. Leaders so counter the tendency toward synthetic harmony that emanates from group thinking and the risk of unchallenged leadership.

A team member with a difference of opinion or contrary position that’s well rooted in rationale is not to be reprimanded. He may have judgments worth listening to or recommendations worth heeding. Every team needs at least one to keep the team from falling into complacency. A team’s culture shouldn’t shun discouragement and conflict.. Look out, though, for team members who merely pay lip service to allow for the counterargument.

There are three reasons why dissent is needed. It first safeguards the decision maker against becoming the prisoner of the organization. Everybody is special pleader, trying—often in perfectly good faith—to obtain the decision he favors. Second, disagreement alone can provide alternatives to decision. And decision without an alternative is desperate gamblers’ throw, no matter how carefully thought through it might be. Above all, disagreement is needed to stimulate the imagination.

Lessons from General Motors: How Conflict Creates Innovative Teams

The Best Leaders Encourage Disagreements

Dissent and disagreement are critical to combat confirmation bias—the human tendency to readily seek and accept ostensible facts that match our existing worldview rather than objectively considering alternative viewpoints and unintended consequences.

'Management Tasks, Responsibilities, Practices' by Peter F. Drucker (ISBN 0887306152) What’s worse, leaders tend to surround themselves with like-minded individuals—people they trust and people who think alike. Drucker later wrote in his wide-ranging treatise on Management: Tasks, Responsibilities, Practices (1974,)

Sloan always emphasized the need to test opinions against facts and the need to make absolutely sure that one did not start out with the conclusion and then look for the facts that would support it. But he knew that the right decision demands adequate disagreement.

An effective decision-maker organizes dissent. This protects him against being taken in by the plausible but false or incomplete. It gives him the alternatives so that he can choose and make a decision, but also ensures that he is not lost in the fog when his decision proves deficient or wrong in execution. And it forces the imagination—his own and that of his associates. Dissent converts the plausible into the right and the right into the good decision.

Idea for Impact: The more you encourage healthy debate within your team, the better off you’ll be

The first rule in decision-making should be that you don’t make any decision unless you’ve sought out and contemplated the counterevidence. Consider the other side of any idea as carefully as your own.

Wise leaders proactively seek the truth they don’t want to find. Encourage authentic dissenting opinions to generate more—and better—solutions to problems.

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  5. How to Stimulate Group Creativity // Book Summary of Edward de Bono’s ‘Six Thinking Hats’

Filed Under: Managing People, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Conflict, Conversations, Critical Thinking, Leadership Lessons, Social Dynamics, Teams

Books in Brief: ‘Flying Blind’ and the Crisis at Boeing

September 24, 2022 By Nagesh Belludi Leave a Comment

'Boeing Flying Blind' by Peter Robison (ISBN 0385546491) Bloomberg investigative journalist Peter Robison’s thoroughly researched Flying Blind: The 737 MAX Tragedy and the Fall of Boeing (2022) offers noteworthy lessons about corporate responsibility and leadership problem-solving.

In a nutshell, starting in the late 1990s, Boeing shifted from a company run by engineers who emphasized product integrity to one run by MBA-types who prized shareholder value over long-term product planning. Inspired by General Electric’s Jack Welch, the company embraced cost-cutting, outsourcing, financial engineering, union-busting, and co-opting regulators. These miscalculated strategies culminated in the 737 MAX disasters and disgraceful corporate responses.

Recommendation: Read Peter Robison’s Flying Blind, but be wary of the author’s broad-brush political biases, which, I found, sidetracked from the storyline. The internal organizational tensions that led to corporate deception and the fateful consequences of federal regulators’ consigning design approvals to Boeing are particularly interesting.

Key Takeaway: Negligent engineering to minimize costs and adhere to a delivery schedule is a symptom of ethical blight.

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Filed Under: Business Stories, Leadership, The Great Innovators Tagged With: Aviation, Ethics, Governance, Innovation, Integrity, Jack Welch, Leadership Lessons, Problem Solving

Dear Customer, Speak Early and Have it Your Way!

September 12, 2022 By Nagesh Belludi Leave a Comment

Development of the Boeing 777 Program: 'Working Together' Initiative

At the heart of every successful product is the ability to address a real need or circumstance of struggle—a “job to be done”—in consumers’ lives. Identification of this “job” happens early in the innovation process, as it forms the core insight around innovation development and execution.

