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Positive Thinking: Too Much of a Good Thing?
C. W. Von Bergen
Southeastern Oklahoma State University
Abstract
Many traits, states, and experiences have costs that at high levels may begin to outweigh their benefits, creating an inverted-U-shaped relationship in which performance, adaptation, and health are optimal at moderate levels. By attending more carefully to this “too much of a good thing” principle, it is believed that management professionals can develop a deeper, more effective understanding of the conditions that facilitate well-being and performance in themselves and their employees. After reviewing this principle across various domains, a comprehensive examination of how the relentless promotion of positive thinking as a key to obtaining success and prosperity is reviewed and shown that at excessive levels likewise has a dark side.
Positive Thinking: Too Much of a Good Thing?
Ne quid nimis. (In all things moderation.)
—Publius Terentius Afer (Terence), c. 171 B.C.
There is a tendency to conclude that if a little is good then more must be better. But life is rarely linear and in most cases, what is good in small quantities often becomes harmful in large doses (Csikszentmihalyi, 1999). Paracetamol is a widely used over-the-counter pain reliever and fever reducer. It is commonly used for the relief of headaches, other minor aches and pains, and is a major ingredient in numerous cold and flu remedies and can also be used in the management of more severe pain such as post-surgical pain and providing palliative care in advanced cancer patients. While generally safe at recommended doses, excessive levels of paracetamol can cause potentially fatal damage and is the foremost cause of acute liver failure in the Western world and accounts for most drug overdoses in the United States, New Zealand, United Kingdom, and Australia (Daly, Fountain, Murray, Graudins, & Buckley, 2008).
Consider also drinking wine. According to the American Heart Association (AHA), more than 60 prospective studies have suggested that moderate alcohol consumption—defined by the Department of Health and Human Services Dietary Guidelines for Americans as having no more than one drink per day for women and no more than two drinks per day for men—may decrease the risk of chronic heart disease (CHD), ischemic heart disease and stroke, and other causes of mortality. Research shows that moderate drinkers are at less of a risk for CHD and other causes of mortality than nondrinkers though heavy drinkers are at a much greater risk (Rudis, 2010). While a glass or two of wine daily can be beneficial, no one is suggesting that individual’s drink a bottle of wine daily. Such examples demonstrate that the reality of human nature is far more complex than suggested by the popular belief that if some is good then more must be better.
Underlying the vast majority of existing theory and research in psychology and management is the assumption that positive traits, experiences, and emotions have monotonic, linear effects on adaptation and performance. For example, Seligman (2002) proposed that to
increase well-being and effectiveness, people should begin by identifying their signature strengths and then seek to develop them. This theory assumes that “the more developed any
strength is, the better people are” (Schwartz & Sharpe, 2006, p. 380). Such a belief may be naïve at best and wrong at worst. As suggested above, this paper argues that when carried to extremes many positive phenomena exhibit inverted-U-shaped effects on well-being and performance as illustrated in Figure 1. After reviewing the evidence of such non-linear effects on a range of activities and events, particular attention is focused on the downside of excessive levels of positive thinking. Looking on the bright side is addressed because American culture tends to passionately encourage being cheerful, optimistic, and upbeat and that such positive attitude is an absolute good. The paper concludes with a prescriptive note to exhibit moderation in human behavior.
Figure 1. General curvilinear relationship between well-being/performance and many events.
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In the following section, a review of research that identifies well-being and performance costs of high levels of various phenomena. Choice, freedom, volunteering, empathy, happiness, self-esteem, and conscientiousness were selected, in part, because of the belief that these factors are generally considered positive and where excessive levels may not have been intuitively considered to have a dark side.
Selected Phenomena Exhibiting the Ubiquitous Inverted-U Shape Relationship
Choice
It is a common belief in modern U.S. society that the more choices, the better—that the human ability to manage, and the human desire for, choice is infinite. Economic models of choice and intuition suggest that having more options is preferable because it increases the chance of finding one’s most preferred option. Decades of research suggest that choice increases satisfaction (e.g., Langer & Rodin, 1976) and larger assortments increase the likelihood that consumers will find an option that matches their preferences (Lancaster 1990). However, recent research has highlighted downsides of “too many choices.” Excessive choice may result in choice overload and can make a person question the decisions they make before they even make them, setting up an individual for unrealistically high expectations which can make people blame themselves for any and all failures. In the long run, this can lead to anxiety and perpetual stress. College students, for example, were more likely to write an extra-credit essay and wrote better essays when they had 6 topics from which to choose than when they had 30 options (Iyengar & Lepper 2000). Furthermore, Iyengar, Jiang, and Huberman (2004) found that adding mutual fund options to a 401(k) menu decreased the rate of participation. Participation rate droped 2% for each 10 options, even though, by failing to participate, employees pass up significant amounts of matching money from their employers. This stream of research demonstrates that a large number of options is paralyzing rather than liberating, and that choice in excessive levels may be debilitating. The commercial world seems already to know this and is changing. Proctor and Gamble, for instance, reduced the number of versions of its popular Head and Shoulders shampoo from 26 to 15, and experienced a 10% increase in sales (Osnos, 1997).
