Personality

Don’t Be A Founder Who Won’t Let Go

January 17, 2022 By Nagesh Belludi Leave a Comment

You’ll never get a potential successor to take your job if you’re going to be peering over her shoulder constantly and talking to employees directly about what they’re doing.

When you have a case of the founder’s syndrome, you’re addicted to running the show, and you’ll have a hard time separating yourself from the company you’ve built. When there are conflicts, you’re often at the center of it and hold your vision and experience over the leadership’s heads.

In the long run, your compulsion to have a say in all the nitty-gritty of your company will undermine the future of the very company that you’ve devoted your life to. The best thing you can do for its future is to back off and give your successor real control.

Establish a timetable to disengage yourself from the operating decisions and set some firm rules about this transition. Spend increasingly more time away from the business and pursue other interests. Start to envision a world in which your next ventures or leisure activities will become the principal focus of your life.

Idea for Impact: Know when your work is over and when it’s time for you to move on to other things. Grooming exceptional talent to take over the business you’ve built and gradually letting go of control is one of the most challenging things a founder will ever do. If done well, it’s the most transformative you can do for your business.

Avoid Control Talk

June 3, 2021 By Nagesh Belludi Leave a Comment

If you tend to say the following to your employees, relatives, or friends, you may be too controlling:

“I don’t understand why you haven’t completed that report yet.”
“I want you to say sorry to Accounting about your problem. I need you to go over there, make amends with them, and inform me of how it went.”
“We will meet at 4 P.M.”

Control talk is expected and natural. It often transpires in day-to-day conversation as a device to influence or persuade the world to see and act our way. Within certain limits of performance, control talk is accepted in critical situations.

However, control talk can get out of bounds quickly and become perceived as a threat. When one party to any conversation has more perceived power—formal or informal authority, perhaps,—unreasonable control talk can soon push the other to concede this power imbalance and restrain what he/she wants. As the American family counselor Dr Tim Kimmel writes in Powerful Personalities (1993,) “Control is when you leverage the strength of your position or personality against the weakness of someone else’s in order to get that person to meet your (selfish) agenda.”

Control talk can promptly engender intense negative emotions. The ensuing conflict becomes evident in the tone of voice, posture, and facial and body expressions. After that, self-defensive reactions will only make matters worse.

Keep all communication with others candid and respectful. Frame your messages in a positive manner that does not contain sarcasm, imply warning, provoke guilt or blame, or suggest intimidation. Summarize what you heard, and ask questions. Practice pauses—they give the other a moment of silence to get beyond the emotional response and allow them to think cognitively.

Wherever possible, ask open-ended questions to de-escalate an argument. Open-ended questions are an invitation to be nonjudgmental, investigate, relate, and see things differently. Try these alternatives:

“Tell me more—I want to understand. What can I do to make your job easier?”
“Let’s discuss possible solutions to that Accounting problem. How can we change the situation?”
“Are you available for a 4 P.M. meeting? Let’s see what we can do to make sure it doesn’t happen again.”

Wise persuasion elegantly combines rational arguments and appeals to positive values and the other’s feelings about a subject. Only when you can engage them emotionally can you change the way they think.

Idea for Impact: When it comes to persuasion, knowing when to push and when to back off is vital. Nobody likes a pushy person.

The Truth about Being a Young Entrepreneur

May 24, 2021 By Nagesh Belludi Leave a Comment

I think we should start telling our young people that getting into business is hard.

Let’s stop pumping them up, “Go for it, kid. This is awesome. This is going to be the best thing you’ve ever done. If X can do it, you can do it too. You’re going to smash it.”

Entrepreneurs have a tendency to over-confidence, and the over-confident tend to be socially and culturally primed for entrepreneurship.

Fact is, most first-time entrepreneurs wish that someone had told them how hard it was going to be. Ideas are a dime a dozen. When real-life replaces daydreams, researching, experimenting, taking on customers, building a team, gaining wisdom, and getting cash in the door are all awfully difficult. Most self-employed people put in very long hours and worry about their work, even outside of work. Entrepreneurship simply isn’t for everyone.

America is fascinated by entrepreneurs. But the successful-young-entrepreneur narrative has generated a false affirmation that sets up people for disappointment when they encounter reality.

In recent years, we’ve seen more young people diving into the startup realm. Yes, young entrepreneurs have lower opportunity costs and a better sense of the new generation’s needs. But they don’t have the network, mature frame of mind, industry insight, and adequate financial resources vital to success. Indeed these factors are why older entrepreneurs tend to have a substantially higher success rate.

