• Skip to content
  • Skip to primary sidebar

Right Attitudes

Ideas for Impact

Strategy

Elon Musk Insults, Michael O’Leary Sells: Ryanair Knows Cheap-Fare Psychology

January 23, 2026 By Nagesh Belludi Leave a Comment

Michael O'Leary Shaped Ryanair Into Bold Reflection of His Combative Persona Ryanair’s CEO Michael O’Leary has long been one of my most admired businessmen. His achievements speak for themselves, but what has always impressed me even more is the consistency of his communication and the clarity of the philosophy that underpins everything he does.

O’Leary never wavers. He never dilutes his message. Every interview, every press question, every throwaway comment—he’s hammering home the same point: keep costs low, run tight, and don’t pretend to be something you’re not. He has essentially cloned himself into a corporate entity, crafting a pugnacious and brash airline that mirrors his own combative nature and provocative disregard for the status quo.

I met him once, one-on-one, and despite the famously sharp public image, he was remarkably courteous. People who’ve worked with him echo that impression: behind the bluster and profanity is someone family-oriented, grounded, and genuinely pleasant to deal with, even if he stays tough as nails in business. That mix of discipline, bluntness, cunning, and unexpected warmth is exactly what I’ve always respected about him.

This week’s confrontation with Elon Musk only reinforced all of that. What began as a disagreement about Starlink has already turned into one of the most entertaining corporate feuds of the moment, and O’Leary has turned every bit of it into a masterclass in opportunistic publicity.

It started when O’Leary called Musk an “idiot” during a Newstalk interview, explaining why Ryanair won’t be installing Starlink on its planes. His reasoning was pure Ryanair: the equipment would cost €200–€250 million, add weight, burn more fuel, and provide a service passengers don’t actually want to pay for. On a ninety-minute flight, most travelers are thinking about their holiday, not paying extra to check email. And even for those who might want Wi-Fi, the hassle of setting up payment for an hour of browsing hardly seems worthwhile.

Ryanair Turns Elon Musk Feud Into Flash Sale and Publicity Goldmine

This Frugality Is Classic Ryanair

Ryanair has always understood something fundamental about its passengers: the vast majority simply want to get from A to B cheaply, quickly, and safely. Everything else is secondary. With that understanding, the airline became remarkably adept at turning negative publicity into an asset. As long as headlines didn’t question the cheap fares, turnaround times, or safety, they caused no real damage to the brand—often they actually helped.

Endless articles painting Ryanair as ruthless, miserly, or cold-hearted kept its name circulating and, more importantly, reinforced a single underlying idea: this airline cuts every possible cost and passes the savings to passengers. The public absorbed that message, consciously or not. Outrage over Ryanair’s latest supposed scandal often faded within hours—only for the same critics to find themselves browsing its website the next day, hunting for the cheapest flight they could find.

So when Musk fired back online this week, calling O’Leary an “utter idiot,” the situation was practically a gift. While Musk vented on X and teased a potential buyout—polling his followers on whether he should “restore Ryan as their rightful ruler” by taking over the company—O’Leary did what he does best: he turned the noise into marketing gold. Ryanair launched its “Big Idiot Seat Sale,” a flash promotion that mocked the feud while offering tens of thousands of seats for under €17. Millions of subscribers received emails featuring caricatures of both men perched on a plinth labeled “Big Idiots,” and the airline’s social media team gleefully encouraged customers to “thank that big IDIOT @elonmusk” for the cheap fares. It was classic Ryanair—irreverent, self-aware, and ruthlessly effective.

Ryanair Knows a Well-Timed Insult Is the Cheapest Publicity

O’Leary even staged a press conference on Wednesday to address Musk’s latest online outburst—a tirade in which Musk labeled him an “insufferable special-needs chimp.” The spectacle guaranteed cameras would roll and headlines would multiply.

For a man who has built an empire on ruthless efficiency this kind of free global publicity is priceless. Industry observers weren’t surprised; O’Leary has long understood that controversy when met with humor only sharpens Ryanair’s image as the scrappy sharp-tongued champion of low fares.