Freedom
In a similar vein, Schwartz (2000) argued that freedom, autonomy, and self-determination can become excessive, and that when that happens, freedom can be experienced as a kind of tyranny. He further contended that unduly influenced by the ideology of economics and rational-choice theory, modern American society has created an excess of freedom, with resulting increases in people’s dissatisfaction with their lives and in clinical depression. There is a dark side to freedom from constraint which emphasizes individuals as the makers of their own worlds and destinies. It leaves people indecisive about what to do and why. Schwartz (2000) concludes that “Freedom of choice is a two-edged sword, for just on the other side of liberation sits chaos and paralysis” (p. 87). O’Connor, Stravynski, and Hallam (1997) have identified a similar state as “freedom anxiety”—a clinical condition in which clients feel that expectations or rules about how to act are absent, and they lack a sense of identity. They are lost if they cannot act in conformity with a listed role, and if they are not continuously acknowledged by relevant others.
Volunteering
A parallel pattern has emerged with respect to the relationship between volunteering and well-being. In a departure from past research on the well-being benefits of volunteering, Windsor, Anstey, and Rodgers (2008) proposed that at very high levels, volunteering would decrease psychological well-being through two mechanisms: increasing role overload and reducing time and energy available for other meaningful activities. Data from a sample of adults in their 60s revealed the predicted inverted-U-shaped relationship of time spent volunteering with psychological well-being. Although moderate levels of volunteering predicted higher positive affect, lower negative affect, and higher life satisfaction, high levels of volunteering were associated with lower positive affect, higher negative affect, and lower life satisfaction. The negative affect costs of high levels of volunteering were especially pronounced for participants without partners. Perhaps very high levels of volunteering reduce well-being by creating overload and limiting engagement in other meaningful activities. As the authors explained, “The highest well-being scores were evident among those who engaged in at least 100 hr of volunteer activity per year but fewer than 800 hr . . . engaging in high levels of volunteering can have adverse effects on well-being as a result of an increased burden of responsibility” (Windsor et al., 2008, pp. 67, 69).
Empathy
Another manifestation of an inverted-U-shaped function involves empathy, the feeling of concern for others in need. Although empathy increases prosocial behavior (for a review, see Batson, 1998), there is evidence that very high levels of empathy can be emotionally aversive and undermine prosocial behavior. Eisenberg (2000) summarized research on the “empathic overarousal” (p. 674), in which a strong experience of empathy cultivates feelings of distress, which have the boomerang effect of distracting attention away from others and toward managing one’s own aversive feelings.
Research also suggests that empathy runs the risk of undermining task performance. High levels of empathy can cloud judgment, leading to self-sacrificing behaviors that benefit others at the expense of achieving one’s own goals (Galinsky, Maddux, Gilin, & White, 2008) or sometimes, even, fail to benefit others. For example, Groopman (2007) chronicles his own failure to diagnose a life-threatening infection in a hospitalized cancer patient because his empathy for the patient’s discomfort in the face of grueling chemotherapy induced him not to ask the patient to roll over and be examined for bedsores.
Doctors, lawyers, counselors, and other professionals are constantly balancing the competing calls for empathy and detachment (e.g., Kronman, 1993). In addition, psychological and business research demonstrates that high empathy can encourage unethical behaviors that help the targets of empathy but violate principles of fairness and justice (Gino & Pierce, 2009).
Happiness
Even happiness can have a dark side. According to Gruber, Mauss, and Tamir (2011) people who strive for happiness may end up worse off than when they started. For example, one study by Mauss, Tamir, Anderson, and Savino (2011) found that people who read a newspaper article extolling the value of happiness felt worse after watching a happy film than people who read a newspaper article that didn’t mention happiness—presumably because they were disappointed they didn’t feel happier. When people do not end up as happy as they would have expected, their feeling of failure can make them feel even worse. Extremely cheerful people, furthermore, engage in riskier behaviors (Martin, Friedman, Tucker, Tomlinson-Keasey, Criqui, & Schwartz, 2002), sometimes live shorter lives (Friedman, Tucker, Tomlinson-Keasey, Schwartz, Wingard, & Criqui, 1993), and earn lower salaries (Oishi, Diener, & Lucas, 2007).
