Thought Process

The Best Leaders Make the Complex Simple

February 17, 2020 By Nagesh Belludi Leave a Comment

The New York Times‘s Adam Bryant interviewed 525 CEOs for his Corner Office column and compiled two excellent books, The Corner Office (2012) and Quick and Nimble (2014,) on leadership and management advice. Foremost among the themes common with successful leaders, Bryant says, is “a simple mindset”—the ability to synthesize the simple from the complex and create organizational priorities.

There’s a really important quality [in great CEOs] that I call a “simple mindset,” which is the ability to take a lot of complicated information and really boil it down to the one or two or three things that really matter, and in a simple way, communicate that to people.

In big organizations—frankly, in any company—there are always a dozen or more competing priorities. And it is the leader’s job to stand up in front of the troops and say, “These are the three things that we are going to focus on this year,” or “These are the goals and this is how we are going to measure them.” If you really want to galvanize people and get them operating as a team, you’ve got to create a simple scoreboard that everybody understands.

The communication style, to me, is secondary to getting the content right. And what I’ve been so often impressed by is leaders who can essentially boil down the company’s goals and operating model into, literally, less than a page.

This is a real trick to leadership—creating a simple structure so that everybody in the organization can understand how the work they are doing contributes to the broader goals.

Rob Andrews, CEO of the executive headhunting firm Allen Austin, underscores this “boil the complex into the simple” approach in his leadership manual, High-Performance Human Capital Leadership (2015,)

I have found that when I go into a company to lead, it is important to have a plan and to make that plan a simple one that everybody can understand. I am constantly asking the question,—What are the two or three levers that, if done right, if pulled correctly, will really turn this business? What are the two or three things that really matter? And I find that most leaders do not really do that often.

Idea for Impact: One of the essential attributes of a modern leader is the ability to cut complexity everywhere. Develop the ability to take large, complicated things—and information—and make them very simple.

What You Learn from Failure

February 3, 2020 By Nagesh Belludi Leave a Comment

One common theme among people who cope particularly effectively with failure is their ability to acknowledge the failure, put it in perspective, and seek causes, not blame. As the Dalai Lama XIV writes in The Dalai Lama’s Little Book of Inner Peace (2009,)

If a misfortune has already occurred, it is best not to worry about it, so we do not add fuel to the problem. Don’t ally yourself with past events by lingering on them and exaggerating them. Let the past take care of itself, and transport yourself to the present while taking whatever measures are necessary to ensure that such a misfortune never occurs again, now or in the future.

American investor and superstar hedge-fund manager Ray Dalio writes in his very instructive Principles: Life and Work (2017,)

I learned that everyone makes mistakes and has weaknesses and that one of the most important things that differentiates people is their approach to handling them. I learned that there is an incredible beauty to mistakes, because embedded in each mistake is a puzzle, and a gem that I could get if I solved it, i.e., a principle that I could use to reduce my mistakes in the future. I learned that each mistake was probably a reflection of something that I was (or others were) doing wrong, so if I could figure out what that was, I could learn how to be more effective. I learned that wrestling with my problems, mistakes, and weaknesses was the training that strengthened me. Also, I learned that it was the pain of this wrestling that made me and those around me appreciate our successes.

In short, I learned that being totally truthful, especially about mistakes and weaknesses, led to a rapid rate of improvement.

Much is written about the notion of failures as gifts, but the key to dealing with failures is to attribute those failures to weaknesses in a thought process, not to personal flaws. Failures expose a weakness in your underlying process, which you can now fix. Fine-tune your tactics until you find out what doeswork. Dalio instructs,

When a problem occurs, conduct the discussion at two levels: 1) the machine level (why that outcome was produced) and 2) the case-at-hand level (what to do about it.)

Idea for Impact: Don’t rationalize failures and magnify them in your mind. Fix them. Then, reflect on what they teach about what didn’t work. Inquire, “What was missing?” rather than “What went wrong?” The latter results in finger-pointing. The former opens up possibilities and results in personal growth.

Inspirational Mess, Creative Clutter

January 27, 2020 By Nagesh Belludi Leave a Comment

Biographer Roland Penrose (1900–84) writes in Picasso: His Life and Work (1958,)

Disorder was to Picasso a happier breeding ground for ideas than the perfection of a tidy room in which nothing upset the equilibrium by being out of place.

Once when visiting Picasso at his flat in the rue la Boétie, I noticed that a large Renoir hanging over the fireplace was crooked. “It’s better like that,” he said. “If you want to kill a picture, all you have to do is to hang it beautifully on a nail and soon you will see nothing of it but the frame. When it’s out of place you see it better.”

