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Employ Realistic Thinking

“The first responsibility of a leader is to define reality.”

—MAX DEPREE, CHAIRMAN EMERITUS OF HERMAN MILLER, INC.

As anyone knows who’s been out of school for a few years, there’s usually a huge gap between a college

education and the reality of the working world. Honestly, early in my career, I went out of my way to avoid too
much realistic thinking because I thought it would interfere with my creative thinking. But as I’ve grown, I’ve
come to realize that realistic thinking adds to my life.

REALITY CHECK

Reality is the difference between what we wish for and what is. It took some time for me to evolve into a
realistic thinker. The process went in phases. First, I did not engage in realistic thinking at all. After a while, I
realized that it was necessary, so I began to engage in it occasionally. (But I didn’t like it because I thought it
was too negative. And any time I could delegate it, I did.) Eventually, I found that I had to engage in realistic
thinking if I was going to solve problems and learn from my mistakes. And in time, I became willing to think
realistically before I got in trouble and make it a continual part of my life. Today, I encourage my key leaders to
think realistically. We make realistic thinking the foundation of our business because we derive certainty and
security from it.

Why You Should Recognize the Importance of Realistic Thinking

If you’re a naturally optimistic person, as I am, you may not possess great desire to become a more
realistic thinker. But cultivating the ability to be realistic in your thinking will not undermine your faith in people,
nor will it lessen your ability to see and seize opportunities. Instead, it will add value to you in other ways:

1. Realistic Thinking Minimizes Downside Risk

Actions always have consequences; realistic thinking helps you to determine what those consequences
could be. And that’s crucial, because only by recognizing and considering consequences can you plan for them.
If you plan for the worst-case scenario, you can minimize the downside risk.

2. Realistic Thinking Gives You a Target and Game Plan

I’ve known businesspeople who were not realistic thinkers. Here’s the good news: they were very positive
and had a high degree of hope for their business. Here’s the bad news: hope is not a strategy.
Realistic thinking leads to excellence in leadership and management because it requires people to face
reality. They begin to define their target and develop a game plan to hit it. When people engage in realistic
thinking, they also begin to simplify practices and procedures, which results in better efficiency.
Truthfully, in business only a few decisions are important. Realistic thinkers understand the difference
between the important decisions and those that are merely necessary in the normal course of business. The
decisions that matter relate directly to your purpose. James Allen was right when he wrote, “Until thought is

linked with purpose there is no intelligent accomplishment.”^6

3. Realistic Thinking Is a Catalyst for Change

People who rely on hope for their success rarely make change a high priority. If you have only hope, you