One study followed children from the 1920s to old age and found that those who died younger were rated as highly cheerful by their teachers. Researchers have found that people who are feeling extreme amounts of happiness may not think as creatively and also tend to take more risks (Gruber et al., 2011). For example, people who have mania, such as in bipolar disorder, have an excess degree of positive emotions that can lead them to take risks, like substance abuse, driving too fast, or spending their life savings. But even for people who do not have a psychiatric disorder, “too high of a degree of happiness can be bad” (Gruber et al., 2011, p. 230). It would appear that extreme happiness fails to produce the “slight dissatisfaction” (Oishi et al., 2007, p. 349) that motivates people to set high goals, work to create change, seek out more money, and purse education and self-improvement.
Self-esteem
Over the past few decades, the need for high self-esteem, defined as global feelings of self-liking, self-worth, respect, and acceptance (e.g., Rosenberg, 1965) has risen from an individual to a societal concern. “North American society in particular has come to embrace the idea that high self-esteem is not only desirable in its own right, but also the central psychological source from which all manner of positive behaviors and outcomes spring” (Baumeister, Campbell, Krueger, & Vohs, 2003, p. 3). The corollary, that low self-esteem lies at the root of individual and thus societal problems, has sustained an ambitious social agenda for decades and campaigns to raise people’s sense of self-worth abound. Such programs seem to have been effective in raising children’s self-esteem scores, on average, on self–esteem measures over the last several decades (Twenge & Campbell, 2001). In the rush to create self-worth, our culture may have opened the door to something darker and more sinister—narcissism which is defined as a positive and inflated view of oneself, a view associated with materialism, a sense of entitlement, a lack of empathy, aggression, and relationship problems (Twenge & Campbell, 2009). Narcissists are not just confident, they’re overconfident. At its core, narcissism is the fantasy that a person is better than he or she actually is and certainly superior to others. In trying to build a society that celebrates high self-esteem, self-admiration, self-adulation, and “loving yourself,” Americans have inadvertently created more narcissists with their problematic behaviors and attitudes.
Conscientiousness
Conscientiousness refers to the extent to which persons are dependable, persistent, organized, and goal directed (Barrick & Mount, 2005). Past personality research has consistently found that conscientiousness is positively related to job performance and that this relationship is generalizable across settings and types of jobs (Barrick & Mount, 1991). Compared to those who are low in conscientiousness, highly conscientious persons tend to be more motivated to perform well on the job (Judge & Ilies, 2002) and therefore are likely to achieve better performance through careful planning, goal setting, and persistence (Barrick & Mount, 1991). However, after a point, high conscientiousness may no longer be helpful to task performance because excessive levels of often result in paying too much attention to the small stuff, overlooking bigger goals, and having rigidity which might actually interfere with ongoing professional development.
Such persons often pay too much attention to minutia and overlook more important goals required on the job (Mount, Oh, & Burns, 2008). Highly conscientious people are likely to be more prone to self-deception and rigidity, which may inhibit learning new skills and knowledge, leading to lower performance (LePine, Colquitt, & Erez, 2000). Moscoso and Salgado (2004) argued that extreme levels of conscientiousness may not be beneficial to job performance, “because the maladaptive tendencies of conscientiousness (compulsive style) produce an interference with the practices considered as signs of a good quality job” (p. 360). As such, although the relationship between conscientiousness and task performance is positive at lower levels of conscientiousness, it may become weaker and eventually disappear at higher levels of the construct. Indeed, Le, Oh, Robbins, Ilies, Holland, and Westrick (2011) found that conscientiousness has an inverted-U-shaped relationship with job performance, especially in simple jobs, presumably because extremely high conscientiousness involves perfectionism and an excessive focus on details at the expense of the bigger picture; high conscientiousness will initially lead to better performance but the relationship will become weaker and then eventually disappear after it reaches a certain point.
It appears, then, that across many domains one finds that X increases Y to a point, and then it decreases Y which Grant and Schwartz (2011) call the nonmonototic effects of strengths and virtues. As Schwartz and Sharpe (2006) argued, “too much of a virtue can be as big an enemy of eudaimonia as too little” (p. 383) and that too much of a good thing can be problematic and that more is not necessarily better. This phenomenon may also apply to positive thinking.
Positive Thinking
Positive thinking, expecting that things will turn out well in any given situation, goes by many common names including optimism, positive affect, confidence, self-efficacy, hopefulness, positivity, being upbeat and cheerful, seeing the glass as half full, and looking at the bright side of things. The central claim of positive thinking is that “positivity is good and good for you; negativity is bad and bad for you” (Held, 2005, p. 2). It sounds like a formula for achievement and productivity and many psychologists would offer today that optimism improves health, personal efficacy, confidence, and resilience making it easier to accomplish our goals. Other more mystical personnel would tell us that our thoughts can directly affect the physical world. Negative thoughts are said to produce negative outcomes, while positive thoughts realize themselves in the form of health, prosperity, and success. For both rational and mystical reasons, then, the effort put into positive thinking is said to be well worth an individual’s time and attention, whether this means reading relevant (self-help) books, attending seminars, speeches and sermons that offer the appropriate mental training and worship, or just doing the solitary work of concentration on desired outcomes—a better job, a beautiful partner, world peace (Ehrenreich, 2009). Positivity has motivational value and is generally perceived as good and helpful in contemporary America but at very high levels such positive thinking can be costly to performance, interpersonal relationships, health, and a host of other factors. In this section we review the positive thinking zeitgeist in America and then present a number scenarios that demonstrate an inverted-U-shaped relationship between positive thinking and performance suggesting that high levels of positive thinking may indeed be too much of a good thing.
