History lessons

Leaders need to have a relatable and understandable long-term view of where an organization is headed.

When faced with the issue of slavery before the Civil War, Abraham Lincoln’s vision was that the United States should be “a nation conceived in liberty and dedicated to the proposition that all men are created equal. "

Changing the mood of an organization can be enough to stave off collapse and foster progress.
Nelson Mandela changed the mood of a divided South Africa coming out of the brink of civil war and facing a future with a high likelihood of inter-racial conflict. Once elected, he ran the new multiracial government with a light but decisive touch and set the tone – relaxed, inclusive, cheerful – that would create a new mood in the country.

On 29th October 1929, the infamous crash of Wall Street happened, where 30 million dollars were lost in a week, leading to customers rushing to withdraw their money, known as the ‘bank run’.

The entire world felt the capitalistic fall and realized that a boom leads to a bust, eventually. The disastrous effects felt around the world showed how economically interconnected the world had become.

In 1933, then-President Franklin Roosevelt promoted his recovery path of Relief, Recovery and Reform, to give shape to the slow and arduous reform process that will take decades.

Mustafa Kemal Ataturk, the father of modern Turkey, accounted for his limitations by issuing an order to ignore instructions he gave in the evenings – when he liked to carouse with his friends. But history has far more examples of leaders whose convictions of infallibility grow in proportion to their power, eventually leading to the failure of their plans.

A job can subtly warp your judgement so that you only see things from one perspective.

Think of Richard Nixon trying to use the institutions of the American government to shut down the Watergate scandal. Or the unexpectedly long American war in Vietnam.

Looking for a few universal plot patterns reveals things fundamental to how all people think, which are likely to be repeated in the future and relevant to your own situation. This idea also applies to how the economy works.

Economic history can seem complicated because it's part of politics, psychology, sociology, criminology, biology, military, technology, education, finance, etc. But within all that complexity is a lot of similarities.

• People seem to want the same economic things – security, power, admiration, fulfillment.
• They tend to use the same tactics to acquire those things - work, risk, incentives, persuasion, theft, control.
• They tend to fall for the same flaws pursuing those things - overconfidence, pessimism, underestimating how fast things can change, etc.

Although economic history may seem complicated, there are only a small number of broad story plots throughout the world and throughout time.

• The quality of your life is determined by the quality of your thoughts. Mastering your mind means seeing setbacks as opportunities. 
• Occupy your mind with uplifting thoughts, because they will give you the energy you'll need to attain the success you desire.

• Visualize your goal.
• Keep yourself positively motivated.
• Make a deadline.
• Take steps daily.
• Laugh along the way.

Although eating food is pleasurable, digesting it is our main purpose. We should eat to live rather than live to eat.

To practice this principle, one can eat plain foods without sauces or try intermittent fasting.

“The impediment to action advances action. What stands in the way becomes the way.”

.... refers to the study of how social and psychological factors (decisions made by an individual, institution or business) can affect the market and its resources.

Dilbert’s boss shows overconfidence by assuming that all management is – himself included – above average. This is hardly the truth, in general. As for Dilbert’s boss, he completely misses the jab attacking his math skills because he’s too focused on himself.

Overconfidence of bosses can end up putting their companies in risky ventures. We all need to take some time to cool our egos and look at the world around us more realistically.

Prince William Of Orange led the Dutch rebellion against Spain, then the most powerful empire in the world. To stop the advance of the more powerful Spanish army he pulled down several dikes and flooded a large portion of the Dutch countryside, contributing largely to the defeat of the Spanish.

Recognize when you can't beat your competitors and find a way to differentiate yourself.

During the Cuban missile crisis, many of JFK's advisors advised a full military invasion of Cuba. JFK held off on these plans, opting instead for a naval blockade and negotiations with Soviet leaders, all while planning for a possible invasion if these tactics failed.

Don't commit yourself to a strategic path without first evaluating all of the options available to you.

Nelson Mandela was lauded as a courageous leader -- even when he was truly terrified. Like the time he astonished his bodyguard by calmly reading a newspaper while the plane he was flying on had engine failure.

Mandela himself, however, later confessed in private that he’d been truly terrified but refused to show it. Mandela knew that courage is a choice, and everyone can be courageous by learning to cope with your anxieties and fears every day. 

Niccolò Machiavelli held that using advisors well begins with knowing one’s own weaknesses and selecting advisors to offset them. It’s also necessary to know how to solicit advice the right way.

For Machiavelli, that meant showing advisors he valued their honest opinion and would not punish them for giving it. But, at the end of the day, he was the one calling the shots.