I am not an economist (thankfully).  But economists, meteorologists (those who try to predict the weather), and psychologists are somewhat in the same situation — our ’sciences’ are not very “hard” — that is, they often are not solidly grounded in data and they lack power to predict.  For example, last night there was no prediction at all of any precipitation and we had a major rain and hailstorm in our area (up to baseball sized hail!).  Part of the problem for all three of these sciences is that there are numerous inter-related factors (many of which are still unknown) that need to be accounted for in trying to predict what will happen.

The point is — no one really has a good handle on the future of the U.S. (and global) economy.  Just turn on the TV or radio and you will hear numerous opinions on what is happening, and what needs to happen to make our economic situation improve.

But let’s take a look at the basics and this will give us some clues.  Economic activity, at its core, is the exchange of goods, services or information for monetary value.  Going back to some basic cause and effect relationships we can follow the following line of thought:

• People work and receive money for their services.
• When people don’t have jobs, they don’t make (as much) money.
• When people don’t have as much money and don’t see the opportunity for more money come in, they either don’t spend as much, or spend on credit.
• At some point, most people, when their income is reduced over a period of time, reach a limit of what they can buy on credit or realize it is not a wise pattern to continue.
• Eventually, people begin to “cut back” on non-essential spending (eating out, recreational activities) and also tend to slow down the process of replacing existing belongings (new technology, new clothes, furniture, cars).
• The lack of spending means businesses are selling less goods and services, receiving less income, and have to cut back expenses in their business, which includes labor.  Hence, they reduce employees’ hours or lay off employees.
• These people now have less money to spend.
• And thus, the negative spiral of an economic downturn continues.

The key question becomes: how does this negative cycle turn around?  This is where economics becomes largely theoretical, and an individual’s answer is related to their beliefs about economic activity and individuals’ behavior.  President Obama and others believe governmental intervention is necessary. Others believe letting the free market forces drive the process.  And obviously, there are combined approaches.

I believe that this is where understanding the psychology of our culture is important.  In actuality, as in economics, there are actually two fairly diverse sets of beliefs that exist is our culture.  And these belief systems drive different expectations and behaviors.

Cultural Belief System #1:

• I deserve “x”.  I have had “x” before, and I still want it. [Note: “x” can be a lot of things — money, a job, health care, free time, retirement benefits, a nice home, etc.]
• If you have “x” and I don’t, you should share at least some of your “x” with me.
• If I don’t have “x”, somebody should do something so that I can have it.
• The problem (of whatever causes me not to have “x”) lies in a greater system of rules, organizations, factors that I don’t have much control over.

Cultural Belief System #2:

• Life is what it is, including bad (or unfair) circumstances.
• Some of my life’s circumstances are directly related to my choices; some circumstances come from factors outside of my control.
• If I want the circumstances in my life to be different, it is largely up to me to figure out how to make that happen. There may be some larger system issues that may need to be changed, but I can’t depend on that happening.
• Making my life’s circumstances better may require me doing things I would prefer not to — work long hours, do work that I don’t enjoy; relocate; be away from my family for a while; live a simpler lifestyle than I am used to.
• I will do what I can to improve my circumstances, knowing there are no guarantees, and hope for the best.

And here we come to a critical factor that can impact a person’s future:  hope.  Psychologists believe that the loss of hope is a key component of depression.  A person can go through a lot of negative circumstances — and become discouraged, worn out or sad.  But when they lose hope that “things will get better”, that is when more serious depression develops.  They give up.

So here is what I predict, as a psychologist.

