Time Management

Stop Searching for the Best Productivity System

May 29, 2019 by Nagesh Belludi Leave a Comment

One of the reasons many people are not as productive as they want to be is not because they haven’t found the right ideas that can help them take charge of their lives.

They can’t be productive because they keep looking for “better” ideas instead of settling on a “good enough” idea and then putting it into rigorous practice.

Looking for the Best Can Be Counterproductive

Stop Searching for the Best Productivity System This is comparable to weight-loss programs. People buy more and more books on dieting, but don’t lose weight by merely buying diet books. It’s easier to buy books than it is to go on a diet. Recognizing that most diet plans boil down to basic strategies—eat more fruits and veggies, keep portions under control, and stay physically active—and implementing these simple ideas purposely could be as effective a diet program as any out there.

Look, no productivity tool can fit all your requirements. The inadequacies of any productivity system you try out will drive you towards looking for a different tool. But this quest to define the best never ends.

Idea for Impact: Never underestimate the power of a simple idea that is well executed.

If you can identify a simple system and implement its key principles with discipline, you may not need the “best” system.

As Charlie Munger has stated in describing the simplicity of Warren Buffett‘s philosophy at Berkshire Hathaway, “Our ideas are so simple that people keep asking us for mysteries when all we have are the most elementary ideas.”

How to Prevent Employee Exhaustion

November 8, 2018 by Nagesh Belludi Leave a Comment

How to Prevent Employee Exhaustion Feeling exhausted, irritated, unhappy, and lacking in control are all signs of burnout—a temporary decline in an employee’s well-being.

If you notice a drop in energy, motivation, or productivity, try these simple ways to help combat employee exhaustion:

Clarify expectations
Where possible, lower the standards and relax the deadlines. Encourage less perfection.
Give employees the right tools and resources that they need to do their job effectively
Allocate some tasks to other employees
Appreciate, reward, recognize
Give employees some time off
Reduce travel and meetings
Offer counseling and mentoring

Employee stress and problems at work that are not dealt with effectively can quickly spill out into other parts of an employee’s life. In fact, many marriages go bad when stress at work is at its worst: people use up all their willpower on the job; their home lives suffer because they give much to their work.

Make employee welfare a key area of focus to promote better work environments and keep employees engaged.

Lessons from Peter Drucker: Quit What You Suck At

March 1, 2018 by Nagesh Belludi 1 Comment

Peter Drucker and Jack Welch on Strategic Prioritization: Strengthen or Abandon

The essence of leadership is risk- and opportunity-assessment and resource allocation. It follows that one of the persistent responsibilities of leadership is to mull over each individual and organizational endeavor and investigate, “Do we produce results that are meaningful and profitable enough for us to justify investing our resources to this purpose?”

Jack Welch’s Strategy for General Electric: #1 or #2 Businesses Only

When Jack Welch became CEO of General Electric (GE) in 1981, he set out to make GE “the world’s most competitive enterprise.” However, the company was a hodgepodge of many businesses—some unrelated or irrelevant, several unprofitable, and a few at the brink of failure.

Management pioneer Peter Drucker famously advised Welch to ask of each constituent of the GE business portfolio he now presided over, “If you weren’t already this business, would you enter it today? And, if the answer is no, what are you going to do about it?”

Welch’s responded with his legendary dictum that every GE division be—or become—the leading or the runner-up business in its respective industry, or plan to exit it completely.

Welch argued that in many markets, the number three, four, five, or six players suffered the most during cyclical downturns. On the contrary, number one or number two businesses could protect their market share by way of aggressive pricing approaches or by developing new products. Welch’s approach portended the emergence of oligopolies in many industries.

The resultant strategic focus eventually led to an immense restructuring of GE. Welch sold or discontinued dozens of divisions—including computers and time-shares. Over the next decade, he cut nearly one in four jobs at GE, warranting the nickname “Neutron Jack.”

By year 2000, GE had reached dominance or near dominance in most of its business markets across the globe.