Feedback-Influenced Design is a Key Point of Differentiation

Long before its current mess, Boeing was once the pioneer in aspects of product development. No example illustrates Boeing’s inventive stills than the groundbreaking Boeing 777 program, particularly in its use of iterative, paperless computer-aided design, assembly process-planning, and agile product development. Not only that, the Boeing 777 program offers the most high-profile examples of companies tapping consumers as never before to help them create new products.

Knowing very well that the secret to long-term success starts very early in the innovation process, director of engineering Alan Mulally led a “working together” initiative to organize product development around customer input. (Mulally left Boeing after not being named CEO in 2006 and engineered a dramatic turnaround at Ford Motor Co.)

Alan Mulally: Boeing 777 Program's Director of Engineering and Later Vice-president and General Manager

Concept Testing at Every Stage of Development

In the late 1980s, just as the 777 program was being launched, Mulally made a consequential decision to involve its major potential customers in the development of the aircraft specifications. Mulally made up a “gang of eight” comprising All Nippon Airways, American Airlines, British Airways, Cathay Pacific, Delta Air Lines, Japan Airlines, Qantas, and United Airlines. At the group’s first meeting in January 1990, Mulally’s team distributed a 23-page questionnaire asking what each customer wanted in the design. Within two months, Boeing and the airlines decided on a basic design configuration.

The “working together” initiative was a radical departure from the bureaucratic project organization. Internally, Boeing had become bureaucratic and department-focused. Specialists in various departments would design their parts. Then, it was up to the manufacturing team (the system integrators) to figure out how to make it all come together. It was a “throw-it-over-the-wall” environment where the disconnect was a persistent problem.

Having customer input implied that development was centered on customer needs. This would also tear down the walls between departments—designers, suppliers, and assemblers usually separated by organizations or development phases would now be engaged collaboratively and talking and collaborating in real-time.

Boeing and the In an industry where manufacturers classically designed aircraft with only token customer input. Rather than presenting the market with what Boeing perceived as their idea of what was required, customers had direct input. Over the decades, the Boeing 777 became one of the world’s most successful commercial aircraft and continues to be the workhorse of many a customer fleet.

Idea for Impact: Create Something People Want

Whether selling products or services, fast food, or experiential travel, the most innovative companies organize their offerings around customers’ needs. From the very beginning, they tap consumers as never before to help them create new products, and they’re embedding customer knowledge into the business. Early and frequent feedback is one way to cope with the pressure for shorter product cycles and to be prudent about not investing time and resources in unpromising ideas. It also augurs well for the experiences-over-possessions shift in consumer values.

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  3. Books in Brief: ‘Flying Blind’ and the Crisis at Boeing
  4. Turning a Minus Into a Plus … Constraints are Catalysts for Innovation
  5. Creativity by Imitation: How to Steal Others’ Ideas and Innovate

Filed Under: Business Stories, Leading Teams, Mental Models, The Great Innovators Tagged With: Aviation, Creativity, Innovation, Leadership Lessons, Marketing, Mental Models

The Best Advice Tony Blair Ever Got: Finding the Time to Think Strategically

June 28, 2022 By Nagesh Belludi Leave a Comment

The Best Advice Tony Blair Ever Got from Bill Clinton: Finding Time to Think Strategically Former British Prime Minister Tony Blair reminisced, at a 2012 event at the Stanford Graduate School of Business, how easy it is to get so absorbed by the pressures of doing that you rarely ever disentangle yourself from the chock-full of activities and the clutter that can choke strategic thinking.

As the leader of the Opposition, when I went to see him in 1996 at the White House, he explained that one of the hardest things when you get into the government is finding the time to think strategically. It’s being able to create the space so that you’re focused on what you really know counts because otherwise, he said, the system will take you over. You’ll be in meetings from 8:00 in the morning till 10:00 at night, and you think you’re immensely busy, but the tactics and the strategy have all got mixed.

The Best Advice Tony Blair Ever Got from Bill Clinton: Finding Time to Think Strategically What happens in leadership is that things come at you the whole time. If you’re not careful, you’ll spend your time dealing with one situation after another. You lose your strategic grip on what’ll determine if you’re a successful government. Many of these crises are real, and you must deal with them. But when you judge your government in history, no one will remember any of them. You’ve got to create the space to be thinking strategically all the time to change the world.

Idea for Impact: It’s your strategic thinking, more than any other single activity, that can influence what you’ll achieve as a leader. Find ways to create more “head time” amid the busyness.