1. The economic recovery is going to take longer than what most Americans want.  This is due to the economic reality that the ultimate recovery is related to job creation and the resulting economic activity that occurs, and this appears to be a long-term issue.  And secondly, our culture is very present-oriented with little patience.  We want things “now”, and this is unlikely to occur.
2. There will be two groups of people that experience the economic downturn differently:

a)  There will be people who expect life to be “like it used to be”, and expect someone else to make that happen (largely, the government or maybe ‘big business’ or the wealthy.)  These people will become increasingly impatient, angry, and demanding of others.  Their focus will be on economic relief programs and governmental bailouts.

b) There will be a group of individuals who take steps in their lives to make the best of a bad situation, and who will ultimately (some, not all) find opportunities economically — to provide goods, services or information that others need and are willing to pay for.  Their life circumstances will probably be difficult for a period of time but they will “deal with it” and continue on.   There will be a portion of this group who will find significant economic success as a result of their efforts (there are always people who find ways to make money in difficult economic times.)

I think it may be a good time for each of us to ask ourselves:

• What do I believe about what is happening?
• Which group do I want to be a member of?

Recently, the reality of people losing their jobs has been hitting quite close to home.  Living in the city where most aircraft are built in the U.S., and the struggles aircraft manufacturers are experiencing have made knowing individuals who have been laid off from work a personal experience.  And the secondary job losses are significant as well — suppliers to the aircraft manufacturers, graphic designers, retail sales, professionals in the real estate arena — all are experiencing the effects.

I am reticent to personally give advice to individuals who are walking on paths I have not had to walk yet.  However, I did find the following ideas in some recent articles, and thought they might be of some help.

Given the current financial crisis, Psychology Today decided to interview a number of successful professionals and find out the role that “failure” played in their personal and professional development.  Here are a few of the comments and findings:

• There is a difference between failures and Failure, just like the difference that exists between financial diminshment and bankruptcy, and marital strife / divorce.
• Failure hurts but can pay off in the form of learning, growth, and wisdom.  Some psychologists … go even further, arguing that adversity, setbacks, and even trauma actually may be necessary for people to be happy, successful and fulfilled.
• J.K. Rowling, author of the Harry Potter series of books experienced a series of failures including a broken marriage, and poverty that bordered on homelessness.  She states:  “Failure stripped away everything inessential.  It taught me things about myself I could have learned no other way.”
• Paul MacCready, Jr., a famous aeronautical engineer who won the Kremer Prize for the world’s first human-powered airplane, depended on failure to help him succeed.  He designed his airplane to crash well, so that it would protect the pilot and the plane could be quickly repaired, so he could learn quickly from his failures.
• The difference between people who come out of failure successfully and those who do not seems to be related to the degree of ‘rumination’ that is allowed to continue.  “Failing better” is related to three aspects: controlling our emotions, adjusting our thinking, and recalibrating our beliefs about ourselves and what we can do in the world.
• Many argue that failure is necessary for growth.  So protecting ourselves (or our children) from failure limits our exposure to growth opportunities.  Conversely, too much failure can discourage and lead to one’s spirit being crushed — to the point of giving up.  How much failure is too much?  Two really helpful answers (being sarcastic):  “It depends” (on the stage of life and unique characteristics of the individual; and “We don’t really know.”

From a companion article, here are “Nine ways to fail better” by Bruce Grierson.

1. Lighten up — have a sense of humor.
2. Join the club — commiserate with others in similar situations.
3. Feel guilt, not shame — learn from your mistakes,but don’t accept the belief that “I am a failure”.
4. Cultivate optimism — put yor negative thoughts on trial and rebut them; they often are not based in reality.
5. Ask not what the world can do for you . . .  –  you now have the opportunity to do something different with your life.
6. Scale down your expectations for yourself — repeatedly failing to meet your expectations for yourself may indicate you need to re-evaluate realistic expectations for yourself.
7. Keep a journal, learn from what you are thinking and feeling, and use those lessons to take action.
8. Don’t blame yourself — blaming yourself for the bad things that happen to you (i.e. attributing all cause to yourself) is an error in thinking that causes people to become stuck, rather than to become stuck, rather than moving forward.
9. Act! — failure provides an opportunity to do something different, but only if you act on the opportunity.