Peter Drucker on Strategic Reprioritization

Explaining this method of strategic reprioritization, Drucker wrote in Post-Capitalist Society (1993,)

To turn around any institution—whether a business, a labor union, a university, a hospital, or a government—requires always the same three steps:

Abandonment of the things that do not work, the things that have never worked; the things that have outlived their usefulness and their capacity to contribute;

Concentration on the things that do work, the things that produce results, the things that improve the organization’s capacity to perform; and

Analysis of the half successes, half failures. A turnaround requires abandoning whatever does not perform and doing more of whatever does perform.

Drucker further elaborated on abandonment as the keystone for strategic reprioritization in his Five Most Important Questions (2015,)

To abandon anything is always bitterly resisted. People in any organization are always attached to the obsolete—the things that should have worked but did not, the things that once were productive and no longer are. They are most attached to what in an earlier book I called “investments in managerial ego.” Yet abandonment comes first. Until that has been accomplished, little else gets done. The acrimonious and emotional debate over what to abandon holds everybody in its grip. Abandoning anything is thus difficult, but only for a fairly short spell. Rebirth can begin once the dead are buried; six months later, everybody wonders, “Why did it take us so long?”

Idea for Impact: Assess What Endeavors Must Be Intensified or Abandoned

Don’t do—or continue to do—something just because it’s been a tradition, custom, or habit. Strengthen, abandon, or stay on. Align your efforts with your mission, your values, and the results you want to achieve.

If you abandon something important mistakenly, you can quickly pick up where you left off.

Invest your precious resources where the returns are rich.

Figure out what’s vital and stay focused, even if you have to cut your losses (read about sunk costs.)

How to Organize Your Inbox & Reduce Email Stress

January 19, 2018 by Nagesh Belludi Leave a Comment

The recipe for staying on top of your email is to be ruthless about what you send and receive, and to focus on how you process your inbox. Here are thirteen practices that may help you be in command of your inbox.

Turn off all new email notifications.
Limit the number of times you access your email.
Avoid checking your email during the first hour of the day. Work on something that requires your energy and focus.
Don’t have your email software opened … keep it closed until it’s time to “do” email.
When you “do” email, follow the “Process to Zero” technique. Merlin Mann, the productivity guru who popularized this technique, emphasized, “Never check your email without processing to zero.” Handle every email just once, and take one of these actions: delete or archive, delegate, respond, or defer.
If you can process an incoming email in a minute or two, act on that email immediately, using the Two-Minute “Do-it-now” Rule.
For any email that requires inputs or deliberation, start a reply email, and file it in the “Drafts” folder of your email software. Set aside a block of time to crank though all such draft emails.
Tell people with whom you communicate the most that you intend to check your email intermittently. Encourage them to telephone or drop by if they need a quick response.
If you’ve been dreading a large backlog of email, consider deleting everything that’s over three weeks old. If the contents of any of those emails were of any consequence, somebody would have appraised you of their substance.
Reduce the number of emails you send. Decrease the number of people you carbon-copy on emails. Consider meetings or telephone calls for more effective interaction.
Curb the number of email messages you receive. Ask to be removed from irrelevant newsgroups, and unsubscribe from marketing emails. Learn how to use the “filter” feature on your email software.
Don’t get sucked into replying to every email. Reply only to those that are of relevant to your priorities. Let other communicators follow up with you if they need a reply.
Empty your inbox by the end of the day and process every message.

Idea for Impact: Don’t let an overflowing inbox be a big distraction (read my article on the Zeigarnik Effect.)

Warren Buffett’s Advice on How to Focus on Priorities and Subdue Distractions

December 8, 2017 by Nagesh Belludi Leave a Comment

If you persistently experience an overpowering sense of being besieged with tasks and responsibilities, perhaps a personal productivity transformation technique suggested by Warren Buffett may help.

Psychologist Angela Duckworth of the University of Pennsylvania shares a well-known anecdote about Buffett in her bestselling Grit: The Power of Passion and Perseverance:

The story goes like this: Buffett turns to his faithful pilot and says that he must have dreams greater than flying Buffett around to where he needs to go. The pilot confesses that, yes, he does. And then Buffett takes him through three steps.

First, you write down a list of twenty-five career goals.

Second, you do some soul-searching and circle the five highest-priority goals. Just five.

Third, you take a good hard look at the twenty goals you didn’t circle. These you avoid at all costs. They’re what distract you; they eat away time and energy, taking your eye from the goals that matter more.

