It can be difficult to be an optimist in today’s world amid the constant bombardment of headlines about geopolitical tensions, economic uncertainty, and political polarity that is tearing at the fabric of our society. The scenes from Minneapolis of violence and needless loss of life have weighed heavily on all of us, and as of yesterday, the escalating conflict in Iran.
Being a pessimist, however, carries a high cost. If we walk around with an attitude of “the glass is half empty,” we will find it hard to inspire ourselves, let alone anyone else. Change can only happen when we see the potential around us. That’s when the glass becomes not only half full but also brimming with possibilities.
Now is the time for realistic optimism. This thinking harnesses the power of a positive attitude, which I believe is the No. 1 defense against becoming overwhelmed by the unknown and paralyzed by fear.
As values-based leaders, we know it takes optimism to bring people together with shared values and a sense of purpose. Leaders have confidence in their people, their strategy, their products and services, and their customer relationships. At the same time, too much exuberance needs to be tempered. A realistic outlook acknowledges that, in the real world, things can and do go wrong, especially amid volatility and unpredictability. The art is in the balanced perspective.
Realistic Optimism in Action
Realistic optimism is an essential mindset and skillset for today. For example, the 2026 Business Leaders Outlook from JPMorgan Chase provides evidence of realistic optimism among many business leaders. On the realistic side, most leaders surveyed (73%) reported having a neutral to pessimism global economic outlook. However, optimism was the major takeaway from the report, with 73% of midsize business owners expecting to increase revenues in 2026 and 64% projecting higher profits.
As this data shows, setting goals for growth, innovation, profitability, and performance requires confidence on the part of leaders and teams. At the same time, realism reminds everyone of the importance of establishing metrics and setting milestones to track progress, identify obstacles, navigate challenges, and develop a contingency plan that adjusts to different outcomes. Here are some things to consider:
Set high goals but temper excessive expectations. When I first became a manager, I decided that I would be an optimistic boss. My enthusiasm was contagious, but it could also lead to people getting ahead of themselves. That’s when I learned about the importance of realistic optimism. I needed to encourage people who tended to underestimate their targets—and I needed to temper those who set goals that were too aggressive. With realistic optimism, we were able to set high goals that were achievable.
Identify what could go right—and wrong. Optimists are surprised when things go wrong, and pessimists are surprised when they go right. The realistic optimist, however, is able to manage outcomes, regardless of what happens along the way. It starts by looking at both scenarios. First, list all the reasons that support a positive outcome. Then, anticipate what could go wrong both within the organization and on a macro level. With a balanced perspective, leaders can move their teams forward with awareness of both the opportunities and challenges.
Overcoming worry, fear, anxiety, pressure and stress. Realistic optimism supports resilience and encourages solutions. As people pursue innovation, growth, and new opportunities, they feel confident in what can be achieved. At the same time, they are realistic about the challenges. No matter what happens, our job as values-based leaders is to assure our team of two things. First, we will do the right thing. Second, we will do the best we can in the time we have. These two assurances lower worry, fear, anxiety, pressure, and stress—which is good news for all involved.
One final note. No matter what the world looks like right now, things will change. And then, in time, they will change again. This realization is both liberating and empowering. It helps us maintain a positive attitude while realistically keeping our eyes open for unexpected challenges and new opportunities.