I hope some of these thoughts may be helpful to you — or forward them to a friend or family member you know who finds themselves in this difficult situation.

As a psychologist, I naturally find myself observing people’s behavior — their choices, what they are saying, and how they are feeling.  And this is the case now, in the midst of the difficult economic times in which we find ourselves (I am consciously choosing not to use the term “financial crisis”.)

There are three core aspects to any situation that involves human perception and response:

• Reality.  What actually “is” — the facts of the situation. (Using a non-related example: the temperature — which is about 30 degrees F. on a mid March day.)
• Perceptions. How people perceive, view, and interpret the facts.  (Regarding the weather, it seems excessively cold and wintery for this time of year; especially since it was 70 degrees for a few days last week.)
• Reactions.  How people respond both to the reality and their perceptions of the situation — their opinions, feelings, and behaviors. (Many people are somewhat irritable, complaining of the cold [because “it should be warmer”], some people are going on trips to warmer climates.)

These issues are relevant to the current economic challenges we are facing.  First, we must ask ourselves: What are the facts?  Some include:  a) real estate values have dropped significantly (30%-50%) in the past six months;  b) stock values have also decreased significantly (40%-50%) and are the lowest level they have been in decades;  c) as a result of these two factors, individuals’ and families’ financial worth is far lower than it was this time last year;  d) numerous companies are laying off workers and unemployment is at 8%, also a high mark for recent years;  e) financial institutions and the credit market are stressed;  f) the Federal government is taking significant steps to try to rectify the situation.

The next two areas are where we as individuals, families, businesses, communities and a nation, can get “tripped up”, if we are not careful.

Two unhealthy responses to difficult situations include:

1. Ignoring the facts.  As Jim Collins emphasized in Good to Great, successful companies (and by inference, individuals, families, et al) need to brutally face the facts of reality.  Acting like “what is” really “isn’t”, doesn’t help.  Some people call this denial.
2. Panicking and making emotionally-based decisions.  Yes, these are difficult times.  Is it a “crisis”?  Maybe.  Time will tell.  But becoming frantic, making quick not-well-thought-through decisions is not a good strategy.  (Note that some people become paralyzed when they panic and “do nothing” — which may not be a helpful strategy either.)

So what are healthier ways to respond to the current situation (”healthier” as defined functionally by thoughts and actions that lead to survival and better functioning in the future):

• Pay attention to important facts, but don’t become overwhelmed with more information than you can process (and filter out extraneous “noise” — other people’s thoughts, feelings & reactions).  It is important for each of us to understand what is going on in our country, communities, and the world.  But Americans have become ‘news junkies’ and taken in more information than we can possibly manage, process, and respond to — especially on talk radio and cable TV news channels.  The basic facts are there and that is largely what we need to know.
• Make reasoned decisions that lower your exposure to the risks that you can manage.  Each of us can make some individual decisions that can help us manage our own risks — whether at an individual, family, or business level.  Steps like managing expenses more closely, not going into unnecessary debt, and taking advantage of purchasing opportunities due to the economic situation — all are reasonable steps.
• Be thankful and learn to be content.  Most of us are still in situations where we have jobs and income, a place to live, food on the table, and live in safety (I do not want to minimize those who are in more difficult circumstances, but these situations are still true for most Americans.) If this is true for you, be thankful.  There are billions in the world less fortunate.  Also, learn to be content with what you have — your job, your car, your life circumstances — versus focusing on what you wish was different or “what should have been.”
• Be gracious and generous to others.  Most of us know individuals, families and businesses who are struggling currently.  A trap that some fall into is to be judgmental of others — thinking that they are in their current circumstance because “they didn’t …” or “they shouldn’t have …”.  In some cases that may be true.  But in most cases, people are where they are due to many circumstances out of their control.  [In either case, how does it help them to judge them?]  We now have the opportunity to be warm, caring and supportive — and potentially to be generous in some way (maybe with our time, maybe by connecting them with a potential employer).
• Manage your own stress effectively.  Try to limit your exposure to negative spins on the current facts — anger, resentment and bitterness don’t lead to a healthy life.  Manage your own thoughts, worries and anxieties.  Exercise.  Sleep. Take time for re-energizing yourself.  Spend time with friends and family.  (All things that we know we should do.)