Positivity in America
Positive attitudes have been expressed in U.S. aphorisms and music. Consider the following maxims: “Cheer up, things could be worse;” “Smile, look on the bright side;” and “Stop complaining, it’s not that bad.” In our music we have been told to “Ac-cent-tchu-ate the Positive” (Mercer & Arlen, 1945), to “Put on a Happy Face (Adams & Strouse, 1960), and not to be anxious—“Don’t Worry, Be Happy” (McFerrin, 1988).
Evangelical mega-churches preach the good news that one has only to want something to get it, because God wants to “prosper” people (Osteen, n.d.). The new positive theology offers promises of wealth, success, and health in this life now, or at least on the horizon. The medical profession prescribes positive thinking for its reputed health benefits and cancer is often reframed not as a health crisis but as an “opportunity of a lifetime,” or “a makeover opportunity.”
Academia has made room for the new disciplines of “positive psychology” (Seligman & Pawelski, 2003), “positive organizational behavior,” (Luthans & Youssef, 2007), and “appreciative inquiry” (Cooperrider & Sekerka, 2003). Harvard even offers new courses in happiness and regularly draws almost 900 students. The peer-reviewed Journal of Happiness Studies (Quality of Life Research, n. d.) is devoted to the scientific understanding of subjective well-being and addresses the conceptualization, measurement, prevalence, evaluation, explanation, imagination, and study of positive thinking and joy.
Many children are raised to see the glass as half full, spot the silver lining on every cloud, and to make lemonade out of lemons. Americans expect optimism in its leaders and politicians compete to be seen as the sunniest candidate. For example, President Franklin Roosevelt indicated that “The only limit to our realization of tomorrow will be our doubts of today. Let us move forward with strong and active faith” (Luntz, 2007, p. 220). Americans are also accustomed to seeing the bright side from its military commanders. General Dwight Eisenhower, for instance, said that “Pessimism never won any battle” (Luntz, 2007, p. 221) while General Colin Powell said that “Perpetual optimism is a force multiplier” (Harari, 2003, p. 16).
In U.S. media, magazines and television offer feature stories illustrating how thinking positively can turn poverty into riches. Consider also the long tradition in the U.S. of “self-help” books promising people victory and accomplishment if they only think positively (Starker, 1989). From Eleanor Porter’s Pollyanna (“The glad game,” 1913) to Watty Piper’s The Little Engine That Could (“I think I can, I think I can ...,” 1930) to Dale Carnegie’s How to Win Friends and Influence People (“believe that you will succeed, and you will,” 1937) to Norman Vincent Peale’s The Power of Positive Thinking (“the man [sic] who assumes success tends already to have success,” 1952) to Spencer Johnson’s Who Moved My Cheese? (“accept layoffs with a positive attitude,” 1998) to Rhonda Byrne’s The Secret (“think positive thoughts because you become or attract what you think about the most,” 2006), people are surrounded by those who promote an optimistic, confident, positive outlook.
Being positive has also taken firm root within the corporate world. Cultural norms about good business practice stress looking at the sunny side and deemphasizing the problematic. Being pessimistic is especially objectionable because it is enervating and deflating and frequently interpreted as disloyalty (Lovallo & Kahneman, 2003). “A lot of upper level managers only want to hear the good news. No one wants to be the bearer of bad news. The messenger gets shot a lot” (Badaracco & Webb, 1995, p. 17). Moreover, CEOs are coming to think of themselves as motivators geared toward persuading employees to work harder for less pay and no job security. Historically, the science of management was that of a rational enterprise, where spreadsheets were developed, logic trees created, and decisions made based on careful analysis. All that was swept aside for a new notion of what management is about. The word now used is leadership—particularly the charismatic and transformational leadership models (Yukl, 2002)—where executives are primarily charged with inspiring the workforce with their positivity.
In summary, faith in the power of positive thinking has become so ingrained in American culture that positive seems to not only be normal but also normative—the way a person should be. Despite the exhortations to be positive in the professional and lay literatures it is believed that being positive likewise exhibits an inverted-U-shaped function and that too much positive thinking, optimism, and confidence has a dark side. Several areas are presented below which call into question the supposed beneficial effects of positive thinking.