Studies suggest that, for some people, messiness can boost creativity by spurring inspiration flow and helping them explore different avenues. One researcher explained, “Disorderly environments seem to inspire breaking free of tradition, which can produce fresh insights.”

But don’t use this concept as a crutch to defend your clutter.

Avoid Decision Fatigue: Don’t Let Small Decisions Destroy Your Productivity

January 20, 2020 By Nagesh Belludi Leave a Comment

Making some decisions depletes mental resources for making more important ones

Every decision you make impacts the quality of successive decisions you’ll have to make, even in totally unrelated situations.

That’s because, according to the much-debated “muscle metaphor” of willpower, your mental stamina is limited.

As Roy Baumeister and John Tierney explained in their bestselling book on Willpower: Rediscovering the Greatest Human Strength (2011; my summary,) you have a finite strength of will for making prudent choices. As you go about your day, your willpower is depleted and “decision fatigue” sets in. Consequently, you’re likely to employ one of two cognitive shortcuts in decision-making: you avoid the act of deciding altogether or make an less-thoughtful, sub-optimal decision.

Don’t get overloaded with so many pointless decisions that your cognitive productivity ends up falling off a cliff.

President Barack Obama claimed that he makes deliberate efforts to avoid decision fatigue so that he can devote his mental energies to things that matter. Michael Lewis quotes Obama in the October 2012 issue of Vanity Fair,

You’ll see I wear only gray or blue suits … I’m trying to pare down decisions. I don’t want to make decisions about what I’m eating or wearing. Because I have too many other decisions to make. … You need to focus your decision-making energy. You need to routinize yourself. You can’t be going through the day distracted by trivia.

In the same way, Facebook founder Mark Zuckerberg sports a limited wardrobe. He has previously declared that doesn’t waste time and energy to pick his daily outfits: “I really want to clear my life to make it so that I have to make as few decisions as possible about anything except how to best serve the community.”

Idea for Impact: Establish healthy routines that can eliminate unnecessary deliberation

Life is the sum total of all the mundane and momentous choices you make. Being monotonous in handling the former enables you to excel in the latter. Limit decision fatigue by

putting as much of your life as possible on an autopilot using routines / rituals and checklists,
limiting the choices you have (read Barry Schwartz’s The Paradox of Choice: Why More Is Less,) and
delegating decision-making where possible.

Good routines can provide structure to your day, protect you from your more effective negative impulses, and bring order and predictability to your life. Besides, according to renowned career coach Marty Nemko, “modern life, increasingly defined by unpredictability, can be anxiety-provoking, and routines provide an anchor of predictability.”

What James Watt and the Steam Engine Teach You about Creativity and Invention

December 9, 2019 By Nagesh Belludi Leave a Comment

Necessity is the Mother of Invention

The arc of development of the technique to harness the properties of steam to power mechanical devices embodies the notion that “necessity is the mother of invention” (Latin: “necessitas ingenium dedit.”)

Towards the end of the 17th century, Britain faced the problem of pumping and draining water out of mine shafts. In response, the military engineer Thomas Savery (1650–1715) invented an “engine to raise water by fire” in 1698. However, the “Savery Pump” was limited in practical usage to 20–25 feet of suction. Savery’s rudimentary pressurized boiler was liable to explode, particularly under high-pressure steam (over 8 to 10 atmospheres.)

Independently, and later in partnership with Savery, blacksmith Thomas Newcomen (1664–1729) developed the more practical—and more successful—atmospheric-pressure piston engine in 1698. Newcomen’s engine solved the limitation of the Savery Pump by having atmospheric pressure push the cylinder’s piston down after the condensation of steam had created a vacuum in the cylinder. Therefore, the pressure of the steam did not limit the intensity of pressure.

For five decades, Newcomen’s engine was the most complex technological object of its time anywhere in the world.

Difficulties Compel People to Found Creative Solutions to Problems

Then came along the Scottish instrument maker James Watt (1736–1819.) At age 21, Watt opened a shop in 1757 at the Glasgow University to make quadrants, compasses, scales, and other mathematical instruments.

Watt was tasked with repairing a Newcomen Engine at the university for a lecture-demonstration. He initially had difficulty getting the Newcomen Engine to work because its parts were poorly constructed. When he finally had it running, he was surprised at its efficiency. However, the engine was constantly running out of coal because every cycle required the heating and the cooling of the cylinder, thus resulting in a large waste of energy.