Just as many individuals recount some of the more difficult periods in their lives as the most rich and rewarding times, so we also have the opportunity to come through these current circumstances as stronger individuals, families, communities, and possibly, a stronger healthier nation.

So, “Carpe diem!” (along with grace and peace in your daily life and relationships).

I have been collecting some articles on psychology and wealth from a variety of journals I receive, and recently there was a group of articles published in the Monitor of Psychology which is published by the American Psychological Association.  I thought I would briefly share some of the information reported.
One article in the January 2009 Monitor entitled “Mind over money” was an interview with Dr. Paul Zak who is the founder of the Center for Neuroeconomics Studies.  He is the author of a recent book, Moral Markets: The Critical Role of Values in the Economy (2008).  In discussing the neurology and brain functioning of certain behaviors, he states: “You need to know that your brain is prone to overreaction. . . When there’s a lot of uncertainty, like there is in the stock market, it turns out that making decisions involving money generates strong activation in the areas of the brain associated with fear. .. Studies have shown that brain areas that process risk are the same ones that process pain, so the brain’s reaction to this fearful, uncertain environment is ‘Get away!’”

Dr. Zak continues, “The same dopamine [a brain chemical] system … also activates when we get any kind of new news.  One thing I suggest .. is not to watch TV, where you’re going to get all this rumor and innuendo. Wait until the next morning and read the papers.”

“Just as we saw an overreaction when the market was trending strongly upward, I think we’re also seeing an overreaction as the bubble is bursting.  The brain has put you into survival mode.”

Another article, entitled “What’s Behind American Con$umeri$m?”, (from the July / August 2008 Monitor on Psychology) attempts to answer the question is:  ‘Why do Americans consistently spend more than they earn?’  For example, since 1982 it is reported Americans’ personal savings rate has dropped from 11 percent to below zero.

Some different ideas postulated to answer the question of reduced spending include:

• When we are under stress (as most Americans are), we are more at risk for spending.
• The availability of credit cards to young adults conditions them to the process of incurring debt at a young age.
• Credit cards also facilitate impulse buying (more than buying with cash or checks.)
• We are bombarded with constant messages to spend through TV, the Internet, catalogs, print media and bathroom stalls, airplane tray tables, even egg shells.

Finally, “The Price of Affluence” discusses recent research which shows that “privileged teens may be more self-centered — and depressed — than ever before.”  Although this is really not ‘new’ news, the theme continues.  One of the authors cited, Dan Kindlon from Harvard, has written an excellent book, Too Much of a Good Thing: Raising Children in an Indulgent Age.

Another psychologist, Madeline Levine, believes that much of the mental distress is created by a fear of failure (both by the teens and by their parents).  In fact, one study indicates that parents who overemphasized accomplishments were more likely to have teens who were depressed, anxious, or used drugs.  Additionally, it is suggested that parents not shield their children from early life disappointments — let them try and fail, and learn from it.

I have written previous entries that may provide some additional information (a few worth looking at are: The Price of Privilege; The Dark Side of Wealth; Contentment - A Counter Cultural Concept ).

Have a good week!

Almost all of us in the United States are now starting to personally experience some aspect of the global and national economic crisis.  Whether it is through a personal or family job loss, friends and extended family members who have been laid off, a slow down in your business, or projected reduced sales for next year — the impact is now personal.  This is different than hearing it on the news or reading statistics in a publication.

I resent the frenzy and panic the media seems to want to whip up, because this type of communication doesn’t help anyone.  We need to deal with the realities of life (like Jim Collins encourages businesses to do in Good to Great), but let’s do so in a healthy manner.