Ryanair vs Sabena: Brussels Statue Ad Sparked 2001 Fare War Spectacle His flair for humorous controversy goes back years. During a 2001 clash with Sabena, Belgium’s then-national carrier, Ryanair ran an ad featuring Brussels’ Manneken Pis statue with the line, “Pissed off with Sabena’s high fares?” Sabena sued and won, forcing an apology—which O’Leary delivered as a gleefully sarcastic “We’re Sooooo Sorry Sabena!” complete with even more fare comparisons. The real masterstroke came outside the Brussels courthouse, where Ryanair had encouraged people to show up, voice their support, and walk away with ultra-low-fare tickets. A massive crowd turned out, turning a legal reprimand into a street-level spectacle. This wasn’t just symbolic; Ryanair had literally set up on-the-ground promotions across Brussels. It was early proof of O’Leary’s formula in perfect sync: humor, provocation, and free publicity feeding off one another.

The frugality isn’t just marketing—it’s woven into the company’s DNA. A former Ryanair pilot once recalled that the airline used to charge staff for tickets to their own Christmas party, and supposedly not at a discount. He was convinced the company actually turned a profit on the event. It’s the same mindset that drives decisions like rejecting Starlink: if it doesn’t keep fares low, Ryanair won’t pursue it.

In the end, Musk may have satellites, rockets, and a global social media platform, but O’Leary has something more potent in this moment: the ability to turn a petty argument into a worldwide advertisement for Ryanair’s unbeatable prices, reliable service, and no-nonsense approach. The airline emerges from the feud looking cheeky, confident, and completely in control—exactly the way O’Leary prefers it.

Wondering what to read next?

  1. We Trust What We Can See: James Dyson Builds for That Instinct
  2. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  3. The Wisdom of the Well-Timed Imperfection: The ‘Pratfall Effect’ and Authenticity
  4. The Mere Exposure Effect: Why We Fall for the Most Persistent
  5. Labubu Proves That Modern Luxury Is No Longer an Object, It’s a Story

Filed Under: Business Stories, MBA in a Nutshell, Mental Models, Sharpening Your Skills, The Great Innovators Tagged With: Aviation, Biases, Creativity, Critical Thinking, Entrepreneurs, Icons, Innovation, Marketing, Parables, Psychology, Strategy

Founders Struggle to Lead Growing Companies

December 22, 2025 By Nagesh Belludi Leave a Comment

Tony's Chocolonely Case Study on Scaling Up: Founders Struggle to Lead Growing Companies

In 2003, Dutch investigative journalist Teun van de Keuken took an extreme approach to expose child labor in the cocoa industry. On his TV show Keuringsdienst van Waarde, he ate 12 chocolate bars that were likely made with cocoa harvested through child labor and demanded to be prosecuted under a Dutch law, which he believed held consumers accountable for knowingly purchasing illegally produced goods. Although authorities dismissed the case because it was impossible to definitively prove that the chocolate was unethically sourced, his stunt sparked widespread awareness about the dark practices behind chocolate production.

Determined to make the problem more tangible, van de Keuken arranged for a child exploited on a West African cocoa plantation to travel to the Netherlands. This move humanized the issue and forced global attention on the realities of the chocolate supply chain. Frustrated with the industry’s lack of progress, he founded Tony’s Chocolonely in 2005 to prove that chocolate could be made without slavery. Despite facing legal scrutiny in 2007, the brand eventually secured recognition for its commitment to ethical sourcing. By 2011, van de Keuken sold most of his stake, and entrepreneur Henk Jan Beltman became the majority shareholder, setting the stage for Tony’s international expansion.

