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Making Tough Decisions with Scant Data

January 18, 2022 By Nagesh Belludi Leave a Comment

Yesterday’s New York Times article highlights the complex tradeoff leaders must often make between indecision and acting on insufficient information:

The Omicron variant is pushing the CDC into issuing recommendations based on what once would have been considered insufficient evidence, amid growing public concern about how these guidelines affect the economy and education. CDC Director Dr. Rochelle Walensky has been commended for short-circuiting a laborious process and taking a pragmatic approach to manage a national emergency, saying she was right to move ahead even when the data was unclear and agency researchers remained unsure. The challenge now for Dr. Walensky is figuring out how to convey this message to the public: “The science is incomplete, and this is our best advice for now.”

The smartest people I know are the ones who understand that they don’t know—can’t know—everything. Yet, they’re ready to act on imperfect information, especially when being slow will be costly.

Idea for Impact: Being able to analyze information is insufficient if you can’t reach decisions.

Knowing you’ll never know everything shouldn’t prevent you from acting. The ability to reason and reconsider your position on something is an integral part of rational thought.

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Filed Under: Managing People, MBA in a Nutshell, Mental Models, Sharpening Your Skills Tagged With: Conflict, Critical Thinking, Decision-Making, Leadership, Persuasion, Problem Solving, Procrastination, Risk, Thinking Tools, Thought Process

Why is Task-Planning so Time-Consuming?

January 10, 2022 By Nagesh Belludi Leave a Comment

Planning, which saves time, itself can take quite a bit of time. It’s an interesting quasi-paradox that I’m sure you’ve run into.

That planning is long-drawn-out is one of the main criticisms of even the supposedly solid task-management systems out there. Take David Allen’s Getting Things Done approach, for example. Achieving the system’s potential fully is simply overwhelming. Allen’s method focuses more on the capturing, reviewing, and planning of tasks than it does on the actual doing them.

The key to time management is awareness. Think realistically about your time by recognizing it is a limited resource. Always ask yourself, even when you’re planning your time out, “Is this time-effective?”

Don’t over-organize your list. Don’t spend too much time making it look nice. Don’t feel like you need to do everything on your list. Don’t put anything on your list when you’d be wiser to just do the task now and save the time it takes to put it on your list and think about it again later.

Idea for Impact: Refine your planning approach further. Remember, the benefits of any tool must exceed its costs.

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Filed Under: Sharpening Your Skills Tagged With: Anxiety, Perfectionism, Procrastination, Stress, Task Management, Thought Process

Plan Your Week, Not Your Whole Life

December 16, 2021 By Nagesh Belludi Leave a Comment

Don’t set unrealistic expectations for yourself. No matter how ambitious and eager you are, no matter how talented you are, there’s a limit to how much you can “produce” in a given time. Moreover, even if you get 24 hours to work, you’re restricted by the amount of energy you’ll have.

Much of long-term planning is guesswork or an expectation of the continuation of prevailing trends. The future can’t be predicted with absolute certainty. At the most, you can be somewhat confident about what might happen in the next few weeks or the upcoming months.

Idea for Impact: Plan Weekly, Review Daily

You can’t identify a precise point in the long-term future and then work yourself from here to there. You’ll be better off if you explore like the Italian navigator Columbus, and just head in a general westerly direction. In other words, have a long-term orientation but operate with medium-term plans. Restrict yourself to a few but significant quarterly goals.

Each week, develop weekly milestones that contribute to the quarterly goals. And each day, schedule 15 minutes to go over your progress and fractionate weekly objectives to daily working goals.

Life is unpredictable, and it is great to have some big things planned out, but not your whole life. A fine-grained approach to goals and planning can help you adapt quickly for survival and success.

