Problems, Tasks, and Dilemmas / May 29, 2023 by Alexander Lyadov

Cartoon showing William Ewart Gladstone in a dilemma, 1886

In business, it's important to distinguish between problems, tasks, and dilemmas.

A terrible initial state A and a desirable final state B are there for all.

Unlike a task, in a problem, the path to achieving B is unknown.

People usually describe a problem as 'I know what, but I don't know how.'

A dilemma is a choice between two equally unacceptable options.

You can easily recognize a dilemma by its sharp horns:

"On one hand, there's X, but on the other hand, there's anti-X. What should I do?"

More often than not, the way out of a dilemma is paradoxical, i.e. it defies logic.

At least that's how it seems to the "rational" mind hanging on the horns.

The mind cannot transcend its own logical constructs.

Thus the human psyche needs a strong impulse to make a breakthrough.

A shock event, personal crisis, or a specialist can help.

A founder later exclaims, "It's so obvious! How could I not notice this?"

The bonus is that the worldview gets upgraded to version 2.0.

Yours sincerely,

-Alexander

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Hidden Arsenal / May 28, 2023 by Alexander Lyadov

I can't help but think that we've already got everything we need.

No, I'm not talking about accepting a sorry state of affairs.

It's clear that we deserve, desire, and can achieve more.

I'm referring to the resources available to us on this path.

Often, we complain about an excess of barriers and a shortage of means.

In a dead-end, we feel like our reserves are depleted while threats are boundless.

But every medicine becomes poisoned when overdosed.

Water is a source of joy, yet it claims the lives of 320,000 people worldwide yearly.

We hardly befriended dogs before they were domesticated 15,000 years ago.

Every phenomenon is initially harmful until understood by humans.

It is only afterward that it becomes useful or neutral.

As self-defense expert Rory Miller says, "The difference between danger and a tool is who first uses it."

Whether something is good or evil to us is a question of perspective.

The necessary tool is right at our fingertips; we just don't see it yet.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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Why people can't agree? / May 27, 2023 by Alexander Lyadov

Why is it so difficult for people to agree with each other?

You'll be surprised if you read until the end.

One suspects everyone of having evil intentions.

The other feels trapped by imposed impossible conditions.

The third considers the potential partner a fool.

Like, he just doesn't seem to grasp his obvious advantage.

Promising partnerships fail to materialize or suddenly fall apart.

In reality, the reason often lies elsewhere.

People can't come to an agreement because they don't know themselves.

Externally, we all look similar, but inside each of us has our own inner drama club.

Psychotype, parents, and a chain of early events shape our lives.

The inner conflict goes unnoticed, and therefore, unacknowledged.

The drama is projected from within onto objects and people.

A similar script is replayed with everyone, always and everywhere.

This goes on endlessly until one gets tired to death.

The weary gaze finally turns inward in search of insight.

Knowing what drives a person grants the choice of how to act.

Once you reconcile with yourself, reaching agreements with others becomes easy.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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Who Supports All of This? / May 26, 2023 by Alexander Lyadov

It's a mistake to think of peace as society's natural state.

Prosperity is possible only when there are no reasons to fear.

Spontaneously, order never arises in business.

Why? Forces of chaos relentlessly strive to destroy everything.

The city gets mired in riots, the body weakens, the garden turns into a wild wood.

The only one preventing a collapse is the proactive creator.

A vigilant watch ensures border security.

Muscle functionality is maintained by a training rhythm.

The founder adapts a model, which is then scaled by everyone.

In short, someone must relentlessly fight to sustain life.

If comfort lasts too long, the creator's contribution tends to be forgotten.

Until the cozy order of things goes out of whack.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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The Paradox of Building Systems / May 25, 2023 by Alexander Lyadov

Building a system is always non-systemic (at the beginning).

Most managers find it difficult to understand and accept this fact.

To create a new order, one must first dive into chaos.

You need to search for the cat in a dark room, risking that it may not be there.

All activity will seem ineffective, empty, and foolish.

It is a true torture for a conscientious and responsible man.

Essentially, creating a system from scratch is a leap of faith.

The creator believes: Sooner or later he will make something out of nothing.

He relies not so much on special skills as on values.

The trials are bearable because the creator has a meaning that redeems them.

Now we can formulate the difference between a founder and a manager.

