Tweak Your Biz » Management » Stress-Testing Your Reality

Stress-Testing Your Reality



What’s with the banking stress tests that have been going on of late, it brought to mind the need to stress-test one’s ability to recognise the reality of situations and how important this is for a leader. Clearly, there’s been a lot of “heads in sand” going on over the last few years, in the Irish market at any rate.  But is the ability to clearly see the wood for the trees that important?

I have just finished reading the very excellent book “Good to Great”, by Jim Collins.  For those of you who haven’t heard of it, Jim Collins and his team spent 5 years researching if it was possible for a Good company to actively develop itself into becoming a Great company and then wrote a book about their findings.  Only 11 eleven companies made it past the tough selection criteria but for those that did, one of the common denominators was the need for each company to take a good, long hard look at themselves and, with a level of painful honesty, to clearly recognise and understand what did and didn’t work.  That said, they also needed to hold strongly to a belief that they could do better, much, much better.  They named this duality, the Stockdale Paradox.

While Jim and his team found this duality to be a paradox, I was struck by how the Stockdale Paradox seemed to nicely capture two elements of Emotioanl Intelligence – Reality Testing and Optimism.  As is well established at this stage, IQ is not the be all and end all of intelligence and other things such as the ability to deal with stress or build relationships with others are often much more important in dealing with everyday life.  Specifically, Reality Testing is the ability to see things as they really are, not as we fear them to be (too low) or how we wish them to be (too high).  Optimism is the ability to look at the brighter side of life and to maintain a positive attitude, even in the face of adversity.  Again, low Optimism tends towards the pessimistic while overly high Optimism moves into Walter Mitty  territory.

As I read the book, it struck me that the Stockdale Paradox provided wonderful evidence of two elements that are vital for effective leaders: the ability to maintain a positive outlook and keep going, even when times are tough plus the ability to see the reality of the situation and adjust appropriately and in a considered way.  So, the evidence would suggest that a leader’s ability to clearly see the woods for the trees is a key factor to long-term success.  Is this what separates the effective from the lucky leaders? Thoughts?



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The Author:

I work with Business Owners, Executives and Managers to help them overcome blockages so that they achieve their goals. I excel at getting people to think, getting people to talk and getting people to agree to giving things a go. In summary, I bring Clarity to the issues, provide on-going Support and guide them to achieve Results. I am an experienced Executive Coach and Leadership Development Trainer. I am qualified in 360 Emotional Intelligence and am constantly seeking new ways to assist my clients. http://www.evolutionconsulting.ie

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  • http://www.tweakyourbiz.com Niall Devitt

    Hi Irial, Great to see you back blogging on here! For me is the ability to combine our rationally with our emotional drivers is critical in everything that we do. If you can weight up the factors vs the risks (and there always need to be some risk), you end up with common sense decisions. I also think that it’s important to be able to take other points of view on board while continuing to have your own mind. On the other hand, I think a lot of bad decision making is often driven by insecurity, more often at the unconscious level.

  • Kathyrogers

    Hello Irial, Iwas drawn to your blog through my daughter Elaine on facebook. I found it very interesting and can be applied to life in general. I do agree there are a number different kinds of intelligence. I think the number is eight. I am toying with the idea of starting a small business in the Autumn so I will keep an eye out for motivational blogs. Kathy

  • Irial Ofarrell

    Hi Niall, Good to be back. I kinda fell off the blogging-edge for quite a while there. I agree with you on the bad decision making; it really is often driven by insecurity and can often have rather disastrous outcomes, especially when the person is unaware of their unconscious drivers. I think that’s why Executive Coaching has become so effective over the last few years. A good coach helps a leader to understand what is really driving their decision making. nnKathy, welcome and I’m delighted you enjoyed the blog and hope you find some helpful ones to assist you in setting up and running your new venture. nnIrial