Optimism
Although optimism frequently has positive effects, allowing people to stay engaged with goals and maintain health (Taylor & Brown, 1988), it can also lead to negative outcomes. Optimism is a double-edged sword on the one hand, generating high levels of activity, motivation, and persistence; but, on the other hand, discouraging us from looking too deeply at our assumptions in case we find something disconcerting. Puri and Robinson (2007) found in a finance-related investigation that too much optimism can be a problem and that people who are extremely optimistic tend to have short planning horizons and act in ways that are generally not considered wise. They found, for example, that extreme optimists1) worked significantly fewer hours; 2) saved less money; and 3) were less likely to pay off their credit card balances on a regular basis. The differences between optimists and extreme optimists were remarkable, and suggest that excessive optimism may in fact lead to behaviors that are unwise. In modest doses optimism can be beneficial, but extreme optimists display financial habits and behavior that are generally not considered prudent.
Other research has demonstrated inverted-U-shaped relationships between positive thinking conceptualized as optimism and performance (Brown & Marshall, 2001). At moderate levels, optimism provides confidence and increases planning, but very high optimism levels lead to inadequate preparation and the underestimation of risks. Those who misjudge their risk are routinely less likely to show interest in taking preventive action such as not wearing seat belts or condoms (Weinstein & Klein, 1996). As Haaga and Stewart (1992) explained, optimism can “be too extreme, leading to inappropriate complacency about the adequacy of one’s skills for coping with difficult situations” (p. 27). Similarly, research shows that high levels of self-efficacy constitute overconfidence, which can result in groupthink (Whyte, 1998), persistence with failing strategies (Whyte & Saks, 2007), less time and energy invested in learning and planning (Vancouver & Kendall, 2006), and poor performance (Dunning, Heath, & Suls, 2004; Hayward & Hambrick, 1997). Bandura and Locke (2003) noted, “In preparing for challenging endeavors, some self-doubt about one’s performance efficacy provides incentives to acquire the knowledge and skills needed to master the challenges” (p. 96).
With respect to health-related issues, studies have shown that moderate optimism is associated with more effective coping with multiple sclerosis and Parkinson’s disease (De Ridder, Schreurs, & Bensing, 2000), slower HIV disease progression (Milam, Richardson, Marks, Kemper, & McCutchan, 2004), and lower sympathetic nervous system arousal (Segerstrom, 2001). Very high levels of optimism appear to be costly because they encourage riskier health behaviors and high expectations that are difficult to meet. In summary, Milam et al. (2004) concluded that ‘‘the nonlinear relationship between optimism and an objective health outcome provides evidence that there could be an ‘optimal’ margin of optimism’’ (p. 177).
Other areas where high levels of positive thinking are problematic are addressed below. These include goal setting, decision-making, leadership, ethics, planning, and entrepreneurial activities.
Goal setting
Highly optimistic individuals not only tend to set unrealistically high goals, but are also overconfident that their goals will be attained. This wishful thinking can distract people from making concrete plans about how to attain goals (Oettingen, 1996). Taken together, evidence suggests that across many different tasks, performance increases with optimism, but only up to a point. Further increments actually reduce performance (Brown & Marshall, 2001). Relatively small positive distortions of reality enable one to look at the facts in a more optimistic way. Giving a situation a positive spin often allows one to function more effectively. Although illusions involve a degree of self-deception, they often provide individuals a sense of mastery fueling a sense of well-being but at higher levels such illusions become delusions.
Striving for success without the resources to achieve it takes its toll on individuals who face limitations on possibilities regardless of how hard they work. Such people will channel their efforts to what can be attained regardless of how hard they work. If not, people will channel their efforts into unattainable goals and become exhausted, ill, and demoralized (Peterson, 2000). Pursuing a dream of enduring greatness may divert attention from the pressing need to win immediate battles. Unrelenting optimism precludes the caution, sobriety, and conservation of resources that accompany goal attainment.
Decision making
It has been said that “no problem in judgment and decision making is more prevalent and more potentially catastrophic than overconfidence” (Plous, 1993, p. 217). This error is so prevalent that it is called the overconfidence bias. For example, when individuals are given factual questions and asked to judge the probability that their answers are correct, they tend to be far too optimistic. Studies have found that when people say they say they are 100% sure, they tend to be 70 to 85% correct (Fischhoff, Slovic, & Lichtenstein, 1977). One outrageous example indicated that 90% of U.S. adults said they expected to go to heaven while another poll noted that only 86% thought Mother Theresa was in paradise (Robbins & Judge, 2009)!
Excessive optimism is a contributing factor to a well-documented decision-making error—entrapment. Brockner (1992) describes this bias as escalation of commitment to a failing course of action. Because many executives are overly optimistic about their strategies and reluctant to face reality, they are hesitant to back away and look for new alternatives. This was supported in a study by Audia, Locke, and Smith (2000) who noted that managers that had experienced success in the past, and thus more confident, were inclined to stay with an original course of action when the environment they were operating in had changed. Such decision biases cost much time, money, and energy which could better be spent on other activities.