As I’ve written before (see the world’s shortest course in time management, and detailed three-step course on time logging, time analysis, time budgeting,) the most effective time management practice involves eliminating the non-essentials—those numerous things you can and want to do—and focusing on the very few things you must do.

Idea for Impact: Success comes at a cost: the most time-effective folks I know are significantly better at dropping their second-rate objectives.

The Three Dreadful Stumbling Blocks to Time Management

September 25, 2017 by Nagesh Belludi 1 Comment

The Three Dreadful Stumbling Blocks to Time Management Ineffective time management is characterized by folks having too many things they need to do (and just a few they must do,) but not enough time for everything they want to do. The key to time management, therefore, is to identify your needs and wants in terms of their importance and match them with the time and resources available.

If your time-management efforts are not getting you the results you envision, you need to pay attention to three hurdles that can get you derailed easily.

The foremost obstacle to time management is a lack of practical awareness of your job duties, as well as the extent of your authority and responsibility. Your efficiency could be acutely hindered by doing the wrong tasks—those that are relatively unimportant or not even part of your job description. You could also not be using the skills or time of others, perhaps not recognizing that you have the authority to do so.
An associated obstacle to effective time management is your failure to prioritize tasks. You may not be able to prioritize because either you’re unaware of your job duties, or you don’t know how to set priorities. As stated by the Pareto Principle, you could be spending 80% of your time on tasks that account for a mere 20% of the total job results. As a result, you could be working on the trivial and the routine, but not the important. In other words, you could be working on the “can do” and not the “must do.”
Equally important, your time management-plans often go off the rails because of “time thieves”—meetings, impromptu visitors, avoidable reports, telephone calls, delays, canceled engagements, redundant rules and regulations, and other claptrap.

Idea for Impact: Develop a high level of awareness in the areas discussed above. Use my three-part technique (time logging, time analyzing, and time budgeting) to control time, conserve time, and make time. Additionally, learn to farm more work out—delegating not only frees up precious time, but also helps develop your employees’ abilities, as well as your own. Try not to say ‘yes’ to too many things and avoid taking on too much.

Everything in Life Has an Opportunity Cost

August 8, 2017 by Nagesh Belludi Leave a Comment

“Opportunity cost is a huge filter in life. If you’ve got two suitors who are really eager to have you and one is way the hell better than the other, you do not have to spend much time with the other. And that’s the way we filter out buying opportunities.”
— Charlie Munger, Investor

Everything in Life Has an Opportunity Cost

Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

In economics, opportunity cost is the cost of not choosing the next best alternative for your money, time, or some other resource.

One of the foundational principles in economics is affirmed by the popular American aphorism, “There ain’t no such thing as a free lunch.” Resources are scarce. When resources (time, money, mindshare, autonomy, and all that) are scarce, selecting one opportunity necessitates forgoing other opportunities.

Life is all about values and priorities. You face trade-offs. Life requires of you to make choices among mutually exclusive alternatives. Every time you select something, you forfeit other alternatives and the concomitant benefits. The cost of something is what you will give up to get it. This is opportunity cost.

You Can Do Anything but Not Everything … What Will You Sacrifice When You Choose One Option Over the Others?

When mulling over multiple choices, the quality of any option cannot be assessed in isolation from its alternatives. The price you pay (or the sacrifice you make, or the benefits you give up) for doing what you’ve chosen to do instead of doing something else is the opportunity cost.

In sum, an opportunity cost is the cost of passing up the opportunities that a different option would have afforded.

Many costs are calculated in terms of money. However, just because you don’t have to spend money to do something does not imply that the options you face are without their costs. For example, you don’t have to spend money to go for a hike or watch a sunset, but there is an opportunity cost there too. You could have used that time to do something else you value—visiting a friend or reading a book, perhaps.

If you decide to invest two years and some $100,000 getting an MBA at a brand-name business school, there’s an opportunity cost; it costs you lost wages and all the things you could have pursued during that time and with that money. But you anticipate that getting your MBA will pay off by way of a better job in a better company with a better salary.
If you spend your weeklong vacation taking your parents to a beach destination in Florida, there’s the opportunity cost of not going to Paris with your spouse.
If you decide to wake up twenty minutes earlier in the mornings to leave home sooner to work and beat the horrendous traffic, there’s the opportunity cost of twenty minutes of extra snoozing.
When the refrigerator at home breaks down and needs replacement, you will have to give up buying that latest big-screen TV you’ve been coveting.
There’s an opportunity cost to even reading this article at this moment. You could have been watching TV, taking a nap, calling up a friend, or moving on to another article in the time you’re devoting to reading this article.