Let’s stop creating false hopes for young people who don’t realize how difficult business—even a one-person-shop—is. Yes, encouragement is essential, and it can go a long way in helping people succeed. However, let’s lend support to reality and not a myth.

Idea for Impact: If you have the entrepreneurial itch, don’t become quickly sold on tales of grandeur.

Don’t build a startup to become a trend.

Don’t quit your day job yet—especially if your business idea is a spin-off from your present occupation or you intend to turn a hobby or a particular interest into a thriving business.

Don’t give up that steady paycheck until after you’ve built a side hustle.

Don’t listen to the superstars.

“But, Excuse Me, I’m Type A”: The Ultimate Humblebrag?

February 18, 2021 By Nagesh Belludi Leave a Comment

Our increasingly egotistical culture sanctions competitiveness, achievement-orientation, impatience, assertiveness, and work-fixation. Fine. But do we need to recast selfishness, greed, aggressiveness, and egotism as virtues?

Consider the assertion “I’m type A” you’ll often hear from people who’re harried and quick to anger. That expression has become the ultimate humblebrag—an announcement for the narcissistic self, indeed. It’s often a lead up to some form of a self-absorbed burden to be imposed on others.

Intense people are off-putting, particularly to laid-back types

The designation “Type A” was presented as a negative characterization in the 1970s by cardiologists—not psychologists—about people prone to so-called “hurry sickness.” These people tend to get angry and, consequently, have a higher risk of cardiovascular disease.

Now then, “I’m type A” has become the special consent some people expect to be granted to be a bit infuriating. It’s a polite declaration of the self-conscious entitlement, “I have somewhat better standards. Sorry to be so persistent.” “Sorry to squeeze you dry on this project, but I’m driven to deliver my best.”

Idea for Impact: If you’re a Type A, by all means, be an overachiever, strong-minded, demanding, whatever. But be all these without being obnoxious or instinctively imposing uncalled-for pressure on everything and everybody and every time. Lighten up.

The Business of Business is People and Other Leadership Lessons from Southwest Airlines’s Herb Kelleher

September 24, 2019 By Nagesh Belludi Leave a Comment

Herb Kelleher (1931–2019), the larger-than-life cofounder and long-time CEO-chairman of Southwest Airlines, passed away earlier this year. He is celebrated for establishing a people-oriented company culture that any leader would envy.

What started as a doodle scratched on a cocktail napkin (this account has been disputed) changed the face of flying. Herb’s then-revolutionary vision of low-cost air travel boiled the business down to its essentials. The disciplined execution of this strategy broke the mold of the aviation industry, brought the freedom of travel to millions of people, and encouraged successful copycats the world over—from JetBlue to Ryanair, and IndiGo to Air Asia.

Here are some key lessons that Herb (he preferred to be called just that) had to teach.

Companies are built in the image of their founders. Herb was well known for his competitive chutzpah, his extroverted antics, and his knack for unforgettable publicity ploys (e.g. his paper bag commercial or the ‘Malice in Dallas’ arm wrestling contest.) To the flying public, Southwest became a brand infused with the unconventional, flamboyant, free-spirited personality of its boss. That culture will continue to reflect his vision even after he’s gone—the tone he set at Southwest is not unlike those set by Steve Jobs (foresight) at Apple, Ben Cohen and Jerry Greenfield (social values) at Ben & Jerry’s, and Walt Disney (teamwork.)

Ego is the enemy of good leadership. Southwest stands as the paradigm of the power of a lighthearted culture. Herb’s stewardship of the well-being of employees started with the ego at the top. At a 1997 testimony before the National Civil Aviation Review Commission, Herb introduced himself saying, “My name is Herb Kelleher. I co-founded Southwest Airlines in 1967. Because I am unable to perform competently any meaningful function at Southwest, our 25,000 Employees let me be CEO. That is one among many reasons why I love the People of Southwest Airlines.” An ego-bound leader with no sense of humor can cast a shadow across everyone’s work, whereas a self-effacing leader who engages a genuine, self-deprecating humor can help create an environment in which employees take risks, work as a team, and enjoy themselves more. “Power should be reserved for weightlifting and boats, and leadership really involves responsibility.”

Focus on your people, they’ll take good care of your customers. Southwest’s successes are widely attributed to its highly committed and motivated workforce. From the very beginning, Herb fixated on looking after his employees, so they looked after each other and took care of their customers. And, the devoted customers ensured the growth of the business. He famously declared,

The business of business is people—yesterday, today and forever. And as among employees, shareholders and customers, we decided that our internal customers, our employees, came first. The synergy in our opinion is simple: Honor, respect, care for, protect and reward your employees—regardless of title or position—and in turn they will treat each other and external customers in a warm, in a caring and in a hospitable way. This causes external customers to return, thus bringing joy to shareholders.