In 1769, Watt devised a system whereby the cylinder and the condenser were separate, making it unnecessary to heat and cool the cylinder with each stroke. Watt’s invention of the separate-condenser steam engine (also called the “double-acting” steam engine) decreased fuel costs by 75 percent.

Watt’s “steam engine” was able to produce continuous rotary motion and expanded its use far beyond pumping water. Continuous rotary motion sparked the transition from hand-production methods to machine-power and became the driving force of the Industrial Revolution. Playwright George Bernard Shaw even declared in Man and Superman (1903,) “those who admire modern civilization usually identify it with the steam engine.”

The steam engine continued to power industry and transportation during much of the 19th century and early 20th century, at the same time as engineers developed the internal-combustion engine. Towards the end of the 19th century, with the invention of the first practical steam turbine by English engineer Charles Parsons (1854–1931,) turbines started replacing reciprocating steam engines in power stations.

Reference: Richard L. Hills’s Power from Steam: A History of the Stationary Steam Engine (1989.)

Many Businesses Get Started from an Unmet Personal Need

October 21, 2019 By Nagesh Belludi 2 Comments

Many successful entrepreneurs never set out with the goal of launching a large company, let alone hiring scores of people. They are motivated enough to develop solutions to a direct problem they are facing. Before long, they discover that they are not the only ones with that problem—and, like so, a successful business is born.

How “The Cult of Lulu” Got Started

Consider the genesis of Lululemon, the Canadian athletic apparel company (from The Atlantic‘s narrative of how sports changed the way Americans dress.)

In 1997, a retail entrepreneur in British Columbia named Chip Wilson was having back problems. So, like millions of people around the world, he went to a yoga class. What struck Wilson most in his first session wasn’t the poses; it was the pants. He noticed that his yoga instructor was wearing some slinky dance attire, the sort of second skin that makes a fit person’s butt look terrific. Wilson felt inspired to mass-produce this vision of posterior pulchritude. The next year, he started a yoga design-and-fashion business and opened his first store in Vancouver. It was called Lululemon.

[Yes, that’s the Chip Wilson who gained notoriety for blaming in-poor-shape women for ruining their Lululemon yoga pants by rubbing their thighs together too much. “Quite frankly, some women’s bodies just actually don’t work for it [his apparel],” he condescendingly declared on Bloomberg TV.]

At present, Lululemon has the highest sales-per-square-foot of any American apparel retailer. Its pricey workout clothing has become a wardrobe staple, prompting other retailers to launch competing apparel lines to cash in on the growing market.

Lululemon kindled the prevailing fixation on a healthy appearance. Its brand continues to be an elite fitness status symbol for the skinny and wealthy set. More broadly, over the last two decades, Lululemon has redefined how the current generation dresses and lives. The company pioneered the “athleisure” fashion revolution, which has blurred the lines between yoga-and-spin-class outfits and regular street clothes.

Sara Blakely’s Personal Undertaking Morphed Spanx into a Big Business

In a similar vein, entrepreneur Sara Blakely started the Spanx hosiery company after searching for a solution to improve the way she looked in a pair of her cream-colored pants. Blakely started her wildly successful entrepreneurial journey by making sure that the specific type of undergarment she ideated to solve her clothing problem did materialize commercially. From her biography on Wikipedia,

Forced to wear pantyhose in the hot Floridian climate for her sales role, Blakely disliked the appearance of the seamed foot while wearing open-toed shoes, but liked the way that the control-top model eliminated panty lines and made her body appear firmer. For her attendance at a private party, she experimented by cutting off the feet of her pantyhose while wearing them under a new pair of slacks and found that the pantyhose continuously rolled up her legs, but she also achieved the desired result.

Idea for Impact: Learn to Pay Attention to the Subtle Clues to Opportunities All-Around

Many entrepreneurs initially got their start by first recognizing and responding to a personal need or a localized problem and later discovering that they struck a universal chord.

If you want to become an entrepreneur, find out if you can solve a problem that you’ve personally experienced. Uncover opportunities that you may otherwise have missed by asking, “Does this have to be time-consuming, arduous, expensive, or annoying?” “How can I improve on this?” and “Can I do this better or different from the other fellow doing it over there?” Then expand your opportunity by asking, “Who else may be experiencing the same problem?”