In a nutshell, even decisions that appear to be no-brainers carry the hidden costs of the options you will decline. Thinking about opportunity costs may not change the decision you make, but it will give you a more rational assessment of the full implications of your decision.

Opportunity Costs Apply to All Your Choices—Big and Small

Opportunity cost is a concept of great magnitude. It is one of those apparently simple concepts in social sciences that are difficult to master and tough to put into consistent practice. Tim Harford, the British author of The Undercover Economist offers a particularly instructive example of appreciating opportunity costs in his Financial Times column:

Consider the following puzzle, a variant of which was set by Paul J Ferraro and Laura O Taylor to economists at a major academic conference back in 2005. Imagine that you have a free ticket (which you cannot resell) to see Radiohead performing. But, by a staggering coincidence, you could also go to see Lady Gaga—there are tickets on sale for £40. You’d be willing to pay £50 to see Lady Gaga on any given night, and her concert is the best alternative to seeing Radiohead. Assume there are no other costs of seeing either gig. What is the opportunity cost of seeing Radiohead? (a) £0, (b) £10, (c) £40 or (d) £50.

…

Answer: Going to see Lady Gaga would cost £40 but you’re willing to pay £50 any time to see her; therefore the net benefit of seeing Gaga is £10. If you use your free Radiohead ticket instead, you’re giving up that benefit, so the opportunity cost of seeing Radiohead is £10.

Charlie Munger’s Wisdom on Opportunity Cost

On the subject of making choices in life based on opportunity costs, Munger stated at a 2010 lecture at Harvard-Westlake preparatory school, “The right way to make decisions in practical life is based on your opportunity cost. When you get married, you have to choose the best spouse you can find that will have you. The rest of life is the same damn way.”
Explaining how Warren Buffett and Berkshire Hathaway use opportunity costs to make investment decisions, Munger detailed stated at the aforementioned Harvard-Westlake lecture, “Berkshire Hathaway is constantly kicking off ideas in about two seconds flat. We know we’ve got opportunity X, which is better than the new opportunity. Why do we want to waste two seconds thinking about the new opportunity? Many of you come from places that don’t do that. You’ve got to have one horse, one rabbit, one something or rather, and that rabbit is going to be thinking about something which would be ruled out immediately by an opportunity cost available generally to the place—but, it’s a different department. You have to be diversified and so on and so on. It’s easy to drift into this idea that opportunities don’t matter, you’ve got so many different ways of doing things that are better. It isn’t better.”
Putting the concept of opportunity cost into operation requires benchmarking any prospective decision to other available alternatives. At the 2006 Berkshire Hathaway annual meeting, Munger advised, “In the real world, you have to find something that you can understand that’s the best you have available. And once you’ve found the best thing, then you measure everything against that because it’s your opportunity cost. That’s the way small sums of money should be invested. And the trick, of course, is getting enough expertise that your opportunity cost—meaning your default option, which is still pretty good—is very high…. Most people aren’t going to find thousands of things that are equally good; they’re going to find a few things where one or two of them are way better than anything else they know. And the right way to think about investing is to act thinking about your best opportunity cost.”

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs—The Stakes Become Clearer

Evaluate Life Choices Via the Lens of Opportunity Costs You live in a world of scarcity and must therefore make choices. You cannot avoid regret since there are opportunity costs for every choice you will make.

Everything in life is about opportunity costs. Every time you say “yes” to a choice, you are also saying “no” to everything else you may have accomplished with your time, money, and resources.

Opportunity cost is a commanding tool that you should be wise to apply to all decision-making. If you integrate this concept into your thought process, you will not only make judicious choices, but also better understand the world in which you live.

Idea for Impact: Whether you’re choosing graduate school, mulling over switching careers, starting a business, investing your money, buying a car, or frittering away your evening watching TV, considering the value of forgone alternatives will help you make better choices. Make the lens of opportunity costs the underpinning of your decision-making processes.