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Filed Under: Mental Models Tagged With: Anxiety, Assertiveness, Goals, Persuasion, Targets, Task Management, Thought Process

Reinvent Everyday

October 26, 2021 By Nagesh Belludi Leave a Comment

General Electric supremo Jack Welch’s advice to Indian-American investor and businessman Vivek Paul:

Every time I land in New York after an international business trip, I imagine that I’ve just been appointed chairman and that this is my first day in the role, and the guy before me was a real dud. Every time I think, “What would I do that was different than the guy before? What big changes would I make?”

When you can think about expectations from a more detached point of view, rather than an immersed point of view, you aren’t overly invested in an entrenched pattern of thinking.

A period of rest, entertainment, or exposure to an alternative environment can dissipate fixation and help you gain a fresh perspective. It makes you think big. Subconsciously, you can push yourself harder and go after bigger, loftier, harder goals.

Idea for Impact: Don’t limit yourself by past expectations.

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Filed Under: Leadership, MBA in a Nutshell, Mental Models Tagged With: Critical Thinking, Jack Welch, Leadership Lessons, Problem Solving, Thinking Tools, Thought Process, Winning on the Job

Consensus is Dangerous

August 30, 2021 By Nagesh Belludi Leave a Comment

Management books tout the importance of harmony, cohesion, and alignment with company values and practices. Comforting though they are, such goals often carry with them the assumption that unanimity is always helpful.

Indeed, like-mindedness has its benefits, viz. high morale, a sense of identity, and a vision’s execution. But an unchallenged majority can “bend reality.” Toeing the line can delude everyone into having faith in opinions that’re not true or beneficial.

I’ve talked previously about how humans have a tendency to create, maintain, and guard cliques. Life-minded groups recruit, socialize, and reward consensus while reproving dissent (consider Scientology.) People are recruited to fit with the organization, and they become even more socialized into the culture.

Influence-by-majority belief narrows the cognitive map

For the sake of consensus, people can overlook the confutation from their own senses and blindly follow the majority, whether right or wrong. In the bestselling Outliers: The Story of Success (2008,) pop sociologist Malcolm Gladwell calls attention to the cultural predisposition to maintain silence and not rock the boat:

Korean Air had more plane crashes than almost any other airline in the world for a period at the end of the 1990s. When we think of airline crashes, we think, Oh, they must have had old planes. They must have had badly trained pilots. No. What they were struggling with was a cultural legacy, that Korean culture is hierarchical. You are obliged to be deferential toward your elders and superiors in a way that would be unimaginable in the U.S.

Uniformity of thought and esprit de corps can act together to make people amenable and taciturn when they see a problem or a better option.

Idea for Impact: Making sure everyone’s on the same page can produce harmony—of the cult-like variety. Encourage dissent and counterevidence in decision-making.

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Filed Under: Managing People, Sharpening Your Skills Tagged With: Confidence, Conflict, Conversations, Conviction, Critical Thinking, Social Dynamics, Teams, Thought Process

The Solution to a Problem Often Depends on How You State It

August 25, 2021 By Nagesh Belludi Leave a Comment

Consider a family with four drivers and one car. Being a one-car family isn’t always convenient or even pleasant. Creative solutions can’t emerge if the family asks, “How could we make the car available to everybody who needs it when they need it?” If, instead, they ask, “How can we each meet our needs without using the car?” Mom can join a carpool to work. Dad can combine his trips when he runs errands once a week. The kids can ride their bikes whenever the weather favors. If the family needs to be in two places at the same time, somebody can Uber. Coordinating can be annoying, but with a bit of flexibility and communication, getting by with one car can easily be pulled off.

Defining a problem narrowly (“How can we create a better mousetrap?”) will only get you restricted answers. When you define the issue more broadly (“How can we get rid of mice?,”) you open up a whole range of possibilities.

Idea for Impact: Revisit and redefine the problem if you can’t get through the tensions inherent in conflicting expectations. The fresh perspective can open your mind to alternative interpretations.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Creativity, Critical Thinking, Decision-Making, Problem Solving, Questioning, Thinking Tools, Thought Process

Lessons from David Dao Incident: Watch Out for the Availability Bias!