Here’s a Tactic to Sell Change: As a Natural Progression

October 10, 2019 By Nagesh Belludi Leave a Comment

In Venice: The Hinge of Europe, 1081–1797 (1974,) the eminent University of Chicago historian William McNeill outlined how the Venetian Republic shaped European history. Describing the notion of trans-cultural diffusion, he wrote,

When a group of men encounter a commodity, technique, or idea that seems superior to what they had previously known, they will try to acquire and make their own whatever they perceive to be superior, but only as long as this does not seem to endanger other values they hold dear.

University of Washington’s Roger Soder quotes McNeill’s remarks in The Language of Leadership (2001) and supplies a case in point:

This is best illustrated by the technique of Jesuits who brought “new math” [including astronomy and mechanics] to China in the 1600s. They created the myth that the new Western mathematics had in fact evolved out of ancient Chinese ideas. The new ideas, they felt, would be accepted much more readily if they were seen as a natural progression of previously accepted methods.

That’s an important lesson on how to sell change: as a natural progression of the status quo.

Idea for Impact: People find themselves unable or unwilling to make fundamental changes in their lives. They tend to be particularly unwelcoming of ideas that they fear will alienate them from their core values. Tread delicately if you want effective change.

How Stress Impairs Your Problem-Solving Capabilities: Case Study of TransAsia Flight 235

October 1, 2019 By Nagesh Belludi Leave a Comment

As I’ve examined previously, airline disasters are particularly instructive on the subjects of cognitive impairment and decision-making under stress.

Consider the case of TransAsia Airways Flight 235 that crashed in 2015 soon after takeoff from an airport in Taipei, Taiwan. Accident investigations revealed that the pilots of the ATR 72-600 turboprop erroneously switched off the plane’s working engine after the other lost power. Here’s a rundown of what happened:

About one minute after takeoff, at 1,300 feet, engine #2 had an uncommanded autofeather failure. This is a routine engine failure—the aircraft is designed to be able to be flown on one engine.
The Pilot Flying misdiagnosed the problem, and assumed that the still-functional engine #1 had failed. He retarded power on engine #1 and it promptly shut down.
With power lost on both the engines, the pilots did not react to the stall warnings in a timely and effective manner. The Pilot Flying acknowledged his error, “wow, pulled back the wrong side throttle.”
The aircraft continued its descent. The pilots rushed to restart engine #1, but the remaining altitude was not adequate enough to recover the aircraft.
In a state of panic, the Pilot Flying clasped the flight controls and steered (see this video) the aircraft perilously to avoid apartment blocks and commercial buildings before clipping a bridge and crashing into a river.

A High Level of Stress Can Diminish Your Problem-solving Capabilities

Thrown into disarray after a routine engine failure, the pilots of TransAsia flight 235 did not perform their airline’s abnormal and emergency procedures to identify the failure and implement the required corrective actions. Their ineffective coordination, communication, and error management compromised the safety of the flight.

The combination of sudden threat and extreme time pressure to avert a danger fosters a state of panic, in which decision-makers are inclined to commit themselves impulsively to courses of action that they will soon come to regret.

Idea for Impact: To combat cognitive impairment under stress, use checklists and standard operating procedures, as well as increased training on situational awareness, crisis communication, and emergency management.

Accidents Can Happen When You Least Expect Them: The Overconfidence Effect

September 3, 2019 By Nagesh Belludi Leave a Comment

In the context of decision-making and risk-taking, the “overconfidence effect” is a judgmental bias that can affect your subjective estimate of the likelihood of future events. This can cause you to misjudge the odds of positive/desirable events as well as negative/undesirable events.

As the following Zen story illustrates, experience breeds complacency. When confidence gives way to overconfidence, it can transform from a strength to a liability.

A master gardener, famous for his skill in climbing and pruning the highest trees, examined his disciple by letting him climb a very high tree. Many people had come to watch. The master gardener stood quietly, carefully following every move but not interfering with one word.

Having pruned the top, the disciple climbed down and was only about ten feet from the ground when the master suddenly yelled: “Take care, take care!”

When the disciple was safely down an old man asked the master gardener: “You did not let out one word when he was aloft in the most dangerous place. Why did you caution him when he was nearly down? Even if he had slipped then, he could not have greatly hurt himself.”

“But isn’t it obvious?” replied the master gardener. “Right up at the top he is conscious of the danger, and of himself takes care. But near the end when one begins to feel safe, this is when accidents occur.”

Reference: Irmgard Schlögl’s The Wisdom of the Zen Masters (1976.) Dr. Schlögl (1921–2007) became Ven. Myokyo-ni in 1984, and served as Rinzai Zen Buddhist nun and headed the Zen Centre in London.