They have different answers to the question: "What for?"

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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Reluctant Leadership / May 24, 2023 by Alexander Lyadov

I didn't want to be CEO.

Yet, I reluctantly agreed at the request of the shareholders.

Becoming a co-founder of a group of companies hadn't crossed my mind. Fate, however, presented an opportunity, and I begrudgingly accepted.

A similar scenario unfolded later when an acquaintance investor dazzled me with a proposition: to create and manage a $50 million investment fund. It took time to convince me, but eventually, I acquiesced.

It's believed that great achievements require insatiable ambitions. However, my unusual career illustrates that unique opportunities come to us if we put our heart and soul into what we do.

Why? Because we create exceptional value for others only when we forget ourselves. Passionate resolution of others' problems yields rapid learning and exponential growth. It's only a matter of time before Mr. Market notices our progress and rewards us.

First, function matures; then, form gradually follows suit.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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The Real Business Bottleneck / May 23, 2023 by Alexander Lyadov

In engineering, a bottleneck is a phenomenon where one component significantly limits the performance of the entire system.

This means that investing anywhere other than the bottleneck is a waste of resources. Neither a trendy label, nor a technologically advanced cap, nor an ergonomic cup can increase the flow of liquid from the bottle. On the contrary, even the slightest widening of the bottleneck immediately improves the desired result.

So why do many companies act as if they have not one, but dozens of bottlenecks, which is impossible by definition?

Local optimization occurs when a subsystem, such as the marketing or procurement department, considers its own goal to be the most important. This leads to a struggle between subsystems, resulting in a more toxic corporate culture, a less agile company, an unhappy team, and poorer investors.

But don't rush to accuse people of greed and egocentrism. Local optimization often arises due to a lack of global meaning. Someone failed to convey it to everyone in time. It is clear that the primary source of meaning is the company founder. When founders fulfill their function, if you wake any employee up in the middle of the night, they will blurt out, "Our bottleneck is right here!"

So why don't entrepreneurs give their employees an answer to this fundamental question? Attempts to understand this inevitably lead to the conclusion that the bottleneck of the company is the founders themselves.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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Frustrating Learning Dynamics / May 22, 2023 by Alexander Lyadov

99 out of 100 problems I create for myself. You probably do too.

In the past, I was ignorant and simply suffered when something bad happened to me. Now, I can't help but see the cause-and-effect relationship. Unfortunately, the convenient option of shifting responsibility onto others or fate has disappeared forever. In moments of weakness I long to return to the darkness of ignorance, for seeing and not preventing is far worse.

Strangely enough, my experience in jiu-jitsu comforts me, where I've felt the same way many times. Imagine being forced to surrender because you found yourself in a dead end, even though nothing seemed to foreshadow it. The strange situation must repeat itself multiple times to completely annoy you and push you to search for a solution. You eagerly scan YouTube and ask questions to anyone, trying to then apply contradictory advice into practice.

There's no result for a long time, but one day you notice that you resisted a bit longer. Then a hunch turns into insight: "Ah, that's where my main mistake was!" But it's too early to rejoice because knowledge and skill are separated by a chasm. You continue to lose and curse, now aware of where and when you messed up. And only after dozens, or even hundreds, of "lessons," you achieve mastery when you sense danger from a mile away and sidestep it.

One can hope that in a similar way, we learn in business and life in general. The intermediate stage of discouragement is inevitable when innocence is lost but maturity hasn't yet been earned. The only option left is to learn faster. How? Maintain curiosity, make as many iterations as possible, and extract meaning from each one.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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It's All About Perspective / May 21, 2023 by Alexander Lyadov

What's that moving in the grass? A dog in a poncho? Or drunk?"

While the bright red object made peculiar movements, my mind frantically searched for a suitable template to explain it.

It turned out to be a forgotten heart-shaped balloon: "Ah, I see." The anomaly seamlessly fit into the familiar world. A small example, but encounters with Novelty happen just like that.

A new event can evoke surprise or shock depending on its weirdness, suddenness, and magnitude. The phenomenon will burn a person from within until he (or she) find a way to "tame the fire." Any "wild" object must be captured, studied, and understood. Otherwise, danger will lurk everywhere.

