Obama – Great Expectations, but can he keep us positive?

January 29, 2009

Over the past fortnight much of the world has been getting excited at the prospect of a new Administration in Washington DC. The advent of a vibrant and charismatic leader with a messianic aura and outstanding communication skills has certainly captured the world’s imagination.  And this is a world that is going through some very tough times.  As President Obama settles into his new home, the weight of these challenges and those ahead, seem to fall increasingly onto his proverbial shoulders.  The world’s well-being is becoming his responsibility!

As wide as these shoulders may be, the last thing we want is for the weight of the world’s problems to break his back – or the spirit of hope that he has created.  Being positive and hopeful are characteristics in short supply at the moment – whether that be in business, the media, government, banks or among economists!  I think that we have to hope that one of the characteristic differences between the US and UK cultures kicks in over the next few months. In Britain, we build ‘em up and then knock ‘em down. In the US, where I was born,  success is envied less and the idea of ‘the American Dream’ means that when you get to the top there are less people trying to bring you back down again. Let’s hope this holds true for Obama!

We have to stay positive even if there are more economic shocks and other setbacks ahead. If we have learned anything over the last few years from the field of positive psychology, it is that having a ‘glass half empty’or ‘doom and gloom’ attitude characterised by negativity is not the answer to dealing with problems.  Yes, we need to acknowledge the reality and depth of the economic situation, problems at work and in other aspects of our lives, but acknowledgement does not equate to wallowing! Rather, it should be the first step in exploring new ways of coping, before identifying a range of options and finding novel and constructive solutions. 

This is what we need in the world of business right now – not retrenchment and self-protective cost cutting for security’s sake, but innovative ways of thinking about our products, services and ways in which we can buck the trend. It’s a matter of harnessing our manpower and finding some Dunkirk spirit.  We need to help our leaders, whether in business or politics, to change the psychology of despair into a psychology of hope.  This can be done by emphasising the positive where it exists; taking calculated risks at work rather than retreating; leading rather than just managing and consciously raising the bar higher than we would have done even in the good times.

As Ralph Waldo Emerson wrote, “the reward of a thing well done, is to have done it”.  So rather than sitting around worrying about negative predictions, let’s get out there and do it!


Four day week or redundancy – you choose!

January 23, 2009

This week The Times reported that KPMG is asking its 11,000 British staff to take unpaid leave or face an extensive redundancy programme. The global accountancy firm wrote to all of its employees asking them to volunteer for sabbaticals of between four and twelve weeks on 30 per cent pay or move to a four-day week. The rationale for the proposal, which it referred to as a contingency plan, was designed to help KPMG avoid a company-wide redundancy programme in the future.

The assumption in the article is that most people would respond negatively to this offer, but how would you respond? I asked a male employee in his thirties in my own University spin-off company and he said he would definitely take up KPMG’s offer – he told me that 30% pay would cover his mortgage payments and he would then be able to go travelling for three months using savings from better financial times. He explained that he has been waiting for years to take a break of this sort from work– but could never find a way to do it that left both his job and house secure. Unfortunately, for him (but fortunately for the company) we won’t be offering this option in the foreseeable future!
However, this kind of reaction reinforces the view that the financial crisis presents opportunities as well as challenges to the UK’s working population. Ok, if you’re mortgaged up to the hilt and have a family to support the proposal would be less than attractive, but not everyone is in that situation.

Clearly, KPMG’s offer is borne out of financial necessity, but you could also argue that it shows humanity and forward thinking on their part. They are giving their staff choices before it’s too late – contrast this with the fate of Woolworths’ and Lehman Bothers’ employees for whom there was no choice at all. I dare say a KPMG-like offer would have been accepted by many of them if it was put forward six months before it all went wrong for those businesses!  From a strategic perspective this may also prove to be a smart move: I’m not claiming that the ‘green shoots of recovery’ are yet visible, but KPMG are thinking beyond the recession here. By making several large scale redundancies now, companies are building in sizeable recruitment, induction and training costs that will impede recovery the future.

Finally, at the foot of the article in the online edition where I read this news I noticed a comment by ‘Farrukh of Woking’ a Times reader. He said:

“We should have four day weeks anyway, and subsidised sporting facilities for all. Let us make our nation healthy and happy!”

