Amidst war, skyrocketing prices, and what appears to be a looming recession, it’s becoming increasingly difficult to believe that the world is heading in a positive direction. And in many places, it’s definitely not. However, stepping back, it’s hard not to see the many ways in which we’ve made incredible progress as a society over the past several decades: global hunger is falling, child mortality is down, literacy is up, and even Moore’s law is hanging in there. I could go on forever.
In spite of this, today’s news cycles and executive meetings dwell on the negative. Negative news stories have higher click-through rates and drive more engagement. Corporate failures result in tiger teams with people working nights and weekends to turn things around. But when it comes to leading a team - be it a company or sports team, it’s important to balance criticism with optimism.
Leading with Love vs. Fear
It’s been a decade since I made the move from the Midwest to the Bay Area to join an early stage company. The primary founder was hard working, brilliant, and above all, positive. That’s not to say he wasn’t competitive and ambitious… He is and was both. But instead of motivating through fear, he chose the path less traveled. And the results were clear - an incredibly cohesive culture, zero regrettable attrition, and a great exit a mere 3 years in with 2 years of runway on the balance sheet.
On the other side of that acquisition however, the team began working with a Product Leader who had the exact opposite approach. No matter how well things were going, meetings with this individual involved getting attacked for why results weren’t better, leaving even the best performers in tears. This executive’s belief was that everyone could be pushing a little bit harder, unlocking another gear they didn’t know they had. What he failed to realize is that the best employees will always push themselves harder than anyone else ever can. He was ultimately fired.
Some of the most brilliant thinkers of our time (as glamorized by the media and their company’s stock prices) - Elon Musk, Steve Jobs, Jeff Bezos - are all known as complete assholes to work for. That doesn’t mean the work isn’t incredibly rewarding (intellectually and financially), but it’s unlikely anyone describes it as “enjoyable.”
The Pendulum is Always Swinging
The funny thing about sentiment, be it negative or positive, is that it doesn’t solve problems on its own. The only way to really change the trajectory of something is to take action. And while there may be forums where punishment gets better results (horse racing?), the opposite is becoming increasingly true in the workplace. People are magnetically drawn to optimism. And the best workers are in search of cultures where they are free to do their best work without fear of retribution.
Whether the goal is to influence public policy or a company’s sales targets, there’s always a way to wield optimism to inspire change. Recognize that at any point in time, there’s an ever-changing mix of optimism and pessimism within a group, and it’s moving further in one direction before it eventually swings back the other way.
Greed and Fear
Warren Buffett once said to “be greedy when others are fearful and fearful when others are greedy.” Admittedly, I think this paraphrases a quote from his teacher, Benjamin Graham, who said in The Intelligent Investor that “the market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap).” But what does this have to do with optimism? If market conditions are deteriorating, get excited about capturing market share. On the other end of the spectrum, build a war chest in better times to capitalize when things next turn South. You can never time the top and the bottom of any market - but you can usually recognize when conditions are improving or worsening. Just remember not to react too quickly. Most swings take years to play out.
To close, the point of all this is not to say that everyone should wear rose-tinted glasses. Being rational and data driven remains just as important as ever. But when it comes to motivating others and building culture, try being positive. Measure yourself on it. You may be surprised at the results.
Great article! There is a book called Enlightenment Now (I think it was in Bill Gates book list) that helps support this. When I was a Financial Advisor, I recommended it to clients, because it’s a factual look at the world and although things seem scary at times, there is no better time to be alive than now.