Similarly, Finkelstein conducted a six-year examination of 51 companies and published his results in Why Smart Executives Fail (2003a). A key finding was that executives of unsuccessful companies clung to an inaccurate view of reality that consistently underestimated obstacles. Finkelstein (2003b) noted that: “… blind adherence to “positive thinking” became a dominant corporate value that was often at the foundation of organizational failure” (pp. 2-3). The executives’ view of the future undermined the realities of the present. When reality surfaced, it was often whitewashed for reasons of face-saving and hubris.
Overconfidence frequently leads to wrong decisions, shrinking profit margins, firings, or bankruptcies (Russo & Schoemaker, 1989). One study of Fortune 500 CEOs showed that many were overconfident and their perceived infallibility regularly caused them to make bad decisions (Malmendier & Tate, 2005). Such individuals holding unrealistic expectations often discount negative information and mentally reconstruct experiences so as to avoid such information (Geers & Lassiter, 2002). In contrast, moderately optimistic persons possess a more balanced view and are more sensitive to negative information and less likely to gloss over incongruities (Spirrison & Gordy, 1993), less easily persuaded by positive information (Geers, Handley, & McLarney, 2003), and less likely to have an attentional bias in favor of positive stimuli (Segerstrom, 2001). When considering these findings it seems likely that highly confident persons may be prone to make less than optimal strategic decisions.
Leader hubris
Another problem in overconfidence is the conviction that one’s performance is quite adequate though evidence suggests the opposite. There are many documented negative effects of this “dark side” of excessive confidence (Hayward & Hambrick, 1997; Hiller & Hambrick, 2005). Throughout history, hubris has been cited as a common reason for leadership failure (e.g., Napoleon, Hitler; Kroll, Toombs, & Wright, 2000). In Greek tragedy hubris was considered the greatest of sins severely punished by the gods and Proverbs 16:18 tells us that “Pride comes before destruction, and an arrogant spirit before a fall.” “Self-confidence is rocket fuel for leaders. Used carefully and ignited under the proper conditions, it propels you and those around you to remarkable heights. Too little confidence and leaders are perceived as weak. … Too much self-confidence becomes that most destructive of all leadership attributes, hubris” (Petty, 2009).
Overvaluing themselves, and deluded by the self-satisfied thinking that usually follows, some arrogant executives develop descending contempt for competitors and critics that drives them to create a reality that further reinforces their self-importance (Sankowsky, 1995). Reality is bent to the service of these disorders, reality testing is compromised, and organizational learning is interrupted. An additional manifestation of this need for self-enhancement is the tendency to distort reality by focusing on the positive aspects about themselves and only the selective memories that support their self-concept (Markus & Wurf, 1987). Warping reality to suit such self-centered views rewrites facts and often reduces a firm’s performance. If the vision is confronted managers accuse foes of being timid, weak, incapable of seeing the possibilities, thus getting their way.
Hubris may pave a perilous path for corporate acquisitions. Roll (1986) suggested that takeover attempts often result from the erroneous belief that executives can greatly improve the target firm’s efficiency. The executive rejects feedback from others and believes that despite the often overpaid premium for the targeted firm he or she will overcome all obstacles and increase the acquired firm’s value (Hayward & Hambrick, 1997). This is similar to the well documented blunder known as the winner’s curse (Hendricks, Porter, & Tan, 2008), an occurrence akin to a Pyrrhic victory in which individuals bid above an item’s (e.g., an acquisition or merger) true value and thus are “cursed” by acquiring it (Lovallo, Viguerie, Uhianer, & Horn, 2001). By exaggerating the likely benefits of a project and ignoring the potential pitfalls, executives often lead their organizations into initiatives that are doomed to fall well short of projections. This can be costly in terms of money, jobs, prestige, or even lives when overly optimistic expansions and acquisitions lead to bankruptcy and layoffs (Norem & Chang, 2002).
Ethical considerations
In an interesting study, Schrand and Zechman (2009) showed that overconfident managers are more likely to commit financial reporting fraud. The study used the prevalence of the CEO’s photo in the annual report and the difference in compensation with the second-highest paid official in the company as alternative proxies and showed that overconfident managers are more likely to commit financial reporting fraud. Such arrogance was the defining quality of Enron and a central element to the ethical lapses that eventually destroyed the firm. Arrogance goes hand in hand with corruption as the corrupt organization arrogates to itself special privileges and exemptions. They believe themselves above the laws of lesser mortals.