Today, Tony’s Chocolonely has grown into a prominent brand, now widely available in America at retailers like Target, Whole Foods, and Walmart. The brand is instantly recognizable by its bold, blocky lettering and its uniquely irregularly shaped chocolate pieces—designed to serve as a constant reminder that inequality is built into the cocoa industry. While worldwide sales skyrocketed from 1 million euros at the time of van de Keuken’s exit to about 225 million euros today, details about his remaining stake remain private, though it’s likely that he has benefited financially.

Idea for Impact: Know when to step aside. Scaling a venture requires more than just passion—it demands operational efficiency, sound financial strategy, and strong leadership teams. Many founders flourish during the startup phase, yet recognizing when to adapt or step aside often makes the difference between a fleeting idea and lasting success.

Wondering what to read next?

  1. FedEx’s ZapMail: A Bold Bet on the Future That Changed Too Fast
  2. Learning from Amazon: Getting Your House in Order
  3. Starbucks’ Oily Brew: Lessons on Innovation Missing the Mark
  4. Lessons from Peter Drucker: Quit What You Suck At
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Business Stories, Leadership, Mental Models, The Great Innovators Tagged With: Delegation, Discipline, Entrepreneurs, Leadership, Leadership Lessons, Parables, Personal Growth, Strategy

Consumer Power Is Shifting and Consumer Packaged Goods Companies Are Struggling

July 24, 2025 By Nagesh Belludi Leave a Comment

Consumer Power Is Shifting and Consumer Packaged Goods Companies Are Struggling The much-whispered unraveling of Kraft Heinz underscores a broader sector-wide malaise: the steep, stubborn erosion of organic growth across consumer staples. Giants like PepsiCo, Unilever, Procter & Gamble, Colgate-Palmolive, and India’s Tata Consumer Products face similarly constraining headwinds.

Saturated demand is the culprit. Consumers are maxed out on toothpaste, detergent, packaged snacks, and syrupy fizz. As categories mature and volume plateaus, traditional growth levers feel obsolete. Intensified global competition tightens the vise—especially from nimble, cost-efficient regional brands that operate hyper-locally across developing markets.

Consumer behavior is bifurcating. Price-sensitive shoppers are gravitating toward store-label substitutes: affordable, dependable, brand-agnostic. Meanwhile, high-intent buyers seek premium offerings reflecting health priorities, sustainability values, or cultural identity. Together, these forces compress mid-tier incumbents from both ends.

To recapture relevance, legacy players are pivoting—acquiring smaller, health-forward, culturally attuned brands with traction. This isn’t experimentation. It’s survival. Growth now hinges on swift, intentional entry into wellness-led micro-markets.

Consumer Packaged Goods Companies are Facing Saturated Demand PepsiCo’s acquisition of probiotic soda brand Poppi and Mexican-American snack label Siete Foods signals a clean-label, culturally conscious shift. Tata bolstered its portfolio with wholesome foods brand Soulfull, fusion brand Ching’s Secret, and Ayurvedic company Organic India. Unilever doubled down with Pukka Herbs, sustainable staple Seventh Generation, and offbeat grooming line Dr. Squatch—plus a stake in Esqa, Indonesia’s first vegan, Halal-certified cosmetics brand. Colgate and P&G followed, acquiring mission-driven favorites like Native, Hello Products, and Billie.

These investments reflect more than market strategy. They mark an ideological realignment. Today’s buyers demand clarity, simplicity, and purpose. With processed goods under scrutiny and marketing spin losing its shine, ethos has emerged as premium currency.

The staples sector isn’t merely evolving—it’s self-disrupting. In place of legacy inertia, a nimble, value-led strategy is taking root. The possible Kraft Heinz breakup embodies that shift.

Wondering what to read next?

  1. When Global Ideas Hit a Wall: BlaBlaCar in America
  2. Why Investors Keep Backing Unprofitable Business Models
  3. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  4. How FedEx and Fred Smith Made Information the Package
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Business Stories, Leadership, MBA in a Nutshell Tagged With: Entrepreneurs, Innovation, Leadership Lessons, Marketing, Persuasion, Problem Solving, Strategy

Not Every Customer is a Right Fit for You—and That’s Okay

December 19, 2024 By Nagesh Belludi Leave a Comment

Not Every Customer is a Right Fit for You---and That's Okay In business, every sale may feel like a win, but some sales can actually harm you more than help.