Hire committed people who’ll fit your company’s culture. Under Herb, Southwest pursued job candidates who exemplified three characteristics: “a ‘warrior spirit’ (that is, a desire to excel, act with courage, persevere and innovate); a ‘servant’s heart’ (the ability to put others first, treat everyone with respect and proactively serve customers); and a fun-loving attitude (passion, joy and an aversion to taking oneself too seriously.)”

Hire for attitude, train for skill. For Herb, recruiting was not about finding people with the right experience—it was about finding people with the right mindsets. “We will hire someone with less experience, less education and less expertise, than someone who has more of those things and has a rotten attitude. Because we can train people. We can teach people how to lead. We can teach people how to provide customer service. But we can’t change their DNA.”

Get your employees committed. “We have been successful because we’ve had a simple strategy. Our people have bought into it. Our people fully understand it. We have had to have extreme discipline in not departing from the strategy.” Herb’s magic extended to making employees think like long-term business owners. He once reflected,

We don’t just give people stock options. We have an educational team that goes around and explains to them what stock options are, how they work, the fact that it’s a longer-term investment. From 1990 to 1994, the airline industry as a whole lost $13 billion. Southwest Airlines was profitable during that entire time, but our stock was battered. Eighty-four percent of our employees continued with Southwest Airlines stock during that four-year period. That’s the kind of confidence and faith that you have to engender, so people have a longer-term view, and they’re not trying to outplay the market every day.

Southwest has never been in bankruptcy, nor has it had to layoff or furlong employees—an extraordinary achievement in the turbulent airline industry.

Stay focused on the core mission. During Herb’s era, Southwest never wavered from its core operating strategies. “We basically said to our people, there are three things that we’re interested in. The lowest costs in the industry, the best customer service, a spiritual infusion—because they are the hardest things for your competitors to replicate.” Herb’s low-cost recipe, however, did not expand to pinching on his employees’ earnings during tough times.

Herb’s Idea for Impact: “The business of business is not business. The business of business is people.”

Herb left a colossal impression not only on the airline industry and on those who worked with him, but also on people-management as a practice.

Volumes have been written about Herb’s exemplar of how organizations can be responsibly people-centered. Read Kevin and Jackie Freiberg’s Nuts: Southwest Airlines’ Crazy Recipe for Business and Personal Success—it provides an insight into the unique culture and legacy that Herb shaped at Southwest.

A Trick to Help you Praise At Least Three People Every Day

July 2, 2019 By Nagesh Belludi Leave a Comment

Scott Adams, the American cartoonist who created Dilbert, writes in How to Fail at Almost Everything and Still Win Big (2013),

Children are accustomed to a continual stream of criticisms and praise, but adults can go weeks without a compliment while enduring criticism both at work and at home. Adults are starved for a kind word. When you understand the power of honest praise (as opposed to bullshitting, flattery, and sucking up), you realize that withholding it borders on immoral. If you see something that impresses you, a decent respect to humanity insists you voice your praise.

Lavish Praise on People and They’ll Flourish

In his masterful self-help manual, How to Win Friends and Influence People (1936), Dale Carnegie quotes the American steel magnate Charles M Schwab who was renowned for his people skills,

I consider my ability to arouse enthusiasm among my people, the greatest asset I possess, and the way to develop the best that is in a person is by appreciation and encouragement. …

I am anxious to praise but loath to find fault. If I like anything, I am hearty in my approbation and lavish in my praise. …

I have yet to find the person, however great or exalted his station, who did not do better work and put forth greater effort under a spirit of approval than he would ever do under a spirit of criticism.

Carnegie suggests, “Be lavish with praise, but only in a genuine way … remember, we all crave appreciation and recognition, and will do almost anything to get it. But nobody wants insincerity. Nobody wants flattery.”

How to Praise No Less Than Three People Every Day

Here’s a simple, effective technique to unleash the power of praise and honest appreciation:

Start each day with three coins in your left pocket.
Transfer one coin to your right pocket each time you praise someone or remark about something favorably. See my previous article on how to recognize people in six easy steps.
Make sure that you have all the three coins in your right pocket by the end of the day, but don’t give compliments willy-nilly.

Avoid flattery and pretentiousness, especially when someone thinks that they truly don’t deserve the praise. As well, don’t undercut praise with criticism (as in a sandwich feedback.)

Idea for Impact: If you can’t be bothered with opportunities to elevate others’ day with a few simple words of appreciation, perhaps you’re just too insecure or emotional stingy. Even if praise is directed on others, it emphasizes your own good character—it shows you’re can go beyond self-absorption in the self-consumed society that we live in.

