Vision is a leap of faith – committing to a goal that can't be totally justified by the information you currently possess requires your team to be optimistic about the organisation and its prospects of achieving the goal. Daniel Golema, the Harvard professor who popularised the term "emotional intelligence" argues that each one per cent improvement in organisational climate (measured by staff surveys) leads to a two per cent increase in revenue and/or profitability. Optimism is not only essential when striving to realise a vision; it also improves people's performance. It's powerful and it's contagious.

Optimism is a state of mind where one looks upon the world as a positive place. Optimists generally believe that people are inherently good and that things will work out for them in the end.

Personal optimism correlates strongly with self-esteem, psychological well-being and personal health. In a business context, optimism is strongly associated with success in leadership. Most studies of successful business leaders show that they have a healthy dose of optimism. They set challenging goals and refuse to be restrained by apparent barriers, but they also prepare thoroughly and make contingency plans.

In the Goleman model of leadership competency, optimism has the following four levels (of increasing importance):

1. Has a positive outlook. Expects favourable results from self and others.
2. Is optimistic about the future. Demonstrates confidence and a sense of control over events.
3. Is resilient. Has the ability to recover from setbacks.
4. Learns from disappointments. Analyses setbacks to learn from them.

The research that produced the model indicates that successful leaders operate at the third level, "resilient optimism", and above. Leaders who have this quality persist in seeking goals in spite of obstacles and setbacks. They operate hoping for success rather than fearing failure. They attribute setbacks to manageable circumstances rather than innate personal flaws or unalterable environmental factors. They are more likely to bounce back from setbacks and learn from them.

Are optimistic leaders born rather than made? There does not seem to be a genetic link, but the good news is that optimism, being a state of mind, can be worked on and improved.

The best way to develop optimism is to learn to think and act like someone who is highly optimistic by nature. Regular, monitored practice in a supportive environment can really help you to develop your optimism "muscles". Here are some ideas:

• Say something positive every day about the work of your colleagues and encourage them to develop. Do this for a week and see how morale rises.
• Be courteous. Always say "please" and "thank you". Treat others as you would wish to be treated. Try to understand other people's viewpoints. Integrity is a highly valued leadership trait, so being trustworthy, kind, courteous, respectful and grateful will bring you much credit.
• Be realistic and frank about your own recent errors. Apologise to people you may have treated poorly. Make a personal commitment to excellence to word and deed.
• Agree clear objectives for meetings, presentations and activities with everyone involved. Rehearse the event, visualising a positive outcome. Anticipate any tough questions or challenges (honesty is usually the best policy where expectations have not been met).
• Conduct one-to-one interviews with your staff. Be positive about their contribution and ask them what their objectives are. Support their development plans. Establish a culture of regular one-to-one meetings of this type throughout the organisation.
• Agree a "team charter" with your staff that sets out the core principles of behaviour expected, seeking everyone's input. Praise people when they behave according to the principles and (privately) point out any failure to adhere to the charter. This will start to mould a positive, optimistic organisational culture.
• Seek consensus wherever possible. Hold regular team meetings to encourage the open discussion of objectives and problems, but don't be drawn into "moan fests". Be optimistic and realistic about the results that can be achieved and thank people individually for their contributions.
• Communicate a sense of purpose, standards of excellence and clear targets to the whole team. Issue regular updates on performance – both good and bad news. Reward the positive behaviour you want to encourage in the organisation and reject the negative behaviour.
• Encourage regular discussions about targets. Be positive about progress and be realistic and optimistic about the chances of success. Encourage everyone to contribute (and thank them for their effort) in the spirit of moving together towards a shared goal.
• Share your feelings about a project with the team involved. Encourage team members to share their feelings and agree an action plan.
• Hold a "post mortem" in the event of a failed project, involving all concerned. Be open, praise the positives and identify the risks and costs involved. Avoid blaming people, but agree how future projects could be improved. Publish the learning points for all. Make time for regular project reviews.
• When things go wrong, take it on the chin and move on. Identify and implement the key learning points from the failure, but don't dwell on the situation.

Apparently, optimistic people smile 38% more often than pessimists, so try to see the bright side of life's little mishaps. Above all, be open and sincere. Communicate your aspirations frequently. Support other people's development. Recognise and reward positive behaviour at an individual level. Use regular meetings and one-to-one reviews to encourage this in all your staff, particularly managers. If you value the positive and scorn the negative, you will soon create a more optimistic organisational climate.

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Ross Maynard is a partner in Ideas into Action, which uses emotional intelligence, leadership competencies and neuro-linguistic programming techniques to coach business leaders. This article is contributed by CIMA (The Chartered Institute of Management Accountants) and it first appeared in Financial Management, CIMA's monthly magazine for its members.