In Delivering Happiness: A Path to Profits, Passion, and Purpose (2010; my summary,) Zappos CEO Tony Hsieh illustrates the importance of parting ways with problematic customers. He recounts how, when it was a fledgling startup, Zappos identified a customer who exploited their generous return policy, ordering thousands of dollars in shoes only to return them frequently. Acknowledging the strain this put on their business and customer service team, Zappos chose to cut ties, issuing a full refund and politely refusing further business. This decision allowed them to maintain their high standards for customers who genuinely valued their service.

Not all money is good money. Certain clients can negatively impact your well-being—and your bottom line.

Filter out the wrong customers. Cut loose those who don’t fit. Over time, you’ll become adept at spotting clients you’ll regret accepting. Some customers simply aren’t worth your time and energy. Sometimes, it’s more cost-effective to refund their money and send them packing. Other times, it’s wise to discourage potential clients from buying in the first place. You might find yourself confidently saying, “Sorry, this just isn’t for you. Please don’t send any money my way.” It may seem a bit blunt, but it’s liberating. The payoff? You’ll build a fantastic group of clients who bring genuine joy to your work, significantly reducing negative stress for you, your team, and everyone involved.

Idea for Impact: Good business sometimes means letting go. Life’s too short to waste on the wrong customers. Filtering out those who aren’t a fit isn’t just smart; it’s vital for creating a fulfilling, enjoyable career. Work with those who inspire you.

Wondering what to read next?

  1. Putting the WOW in Customer Service // Book Summary of Tony Hsieh’s Delivering Happiness
  2. Consistency Counts: Apply Rules Fairly Every Time
  3. Is The Customer Always Right?
  4. The High Cost of Winning a Small Argument
  5. A Rule Followed Blindly Is a Principle Betrayed Quietly

Filed Under: Leadership, Leading Teams, Managing People, Mental Models Tagged With: Conflict, Customer Service, Entrepreneurs, Getting Along, Likeability, Performance Management, Strategy

Are Layoffs Your Best Strategy Now?

November 28, 2022 By Nagesh Belludi Leave a Comment

We’re in a demand slump; if you think downsizing will cut costs and shore up the bottom line, consider the unexpected consequences of layoffs.

Hefty severance pay, outplacement services, and other direct costs can add up quickly, and indirect costs can be substantial. E.g., losing experienced employees can precipitate lasting damage to your business. The direct costs can wipe out any short-term financial benefit if new hard-to-find employees are to be hired and trained within six to twelve months when the downtrend stops.

Then there’s the trap of believing that things will get better soon and downsizing the smallest number of people in anticipation of a quick turnaround. And when that expected miracle doesn’t materialize, you’ll wind up making successive cuts. That’s awful for the morale of the employees spared. The best employees won’t feel indebted to soldier on and may start casting around for new offers, terrified that they will be among the next to be cut.

Idea for Impact: Layoffs may not be the best strategy for grappling with hard times. Examine not just the cost of labor but also the value created by labor. Consider the trade-offs and try furloughs, pay cuts, job sharing, and scaled-down hours instead, depending on when you foresee business rebounding. You’ll spread the pain of the downturn more broadly, keep talented employees, earn loyalty, and better position your company for recovery.

Wondering what to read next?

  1. Employee Surveys: Asking for Feedback is Not Enough
  2. Do We Have Too Many Middle Managers?
  3. These are the Two Best Employee Engagement Questions
  4. How to Promote Employees
  5. People Work Best When They Feel Good About Themselves: The Southwest Airlines Doctrine

Filed Under: Leadership, Leading Teams, Managing People Tagged With: Hiring & Firing, Human Resources, Leadership, Management, Performance Management, Strategy

The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline

August 11, 2022 By Nagesh Belludi 1 Comment

When Spirit Airlines pivoted to competing on price in the late 2000s, it quickly gained a reputation not only for operational inefficiencies but also for its in-your-face, take-it-or-leave attitude towards customer service.