So let’s talk about the thought patterns that will help us cope with the challenges and stressors we are (or will be) facing — and how to keep our mental health and hope.

• Shorten your time frame.  Regardless of the challenging issue a family, individual or business faces, one of the key aspects for managing the crisis is to keep a short time frame in mind.  Deal with what you have to today or this week.  Do not spend a lot of time thinking about (or worrying about) six months from now, or next year — largely because there are so many factors that can change between now and then, you really can’t plan that far in advance.
• Manage your cash flow.  Almost every business or family I know that has gone under financially later reports that they wish they would have made changes (e.g. “cut back”) sooner.  So it would be wise to complete an budget review, especially of unnecessary expenses, and make appropriate adjustments — this should probably include projections for income over the coming months, as this might change as well.
• Adjust your expectations.  Life’s circumstances throws us changes.  What was true six months ago for us as a country, in your business, or your family is different now.  Therefore, the goals, desires or plans you had then for the future may not fit now.  Rigidly holding onto beliefs and expectations from the past will probably create undue stress.  What is going on now may not be “fair”, but it is what it is.
• Explore options you have previously ruled out.  Many times we exclude certain options because they aren’t acceptable given the current circumstances.    But when circumstances change, previously unacceptable options may need to be reconsidered (e.g. a teenager being willing to work at part-time at a restaurant; doing tasks yourself and working later in the evening or on weekends).
• Maintain an attitude of appreciation.   We all can probably find something to complain about.  And there are lots of people and decisions who are prime targets for criticism.  But what does that really gain (except for a brief time of tension release)?  So instead of adding to the negative conversations out there, first start with remembering the things that are good in your life — and then add these to conversations.  [We had a beautiful sunrise this morning.  I appreciate having a warm house when it is cold outside.  I am thankful I have reliable transportation to get to work — and that I don’t have to commute 60+ minutes one way.]
• Keep connected socially. When people go through difficult times, one means of coping with the stress is to withdraw socially.  Generally, this is not a good long-term strategy.  Yes, we need time to ourselves and time to think things through.  But to pull back from positive, supportive relationships puts us at risk for becoming isolated, cuts us off from available resources, and we can start to get weird (we need the reality check of conversations with friends to keep our thinking straight).

I appreciate the comments of Jack DeBoer, a local successful businessman who spoke recently and said:  “You can go out and talk to people today and tell them how tough things are, how it’s tougher now, and how much tougher it’s going to get. . . Or you can go out and figure out what to do in this environment.”

I am not a major history buff, but it seems to me that a lot of people survived the Great Depression, and almost always there are opportunities to be successful in difficult times.

This past week the business editor of my local newspaper called and asked me to write a column for business leaders regarding the current financial turmoil.  The following is the article I wrote, and which can also be viewed at the newspaper’s website.

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Few current business leaders have had to navigate the turbulent waters of economic difficulties that we find ourselves in today. But we can learn from those who have studied accomplished leaders and identified characteristics of successful companies that have weathered difficult times.

Richard Peterson, who researches the neurological responses associated with financial decisions, says there is a difference between fear and panic. Fear is largely anticipatory — assessing potential risks. Panic is characterized by an urgent pressure to act immediately. In fact, Peterson clearly reports: “It takes tremendous effort and fortitude to ‘keep one’s cool’ when frightened.” Panic then can lead to poor decision-making.

Jim Collins, in his classic study “Good to Great,” proposes that one key characteristic of leaders of successful companies is the ability to confront the brutal facts yet never lose faith. He states, “You must maintain unwavering faith that you can and will prevail in the end, regardless of the difficulties, and at the same time have the discipline to confront the most brutal facts of your current reality, whatever they might be.”

In his best-selling book, “The 7 Habits of Highly Effective People,” Stephen Covey identifies being proactive as the first core principle for successful individuals and business leaders. In difficult circumstances, he encourages leaders to ask: “What is our response? What are we going to do? How can we exercise initiative in this situation?”