August 23, 2021 By Nagesh Belludi Leave a Comment

In the weeks and months after the United Airlines’David Dao incident and the ensuing customer service debacle, news of all kinds of disruptive airline incidents, coldblooded managers, and inconsiderate airline staff showed up everywhere.

The United incident raised everyone’s awareness of airline incidents. Expectedly, the media started drawing attention to all sorts of airline incidents—fights on airplanes, confusion and airports, seats taken from small children, insects in inflight meals, snakes on the plane—affecting every airline, large and small. However, such unpleasant incidents rarely happen, with thousands of flights every day experiencing nothing of the sort.

Parenthetically, the underlying problem that led to the David Dao incident wasn’t unique to United. The incident could have happened at other airlines. All airlines had similar policies regarding involuntary-denied boarding and prioritizing crew repositioning. Every other airline, I’m sure, felt lucky the David Dao incident didn’t happen on their airline.

In the aftermath of the incident, many people vowed to boycott United. Little by little, that negative consumer sentiment faded away while the backlash—and media coverage—over the incident diminished.

Availability bias occurs when we make decisions based on easy or incomplete ideas.

The David Dao incident’s media coverage is an archetypal case of the Availability Bias (or Availability Heuristic) in force. Humans are inclined to disproportionately assess how likely something will happen by how easy it is to summon up comparable–and recent–examples. Moreover, examples that carry a fierce emotional weight tend to come to mind quickly.

The availability heuristic warps our perception of real risks. Therefore, if we’re assessing whether something is likely to happen and a similar event has occurred recently, we’re much more liable to expect the future possibility to occur.

What we remember is shaped by many things, including our beliefs, emotions, and things like intensity and frequency of exposure, particularly in mass media. When rare events occur, as was the case with the David Dao incident, they become evident. Suppose you’re in a car accident involving a Chevy, you are likely to rate the odds of getting into another car accident in a Chevy much higher than base rates would suggest.

If you are aware of the availability bias and begin to look for it, you will be surprised how often it shows up in all kinds of situations. As with many other biases, we can’t remove this natural tendency. Still, we can let our rational minds account for this bias in making better decisions by being aware of the availability bias.

Idea for Impact: Don’t be disproportionately swayed by what you remember. Don’t underestimate or overestimate a risk or choosing to focus on the wrong risks. Don’t overreact to the recent facts.

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Aviation, Biases, Change Management, Critical Thinking, Decision-Making, Psychology, Thought Process

Rules Are Made to Be Broken // Summary of Francesca Gino’s ‘Rebel Talent’

August 9, 2021 By Nagesh Belludi Leave a Comment

Rebels have a bad rep. When you think of them, you imagine trouble. However, all rebels really do is take the habits that could hold the rest of us back and break them.

Instead of leaning toward the comfortable and the familiar, rebels ask questions and look at problems from unexpected perspectives. They aren’t afraid to question assumptions, stick their necks out, make themselves vulnerable in front of others, or experiment and fail.

'Rebel Talent' by Francesca Gino (ISBN 0062694634) Harvard social scientist Francesca Gino’s Rebel Talent: Why it Pays to Break the Rules in Work and in Life (2018) aims to explain the merits of breaking the rules and showing how to see challenges from new perspectives.

When we challenge ourselves to move beyond what we know and can do well, we rebel against the comfortable cocoon of the status quo, improving ourselves and positioning ourselves to contribute more to our partners, coworkers, and organizations.

The anecdotes and case studies that Gino pulls together to illuminate her “rebel talent” narrative are hardly convincing. In fact, they’re no more than examples of creative—perhaps unconventional—thinking. To take a prominent example Gino cites in the book, Captain Sully Sullenberger (of the US Airways Flight 1549 incident) did nothing rebellious. With 40 years of flying experience and situational awareness, he made lightning-quick decisions to land in the Hudson and not return to a nearby airport.