Your Product May Be Excellent, But Is There A Market For It?

July 24, 2019 By Nagesh Belludi 1 Comment

Akio Morita, the visionary co-founder of Sony, liked to tell a story about recognizing opportunities and shaping them into business concepts.

Two shoe salesmen … find themselves in a rustic backward part of Africa. The first salesman wires back to his head office: “There is no prospect of sales. Natives do not wear shoes!” The other salesman wires: “No one wears shoes here. We can dominate the market. Send all possible stock.”

Morita, along with his co-founder Masaru Ibuka, was a genius at creating consumer products for which no obvious demand existed, and then generating demand for them. Sony’s hits included such iconic products as a hand-held transistor radio, the Walkman portable audio cassette player, the Diskman portable compact disk player, and the Betamax videocassette recorder.

Products Lost in Translation

As the following case studies will illustrate, many companies haven’t had Sony’s luck in launching products that can stir up demand.

In each case in point, deeply ingrained cultural attitudes affected how consumers failed to embrace products introduced into their respective markets.

Case Study #1: Nestlé’s Paloma Iced Tea in India

Marketing and Product Introduction Failure: Nestle's Paloma Iced Tea in India When Swiss packaged food-multinational Nestlé introduced Paloma iced tea in India in the ’80s, Nestlé’s market assessment was that the Indian beverage market was ready for an iced tea variety.

Sure thing, folks in India love tea. They consume it multiple times a day. However, they must have it hot—even in the heat of the summer. Street-side tea vendors are a familiar sight in India. Huddled around the chaiwalas are patrons sipping hot tea and relishing a savory samosa or a saccharine jalebi.

It’s no wonder, then, that, despite all the marketing efforts, Paloma turned out to be a debacle. Nestlé withdrew the product within a year.

Case Study #2: Kellogg’s Cornflakes in India

The American packaged foods multinational Kellogg’s failed in its initial introduction of cornflakes into the Indian market in the mid ’90s. Kellogg’s quickly realized that its products were alien to Indians’ consumption habits—accustomed to traditional hot, spicy, and heavy grub, the Indians felt hungry after eating a bowl of sweet cornflakes for breakfast. In addition, they poured hot milk over cornflakes rendering them soggy and less appetizing.

Case Study #3: Oreo Cookies in China

Marketing and Product Introduction Case Study: Oreo Green-tea Ice Cream Cookies in China When Kraft Foods, launched Oreo in China in 1996, America’s best-loved sandwich cookie didn’t fare very well. Executives in Kraft’s Chicago headquarters expected to just drop the American cookie into the Chinese market and watch it fly off shelves.

Chinese consumers found that Oreos were too sweet. The ritual of twisting open Oreo cookies, licking the cream inside, and then dunking it in milk before enjoying them was considered a “strangely American habit.”

Not until Kraft’s local Chinese leaders developed a local concept—a wafer format in subtler flavors such as green-tea ice cream—did Oreo become popular.

Idea for Impact: Your expertise may not translate in unfamiliar and foreign markets

In marketing, if success is all about understanding the consumers, you must be grounded in the reality of their lives to be able to understand their priorities.

Don’t assume that what makes a product successful in one market will be a winning formula in other markets as well.
Make products resonate with local cultures by contextualizing the products and tailoring them for local preferences.
Use small-scale testing to make sure your product can sway buyers.

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Thought Process

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Wondering what to read next?

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Making some decisions depletes mental resources for making more important ones

Don’t get overloaded with so many pointless decisions that your cognitive productivity ends up falling off a cliff.

Idea for Impact: Establish healthy routines that can eliminate unnecessary deliberation

Wondering what to read next?

Necessity is the Mother of Invention

Difficulties Compel People to Found Creative Solutions to Problems

Wondering what to read next?

How “The Cult of Lulu” Got Started

Sara Blakely’s Personal Undertaking Morphed Spanx into a Big Business

Idea for Impact: Learn to Pay Attention to the Subtle Clues to Opportunities All-Around

Wondering what to read next?

Wondering what to read next?

A High Level of Stress Can Diminish Your Problem-solving Capabilities

Wondering what to read next?

Wondering what to read next?

Products Lost in Translation

Case Study #1: Nestlé’s Paloma Iced Tea in India

Case Study #2: Kellogg’s Cornflakes in India

Case Study #3: Oreo Cookies in China

Idea for Impact: Your expertise may not translate in unfamiliar and foreign markets

Wondering what to read next?