Without a doubt, well understood optimism is part of the management of companies; There are frequent headlines that, in the economic media, announce a promising future for the sector, an expected multiplication of sales or the conquest of new markets.
The photographs of the executives sometimes show signs of efficiency and responsibility, and at other times we also see faces of satisfaction and even complacency. Objectives are declared that seem as thoughtful and achievable as they are ambitious, but we also read others that seem excessive to us, and perhaps linked to more value-oriented management of the shares.
Naturally, the economic means also offer us already achieved achievements, already conquered markets, already achieved growths, realities that legitimize the complacency in their case shown. And of course, there are texts that refer to both what has already been achieved and what is planned for the following years. Just today I read in El País that a Malaga company, Airzone, was created in 1997 with two people, now a hundred, who has a presence in many countries, and who plans to triple sales in 2009. As a reader, he has given me the feeling that it will indeed succeed, because the steps taken for exporting seem firm.
Other times the appearance in the media is so frequent, and the announcement of growth so insistent, that, even without doubting the prosperity exhibited, one is surprised:
- In Five Days: "Cumbres de Gredos prepares to land in the United States market." With this headline appeared (December 2004) an interview with Felipe Sánchez, vice president of Bodegas Vinartis (formerly Cosecheros Abastecedores), who apparently was preparing the assault on the US market. They had not yet found the right partner, but it seemed like a firm decision. In Cinco Días and also in December 2004: "Corporate pride in Vinartis". In this other interview with Felipe Sánchez, we could read that this group was going to become one of the best international wineries. For this, he made sure to have the best tools: wine and talent. In Business Strategy: "Cumbres de Gredos prepares to disembark in the Rioja denomination". Also in December 2004, and under this headline,there was talk that the Vinartis Wineries planned their expansion in Rioja (and also in Rueda and Ribera del Duero). In Expansión: “Next year we will strengthen ourselves with the purchase of wineries in Rioja and Ribera del Duero”. This appeared in June 2004, under a photograph in which the president of Bodegas Vinartis, Miguel Canalejo, showed a bottle of his good Pata Negra wine.
I had these examples handy because I wrote an article about Bodegas Vinartis, after coming across some interesting statements from its president about the Spanish system of appellations of origin; But look at the economic press and you will find healthy signs of business optimism and enthusiasm in all sectors. Probably, the wineries to which we have referred have already materialized, or are about to do so; but sometimes we have found excessively optimistic statements, which also later have not materialized:
- In the Business Gazette: "FYCSA will achieve 5,000 million in 2003". Under this headline, in a brief press release, in June 2001, this consultancy declared its intention to convert the 2,000 million pesetas. billing forecast for that year, at 5,000 million in 2003. The note mentioned the CEO, José Ignacio Díez, and added that 70% of the billing would correspond to e-learning solutions.
In 2003, the turnover actually achieved by this company, then chaired by Miguel Canalejo, was 6 million euros (one billion pesetas), despite having merged in 2002 with another consulting firm; that is to say, the fifth part of the forecasts announced 18 months earlier. So optimism sometimes seems to skyrocket: either you're being overly enthusiastic, or you're trying to confuse the market.
Reflection
We all have to tend to optimism, because it seems that we are happier, and of course we have to do it in the business world: it cannot be otherwise; but we have to do a proper reading of the concept. If you have read Edward De Bono (Six Hats to Think About), we agree on the need to always have the yellow hat on hand, to be positive, constructive and optimistic; but the author recommends us to use the black hat afterwards, which we should not identify with pessimism but with realism: with attention to errors, risks or dangers.
An adequate synergy of optimism and realism seems certainly recommendable in business activity, always applying the necessary efforts to reach the goals pursued; but in these paragraphs we talk about boasts or statements in the media. What leads entrepreneurs and executives to appear, sometimes with some frequency, in the financial media reporting their past or future achievements?
We all feel the need to tell it when we feel excited or satisfied about something, but, because it is too simple, this cannot be the only explanation. On the other hand, some dose of complacency for achievements seems acceptable, but not so much for achievements pending. And of course, not all the appearances are made in a complacent way: we also find signs of responsibility and concern in the face of the changes that are taking place in this knowledge and innovation economy.
But these appearances must be linked to the marketing function and the impulse to sales: these public appearances must be related to the conquest of customer trust. There may be other elements present, without ruling out the company's own promotion in the face of upcoming merger or sale operations, and even some dose of people's narcissism; but it is certainly about attracting the attention of customers, for the benefit of the organization. Now, what happens when we go over optimistic and lose precisely the confidence of the market?
conclusion
Talking about the future with optimism does not necessarily imply an attempt to deceive the market, far from it; but when optimism overflows, or shows too much insistence, one would attend with reservations to this type of formulations. The economic means provide us daily with numerous examples of credible intentions or plans, or presentation of achievements (conquered markets, multiplied sales, recognition achieved, etc.); But, along with this information, there are also others in which the executives declare openly exaggerated goals, hardly achievable, extremely ambitious, practically incredible, to the point of making us believe that they are trying to impress the market and nurture the brand.
