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Optimistic
A disposition/outlook towards the favourable view and most positive outcome, typically relative to a future event or future state over a planning horizon.

A systematic tendency (bias) towards over estimating the likelihood of positive events and under-estimating the likelihood of negative events.




Applications of Optimism
Optimism is generally applied to
:


Examples of Optimism
A bias towards one end of the spectrum
Optimism is characterized by a systematic tendency towards the following:
  • Expecting unrealistically high benefits from a course of action.
  • Over-estimating the likelihood of positive events.
  • Under-estimating the likelihood of negative events.
Human judgment is generally optimistic due to overconfidence and insufficient consideration of distributional information about outcomes.



Management of Optimism
Listed below are some management principles to consider when dealing with optimism within the organization.

Leadership reflecting on the organization's culture
Fig. Leadership reflecting on the different manifestations of the organization's culture.


Subjectivity and bias always play a role when people are involved in decision-making
Fig. Subjectivity and bias always play a role when people are involved in decision-making.


Comparison of optimistic, pessimistic and realistic projections of a future event.
Fig. Comparison of optimistic, pessimistic and realistic projections of a future event.


A tactical plan with an optimistic outlook of the future where all costs are heavily back-end loaded
Fig. A tactical plan with an optimistic outlook of the future where all costs are heavily back-end loaded.


I. Care is not sure whether his building is melting or if it is his psychedelic glasses. In brief, is he being optimistic, pessimistic or realistic about his building?
Fig. I. Care is not sure whether his building is melting or if it is his psychedelic glasses. In brief, is he being optimistic, pessimistic or realistic about his building?


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See also:
Compare with:

Survivor curve with global maxima and global minima compared to the local maxima and local minima for a high performing asset.
Fig.  Survivor curve with global maxima and global minima compared to the local maxima and local minima for a high performing asset.


I. Care is reconciling the conflicting opinions and interests of the different owners and stakeholders, including reactive vs. proactive; optimistic vs. pessimistic
Fig. I. Care is reconciling the conflicting opinions and interests of the different owners and stakeholders, including positions that are dichotomized as: reactive vs. proactive; optimistic vs. pessimistic; short-sighted vs. long-sighted; etc

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