Schrand and Zechman (2009) describe a path often leading to fraud: an overconfident executive believes the firm is facing only a bad quarter. The CEO also believes it is in the best interest of everyone with a vested interest in the organization to cover up the problem in the short term so that constituents do not misinterpret the current poor performance as a sign of the future. The executive is convinced that the company will make up for losses later. Rules get stretched in those ‘gray areas’ of earnings management. If they are wrong and things do not reverse, they have to make up for the prior period. This requires continuing unethical behavior and the executive has to do even more in the current quarter.
Warren Buffet, one of the world’s most successful investors, cautioned against what he called “cock-eyed optimism” (2001, p. 5) in earnings forecasts. He warned that lofty predictions not only spread unwarranted optimism but also corrode CEO behavior:
“... I have observed many instances in which CEOs engaged in uneconomic
operating maneuvers so that they could meet earnings targets they had
announced. Worse still, after exhausting all that operating acrobatics would
do, they sometimes played a wide variety of accounting games to ‘make the
numbers.’ These accounting shenanigans have a way of snowballing: once a
company moves earnings from one period to another, operating shortfalls that
occur thereafter require it to engage in further accounting maneuvers that must
be even more ‘heroic.’ These can turn fudging into fraud” (Buffet, 2001, p. 6).
Planning fallacy
People often underestimate how long it will take to complete a task. The Sidney Opera House took 16 years to complete instead of the 6 years originally planned (Hall, 1980). The Channel Tunnel between France and England and the Big Dig in Boston similarly, and famously, ran far behind schedule. In a multibillion dollar business, such as software design, overly optimistic estimations of completion time can prove to be extremely expensive and frustrating due to missed deadlines, cost overruns, and general aggravation (Connolly & Dean, 1997). On a less spectacular scale, Kidd and Morgan (1969) noted that production managers persistently predicted better performance for their operations than was later obtained, a result derived from overly optimistic self-impressions. And most of us are all too familiar with the term paper that was supposed to be done in a couple of days but took a whole week to complete, or the home-improvement project that was planned for a weekend but took a month of weekends.
Multiple laboratory studies have also documented systematic overoptimism in people’s estimates of the time required to complete various tasks. In one study, students thought they needed 34 days to finish their academic theses, whereas on average, the theses were completed in 56 days (Buehler, Griffin, & Ross, 1994). This is such a common occurrence that it has been labeled the “planning fallacy”—the tendency to underestimate time to completion despite knowing similar tasks previously took longer than predicted (Kahneman & Tversky, 1979).
This error of reasoning occurs during the planning phase. Individuals ignore the very real chance that things won’t go as anticipated; i.e., individual’s future plans tend to be “best-case scenarios” (Newby-Clark, Ross, Buehler, Koehler, & Griffin, 2000). They do not consider alternative possibilities and underrate the likelihood of unforeseen complications and unexpected obstacles. Indeed, when formulating a plan, these individuals do not like to reflect upon past experiences (Buehler & Griffin, 2003). Instead, they like to consider positive outcomes and fail to review previous lessons. In team settings especially, persons of this bent are increasingly likely to underestimate the time needed to complete a project (Buehler, Messervey, & Griffin, 2005). Presumably, they feel the need to impress others by being perceived as optimistic and efficient further magnifying the planning fallacy.
Entrepreneurial activities
Optimism is vital in overcoming the anxiety about starting a new venture, but too much optimism can keep entrepreneurs from acknowledging that there are risks involved. Some entrepreneurs bite off more than they can chew. Some launch businesses that do not have a marketable product or service. Some do not raise adequate capital to survive early cash flow crises (Trevelyan, 2007). Such optimism develops because when entrepreneurs evaluate situations they typically magnify their strengths and opportunities and minimize the importance of weaknesses and threats (Palich & Bagby, 1995). They also tend to treat their assumptions as facts and do not see uncertainty associated with conclusions stemming from those assumptions (Simon, Houghton, & Aquino, 2000). Moreover, they perceive less risk because they are more optimistic about those assumptions (Russo & Schoemaker, 1992) which results in less information search (Zacharakis & Shepherd, 2001). Such excessive optimism has been cited as a primary reason for the high incidence of failure among start-ups (Gartner, 2005)—45% of newly created firms fail before their fifth birthday (Shane, 2008). Furthermore, Landier and Thesmar (2009) investigated different levels of optimism in entrepreneurs and found that overly confident entrepreneurs were more likely to be associated with failing businesses and noted that “The enthusiasm of optimistic entrepreneurs is their strength and their weakness. They work hard, but are reluctant to adapt their initial idea” (p. 128). Moreover, Ranft and O’Neill (2001) noted that “The major problems for boards in successful entrepreneurial firms is [the] need to develop the capability to counter the entrepreneur’s naturally occurring overconfidence” (p. 129).