But sometimes an event is so absurdly extraordinary that there are no analogues in our knowledge base. The organism may fall into a state of anabiosis, transforming into one big question. And until an answer is found, it is impossible to live and act fully. The individual becomes a pale reflection of himself, leaving family and friends bewildered, while the business merely drifts by inertia.

Then there are three options. The first one: the unbearable burden can trigger a self-destructive spiral leading downwards. The second: unable to solve the problem, the organism encapsulates it in a bubble. It brings discomfort, but with bandages and painkillers, functioning is possible. The third: finding an alternative perspective (theory, paradigm) that will explain the disorienting phenomenon in a way that restores confidence and peace to your mind.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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How to Maintain Focus? / May 20, 2023 by Alexander Lyadov

Why do business opportunities get lost and profits decline?

There are many reasons, but the loss of focus in a company is one of the main ones. The problem is that focus cannot be set once and forgotten. It's even more challenging than shooting a bow while riding at full gallop.
Not only does the horse move and the context change, but the very goal requires regular reassessment.

Performance-oriented founders often realize too late how the surrounding environment has changed, aging all their well-established systems. Innovative-minded founders come across too many promising ideas, but they no longer have the resources to implement them.

Entrepreneurs need to schizophrenically split their minds in order to simultaneously hold conflicting stimuli within themselves. Being simultaneously firm and flexible, evolutionary and revolutionary, isolated and open is undoubtedly very difficult. Add to this the psychoemotional dynamics within the individual, and it's no wonder that companies often veer off the road or remain stuck in one place.

To maintain focus amidst this chaos, a person needs a third eye. We're not talking about mystical enlightenment to observe quarks and chakras, but about self-transcendence, which means going beyond the bounds of habitual thinking that keeps us trapped in the web of inertia and misbeliefs.

The most practical way is to outsource the perspective of the Other. Join the community of entrepreneurs, work with a psychotherapist, and/or create an advisory board. If this Other is mature, professional, and honest, you will find a reflection of your micro-world in their eyes not as your subconscious desires it to be, but as it really is. That's when it becomes easy to maintain focus on the goal, as if you were born in the saddle.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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The Mechanism of Successful Partnership - Part II / May 19, 2023 by Alexander Lyadov

To analyze partnership, the metaphor of a ratchet mechanism is essential (read part I here).

The ratchet consists of two parts, each performing different functions: Development and Stabilization. Without a wheel, there would be no forward movement. And without a pawl, the wheel would spin chaotically from side to side. Together, they enable the ratchet to move exclusively forward.

Development makes no sense without Stabilization. But the reverse is also true - when the speed of movement slows down, fixation of achievements becomes absurd. By adhering to the ratchet's global goal, they simultaneously reveal their true purpose.

It's not mechanisms that make businesses, but living individuals who often forget why they came together. As a result, the local goals of one partner start dominating over the business's global goals. It's easy to imagine what would happen to the ratchet if the pawl starts hating the endless commotion of the wheel and tries to get rid of it. Or conversely, if the wheel starts getting annoyed that someone is restricting its freedom.

Unfortunately, this is exactly what happens in reality. As a CEO, co-founder, investor, and now a business therapist, I've witnessed and experienced countless partnerships, both successful and failed. Often, the reason lies in one partner's illusion that the achieved business results are solely due to the function they passionately serve. They believe that their partner is holding them back from realizing their potential and that of the business.

The problem is that from the local position of an individual element in the system, it appears to be true. The pawl indeed restricts the wheel's degrees of freedom. In turn, the wheel constantly jerks the pawl, denying it the desired rest. Both elements should create tension in each other since they inherently gravitate toward different things. That's why the other partner can be perceived as a hindrance or a threat. This is inevitable, and therefore, normal. The mistake occurs when the analysis stops at this point.

Fortunately, humans are not cast-iron components and can rise above the local context. Conflict begins to dissipate like fog when a partner remembers their meta-goal - to maximize the business's value and fulfill the company's mission. If you truly want to achieve the global goal, it is much easier to accept the necessity of forming an alliance with someone so different from yourself.

Moreover, by regularly meditating on the business as a whole, you will gradually begin to feel grateful that fate has brought you together with a partner who complements you so well. The other partner allows you to focus on what brings you meaning and joy. You just need to negotiate the rules of the game carefully from the very beginning and regularly revise them as the context changes. We'll discuss how to do it right sometime in the future.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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Learning From Nature / May 19, 2023 by Alexander Lyadov

In this photo, ten feet behind the moose, a mountain lion is lurking.