Daniel Goleman, one of the foremost researchers of emotional intelligence, proposes that optimism is a core characteristic of successful leaders. Effective leaders “persist in seeking goals despite obstacles and setbacks,” and they “operate from hope of success rather than fear of failure.”

So how do effective leaders respond in times of uncertainty and fear?

• Assess the potential risks.  The critical factor is to try to accurately assess the reality of the risks. It is crucial to differentiate between facts (what do we really know) versus conjecture (what might happen). What are the risks posed to your organization? To the best of your ability, determine how reality-based the risks are.

Consider constructing an “if-then” decision-making tree regarding the risks you see. Arrange the options from “best case scenario” to “worst case scenario” (the likelihood of both extremes is usually small), with the scope of possible outcomes in between. Then try to identify the results that have a higher probability of occurring and what impact they could have on your organization.

• Determine strategies and actions that can manage the risks.   Individuals who focus on fear tend to stop at risk assessment. Leaders who are proactive seek to actively manage the situation and move to determining what steps can be taken to minimize the risk. “What can be done to minimize the probability of ‘x’ happening?” “If ‘x’ does happen, what can we do now to limit its negative impact on our company?”

• Look for potential opportunities.  In addition to assessing potential risks to the organization, successful leaders also scour the marketplace for potential opportunities to capture. Your key competitors may have difficulties because of cash flow issues or not be able to access credit needed to finish projects. There may be assets (property, machinery, inventory) that can be purchased at a steep discount for cash.

• Communicate proactively.  Lack of information increases anxiety. So take initiative to talk with your leadership team; let them know your thoughts and listen to their concerns. Communicate with your customers and your vendors; find out how current circumstances may affect them.

• Model courage and optimism.  A “we will figure this out” attitude is contagious. These are difficult times. But the opportunity exists to step up to the challenges we face by demonstrating courage and resiliency.

Major (repeated) upheaval in the financial markets.  Hurricane Ike.  Flooding across the Midwest.  Concerns about who will be elected President (from both sides). Bombings in Pakistan.  Political turmoil in Bolivia and Venezuela.  The negative, worry-producing news keeps coming.

What’s a person to do?  Ignore it?  Stress out?  Drink more? (I heard a news report that beer and wine sales are up significantly in the last 6 months.)

Previously, I have written about the role of thankfulness and gratitude in helping us live more contentedly. Rather than pontificate on the subject further, I thought I would share the things in my life that I am thankful for — and then encourage you to make your own list.

I love:

Sunny, warm fall days with clear blue skies.  Cool fall evenings with the stars out.   The contrast of the sky blue with the late summer dark green grass and leaves.  Going to high school football games with friends on Friday nights.  The pagentry of college football games on Saturday afternoons with all the colors, sounds of the marching bands, and faint smells in the outdoor air.  Sitting around bonfires with young people and old friends.  Teaching others how to split wood and build a fire.

Fresh, perfectly ripened fruit — blueberries, blackberries, red (and black, when I can get them) raspberries, wonderful golden juicy peaches, slightly tart and crisp apples, sweet juicy grapes, cool watermelon on a hot day, sloppy mangoes (that’s how I am when I eat them), refreshing pineapple, cantalope that freshens your mouth when you eat it at breakfast, zingy pink grapefruit, fresh limes in limeade, there’s probably more.

I also love sounds: Cicadas in the woods.  The rhythmic buzz of grasshoppers, crickets & other insects when walking through a field of prairie. The breaking of waves on the beach.  Rolling thunder in the distance at night.  The wind in the trees (especially cottonwoods and eucalyptus).  The unique swoosh of the wind moving through the needles of pine trees in the mountains.  Children’s laughter when they are playing and running.  Music of all kinds — soothing classical orchestral music, energizing classic rock from the 70’s, foot-tapping quick paced bluegrass, the angelic sound of a women’s choir, the rousing fullness of a strong men’s choir, and the wonder of a talented musician playing a solo on their instrument.

