Is Optimism Killing Your Business?

"The pessimist complains about the wind; themore?
optimist expects it to change; the realist adjustsHave you ever sat back and thought how this
the sails." William Arthur Warddistinction between optimism versus reality could
I was reminded of this brilliant principle last weekapply to your business/career or your life in
when I spoke to one of my business coachinggeneral? Where in your life are you ignoring reality
clients. There can be no doubt that we are living inin favour of being optimistic and missing a crucial
interesting times.... the global financial crisis hasopportunity to take action?
impacted overall spending and consumerTake for example my business coaching client
sentiment - and this has hurt many smallthat I mentioned above. She has an employee
businesses around the country. It's no good hopingwho doesn't take responsibility for her actions,
that circumstances will change - in order todoesn't pay attention to details and is often
survive we all need to dig deep and find creativedefensive and reluctant to take direction and
ways to work smarter not harder.feedback. This employee is negatively impacting
Jim Collins, in his book, "Good to Great," talksthe entire work environment as everyone gets
about this very interesting paradox that he callscaught up in the drama of it all. My client doesn't
"The Stockdale Principle". According to Collins, "youwant to let the employee go and is resisting doing
have to be realistic about your current situationwhat she knows that she must. She hopes that it
and yet, stay optimistic about the future".will somehow improve without any action on her
General Stockdale was the highest rankingpart - she is now learning the distinction between
American prisoner of war in Hanoi, Vietnam. Overreality and optimism. When she sees the
the years he began to notice an interestingdifference for what it is, then and only then, will
phenomenon - optimism could in fact be a liability.she become decisive and take action.
His fellow prisoners (who were the eternalAnother area where it's easy to be blinded by
optimists) constantly set themselves up foroptimism is in the financial arena. Do you have
disappointment. They set huge milestones - "wedetailed financial reports, KPIs and cashflow
will be rescued by Christmas" - but thoseforecasts in place to drive your decision making
milestones came and went year after year andor are you simply relying on your optimism
with it... their will to live.instead of reality? Failure to effectively plan in this
Conversely, the prisoners who looked at thearea (especially in these tough times) could lead to
painful day-to-day reality they were in anda cash crunch and the demise of your business.
channeled their energies to the right placesTake a moment today to examine your
survived. This is not to say that the second grouprelationship to optimism, pessimism and realism.
were pessimists but rather realists that maintainedSuccess belongs to those who operate from both
an unwavering faith in the end game, and asides of the Stockdale Paradox. The key is
commitment to survive despite the brutal fact ofbalance - knowing when to accept reality and
their incarceration and torture over a period oftake appropriate action AND never losing faith in
years.the end of the story. If you can walk this delicate
Here's how Stockdale put it in his own words:line of balance and responsibility, you increase your
"I never lost faith in the end of the story. I neverodds of making good decisions and this will lead to
doubted not only that I would get out, but alsoyour inevitable success and breakthrough results.
that I would prevail in the end and turn theIn life, we will all experience setbacks,
experience into the defining event of my life,disappointments, loss and challenges. What
which, in retrospect, I would not trade."separates successful people from the rest is how
How many of us would look back on seven yearsyou deal with those inevitable struggles. This is a
of detention - with regular torture, dismal livingvery important distinction and it is what divides
conditions and an uncertain future - as anthe winners from the losers. You must never
experience we would not trade? Do you regardconfuse faith that you will prevail in the end -
the greatest obstacles or challenges in your life aswhich is something that you can never afford to
the defining moment that shaped who you arelose sight of - with the discipline to confront the
today or do you choose to look at them as anbrutal facts and reality of your current situation,
excuse or reason why you have not achievedwhatever that might be.