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DREAMWORK NEWS
November 29, 2016  |  By Chris Geissler

How positive feedback can increase a company's success

losada-blogpost-title

There are still many entrepreneurs who believe that fun is out of place in a serious working environment. Appreciation, recognition and praise are usually only given in response to good performance. However, the results of research by psychologists and management consultants Losada and Fredrickson show that the reverse also works and what can be achieved with positive comments.

The Losada ratio describes the relationship between positive and negative statements. 1:1 means that one positive statement is matched by one negative statement. According to Losada / Fredrickson, the ratio in successful companies is at least 2.9013 : 1, i.e. one negative statement is offset by just under three positive ones.

Can you use positive feedback to boost your employees' performance? Yes! In companies where the ratio was above the 2.9013 mark, higher team performance, more creativity and more innovative thinking were observed, but above all, employees felt happier and more satisfied.

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The number 2.9013 

The number may seem random, but a decade of research into high and low performance teams by Marcial Losada shows just how important this benchmark is.

Based on Losada's findings, 2.9013 is the ratio of positive to negative interactions that are necessary to make a team or company successful. This means that around three positive comments, experiences or expressions are necessary to avert the weakening effects of a negative statement. If the value rises above this - ideally to a ratio of 6:1 - companies produce their absolute best work, which is reflected in customer satisfaction, positive colleague evaluations and, last but not least, higher profitability.

How high can the Losada ratio go?
Studies show that from a Losada ratio of more than 11:1, the brain apparently no longer believes itself and the effect can no longer be increased. So don't overdo it ... but we're probably all a long way from that anyway.

Are there any examples from practice? 

This is not just a hypothetical mathematical formula; Losada himself was able to back up his observations with countless examples.

He once worked with a global mining company that was suffering from process losses of more than 10 percent. Unsurprisingly, he found that the ratio of positive to negative statements was 1:15. After instructing team leaders to give more positive feedback and encourage more positive interactions, the average ratio of their teams increased to 1:3.56, and in turn, they made huge strides in production and improved their performance by over 40 percent.

Although the company's CEO was initially skeptical, he finally confided in Losada: "You have untied the knots that bound us. Today we treat each other differently and we trust each other more. We not only care about our personal success, but also about the success of others.

Applications in other areas of life

The Losada ratio has also been studied in other areas of life. In his research with married couples, J. M. Gottmann found that the ratio was above the magical 1:3 in happy marriages, while marriages that fell below this value were more likely to fail.

The most unstable marriages were those of couples where the ratio was 0.8-1 : 1, and these were the most likely to fail. In one of his studies, he was able to predict future divorces with an incredible 90% probability.

One reprimand needs five praises

Losada and Fredrickson's research contradicts what most people intuitively assume: We believe that apologizing once for something negative should be enough - that a negative comment can be balanced by a positive one. For a happy relationship, it is crucial that both partners have the feeling that positive and negative things at least balance each other out. This feeling arises on average when the ratio is 5:1. This clearly shows that the negative clearly outweighs the positive and that an even higher ratio of positive to negative is necessary in partnerships.

We should be aware of this every now and then in our everyday lives. As a simple measure, he recommends praising more and more consciously in general. It is not only good for our partner if we tell him or her more often that we like something, but also for our relatives, friends and especially our children. Hart and Risely were able to show that children whose parents talked to them a lot, praised them frequently and praised or showed approval on average five times more than they reprimanded or showed disapproval, developed better than the other children.

What can you do immediately? 

If you want to increase your own happiness, health and success, focus on positive things and thoughts. Positive thinking and communication is just a matter of training and is easy to achieve. You will quickly notice how you feel better overall.

Losada's mathematical relationship is another building block to support the findings of positive psychology, which has triggered a revolution in working life. Once we accept this new order - that happiness is the center around which success is achieved - in our daily work lives, we can only win: We change the way we work, interact with colleagues and lead our teams. We can give our own careers and our entire organizations a competitive edge - and be happy in the process.

If you have children, you can also try this out at home: The thesis can also be practiced and implemented with family and friends. It also instantly lifts the mood, relieves stress and promotes productive cooperation.

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Whether at work, with our partner or our children, we should always keep in mind that negatives outweigh positives. Try to have significantly more positive interactions than negative ones. Praising more may seem strange at first, but you soon get used to it. You will be amazed at the impact these - sometimes seemingly small - interactions have on the quality of your relationships, your happiness and your success.

Erhalte mehr Tipps, wie diesen: << Hier klicken >>

 

Literature:

  • Achor, S. (2011). The Happiness Advantage: The Seven Principles of Positive Psychology that Fuel Success and Performance at Work. Virgin Books.
  • Fredrickson, B. & Losada, M. (2005). Positive affect and the complex dynamics of human flourishing. American Psychologist, 60 (7) 678-686.
  • Gottman, John Mordechai. What predicts divorce?: The relationship between marital processes and marital outcomes. Psychology Press, 2014.
  • Gottman, John M., et al. Predicting marital happiness and stability from newlywed interactions. Journal of Marriage and the Family (1998): 5-22.
  • Lewis, S. (2011). Positive Psychology at Work: How Positive Leadership and Appreciative Inquiry Create Inspiring Organizations. Wiley-Blackwell.
  • Seligman, M. E. P. (2011). Flourish: A New Understanding of Happiness and Well-Being - and How To Achieve Them. Nicholas Brealey Publishing.

What is DREAMWORK

With our DREAMWORK project, we want to encourage reflection and discussion on how we can improve our working conditions at Saalbacher Hof and in our entire industry.

We want to bring more happiness into our lives now and not just at some point when it might be too late.

Subscribe to our newsletter if you would like to read more about our innovative projects and happiness at work in general. Just click on the following link:

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We look forward to your comments and a lively exchange of ideas. What do you think about happiness in the workplace? What would you like to change, or what works particularly well for you?

You are welcome to post your comments below.

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Recognition Work Barbara Fredrickson Relationship Dreamwork Tip success Happiness J. M. Gottmann Children praise Losada ratio Marcial Losada positive psychology positive feedback self-development satisfaction

Article by Chris Geissler

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