Business in Mind: Coping With the Psychological Demands of Business Life

Setting-up and running a business poses many different challenges that take their psychological toil. We suspect that many early-stage businesses fail because these challenges become too much, leading to disappointment, demotivation and, finally, simply giving up. Success can only be achieved once these psychological challenges are recognised and controlled. Fortunately, much can be done to reduce their negative effects. Scientific research points to a number of useful strategies – and, as psychologists, we have experienced their usefulness, at first hand, when setting-up our own university ‘spin-out’ company.

Tips for Wealth and Health

Listed below are a number of tips that have been shown to lead to resilience and superior performance in all walks of life - especially business.  Remember first though the 80/20 Rule: much of our efforts have little impact on the bottom-line, and it is often said that 20% of effort results in 80% of success. Whatever the exact figures, it is essential to recognise which activities make a significant difference and which ones only a minor difference. This is especially true when problems arise: then we are prone to become overly focused on them to the exclusion of more positive performance-enhancing thoughts. How we can deal with problems and how to keep them in perspective is discussed below.

1.   Goal Setting: This is one of the most effective means to achieve and maintain positive focus and motivation. Apart from its obvious use in business planning, it has a number of psychological benefits:

• Clarity of purpose allows us to make more effective decisions




• Development of an action plan produces proactive, results-oriented, behaviour




• Monitoring the success of a plan helps to identify which behaviours are most effective




• Major reduction in wasteful thinking (i.e., worry)




• Promoting a sense of control over events, which itself is rewarding and motivating

2.   Making Lists: Writing down things on paper has a real psychological benefit and is an excellent way of stopping yourself continuously worrying about work issues. Winston Churchill used this strategy to great effort. Every night he would make three lists: (a) those things that he could do nothing about (so it’s pointless even thinking about them); (b) those things that needed attention the next day; and (c) those things that seemed important, but when written down were much less important. Focus on thinking about things that can make a difference to your business, and don’t get preoccupied with thoughts that lead nowhere (apart from a sleepless night!). 

3.   Be a ‘Doer’, Not a ‘Thinker’: Cultivate the habit of being action-oriented – of course, thinking is important, but not as a substitute for actually getting on with the tasks at hand (too much thinking often leads into unproductive worry). Allocate ‘thinking time’ each week, when you are not going to be disturbed and when you and your colleagues can engage in task-focused strategy planning. Then decide on a course of action, carry it out and monitor its success.

4.   Effective Thinking: Cultivate positive (effective) forms of thinking, such as:

• Dealing with problems immediately: don’t let them fester!




• Realising that when bad things happen (and they do), it is not a reflection on you as a person (if you made a mistake then recognise it, learn from it, and move on)




• Develop a resilient positive attributional style:
  
  
  
  
  
  
  • Assign bad events to external causes, and if you’re to blame then do not (incorrectly) assume that you will make similar mistakes in the future in either this or other situations
  
  
  
  
  • Assign good events to internal causes (you), and assume that you can similarly influence future good events in a variety of different situations
  
  
  
  

5.   Use Negative Emotions Appropriately: frustration, disappointment, etc. are common to everyone, especially in the business world. These feelings can provide a useful source of information, telling you that things need to change. Spend some time exploring these emotions and their causes, but then set upon a positive course of action to change things. Avoid (too many) negative thoughts. If negative ideas are running around your head, then force these out by replacing them with positive ideas, which will make you feel better as well as leading to more result-oriented courses of action. Negative thoughts lead only to performance-impairing demotivation: make them your servant, not you master!

6.   Sense of Purpose and Control: An excellent way to avoid negative thinking and related emotions is to learn to develop a proactive outlook on your business. Don’t just wait for things to happen -- which will only make you feel out of control and a victim of circumstances -- but be positive in your behaviour to make good things happen in your business and life.

7.   Foster Creativity: Welcome novel and unusual experiences. Don’t try to force creativity, as it usually appears when least expected. It is facilitated by an open and positive outlook on life and appears in a low state of arousal – this is why creative solutions often occur in the middle of the night or upon awakening in the morning.

8.   Trust Your Own Abilities: Do not become dependent on business ‘experts’. Learn from them but develop your own business savvy and become your own expert. Again, his will engender a sense of purpose and control over events. When the multi-billionaire, Warren Buffett wants business advice, he simply looks in the mirror (maybe that’s what made him successful in the first place!).

9.   Dealing with Unpleasant Tasks: Carry out unpleasant tasks promptly and without delay. This will not only take them off your mind but will also produce a real sense of achievement and control, leading to a virtuous circle of motivation, positive wellbeing and achievement. Remember, procrastination ultimately increases our anxiety about the tasks we don’t want to do!

Professor Philip Corr

Dr Giles Burch

Psychology For You Limited

Psychology4you.com

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