The end of the world is nigh. Or at least the dreaded economic R-word is, if you read the papers. Whether you’re a glass half full or glass half empty type of person, there’s no escaping the fact that many people are beginning to panic. Belts are being tightened and wallets are staying closed, ensuring the self-fulfilling prophecy of recession will probably be announced just in time for Christmas. Depressed? Don’t be. Pessimism can actually be good for you.
Psychologist Julie Norem has spent years researching why some people always seem to take the pessimistic view. What she found was that people who tend to dwell on potential problems are no less effective than people who see every event as a golden opportunity. Pessimism actually helps some people come up with strategies to avoid problems and achieve a more positive outcome. Norem calls this defensive pessimism. Another insight from her work is that when, in experiments, defensive pessimists were prevented from following their usual pessimistic strategy they were shown to be far less effective. It seems some people simply work better focusing on the problems (real or imagined) than focusing on the positive.
Research like that carried out by Norem has also shown that people of all dispositions manifest a greater attention to detail when the glass is half empty. In fact some scientists argue that without a pre-programmed state of dissatisfaction, evolution would never have happened. Our ancestors would have set up camp at the first comfy cave, confident that some food will turn up eventually and that hungry Brachiasaurus would never find them. So what does all this have to do with your business?
Use the mood of pessimism to look for opportunities. When everything is rosy it’s all too easy to overlook opportunities for change. We’re happy, why would we want to change anything? But now that everyone has one eye on the worst case scenario ask your staff for ideas. Ask them how their own spending habits have changed (if at all), what their immediate worries are, what the deciding factor is when they’re spending their own money. Your staff, family and friends are your very own free market research team. Take an interest in how the threat of recession is affecting them and you might just spot a competitive advantage.