Where other airlines charged by-the-package fares for the flight experience, Spirit pared back service and introduced an a la carte pricing model. Charging for the “ancillaries”—i.e., everything optional, including water—allowed Spirit to keep ticket prices down and appeal to price-sensitive travelers willing to sacrifice the usual amenities for a lower ticket price.

In the ensuing years, the unconventionality of this business model did not go down well with customers. Much of the flying public’s frustration with Spirit had to do with Loss Aversion. That’s the notion that the emotional disappointment of a loss is more extreme than the joy of a comparable gain. If finding a cheaper fare on Spirit felt delightful, giving up some—or all—of the savings to purchase ancillaries and surrender the savings felt utterly miserable.

Passengers felt ripped off by these seemingly hidden fees, especially when the true cost of flying Spirit ended up greater than what the initial ticket price led them to believe.

Spirit became quickly convinced that there was a perception problem—its customers didn’t fully understand how its fares work. Particularly, first-time customers blindly presumed that Spirit Airlines works the same way as other airlines. In reality, there were no hidden or excessive fees, and passengers could only pay for what they need or want. In 2014, the airline introduced its “Spirit 101” campaign to educate customers and alter their perceptions. With time and the increased adaptation of the “Basic Fare” model and curtailed customer service by every other airline, passengers’ expectations have since been right-sized. Spirit Airlines has come a long way, and its customer service has improved vastly.

Further studies on loss aversion have shown that a cascade of successive fees is worse than the cumulative: i.e., three ancillary fees that add up to, say, $70, feel a lot worse than a single $70 fee. Appropriately, Spirit offers a “Bundle it Combo” package.

Wondering what to read next?

  1. Flying Cramped Coach: The Economics of Self-Inflicted Misery
  2. Elon Musk Insults, Michael O’Leary Sells: Ryanair Knows Cheap-Fare Psychology
  3. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms
  4. The Mere Exposure Effect: Why We Fall for the Most Persistent
  5. Labubu Proves That Modern Luxury Is No Longer an Object, It’s a Story

Filed Under: Business Stories, Mental Models Tagged With: Aviation, Biases, Customer Service, Decision-Making, Emotions, Entrepreneurs, Innovation, Marketing, Mental Models, Parables, Persuasion, Psychology, Strategy

Why Investors Keep Backing Unprofitable Business Models

July 29, 2022 By Nagesh Belludi Leave a Comment

Investors have heaped billions into Q-Commerce—especially the rapid grocery startups—hoping to hook consumers on the convenience of groceries that would turn up immediately, sometimes in minutes.

I’ve never really fathomed how the small-basket orders of low-margin groceries can endlessly compensate for the labor costs and overheads, even after discontinuing the generous referral bonuses, discount codes, and freebies enticing customers. The prospects may evolve if these startups subsist on ever more funding and develop massive businesses with efficiencies from scale. But then they’re right in Amazon’s wheelhouse.

Idea for Impact: Some business models are never created to be profitable, and investors should be wary of encouraging—and funding—loss-making propositions. The lure of backing an initial entrant, capturing market share, and then selling out to a more determined fool isn’t viable! Who needs goods delivered in such a rush for such charges, anyway?

Wondering what to read next?

