An Inspiring Leader Is an Optimistic One

But don't mistake rational optimism for false hope. In uncertain times, people wish to hear a candid assessment, followed by a strategy and a vision

By Carmine Gallo

Sir Winston Churchill delivered the ultimate pep talk to the world in his first speech as British Prime Minister on June 4, 1940. France had just fallen to Hitler's army and the British were on their heels after a massive retreat from Dunkirk. Everyone, including the British people and U.S. President Franklin Roosevelt, expected Churchill to settle for a negotiated peace with Germany. They were wrong. Churchill addressed the House of Commons that day and, while acknowledging a "colossal military disaster," he committed the British to fight until the end. "We shall fight in France, we shall fight on the seas and oceans… we shall defend our island, whatever the cost may be… we shall never surrender."

According to University of Oklahoma classics professor Rufus Fears, polls showed that 80% of the British people opposed war with Germany before Churchill's famous speech. The British had lost a million soldiers just 20 years earlier in World War I, and were in no mood to suffer again. After the speech, however, public opinion had turned around—80% now supported Churchill's war policy. Even Churchill's sharpest critics said the speech "sent shivers" down their spines.

Great leaders in politics and business have an extraordinary ability to rally people who have lost hope. It's a rare skill, but available to anyone who learns the language of motivation. At its core, inspiration comes down to this: Inspiring leaders are more optimistic than the rest of us and they openly share that optimism in their speeches, presentations, and public communications.

False Hope vs. Rational Optimism

Of course, one must be careful of delivering false hope. Instead, strive for what is realistic and authentic. Churchill's speech offers a lesson in how this was accomplished. By the time Churchill delivered his famous quote—"we shall never surrender"—he had used 3,698 words to talk about how dire the situation appeared to be. There would be no sugarcoating of facts. Churchill's candid assessment was followed by a logical argument detailing the reasons he believed the challenges could be overcome. And, like every great Churchill speech, it ended with a hopeful vision of a better world, one in which the enemy would be defeated.

In times of uncertainty, your employees, customers, partners, and shareholders want to hear three things:

1. A candid assessment of the problem.
2. A strategy for overcoming the challenge.
3. A vision of what the business will look like if the strategy is successful.

By following these three steps, you will encourage, motivate, and inspire. This approach has been used by the world's great leaders—past and present. In February, billionaire Warren Buffett delivered the news that Berskshire Hathaway (BRKA) had recorded its worst year ever—a 62% drop in net income in 2008. How then could he argue that "America's best days lie ahead?" Buffett avoided false hope by being stunningly candid. He acknowledged that he himself had done some "dumb things" and outlined the sequence of events that had led to a "paralyzing fear" across the country. "Amid this bad news, however, never forget that our country has faced far worse travails," Buffett quickly reminded his shareholders. He discussed the two great wars of the 20th century, panics and recessions, "virulent" inflation, the Great Depression, and so on. Buffett's conclusion: "Without fail, however, we've overcome them." By following the three-step process, Buffett successfully offered a rationally optimistic vision for the future of his company and the country.

Gates Looks to the Past

Due to what psychologists call the Recency Effect—the tendency to vividly recall recent experiences—it's important to talk about the past before painting a positive vision of the future.

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