Beware of Key-Person Dependency Risk

September 7, 2018 By Nagesh Belludi

Key-Person Dependency Risk is the threat posed by an organization or a team’s over-reliance on one or a few individuals.

The key-person has sole custody of some critical institutional knowledge, creativity, reputation, or experience that makes him indispensable to the organization’s business continuity and its future performance. If he/she should leave, the organization suffers the loss of that valued standing and expertise.

Small businesses and start-ups are especially exposed to key-person dependency risk. Tesla, for example, faces a colossal key-man risk—its fate is linked closely to the actions of founder-CEO Elon Musk, who has come under scrutiny lately.

Much of Berkshire Hathaway’s performance over the decades has been based on CEO Warren Buffett’s reputation and his ability to wring remarkable deals from companies in duress. There’s a great deal of prestige in selling one’s business to Buffett. He is irreplaceable; given his remarkable long-term record of accomplishment, it is important that much of what he has built over the years remains intact once he is gone. Buffett has built a strong culture that is likely to endure.

Key Employees are Not Only Assets, but also Large Contingent Liabilities

The most famous “key man” of all time was Apple’s Steve Jobs. Not only was he closely linked to his company’s identity, but he also played a singular role in building Apple into the global consumer-technology powerhouse that it is. Jobs had steered Apple’s culture in a desired direction and groomed his handpicked management team to sustain Apple’s inventive culture after he was gone. Tim Cook, the operations genius who became Apple’s CEO after Jobs died in 2011, has led the company to new heights.

The basic solution to key-person dependency risk is to identify and document critical knowledge of the organization. (Capturing tacit knowledge is not easy when it resides “in the key-person’s head.”) Organizations must also focus on cross-training and succession planning to identify and enable others to develop and perform the same tasks as the key-person.

Idea for Impact: No employee should be indispensable. A well-managed company is never dependent upon the performance of one or a few individuals. As well, no employee should be allowed to hoard knowledge, relationships, or resources to achieve job security.

Risk Homeostasis and Peltzman Effect: Why Risk Mitigation and Safety Measures Become Ineffective

May 17, 2018 By Nagesh Belludi Leave a Comment

Risk Homeostasis and Peltzman Effect are two concepts relating to how humans react to risks.

Risk Homeostasis is the notion that our personal psychological frameworks comprise a target level of risk towards which we direct our efforts.

We measure risk on our own “risk thermostat.” Because the risk in our environment changes continuously, we are incessantly forced away from our target risk level, but revert toward it by counteracting those external influences.

If the perceived risk of a situation exceeds our target level, we undertake defensive actions to reduce the risk. And if the perceived risk is lower than our target level, we attempt to increase our risk back to our target level by exposing ourselves to dangerous actions.

Consequently, people take more risks when they’re forced to act more carefully. For instance, requiring motorcycle bikers to wear helmets may make them take more risks—to maintain their level of thrill, not to get into accidents.

Peltzman Effect is the notion that people respond to increased safety by adding new risks. The namesake, economist Sam Peltzman, argued in 1975 that when automobile safety rules were introduced, at least some of the benefits of the new safety rules were counterbalanced by changes in the behavior of drivers. Peltzman posited that making seatbelts mandatory for cars resulted in reducing the number of occupant fatalities, but increased pedestrian casualties and collision-related property damages.

Peltzman made a case that even though seatbelts reduced the risk of being severely injured in an accident, drivers compensated by driving aggressively and carelessly—driving closer to the car ahead of them, for instance—so as to save time or maintain their level of thrill, even at the risk of causing damage beyond themselves and their cars.

Risk Homeostasis and Peltzman Effect remain controversial theories. Despite their apparent relevance, the prevailing evidence remains inadequate and inconclusive about how people behave less cautiously when they feel more protected and vice versa.

Further, Risk Homeostasis and Peltzman Effect challenge the foundations of safety and injury-prevention policies. They assert that the only effective safety measures are those that alter individuals’ desired risk level. Anything that barely modifies the environment or regulates individuals’ behavior without affecting their target risk levels is useless.

How to Increase Your Likeability: The 10/5 Rule

December 16, 2016 By Nagesh Belludi Leave a Comment

The 10/5 Rule, also known as the “Zone of Hospitality Rule,” is a well-known guiding principle for extending courtesy to customers in the hospitality, healthcare, retail, and other service industries. The rule instructs,

Whenever a staff member is within ten feet of a guest, the staff member must make eye contact and smile to greet the approaching guest.
When a staff member is within five feet of a guest, the staff member must also look the guest in the eye and acknowledge him/her with a salutation such as “Hello” or “Good Morning, Mrs. Smith.”