However, neither the moose nor the informed observer can see it.

The predator does everything to reduce the chances of prey to zero.

He craves not an epic battle but a swift victory without effort. Why?

"Everyone has a plan until they get punched in the mouth." (Mike Tyson)

Every fight is chaos where Chance reigns supreme.

Despite the might of fangs and claws, the predator's resources are limited.

A serious injury can make this hunt the lion's last.

And a fortunate opportunity may arise again only in a month.

Therefore, the lion's ideal is a sudden and devastating attack.

The best founders intuitively follow the laws of the wild.

They systematically create conditions where their victory is inevitable.

Once the groundwork is laid, winning becomes a tad boring.

The ripe fruit falls into the founder's hand with a light touch.

Can the same be said about your business?

Yours sincerely,

-Alexander

P.S. SPOILER: Bottom right-hand side of the photo, just behind the big boulder.

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What did King Solomon not know? / May 18, 2023 by Alexander Lyadov

Solving our own conflicts is exponentially more challenging than resolving others'.

An intriguing scientific study explains why that's the case.

The asymmetry in applying wisdom towards others versus ourselves is known as the Solomon Paradox.

The king gained fame by resolving his subjects' most complex conflicts, yet ultimately destroyed his dynasty due to his extravagance and greed.

It turns out that everything lies in self-transcendence and positive affect, without the mediation of which wisdom becomes difficult to manifest.

Self-transcendence is the ability to go beyond our own selves, while positive affect is a state of energy, engagement and focus.

In personal conflicts, we feel threatened, hindering our capacity for transcendent mindset. A bee gets caught in the web.

However, when I contemplate a client's dilemma, I completely forget about myself. There is no fear or doubt, only the eagerness to find a solution as quickly as possible.

The ideal is when the founder and I soar together over a problem. Our minds, like two eagles, embark on a hunt for the desired prey.

But if self-transcendence is so crucial, how can we attain it?

There are numerous practices—from meditation to serving a higher purpose—that can facilitate it.

But if things get tough, I seek the advice of a mature person who is kind to me.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
As a business therapist, I help tech founders quickly solve dilemmas at the intersection of business and personality, and boost company value as a result.

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From Chaos to Expertise / May 17, 2023 by Alexander Lyadov

The more tangled the problem, the more paradoxical simplicity is needed.

In the midst of total chaos, solutions like "E2-E4" work best.

The mind simply can't adapt a complex tool to rapid changes.

That's why, in that moment, the primal amygdala takes control.

The alternative is when the algorithmic sword becomes an extension of the hand, paraphrasing the words of the samurai Musashi.

Even Bruce Lee feared the one who practiced a single kick 10,000 times.

In other words, the valuable pattern is dissolved within the neural system.

But where did it come from in the first place?

The ideal is a multitude of iterations to crystallize simplicity.

In other words, one must endure, suffer, and give birth to such a pattern.

However, not everyone is ready to focus on one thing again and again.

That's why it's so important to find, understand, and develop your superpower.

After all, it's easier to do what you can't help but do.

That's how a person (or a company) becomes an Expert.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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The Wise Polish Proverb / May 16, 2023 by Alexander Lyadov

Never attempt to cure what you don't understand.

A Polish proverb captures the essence of a typical leadership mistake.

It sounds illogical, but it often happens in business. Why?

Firstly, the itch of a problem pushes for urgently doing something, anything.

Diagnosis is perceived as a delay, turning torment into torture.

Secondly, instead of searching for the root of the problem, its symptom is taken.

You know, the temptation of a "small victorious war" is too great.

Thirdly, inertia traps a new problem into a familiar pattern.

A black swan is perceived as a large laying chicken.

The leader "cures" quickly, expensively, and efficiently... but not the right thing.

Activity, expenses, and fatigue are present, yet recovery is absent.

The wise leader can distinguish between the ordinary and the novel.

The former provides stability, the latter either complete failure or exponential growth.

A true leader is ready to admit in such a moment, "I don't know."

Humility opens the mind to new ideas.

Thus, from a rural healer, the leader transforms into an R&D lab.

Such a company will heal itself and present the market with an antibiotic.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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From Vulnerable to Victorious / May 15, 2023 by Alexander Lyadov

Vulnerability makes a person indecisive and overly cautious.