Summary and Conclusion
Positive thinking is endemic in American culture where it is often believed that more is better. As indicated above, however, scholars have increasingly discovered that at high levels, positive effects across a number of variables begin to turn negative. The emphasis on moderation advocated in this paper is consistent with the long-held Aristotelian philosophical belief that well-being and success are functions of cultivating virtues that exist between the extremes of deficiency and excess (Nussbaum, 1995). For example, in the domain of self-presentation, honesty is the mean between the deficiency of self-deprecation and the excess of bragging. In the domain of pleasing others, friendliness is the mean between the deficiency of quarrelsomeness and the excess of ingratiation (Grant & Schwartz, 2011). The emphasis on balance is analogous to the Confucian guiding principle of the “doctrine of the mean” or “golden mean” (Lugenbehl, 2000). For every action two extremes must be avoided: the extreme of excess and the extreme of deficiency. What lies between these extremes is virtue and the right way to act. Similarly, the Buddha taught in India that the right course is the “middle way” (Gerhards, 2007).
America’s fascination with all things positive may be specific to Western cultures. At other times and places great cultures incorporated in their worldviews elements of negative thinking. Muslims, in general, see grief, sadness, and other dysphoric emotions as concomitants of religious piety and correlates of the painful consequences of living justly in an unjust world (Woolfolk, 2002). Sorrow marks the depth of personality and understanding. In Iran, for example, pathos is central to the Iranian ethos. Sadness for Iranians is associated with maturity and virtue. A person who expresses happiness too quickly often is considered socially incompetent (Good, Good, & Moradi, 1985). Sadness is also valued in Japan.
On an empirical level, the classic inverted-U-shaped function may be a manifestation of the Yerkes-Dodson law, a long-established psychological principle, which indicates that human performance at any task varies with arousal in a predictable parabolic curve (Yerkes & Dodson, 1908). At low arousal, people are lethargic and perform badly. As arousal increases, performance also increases—but only to a point. When levels of arousal become too high, performance decreases. The process is often illustrated graphically as a nonmonotonic curve that increases and then decreases with higher levels of arousal. To achieve happiness and success, then, it is desirable to cultivate skills and abilities that are somewhere between excesses and deficiencies.
The goal of this paper has been to question the wholesale endorsement of all things positive, the wisdom of always being cheerful, and the belief that high levels of positive thinking are good. Studies were presented that showed that moderate levels of optimism, confidence, and positive thinking are associated with more effective coping and performance and that these factors display the shape of an inverted U. A more balanced approach is required rather than the “accentuate the positive” mantra advanced by self-help manuals and lifestyle gurus as the key to health, wealth, love, and success. Holding and acting on such naïve, simplistic, and inaccurate theories of the human experience is problematic.
If positive thinking can be so bad, should we all think negatively instead? Of course not. Saying that negative thinking is the alternative to positive thinking is a false choice. Just as obesity researchers are not saying that Americans should all become anorexic, we are not suggesting negative thinking for all. Some amount of negative thinking, however, can be healthy for some. Consider the extensive work by Norem and her colleagues on defensive pessimism (Norem, 2001; Norem & Chang, 2002) who found that some people are negative because their pessimism helps to shield them from potential pain—the sting of more optimistic expectations failing to materialize. Studies have found that people who exhibit defensive pessimism are actually less stressed when they indulge in this personal routine than when they are forced to express more optimistic thoughts. For defensive pessimists, worrying about upcoming challenges is a way of life. It is also a healthy coping strategy that helps them prepare for adversity. Norem has shown that when deprived of their pessimism, defensive pessimists’ performance levels drop. For defensive pessimists, being positive has a decidedly negative side.
Other research by Wood, Perunovic, and Lee (2009) likewise found that positive thinking and the repetition of stock optimistic phrases such as “I can do it” or “I will succeed” do more harm than good for some people. Specifically, the researchers concluded that repeating positive affirmations may benefit certain people, such as individuals with high self-esteem, but backfire for those with low self-esteem, the people who need them the most. Wood et al. (2009) asked people with high and low self-esteem to repeat a number of positive self-statements and then measured the participants’ moods and their feelings about themselves. The low-esteem group felt worse afterwards compared with a control group while people with high self-esteem on the other hand felt better after repeating the positive affirmations—but only slightly. The researchers then asked the participants to list negative and positive thoughts about themselves. They found, paradoxically, that those with low self-esteem were in a better mood when they were allowed to have negative thoughts than when they were asked to focus exclusively on affirmative thoughts. Thus, although positive thinking is useful for some people some of the time, a purely positive approach to everyday life appears to backfire for others.
To be clear, this paper is not advocating underconfidence or negative or pessimistic thinking. It does, however, call into question the exaggerated benefits attributed to being highly positive encouraged by magazine columnists, self-help books, talk-show hosts, business associates, selected religious authorities, and friends and neighbors. Like most things in life, positive thinking is better in moderation. There is no such thing as an unmitigated good for which costs do not emerge at high levels.
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