  1. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  2. Consumer Power Is Shifting and Consumer Packaged Goods Companies Are Struggling
  3. Elon Musk Insults, Michael O’Leary Sells: Ryanair Knows Cheap-Fare Psychology
  4. We Trust What We Can See: James Dyson Builds for That Instinct
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: Business Stories, The Great Innovators Tagged With: Entrepreneurs, Ethics, Innovation, Marketing, Persuasion, Strategy, Thought Process

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. Airline Safety Videos: From Dull Briefings to Dynamic Ad Platforms
  2. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  3. Lessons from Lockheed Martin’s Skunk Works: Autonomy Can Create Innovative Workplaces
  4. The Singapore Girl: Myth, Marketing, and Manufactured Grace
  5. Elon Musk Insults, Michael O’Leary Sells: Ryanair Knows Cheap-Fare Psychology

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

How Jeff Bezos is Like Sam Walton

November 1, 2021 By Nagesh Belludi Leave a Comment

Walmart founder Sam Walton’s brilliant autobiography, Made in America (my summary,) was published a few weeks before his death in 1992. The penultimate page reads,

Could a Wal-Mart-type story still occur in this day and age? My answer is of course it could happen again. Somewhere out there right now there’s someone—probably hundreds of thousands of someones—with good enough ideas to go all the way. It will be done again—over and over, providing that someone wants it badly enough to do what it takes to get there. It’s all a matter of attitude and the capacity to constantly study and question the management of the business.

Jeff Bezos started Amazon just two years later. After eight years on Wall Street, Bezos dreamt up Amazon during a drive from New York to Seattle in 1994. His wife (now ex-wife) MacKenzie drove, and Jeff “tapped out a business plan on his computer along the way.”

'Sam Walton: Made In America' by Sam Walton (ISBN 0553562835) Amazon began as a loss-making book e-tailer at the dawn of the commercial Internet and as the dot-com poster child in the late ’90s. It has since evolved into one of the world’s most valuable companies. Amazon has come a long way from its genesis as the curse of bricks-and-mortar booksellers and has diversified broadly into just about every adjacent business it could get its hands on.

Bezos’s and Amazon’s dominant leadership values echo those of Sam Walton and Wal-Mart: frugality, a bias for action, long-term focus, motivating staff to think like owners, and customer obsession.

The Everything Store (2013,) Brad Stone’s excellent chronicle of the rise of Amazon notes, “In his autobiography, Walmart’s founder expounds on the principles of discount retailing and discusses his core values of frugality and a bias for action—a willingness to try a lot of things and make many mistakes. Bezos included both in Amazon’s corporate values.” On an earnings call, Bezos famously declared, “there are two kinds of retailers: there are those folks who work to figure how to charge more, and there are companies that work to figure how to charge less, and we are going to be in the second, full-stop.”

All along, Bezos has made big bet-decisions that hurt it in the short term but created value in the long term. Amazon’s market capitalization has rocketed up from $4.55 billion in 2001 to $1.08 trillion before the Coronavirus/COVID-19 infected the stock markets. Amazon’s secret, in Bezos’s words, is,

We are genuinely customer-centric, we are genuinely long-term oriented and we genuinely like to invent. Most companies are not those things. They are focused on the competitor, rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don’t work in two or three years they will move on to something else. And they prefer to be close-followers rather than inventors, because it’s safer. So if you want to capture the truth about Amazon, that is why we are different.

Amazon has not been consistently profitable over the years, and that is a deliberate upshot of how Bezos approaches business. Amazon cycles through periods of substantial investments that beget future revenue growth (with low profits) and periods of increasing profits as its investments ebb.

'The Everything Store' by Brad Stone (ISBN 0316219266) Bezos has maneuvered Wall Street into believing that he is just getting started—his “Day 1” philosophy has become something of a legend. “A big piece of the story we tell ourselves about who we are is that we are willing to invent … and very importantly, we are willing to be misunderstood for long periods of time,” Bezos asserted at Amazon’s 2011 annual shareholders meeting.

Not all of Bezos’s bets have succeeded. However, investors have come to acknowledge that his long-term initiatives will produce rich results several years down the road. Little wonder, then, that Amazon’s stock has defied short-termism by continually progressing upward even during quarters of little or no earnings.

Postscript: Bezos has been, until recently, the world’s wealthiest person since about 2018. Walton was the richest man from 1985 until his death in 1992. His inheritors, the Walton family, are collectively more affluent than Bezos!

Wondering what to read next?