I could go on.  But you get the idea.  Think of your senses — what do you enjoy the feel of? the sound of? the taste of? being able to see? what aromas bring you pleasure?

And while I’m am thinking about it — I am thankful for eyeglasses, for hot showers, for cool refreshing drinks with ice, for clean water, for quality medical treatment, for pain medication, sleeping in a comfortable bed with no bugs, being able to walk and run, for my wife and kids, for my friends.   Life is good.

Now it’s your turn.  What is good in your life?

Many of you may not know that I was born and raised in Lawrence, Kansas — where the University of Kansas is located. As a result, I grew up going to KU football and basketball games with my dad. And I continue to be a devoted Jayhawk (their mascot) fan.

So if you happen to follow college basketball, you know that we are in the midst of “March Madness” and the NCAA championship tournament. This weekend and Monday, April 7, are the final games in San Antonio. And it so happens that the University of Kansas basketball team will be playing in the championship game on Monday night, after winning their game on Saturday night against North Carolina. We watched the game with some friends and had a great time celebrating the win.

Interestingly, at the same time I am enjoying the KU basketball team winning games, I am also reading a fascinating book called Thrilled to Death: How the endless pursuit of pleasure is leaving us numb by Archibald Hart. I have read other books by Dr. Hart and have appreciated his insights. One of his premises in this book is that we are intensely seeking pleasurable experiences in our culture — to the point of burning out the “pleasure center” of our brain and eventually making it increasingly difficult for us to experience the pleasure we desire.

Dr. Hart then goes on to differentiate between happiness (or life satisfaction) and pleasure. He states, “Happiness does not depend on glitzy, pleasure-filled experiences. It comes more from a feeling of deep contentment or the appreciation of the finer things in your life. . . True happiness is more enduring than pleasure.” He goes on to share that happiness seems to be more related to relationships — a good marriage, close friends, and lots of time socializing with others.

So, how does this relate to basketball and KU playing in the NCAA Championship game? Well, I have often been dissatisfied with the tournament experience. Although it does provide a clear champion from the playoff tournament (as opposed to the college football system which does not), I have often felt a general distaste for the result — or at least the way the media and many people talk about the results — that there is only one “winner” (the champion). So, no matter how many games a team won throughout the season, no matter how well they played in spite of adversity, there is a message that they didn’t succeed enough because they didn’t “win it all”.

This just doesn’t sit right with me, when reflecting on how life really is. Are you only successful when you are at the top of the competition, with no one above you? And given the short time frame (one year maximum), you are only the champion for a short period of time (it is shorter in business.)

The personal application is this. I am enjoying the ride. It was fun to see KU win their league championship, and then the tournament games. Saturday night was a total hoot and I am still relishing the memory of seeing them play well. But if they lose Monday night, they aren’t “losers” — and my life won’t be wrecked. (This is not a ploy to play down expectations - they very well may win.) But for many people, and for myself in past years, “winning it all” is the only result that will result in happiness — which may speak to why so many people in our country are unhappy. If you have to be the best, if everything has to go your way for you to be happy, you will be unhappy most of your life.

Let’s go back to Dr. Hart and Thrilled to Death. He gives a number of suggestions which he calls “happiness boosters”. Let’s look at them and see how they really relate to deeper aspects of our lives than just temporary circumstances.

1. Intentionally do something unselfish for someone else every day.

2. Give yourself permission to make mistakes and quickly forgive yourself.

3. Give up expecting others to be perfect – just accept them as they are.

4. Whenever anyone offends, you forgive him or her without delay.

5. Try to simplify your life – do a make over from top to bottom.

6. Make sure you get enough sleep and exercise every day.

7. Spend as much time as you possibly can with those you love.

8. Spend twenty minutes each day in quiet reflection or meditation.

9. Each day, take a few minutes to write down all that worries you –and then cross out the ones you have no control over.