The first part of his statement, a four-day week, is radical. There will be those who say that the shorter week hasn’t worked in France, and in an economic sense this may be true, but now is a good time to examine and revisit radical ideas of this sort. I’m not necessarily suggesting that the UK should adopt Farrukh’s suggestion, but as the second part of his comment indicates, ideas like this reflect the need for a paradigm shift in terms how we see the relationship between work, wealth and quality of life.  I’ll finish with a challenge – visualise a situation where you learn to manage financially with one less day’s pay a week in return for one more day to do with as you please. Your life could be very different – but would it be better or worse overall – and in what respects? Answers on a postcard!


Love thy work neighbour!

January 16, 2009

Having filed my last post on the importance of neighbours, I realised that there was also a connection to the workplace that I hadn’t touched upon. Of course, while the ties may be less strong there are also major advantages to developing good relationships at work – both in terms of the people who sit near to you and companies who you work alongside.

Just as in your home-life, work-based friends with whom you share space and challenges can be a valuable source of practical and emotional support. You may harbour the same frustrations with a difficult boss or if you don’t, your neighbours may be able to provide you with some perspective on the situation – from an informed position that friends and family can’t take. My university spin-off company, Robertson Cooper, recently published research in their annual well-being report showing that ‘Work Relationships’ was the only factor that drove both ‘sense of purpose’ and ‘psychological well-being’ at work; both of which underlie employee engagement. With times tough and set to get tougher we need to focus on things that we can partially control at work like our relationships. By nurturing good ones we are investing in support mechanisms for the future in case things get worse before they get better.

The benefits of work neighbours go broader than fellow employees though. Many SME’s are part of thriving communities of companies who share space on business parks and the like. Often, those that manage these communal spaces host intranets and seminars where information and skills can be exchanged. Those companies that participate in such activities differentiate themselves in the marketplace from those who don’t have this network to draw upon– not least because they often don’t have to pay for knowledge and insights that non-members have to.

Even if you don’t have the luxury of this kind of network you can create your own mini-network. Get to know your immediate neighbours – no matter how disconnected / irrelevant you think their business is to yours! You might just need to borrow some teabags if you run out when an important visitor is onsite or there might be deeper potential of which you are currently unaware. By having the odd conversation with your neighbours you may well gain new intelligence and find new opportunities.

And finally, it’s not just SMEs to whom this applies – in large public and private sector organisations good neighbour relationships are critical – even if your neighbours end up being virtual ones who are miles away geographically. External perspectives add value to what you can obtain internally and it is not a waste of time spending time on them just because it isn’t mentioned in your job description. In the private sector they talk about ‘Co-opetition’ where companies who normally compete come together to create new knowledge or services that in the long-term will benefit the whole industry. This is the world we live in now – ignore it and retreat to the comfort and safety of your own office at your peril.


Love Thy Neighbour

January 12, 2009

In my last blog I discussed new research that showed that happiness can ‘rub-off’ on people. One of the biggest sources of happiness in that model of how positive feelings spread was happy neighbours – the study showed that when your neighbours become happy it increases the likelihood of you being happy by 34%. That’s more than the effect of a happy live-in partner (8%) and a happy sibling that lives close by (14%) combined. This got me wondering about the role of neighbour relations play in UK society and whether we aren’t missing out on an important source of well-being.

Of course, there is a great deal of luck involved because you can’t pick your neighbours and there is nothing much you can do if their behaviour negatively affects your life (e.g. noise, anti-social behaviour etc..). What I’m thinking about though are your average neighbours – the ones who you wouldn’t necessarily notice…..unless you made the effort… and it seems that most of us simply don’t bother. In November last year, Myra Butterworth, Personal Finance Correspondent at The Telegraph reported the results of a survey of 4000 people by the home insurer ‘LV=’ which showed that Britons typically know 9 neighbours by name and only 14 by sight. The article claimed that this paints a bleak picture of community life in the UK and it’s hard to disagree! It seems that people are much more concerned about living a quiet, crime-free life (street crime and anti-social behaviour was a big concern across the board) than about the niceties of getting to know the neighbours which is probably seen as something of a luxury. This is understandable on the surface of things, but if we take a step back it’s possible to see how neighbour relations are connected with street crime because they provide its context and (as we know from the research reported in my last blog) they have the potential to generate feelings of happiness among residents.