What Type of Perfectionist Are You?

August 1, 2017 by Nagesh Belludi Leave a Comment

Adaptive and Maladaptive Perfectionism

Psychologists recognize two forms of perfectionism—adaptive and maladaptive. Both adaptive and maladaptive perfectionists have high personal standards—for themselves and for others. However, failing to meet those standards is more stressful for the latter than for the former.

Adaptive perfectionism is the normal, healthy form of perfectionism. Adaptive perfectionists endeavor for success—they tend to complete tasks in good time and have high standards for their work. They take into account their strengths and limitations and don’t overexert themselves unless it really matters.

Perfectionism turns out to be maladaptive when people become terribly concerned with the notion of “just the thing”—they strive for perfect performance. So nearly nothing turns out to be “good enough.”

Failing to meet high standards is more stressful for adaptive than for the maladaptive perfectionists

The #1 Pitfall: Maladaptive Perfectionism Rigidifies Behavior

Maladaptive perfectionism may cause people to dodge tasks for fear of making an error or for not being able to complete tasks to their lofty standards. They tend to want to control their environment. When events do not go as planned, they develop negative attitudes. They are inclined to striving to achieve goals in their own way; consequently, they regard their personal and professional settings as competitive and handle relationships more aggressively.

Many maladaptive perfectionists aren’t necessarily high achievers because their drive for perfection leads them to chronic procrastination and to never-ending, futile agonizing.

Even success can be imperfect to maladaptive perfectionists. Their reaction to reaching a goal is often “so what?” followed by “what’s the next big thing?” with nary a pause for “I did it! Let me celebrate.”

Idea for Impact: Prioritize Your Perfection

Perfection can boost your satisfaction too much can be paralyzing There’s nothing wrong with high standards. Soaring, impracticable standards are another matter, however.

While a reasonable dose of perfection can boost your satisfaction, too much can be paralyzing. In the real world of constraints and limited resources, perfection is hard to achieve and your quest for the ideal can suck up precious time, energy, and money that could produce superior results elsewhere.

You don’t have sufficient resources to do everything, so commit them where they can bring the greatest overall improvement. (I’ll write about the concept of opportunity cost next week.)

If you’re an obsessive perfectionist, recognize that your compulsion to “get it right” can endorse a rigidity of character and action that is limiting.

Prioritize your perfection. It’s impractical to reach perfection in all areas of your life concurrently. Rather than trying to master everything, pick some areas of life you want to excel in, and go for average in others.

5 Minutes to Greater Productivity [Two-Minute Mentor #11]

July 25, 2017 by Nagesh Belludi Leave a Comment

How to Get Unstuck---5 Minutes to Greater Productivity

When you’re stuck—whether it’s at work, play, love, or some other facet of your life,—don’t wait for external change to come about and inspire you. As I’ve written before, motivation is glorified as a personal trait. While it is beneficial to be motivated, folks who actually manage to get things done are those who find a way to work at whatever they are interested in even when they do not really feel like doing it.

When you’re stuck, if you can take time out and reflect on your current difficulties, many opportunities may open up that can help you get unstuck.

Clearly understand your objectives and your problems. Identify what you must do to solve problems or meet goals as efficiently as feasible. Get honest with yourself and reconsider your motivations. Being realistic can allow you to think more flexibly and creatively.
Target the causes of your problems and the reasons behind what you are doing. Analyze your current actions to determine whether they will effectively accomplish what they should. Look for ways to simplify your goals and targets.
Check if your perfectionism is holding you back. Folks who tend to be perfectionist are afraid that the world is going to see them for who they really are and that they won’t measure up. Could you lower your standards?
Organize your options. Are there faster-but-equally-effective alternative methods to the ones you’re currently trying? Could you learn new methods or delegate parts of your responsibilities to help you save time? Could you break your work into smaller, more manageable chunks? Focus on the next small step that will move you forward and set in-between deadlines.
Plan your work and carry on. Initiate the most efficient action plan to get the results you want. If you find yourself uninspired, take action—even a small step. Often, beginning to do a task builds momentum and motivation kicks in within a few minutes. Doing is everything.

