Being too optimistic can cost you time and money in business

Companies rarely experience prolonged periods of smooth operation without some interruption. On the contrary, most businesses have to embrace a process of continuous change as part of routine operations.
By having the mindset that everything is under control, we risk overlooking underlying problems within the business. Instead, looking for weaknesses and areas where there is room for improvement can be a good strategy for tackling unanticipated problems early. Employees who continuously deliver good news and comfort for their supervisors may be a sign of the following hidden agendas:
_ Hiding problems – there could be a bigger problem being resolved and they need to fix it step by step on their own.
_ To keep a smooth atmosphere – not discussing a problem can keep people happy even though the underlying facts are negative.
_ To avoid encountering a difficult situation – big issues can cause stress and despondency, so many people choose to evade the difficulty.
_ To buy time – hoping that the difficult situation will get better by itself. 
_ To protect themselves or someone else – disclosing a problem can also give others a hard time.
_ To save face – the person responsible may not want to own up to the problem for fear of being blamed and losing face.
For instance, in a meeting, a spare-parts control manager gives the assurance that all critical spare parts are available to deal with a machine’s breakdown. In reality, he has no knowledge of the list of critical parts, and thus is unable to assure the minimum quantity is available. A machine breaks down, and the spare part needed is not there and will take at least three days to be delivered. The result is a production line shutdown that results in money lost to the factory.       
Ignoring negative signs should never be an option in effective management practice. However, in the real world of tight work schedules, this can and does happen. There is sometimes no time to review and discuss risks to company operations. Only when a negative sign leads to unforeseen results will managers get together for a serious discussion. 
Scepticism is a quality that an effective manager should embrace and exercise appropriately. Those who cultivate it will expose opportunities for improvement. Moreover, potential financial losses can be prevented or lessened at an early stage by questioning the possibility of a negative event.
In today’s turbulent times where adaptability to a changing environment is required, “negative thinking” offers a powerful addition to the management paradigm. Thus, instead of asking whether there is any problem, we may ask a different question: “Is there any problem that we have missed?” Then, “let’s check and find out”.  

Yanyong Thammatucharee is senior vice president for Accounting and Finance at Central Marketing Group.