As the report concludes, one of the big challenges is the level of mobility that we all have these days – families rarely put down roots for very long as the main wage earner often has to be flexible and live in different locations. This is very different from 25 years ago when families had much stronger relationships with those that they lived near. This aspect of modern life isn’t likely to change, but it means that more effort is required while people are in one place if relationships are to be formed. Yes, it does take effort, but the pay-off can be a greater feeling of safety and happiness for all involved. Ironically, another positive, supporting factor is the credit crunch which will almost certainly prevent some people from moving house because of the drop in property prices – this could add 2-3 years to some families’ tenures and increase the chances of ties being formed with those that live nearby.

So it seems that many of us use our houses to build a cocoon into which we can retreat and insulate ourselves from the world. Hardly the ideal platform for spreading happiness through our communities! Clearly, there are exceptions – for example, traditional villages or parishes may well see lots of neighbourly behaviour – but the majority of people live in cities these days and that’s where societal norms are formed.

More positive news came from a survey by The Halifax in November regarding the value that people place on neighbour relations. They examined the fledgling relationship between new neighbours in order to find out, with the time constraints of modern living, just how important our relationships with neighbours are to us. The findings showed that 42% believed it was ‘quite important’ to build new relationships with their neighbours, but this figure rose to 50% for the youngest age group (18-24). This bodes well for the future as you might have expected the young to be the most individualised group in society – it’s refreshing to see this desire to connect with others. The findings also showed that 44% of movers received a gift from their new neighbours – reflecting positive intent of established residents towards newcomers and again this is to be welcomed.

So it seems that we do still recognise the value of knowing our neighbours, but it’s not always a priority with all of the other pressures of life. However, it’s worth re-evaluating this assumption because developing strong relationships with our neighbours could actually ease the pressure on us, as they can become a valuable source of help, support and happiness which could ultimately lead to greater feelings of safety and security for your whole community. Sounds worth investing some time in to me – I’m just off to borrow a cup of sugar!

You can read the original reports referred to in this post at:
http://www.telegraph.co.uk/news/newstopics/politics/lawandorder/3521251/Britons-know-just-nine-neighbours-by-name.html
http://www.hbosplc.com/media/pressreleases/articles/halifax/2008-11-27-Knowingyo0.asp?section=Halifax


Happiness is infectious

January 5, 2009

Before Christmas I came across some new research led by Harvard Medical School in the US which claimed that Happiness is infectious – that it ‘rubs off on others’ and can ripple through social groups. This is an extension of the well known concept of the ‘feelgood factor’ – the kind of thing that happens in better economic times or when the England football team do well in a big tournament. But the new research describes a different kind of infectious happiness – one that can be sustained by social networks, so I was interested to find out more.

The study, which was published in the British Medical Journal looked at 5,000 adults and concludes that a person’s happiness is dependent on the happiness of those around them. For example, the findings showed that a friend who becomes happy and lives less than a mile away increases your likelihood of happiness by 25%. But, interestingly, the mood of work colleagues did not have an effect – presumably because the ties we have to workmates are not of the same strength or quality as those we have to our friends and family.

The researchers used data on adults who took part in the US Framingham Heart Study – set up to look at the risks leading to future heart disease – between 1971 and 2003. Participants were asked to identify their relatives, close friends, place of residence, and place of work and were followed up every two to four years. They were also asked whether they agreed with statements on whether they enjoyed life, felt hopeful about the future, were happy and felt they were just as good as other people.

The results showed that when live-in partners become happy it increases the likelihood of their partner being happy by 8% and similar effects were found for siblings living close by (14%) and neighbours (34%). The relationship between people’s happiness levels seemed to extend up to three degrees of separation – to the friend of a friend of a friend – so networks can be quite wide and that all helps to spread happiness further.

Overall, the findings suggest that ‘clusters of happiness’ occur because happiness spreads and not just because of a tendency for people to associate with those who they think are like them. Study leader Professor Nicholas Christakis commented:

“Most important from our perspective is the recognition that people are embedded in social networks and that the health and well-being of one person affects the health and well-being of others.”

If we accept the premise of these results, they could have important implications for public health. If integrated communities and close-knit social networks are crucial for the spread of happiness, it seems pretty important that we take action to move away from the individualised society that we now live in. The credit crunch has been an unrequested catalyst that may begin to start this process in 2009, but if people believe that they will also be happier as a result they may make active and permanent changes. Of course, if happiness is infectious, it seems likely that sadness is as well – so it’s equally important that we don’t let a climate of doom and gloom settle over the country in the post-Christmas period!  In short…

Happy New Year

Read the BBC coverage at http://news.bbc.co.uk/go/pr/fr/-/1/hi/health/7765543.stm


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