The goal is no longer to win the competition, but to avoid defeat.

I realized this today when I protected my injured knee in a jiju-jitsu fight.

I would start to attack my opponent and then stop myself: "I can't do that!

Similar fear often restricts the actions of business founders.

Like a hole in the bottom, vulnerability hinders venturing into the open ocean.

Which significantly reduces the chances of returning home with a bountiful catch.

The level of reward in the market is proportional to the level of risk taken.

Only 100% "healthy" companies act decisively in chaos.

Fortunately, unlike the physical body, the corporate "body" is easier to heal.

After all, the vulnerability of a business lies in the founder/CEO's mental barriers.

To overcome your false assumptions is to set your business free.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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Who Should Be Watered? / May 14, 2023 by Alexander Lyadov

I am best at helping those who would succeed even without me.

Sounds like a paradox, but judge for yourself.

It's useless to train an athlete who has given up the fight.

The gardener wastes water by watering a tree that hasn't taken root.

No efforts will make a poodle rip the throat of a thug.

In other words, you should only water what grows on its own.

Example: hydrogen peroxide H202 under the influence of daylight.

Hydrogen peroxide slowly decomposes into water and atomic oxygen.

But add potassium permanganate KMnO4, and the peroxide literally "boils."

The process was happening naturally, but the catalyst dramatically accelerated it.

The founders will embody their vision because that's their essence.

Like a catalyst, my role is modest—to reduce their time by X times.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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The Essence of Serial Entrepreneurship / May 13, 2023 by Alexander Lyadov

Creators know that when an idea comes to them, they must write it down asap.

Otherwise, without finding you home, it will get annoyed and vanish forever.

An entrepreneur is in a hurry, just like a writer or a poet.

Once he (or she) finds a promising idea, it becomes his number one priority.

Until the potential of the idea is realized, the founder can't find peace.

Just like molten glass, an idea needs to be shaped in time.

Both competitors and the dynamic context pose a danger.

Entrepreneurs' nightmare: "I could have done it, but I didn't, or too late".

This strange obsession is hard for others to comprehend.

But imagine a salmon arriving upriver too late to spawn.

A system that fails to fulfill its purpose loses all meaning.

Thus, the phenomenon of serial entrepreneurship becomes clear.

Once you've reached the peak of meaning, it would be a sin not to climb again.

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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Step By Step / May 12, 2023 by Alexander Lyadov

Why do we take so long to find the right answer for some problems?

Firstly, it's because the problem somehow exists, but simultaneously it doesn't.

The implicit hasn't yet become explicit.

So capturing the chaos in the web of meaning is the first step. What is indicator?

An accurate problem formulation brings relief in itself.

Furthermore, clarification can unpredictably change the problem.

If that's the case, then why is this step taken carelessly and hastily?

The pain, itching and burning of the negative symptoms are unbearable.

The pause prolongs the torture, and we want to take action, anything at all.

Thus, resources are wasted, as watering stones makes no sense.

Only a few individuals can stitch themselves up (but what about on their back?).

The rest need a professional, for whom the job is more important than emotions.

An expert won't lift a finger until the target is in the crosshairs.

Such confidence infects everyone: "No need for haste. Let's act step by step."

Yours sincerely,

-Alexander

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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Breaking the Vicious Cycle / May 11, 2023 by Alexander Lyadov

In TRIZ*, there is a rule that has long shocked me with its simplicity.

It goes like this:

First, you need to try to eliminate the source of evil.

And only then, if that didn’t work, start fighting the evil itself.

Look around - people too often act the opposite way.

Like lions, they fiercely attack what they consider evil.

Huge resources are essentially wasted on fighting the symptom.

The untouched source of evil produces another symptom, a third one, and so on.

And only after squandering everything, at an impasse, do people begin to seek the root cause.

What sets apart those few who, as a first step, search for the root of evil?

There are two options:

They got tired of repeating the cycle of a meaningless struggle once again.

Or they encountered someone who had been there themselves and observed many others.

When collective experience is woven into a pattern, the personal decision becomes obvious.

Yours sincerely,

-Alexander

*TRIZ is the theory of inventive problem-solving.

You can help Ukraine defend itself and the World from Russian aggression here.

”Who are you and what do you do?"
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