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Filed Under: Leadership, Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Leadership Lessons, Thinking Tools, Time Management

Book Summary: Jack Welch, ‘The’ Man Who Broke Capitalism?

June 23, 2022 By Nagesh Belludi Leave a Comment

The Man Who Broke Capitalism (2022) by New York Times columnist David Gelles contends that the pernicious greed spawned by former General Electric CEO Jack Welch is exceptionally responsible for exposing the structural failings of capitalism in recent decades.

'The Man Who Broke Capitalism' by David Gelles (ISBN 198217644X) The danger inherent in any ideology grows stronger when it starts to thrive because it swiftly morphs into temptation—a voracious appetite for ever better “returns” in the present case. Welch was indeed the most visible catalyst and a much-imitated champion of brutal capitalism. But Gelles’s narrative draws his book’s lengthy subtitle (“How Jack Welch Gutted the Heartland and Crushed the Soul of Corporate America”) excessively, thrusting ad nauseam the well-founded thesis against Welch’s ploys and “the personification of American, alpha-male capitalism.” See my previous articles (here, here, and here) about how the faults of Welch’s strategy become evident many years after his retirement.

Gelles does an agreeable job of outlining the socioeconomic paradigm that has made modern western capitalism’s shortcomings ever more apparent. Starting with influential economist Milton Friedman’s decree in the ’70s that the one and only social responsibility of a business is to maximize profits, Gelles explains the revering of Welch’s “downsizing, deal-making, and financialization” strategy. Without balance, it provided short-term benefits for shareholders, but the long-term well-being of corporations and society lost out. A sense of restraint is most pertinent to the power of capitalism.

Summary of 'The Man Who Broke Capitalism' by David Gelles Capitalism isn’t irretrievably bound to fail, as Gelles rightly argues, but it needs to be rethought. It’s morally incumbent upon the social order to inhibit the embedded incentives that create powerful tendencies towards short-termism. Gelles offers no more realistic, objective insights than the familiar solutions prescribed by our career politicians.

Overall, Gelles’s pro-Fabian polemic falls short of a fair-minded assessment of the epoch’s economic forces. Indeed, many of Welch’s tactics were timely and necessary, but he pushed them farther and longer. Too, Gelles fails to study counterexamples of many corporate leaders who’ve thoughtfully copied Welch’s playbook and helped their businesses and communities prosper, not least because they were restrained enough to avoid Welchism’s blowbacks.

Recommendation: Speed Read The Man Who Broke Capitalism for a necessary reappraisal of the legacy of Jack Welch. There isn’t much eye-opening here, but author Gelles affords a relevant parable about the power of restraint and the time- and context-validity of ideas.

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Filed Under: Business Stories, Leadership Reading, Mental Models, The Great Innovators Tagged With: Decision-Making, Discipline, Ethics, General Electric, Getting Ahead, Humility, Icons, Jack Welch, Leadership Lessons, Role Models, Targets

How to Lead Sustainable Change: Vision v Results

June 2, 2022 By Nagesh Belludi Leave a Comment

In the Drucker Foundation’s Leader to Leader (1999,) Harvard Business School professor John Kotter proposes one of my favorite visuals on the essence of noticeable results that bear witness to a leader’s vision of change:

How to Lead Sustainable Change: Vision v Results

This illustration encapsulates why some organizational change initiatives succeed while others never get off the ground or break down after a while. Kotter observes,

Results and vision can be plotted on a matrix that has four dimensions. Poor results and weak vision spell sure trouble for any organization. Good short-term results with a weak vision satisfy many organizations—for a while. A compelling vision that produces few results usually is abandoned. Only good short-term results with an effective, aligned vision offer a high probability of sustained success.

Idea for Impact: The only way a leader can produce a well-paced, sustainable, and transformational change is by mobilizing the people around her to appreciate the benefits for them in her vision of the desired future. Ongoing results oblige visibility into progress and will catalyze the organization’s commitments.

Read Kotter’s Leading Change (1996,) an influential missive on change management.

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  2. A Guide to Your First Management Role // Book Summary of Julie Zhuo’s ‘The Making of a Manager’
  3. General Electric’s Jack Welch Identifies Four Types of Managers
  4. Don’t Reward A While Hoping for B
  5. To Inspire, Pay Attention to People: The Hawthorne Effect

Filed Under: Managing People, MBA in a Nutshell Tagged With: Coaching, Discipline, Feedback, Leadership Lessons, Management, Motivation, Performance Management

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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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