What Is Management By Optimism? (And Its Role In Business)

Management by Optimism is about ignoring potential failure. Optimism is a characteristic that is the basis of positive thinking. You simply cannot start a successful business in a difficult economic environment unless you throw off the negative emotions of fear, uncertainty, and worry.

Key Takeaways

• Management by Optimism is a set of positive strategies for directing and controlling business functions
• Management by Optimism is very different from being optimistic because an optimist sees opportunity whereas others see uncertainty and despair
• Optimism affects your success whether you are formally “in sales” or not
• 5 components of optimism management are abundance mentality, positive communication, forward-thinking, risk management, and trust

Components Of Optimism Management

Abundance Mentality

An abundance mentality is a belief that there is more than enough for everyone. “Abundance thinkers believe there is always more where that came from,” said Michael Hyatt. As a management strategy, an abundance mentality calls for courageously growing the capabilities of your team. Be selective with what you put into your mind. Create your own environment of abundance.

Positive Communication

Ask yourself, what is better for your business, a positive or a negative attitude? Successful businesses understand the power of positive business communication. Using negative tone and terminology will get you nowhere and most likely, you receive negativity back.

Forward Thinking

Forward thinkers are collaborative leaders in business. Many organizations include the phrase “forward-thinking” in their core values or vision statements. Because they are visionaries and have art for implementing results.  It refers to organizations and the way in which they proactively look toward moving on with things that can be changed in the present or future.

Risk Management

Risk management is the process of identification, assessment, analysis, minimization, or elimination of unacceptable risks. As a society, we need to take risks to grow and develop. Likewise, managers who take noticeably large risks and survive are typically neat-handed at identifying and treating risk. An organization may use risk assumption, risk avoidance, risk retention, risk transfer, or any other strategy in the proper management to make sure organizations achieve their objectives.

Trust, But Verify

Trust, but verify is a translation of a Russian proverb, It should be used not just in business management but in every aspect of life. This is the one key management tool that will help you run your team more effectively. Optimism and trust go hand-in-hand as optimistic managers see the best in their team. They understand the task and are able to explain what needs to be done ok. If you can’t trust your team to deliver the basics of the job then they either need better training or you should consider someone else to fulfill the task.

What Is The Definition Of Optimism In Business?

Optimism is defined as the belief that things will get better. It is a state of mind that helps individuals and companies to approach challenges with hope and enthusiasm rather than despair.

Some companies use optimism as a key element in their marketing strategy. They focus on motivating people, showing them the positives of their products or services, and encouraging them to achieve whatever they want to achieve in life. Others use it as an element for change management by bringing about more positivity in their organization through intention setting and goal-setting exercises.

Optimism can also be considered the basis for taking risks because it generates a sense of trust amongst employees by helping them know that there are higher chances of success if they follow through with their goals.

The Importance Of Optimism In Business

1. Optimism is one of the most fundamental and important aspects of a company’s success. When people are optimistic about the future, they are more likely to be engaged in their work.

2. In order for a company to remain successful and competitive, it must have employees who are willing to work hard in order to help make the company succeed.

3. When people feel confident about their future, they are much more likely to be happy with their job and enjoy what they do. As a result, companies will see improved productivity and engagement among their employees.

4. Optimism can be a powerful driver for success. It’s not just a trait that companies should strive for, but it’s something that they should embrace as well.

5. Optimism in business is often overlooked, which is why people are not consistently successful. But if used properly, optimism can be a key factor in achieving success. Optimists tend to be more motivated and enjoy life more than pessimists do. They are more driven and have higher self-esteem than their pessimistic counterparts, who tend to be less motivated and less satisfied with their lives.

6. In the workplace, optimists are able to take on more challenging tasks without getting discouraged as well as being more productive in general because they’re not burdened by negative thoughts that may distract them from completing a task at hand. This can result in higher levels of productivity for workplaces that hire optimists as well as better performance reviews for them.

Do you have any example or suggestion of Management by Optimism and probably other ways to explain it? Let us know in our comment box below!

References:
1. https://www.sciencedirect.com/science/article/pii/S0927538X0500020X
2. https://repository.upenn.edu/mapp_capstone/3/

Last Updated on October 25, 2022 by Magalie D.