Many companies have adapted versions of the 10/5 Rule to improve friendliness, customer-service, and responsiveness. As I’ve written in a previous article, Walmart’s iconic founder Sam Walton instituted the ‘Ten-Foot Attitude’ and said, “… I want you to promise that whenever you come within 10 feet of a customer, you will look him in the eye, greet him, and ask him if you can help him.” At Disney theme parks, “cast members” are encouraged to make eye contact, smile, greet, and welcome each guest as part of Disney’s famous “Seven Service Guidelines.”

Courtesy is an Influence Technique

As expounded in Dale Carnegie’s classic self-help book How to Win Friends & Influence People, we are much more likely to feel warmly toward any person who sincerely makes us feel good about ourselves.

Likeable people not only succeed in their personal relationships, but also tend to be more successful at the workplace. Indeed, highly competent but unlikeable employees do not thrive as well as their moderately competent but more likeable peers.

Idea for Impact: Be courteous. Even simple acts of courtesy (making eye contact, smiling more, listening, showing sincere interest in others, for example) work as an influence technique because folks are much more likely to do things for—and accede to requests from—people they perceive as likeable.

Serve with a Big Smile

August 19, 2016 By Nagesh Belludi 1 Comment

This research from Penn State suggests,

The bigger a service-employee’s smile, the happier a customer. This comports with other research that has shown that the powerful emotions triggered when someone smiles at you and you smile in return can change your brain chemistry. You not only feel more optimistic and motivated, but also tend to remember such happy occasions more vividly.
Genuineness of the service-employee enhanced the customer’s perceptions of friendliness, but only influenced customer satisfaction when tasks were well-performed and the customer’s major expectations of the product/service were met.
Appearing inauthentic and fake-smiling undermined the assumed benefits of “service with smile.” Customers can spot insincerity in a smile when they see one. Inauthentic, robotic, and feigned friendliness can be a turn off for customers.
Given that frontline service-employees represent a company to the public, mandating that employees must smile and appear friendly during their interactions with customers can backfire. The researchers suggest that companies hire happier employees and engender a work-environment that encourages genuine smiles and empowers employees to provide authentically pleasant customer service.

Genuine vs. Fake Smiles: The Science behind Your Smile

You can spot the difference between a genuine smile and a fake one. A genuine smile is also called the “Duchenne smile” after Duchenne de Boulogne (1806–1875,) a French neurologist who studied the association of facial expressions with the soul of humans.

Scientific research has shown that Duchenne smile involves the voluntary contraction of the zygomatic major (the muscle that raises the corners of the mouth) and the involuntary contraction of the orbicularis oculi (the muscle that raises the cheeks and produces crow’s feet around the eyes.)
In contrast, a fake smile involves the contraction of just the zygomatic major since the orbicularis oculi cannot be voluntarily contracted. A fake perfunctory smile is nothing but a manifestation of obligatory courtesy and politeness rather than one of inner joy.

Further, scientists believe that the two types of smiles are actually controlled by two distinct parts of the brain: the Duchenne smile is controlled by the limbic system (the emotional center of the brain) whereas the fake smile is controlled by the motor cortex.

Idea for Impact: Serve with a Big, Genuine Smile

A genuine smile is an index of your happiness. Put in a little more delight into your smile. Reach out to others and give a little more of yourself by serving with a bigger smile.
Don’t smile excessively. Although people like smiles but are rather distrustful of excessive smiling. Unless the source of your cheerfulness is genuine and noticeable, people will judge that your undue smiling is feigned—or that you’re smiling distastefully at some deficiency on their part.
Engage your eyes for genuine smiles. If you’re forcing yourself to smile, you may be able to organize your lips and teeth into a smile, but you’ll not be able to get your eyes to coordinate.
Try to smile even when you are feeling cranky or grouchy. A simple smile can relax your facial muscles and short-circuit your bad mood.

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Personality

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Idea for Impact: If you have the entrepreneurial itch, don’t become quickly sold on tales of grandeur.

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Intense people are off-putting, particularly to laid-back types

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Herb’s Idea for Impact: “The business of business is not business. The business of business is people.”

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Lavish Praise on People and They’ll Flourish

How to Praise No Less Than Three People Every Day

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Key Employees are Not Only Assets, but also Large Contingent Liabilities

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Courtesy is an Influence Technique

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Genuine vs. Fake Smiles: The Science behind Your Smile

Idea for Impact: Serve with a Big, Genuine Smile

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