  1. Learning from Amazon: Getting Your House in Order
  2. Why Amazon Banned PowerPoint
  3. Founders Struggle to Lead Growing Companies
  4. I Admire Business Leaders Who’re Frugal to an Extreme
  5. Lessons from Peter Drucker: Quit What You Suck At

Filed Under: Leadership, The Great Innovators Tagged With: Amazon, Entrepreneurs, Jeff Bezos, Leadership Lessons, Management, Strategy

Fail Cheaply

November 19, 2020 By Nagesh Belludi 1 Comment

One way to accelerate innovation is to undertake low-risk experiments.

Failures in the innovation process can be costly and time-consuming. It’s often wiser to try low-risk, low-cost, high-payoff experiments than ruminating endlessly.

Make your experiments cheaper. You don’t need to create a full-scale concept to test it. Find low-cost ways to test your assumptions. It may take time and iteration to find what works for you.

  • Engineers often use surrogate modeling techniques that use simple prototypes and mock-ups that are as representative as possible.
  • Counter to the phrase “it takes money to make money,” shrewd entrepreneurs know how to experiment multiple ways for minimal cost. Next, they scale up one or two experiments that have given them favorable results. The losses are small, and the potential gains much larger.

Idea for Impact: The worst way to fail is slow and big. Don’t eliminate failure. Only reduce the cost of failure.

Wondering what to read next?

  1. Elon Musk Insults, Michael O’Leary Sells: Ryanair Knows Cheap-Fare Psychology
  2. Defect Seeding: Strengthen Systems, Boost Confidence
  3. The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  4. Starbucks’ Oily Brew: Lessons on Innovation Missing the Mark
  5. Your Product May Be Excellent, But Is There A Market For It?

Filed Under: MBA in a Nutshell, Mental Models, Sharpening Your Skills Tagged With: Change Management, Creativity, Decision-Making, Entrepreneurs, Innovation, Risk, Strategy

Next Page »

Primary Sidebar

Popular Now

Anxiety Assertiveness Attitudes Balance Biases Coaching Conflict Conversations Creativity Critical Thinking Decision-Making Discipline Emotions Entrepreneurs Etiquette Feedback Getting Along Getting Things Done Goals Great Manager Innovation Leadership Leadership Lessons Likeability Mental Models Mentoring Mindfulness Motivation Networking Parables Performance Management Persuasion Philosophy Problem Solving Procrastination Relationships Simple Living Social Skills Stress Suffering Thinking Tools Thought Process Time Management Winning on the Job Wisdom

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.

Get Updates

Signup for emails

Subscribe via RSS

Contact Nagesh Belludi

RECOMMENDED BOOK:
So Good They Can't Ignore You

So Good They Can't Ignore You: Cal Newport

Computer scientist Cal Newport explains how blindly following one's passion is a poor career strategy. Developing precious skills can initiate a passionate pursuit and a meaningful career.

Explore

  • Announcements
  • Belief and Spirituality
  • Business Stories
  • Career Development
  • Effective Communication
  • Great Personalities
  • Health and Well-being
  • Ideas and Insights
  • Inspirational Quotations
  • Leadership
  • Leadership Reading
  • Leading Teams
  • Living the Good Life
  • Managing Business Functions
  • Managing People
  • MBA in a Nutshell
  • Mental Models
  • News Analysis
  • Personal Finance
  • Podcasts
  • Project Management
  • Proverbs & Maxims
  • Sharpening Your Skills
  • The Great Innovators

Recently,

  • The Hot-Desking Lie: How It Killed Focus and Gutted Collaboration
  • Unreliable Narrators Make a Story Sounds Too Neat
  • Bertrand Russell on The Value of Philosophy: Doubt in an Age of Dogma
  • Inspirational Quotations #1142
  • The Law of Petty Irritations
  • Look, Here’s the Deal: Your Insecurity is Masquerading as Authority
  • Live as If You Are Already Looking Back on This Moment with Longing

Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!