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Optimism Management?

BY Heath RowMon Mar 29, 2004 at 1:05 PM
This blog is written by a member of our blogging community and expresses that member's views alone.

Laurent Bossavit offers an intriguing take on project management -- risk management. Whereas risk management can attract a lot of discussion and consideration, Bossavit proposes that it's not risk that needs to be managed in business -- but optimism.

If by "manage" we mean something like "control the amount or supply of something", then risk is for the most part not something we can manage. What we can control is our attitude to risk - and in that respect, the most serious problem in our industry is optimism, the belief that we can make plans and expect things to reliably unfold according to these plans.

Optimism has its place in project management activities. It is a key component of entrepreneurship, and entrepreneurship is at the heart of the sort of management which projects require. Thus, I often argue that optimism is the occupational disease of managers in project contexts, from startups' CEOs to project managers in larger enterprises.

At the same time, optimism may well be a leading contributor of project failure, as a factor of blindness to project risks.

Fast Company has long aimed to be an optimistic, progressive business magazine. But we've still taken a look at risk, including career development risk, the role of risk managers, and how no reward comes without risks.

We've also made the case for pragmatic optimism. But the questions remain. Like innovation, does optimism come with its own risks? And can optimism be managed?

Topics:

Leadership, Laurent Bossavit, Business, Startups, Fast Company Magazine


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Recent Comments | 2 Total

March 30, 2004 at 1:14pm by Michael Neely

When words like "innovation" are written, "risk" is usually not far behind. What we need to be is not being "risk-focused" when it comes to innovation, but "opportunity-focused."

Some people will blow this off as a "half empty/half full" concept.

This is not a new idea. For more on this topic, reread Chapter 8, "Changes in Perception," in Peter Drucker's "Innovation and Entrepreneurship," 1986.

March 30, 2004 at 8:11pm by Randal Haithcock

Optimism has the built-in risk of blindness to the possibility of "challenging events" that exact a real cost. Managing risks has to do with minimizing these consequences if such events take place or creating (optimistically) strategies to mitigate the likelihood of an adverse event.

Innovation is risky because the consequences of innovation are more unknown than those of routine operation.

Michael Neely is on the right track. Businesses need to be opportunity-focused. Managing opportunities needs to look at the likelihood of a positive event and the consequences of it occurring. This makes more sense than assuming that everything that you put in a plan will happen as planned. Sometimes events are better than planned.