Idea for Impact: The most effective form of change doesn’t happen to you—it comes from within you. To free yourself when you feel limited or stuck, take a breather and organize yourself. Introspection can unlock more adaptive behavior.

Let Go of Sunk Costs

July 4, 2017 by Nagesh Belludi Leave a Comment

When people put their weight behind an idea or a belief, they become invested in it. They are likely to fight its corner rather than discard that idea or renounce their prior decision.

This tendency to throw good resources after bad, rather than cut losses, is the Sunk Cost Fallacy.

Quitting is Not Always Wrong

People frequently become stuck with poor decisions that they keep holding on to in hopes that they will eventually prove their efforts worthwhile. Here’s Nobel laureate in economics Daniel Kahneman (author of Thinking, Fast and Slow, the bestselling exposition of human irrationality) in an interview with financial journalist Morgan Housel:

When I work I have no sunk costs. I like changing my mind. Some people really don’t like it but for me changing my mind is a thrill. It’s an indication that I’m learning something. So I have no sunk costs in the sense that I can walk away from an idea that I’ve worked on for a year if I can see a better idea. It’s a good attitude for a researcher. The main trap that young researchers fall into is sunk costs. They get to work on a project that doesn’t work and that is not promising but they keep at it. I think too much persistence can be bad for you in the intellectual world.

Don’t Become Biased Against Quitting

Sunk cost fallacy, also called the Concorde Effect Sunk cost fallacy is why people who have already wasted money on tickets to an awful movie continue to watch it to the end and waste their time instead of walking out of the cinema hall. It’s the urge to justify previous decisions using the next one—for example, when people force themselves to munch their way through an unsavory meal at a restaurant or when people waste time in dead-end romantic relationships because they’ve already devoted so much time to the relationships and irrationally hope things will improve someway.

Some leaders continue a project once an initial investment is made and found flawed because stopping the project would be tantamount to conceding that previously-allocated resources have been wasted. For this reason, the sunk cost fallacy is also called the ‘Concorde Effect’ after the Anglo-French supersonic jet. In the ’60s, even though there was never a sufficient demand from airlines for the Concorde, the British and French governments continued to subsidize the development and production of the Concorde instead of admitting that they had wasted billions on a non-viable undertaking. The airline industry had long understood that the economics of supersonic transport were dubious, which had forced Americans to abandon their preliminary studies of supersonic jets.

Idea for Impact: Let to Cut Your Losses When Something’s Not Working

Sunk cost fallacy - Know How to Cut Your Losses When Something's Not Working Sunk costs are backward-looking decisions. Don’t become excessively focused on a specific goal or outcome—you’ll become inflexible and unyielding. You’ll narrow your options and make yourself feel more limited and inhibited.

Don’t get attached to ideas and become affected by the sunk cost fallacy as your projects develop. Remain objective, identify the warning signs of losing propositions, and abandon lost causes where sensible. As the American cartoonist Charles Schulz of Peanuts fame once said, “No problem is so formidable that you cannot walk away from it.”

Time Management

Looking for the Best Can Be Counterproductive

Idea for Impact: Never underestimate the power of a simple idea that is well executed.

Wondering what to read next?

Wondering what to read next?

Jack Welch’s Strategy for General Electric: #1 or #2 Businesses Only

Peter Drucker on Strategic Reprioritization

Idea for Impact: Assess What Endeavors Must Be Intensified or Abandoned

Wondering what to read next?

Wondering what to read next?

Wondering what to read next?

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Doing One Thing Makes You Sacrifice the Opportunity to Do Something Else of Value

You Can Do Anything but Not Everything … What Will You Sacrifice When You Choose One Option Over the Others?

Opportunity Costs Apply to All Your Choices—Big and Small

Charlie Munger’s Wisdom on Opportunity Cost

Learn to Evaluate Life Choices Via the Lens of Opportunity Costs—The Stakes Become Clearer

Wondering what to read next?

Adaptive and Maladaptive Perfectionism

The #1 Pitfall: Maladaptive Perfectionism Rigidifies Behavior

Idea for Impact: Prioritize Your Perfection

Wondering what to read next?

Wondering what to read next?

Quitting is Not Always Wrong

Don’t Become Biased Against Quitting

Idea for Impact: Let to Cut Your Losses When Something’s Not Working

Wondering what to read next?