10. Every night before going to sleep, remind yourself of five things you are grateful for.

Clearly, these are not the typical highly pleasurable activities usually focused upon in our stimulation-seeking culture. But, as Dr. Hart argues, these are the types of activities that bring the deeper, longer lasting pleasure associated with true happiness.

So, if you watch the KU-Memphis game on Monday night, think of me. And when you go to bed, regardless of who wins, think of those five things for which you are grateful.

Emotional intelligence, Feelings, Happiness, KU basketball, NCAA 2008 mens basketball tournament, Optimism, personal development, Positive psychology, Stress management

This week I have been reflecting on the role of optimism and hope in life and business.

(These thoughts aren’t real “deep” or well-developed, but rather some initial musings.)

In the past 10+ years there has been a significant movement within psychology that focuses on the positive side of life (aptly named, positive psychology; see the work by Martin Seligman and others.) This was partly in reaction to psychology and psychiatry’s historical focus on problems — mental illness, psychiatric disorders, dysfunctional relationships, etc. But it was from the realization that a core aspect of many successful people’s lives was their positive view of life. Individuals who achieved higher levels of success in their chosen area often seemed to have a cheerful demeanor, an attitude of “looking forward” to the future (rather than a dour, pessimism) and a “let’s find the silver lining in this dark cloud” mentality and seemed to help them overcome challenges and barriers encountered. See the classic book, Man’s Search for Meaning by Victor Frankl or the movie Life is Beautiful directed by Roberto Benigni, for examples.

Optimism seems rooted in hope. Hope that circumstances will get better. Hope that your toil and sweat will pay off in the long run. Hope that something good will happen today (or tomorrow). Interestingly, hope often must exist in the face of circumstances which do not support it — bad news, pain, being wronged by others, receiving unfair treatment, things breaking, others not keeping their word, seemingly random negative events that keep happening to you.

What is the basis for hope? Some research suggests that some people seem naturally predisposed to having a more optimistic and hopeful view of life (unfortunately, we can’t choose our genetic pool.) Other research and reports from those who have lived through difficult circumstances indicate that keeping focused on the moment enables people to survive and keep going — they focus on today and what they need to do to make it to tomorrow. Within this present-orientation, having loved ones you care about, and a belief that your life is part of a larger purpose in the universe also seem to be related to maintaining an optimistic view while experiencing difficult circumstances.

How does this relate to business life? I think that optimism and hope are core components of perseverance, which we have already identified as being a key predictor of success in one’s profession. Why persevere if there is no hope of things turning out well? (I do think some people persevere just because they are tough-minded, and refuse to give up.)

Interestingly, I think “rest” is an interrelated issue to perseverance, as well. We are more tempted to give up when we are tired (emotionally and physically). Conversely, after a restful weekend, holiday or vacation, we are ready to tackle the problem again. Additionally, social support encourages us to persevere as well — working in teams together, having someone who gives you verbal encouragement to keep going, etc.

And the goal is to succeed — to reach the desired end in mind, whether that is a specific achievement (an “A” in a difficult college course, reaching your sales goal for the quarter, losing two pounds this week, etc.) or having come through a process successfully (making it through the week without losing your temper, treating your customers with integrity, to have played the game to your fullest ability and effort even if you don’t ‘win’).

Obviously, a hidden question becomes: What are my goals and are they really worth pursuing? Many “successful” individuals (in terms of wealth, influence, fame) reach their goals and thus, are “successful”, but realize upon reaching their goals that the goal was hollow, ephemeral, and didn’t bring them the fulfillment they expected.

More questions and issues than answers, but I am left with the questions:

*How can I increase my level of optimism and hope?

*What can I do to keep persevering in spite of obstacles and challenges (and weariness) encountered?

*Are the goals I am pursuing really the goals I want to achieve? (And am I missing the more important goals along the way?)