Recommendation: Read the introduction of Francesca Gino’s Rebel Talent, and skim the rest. The book’s introduction has a few useful concepts that merit an article, but the book lacks the rigor and utility to be expected from a Harvard Business School professor. The key takeaways (codified as the “eight principles of rebel leadership”) are relatively clear-cut: be curious and open-minded, never be satisfied, embrace discomfort, think unconventionally, and break established norms.

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Filed Under: Mental Models, The Great Innovators Tagged With: Assertiveness, Attitudes, Creativity, Critical Thinking, Thought Process, Winning on the Job

Don’t Ruminate Endlessly

May 6, 2021 By Nagesh Belludi Leave a Comment

Say you’re in the market for a laptop but just can’t bring yourself to pick out the right model. You’ve spent countless hours comparing different models, visiting various websites, reading reviews, exploring stores, and researching all the available features, even though you’re unlikely to use most of them. Draining indeed!

Too Much Choice Can Stress You Out

Choice may be a great “problem” to have. Books such as Barry Schwartz’s The Paradox of Choice (2004) and Sheena Iyengar’s The Art of Choosing (2011) have exposed how increased choice may be bad for you.

Sometimes, the only thing worse than never having a choice is always having to choose.

Overthinking can trip you up. You can get confused when you have too much information or overthink about what you should be doing. Behavioral scientists such as Schwartz and Iyengar call this phenomenon “choice paralysis.”

Combat your indecisive nature by limiting your search, say, by establishing a cut-off time. Tell yourself that you’ll look around for two hours and then you’ll buy the best laptop you’ve come across in that time.

Use opportunity cost as a filter. Don’t poke around the internet for a better deal on an airfare or follow an eBay auction if you’re saving less than, say, $15 per hour spent deal-hunting.

Idea for Impact: Choose to Reduce Choice. Simplify and Prioritize.

Overthinking everything can make everyday life a challenge. Unnecessary analysis costs time and money and causes psychological wear.

The benefits of forgoing further rumination and acting on available information often offset the from needing to do everything perfectly.

  • Choosing when to choose is important. Rethink which choices in your life really matter and focus your time and effort there. Life is all about values and priorities.
  • In decision-making, simple beats complex. Reject complexity and accept that you’ll be sure that you’ve made the right choice. Make a decision, and then change course if it ends up being horribly wrong. As Amazon founder Jeff Bezos has written in his 2016 letter to shareholders, “If you’re good at course correcting, being wrong may be less costly than you think.”

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Filed Under: Mental Models, Sharpening Your Skills Tagged With: Assertiveness, Decision-Making, Discipline, Perfectionism, Procrastination, Simple Living, Thinking Tools, Thought Process, Time Management, Wisdom

Ask for Forgiveness, Not Permission

April 20, 2021 By Nagesh Belludi Leave a Comment

A long time ago, I heard the managerial maxim, “you will move as fast as you can make decisions.” Amen to that.

That complements the mantra “’tis better to seek forgiveness than to ask permission”—that’s the oft-repeated rallying cry of entrepreneurial thinking.

You need to know when you shouldn’t—and can’t—wait for someone else’s approval to do the things you need to do to succeed. Every time you ask for buy-in, approval, or agreement, you’ll slow yourself down.

Depending on what’s at stake, you’ve got to know when moving forward does need consent. As with everything, you want to know your manager, team, partner, or spouse, how they operate, and their expectations for the group effort. If something’s an important-enough decision with high stakes, they’ll want to be in the loop.

Idea for Impact: Live speed. Where possible, don’t let dilly-dallying for permission endanger your decision-making success. It’s not about taking advantage of situations but about knowing when to push the boundaries. Where possible, aggressively move forward on your own and “get it done.”

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Filed Under: Effective Communication, Managing People, Mental Models Tagged With: Change Management, Conflict, Conversations, Decision-Making, Getting Along, Procrastination, Social Skills, Teams, Thought Process

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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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