Why Does Optimism Matter?

Ancient wisdom says…

Where there is no vision, the people perish Psalms 29:18

  • Followers initially look to leaders to lead with a positive vision. Effective leaders often articulate a compelling, hopeful vision for their organization’s future.
  • It is more fun to be in a growing organization than a shrinking organization. Optimism can indirectly lead to increased Sales & Revenue.
  • Optimism has a more direct affect on customer acquisition, and gaining new business.
  • Optimistic employees act in ways that customers notice. The optimism can be contagious, even if unconsciously. Might they be more likely to believe in the value of the products or services you offer? Wouldn’t that translate into higher sales and revenue?

What is Optimism?

  • Optimism is a mindset or attitude characterized by hopefulness and a positive outlook on the future.
  • It’s the tendency to expect good things to happen and to focus on the bright side of situations, even in the face of challenges.

How To Improve Optimism

  • Leverage real optimism to help people stay motivated, reduce stress, and cope better with difficult situations.
  • Every organization has some of the difficulties.

Failure Modes

  • It is important to be balanced—being overly optimistic without considering potential risks or challenges can sometimes lead to unrealistic expectations.
  • It is not blind optimism, but choosing to see how we can make a difference with the parts of situations we can influence or control.

Examples

  • Situation: Tom comes to you, his leader, and describes a problem, its urgency, and perhaps its impact, and then stops and looks at you.

    • Possible response: When people bring the problem, thank them, and immediately ask “What do you see for how to address this well?”

  • Situation: A small startup faced severe financial difficulties. They even had to let go of several employees. Many of the remaining team members were anxious about the company’s future. The lack of clear financial stability and the constant stress of potential layoffs had caused the team to lose hope and enthusiasm.

    • One response: The CEO took immediate action to restore optimism.
      • She held an open meeting to address the team’s concerns, being transparent about the company’s challenges but also presenting a clear, strategic recovery plan.
      • She communicated how the company was cutting costs, looking for new investors, and innovating a new product to get back on track.
      • She emphasized the value of the team’s work and made sure to celebrate small wins with recognition.
      • She also made efforts to show appreciation for the team’s dedication, reassuring them that their efforts would not go unnoticed.
    • Outcome: Employees began to regain some of their optimism. Some said they felt more invested. People watched for consistency between what was said and then done. The company eventually regained its financial footing.
    • How did the CEO do? What might you have done differently? Why?

  • Situation: After a merger, employees in the purchased company felt uncertain about their future with the company. Some expressed concerns about job security, changes they saw in the merged company’s culture. Everyone watched the new leadership closely. This uncertainty started to create a sense of detachment, and a number of employees became disengaged or skeptical about the new company’s future.

    • Leader’s Actions*: The new leader of the merged company took swift action to address the team’s concerns. He held “town hall” meetings to ensure transparency and provided updates on progress.
    • The new leader met with people face-to-face and as in-person as virtual tools allow. He was open about the challenges and then focused on the positive aspects. He focused on improving a sense of belonging with everyone.

  • Outcome: The leader’s transparency, and efforts to build a sense of belonging helped employees feel somewhat more connected and optimistic about the new situation. It took time, but consistent leadership behaviors and subtle reinforcement of optimism gradually helped more employees feel hope and that led to more becoming more engaged in the future of the organization.

    • How did this leader do? What might you have done differently? Why?

Call to Action

  1. Inspire your organization or team with your belief that together, you can overcome any challenge and achieve remarkable things.
  2. Let people know that their efforts are valued and that we expect some setbacks as part of the journey toward growth.
  3. Reframe challenges when obstacles arise. Focus on solutions and opportunities.
  4. Nurture the culture to shift from seeing problems to seeing possibilities.
  5. The confidence needs to be tied to current capabilities and capacities to be sustainable.
  6. Help show your team how they can adapt and thrive despite uncertainty.
  7. Model and build resilience in the part of the organization you influence and for which you are accountable.
  8. Demonstrate how resilience, paired with optimism, drives long-term success.