One of the first things we’re taught in any career – especially in financial advisories – is to adopt a “growth mindset”. Unfortunately, the term “growth mindset” has been bandied about loosely for some time now; and there’s a growing list of misconceptions about what it entails. There’s now a danger that traits we associate with growth mindsets are actually dangerous, and that misunderstand what all of it means. Here are some vital clarifications:
This is a common point of confusion, because there are some overlaps between positive thinking and a growth mindset.
Adopting a growth mindset means stepping outside your comfort zone, to learn and develop yourself. This does require a positive outlook in general: if you don’t believe you can improve or grow, then you won’t find it worth the effort to push your boundaries.
However, a growth mindset is not about deluding yourself, and refusing to acknowledge negatives. For example: if you start a side-business and end up losing a lot of money, then you do have a growth mindset in that you tried.
But it’s no longer a growth mindset if you refuse to acknowledge the failure or loss, and keep at it because you “want to be positive it will work in the end”. You still need to be rational, and cut your losses or change your approach as needed.
Refusing to acknowledge failures is in fact the opposite of having a growth mindset, as it means you cannot adapt and see past your biases; and remember that an optimistic bias is still a bias (e.g., stubbornly believing that a particular investment is great, even when reality keeps proving otherwise).
Having a growth mindset means being open and realistic, not just forcing yourself to be an optimist 24/7.
Be careful not to equate unnecessary experience with personal growth.
For example, if you’ve never smoked before, then smoking a cigarette would indeed be a new experience: but it’s still a terrible idea to start, because this experience is not a form of personal growth. It just helps to create a new vice.
In a wider sense, this means that having a growth mindset isn’t just about saying “yes” to every novelty, without thinking it through. High risk actions – such as quitting your job and launching into a new career with zero preparation – is not a great way to grow.
By all means, prepare to switch to a new career if you feel it’s time to move on; but do so in a measured and realistic way, such as by preparing three to six months of expenses and sending resumes, long before you make the leap.
Don’t take unnecessary risks, and excuse it to yourself by saying “I’ll grow from this”.
To be precise, a growth mindset is about exploring limitations, and feeling for where your limits truly lie. It doesn’t mean ignoring the existence of those limits.
A growth mindset does not enable the impossible: you are not going to learn to play the piano in a week, or master a foreign language in a few days, no matter your mindset. If you think this is what a growth mindset allows, you’re setting yourself up for
disappointment.
At most, what a growth mindset allows you to do is explore these aspirations, and get a sense for the cost (i.e., how much time and effort it will take you). Whether or not you can afford that cost is a whole different matter.
Likewise, a growth mindset helps you understand where your aptitudes and deficiencies lie; it does not in itself actualise your aptitude, or fix your deficiency. You may find, while exploring ways to conduct sales, that you have a talent for cold calling. That’s great, but you still need to put in hours of work to take that talent to its full potential.
You may also find a deficiency, such as being bad at face-to-face sales. A growth mindset does nothing to help that, other than inform you of the deficiency, which you need to find other ways to fix.
In reality, mindsets don’t emerge out of the blue. They are the product of culture and environment.
If you were to take someone open-minded, and put them in a stagnant corporate culture, they’ll eventually become the same as their colleagues. Consider all the ambitious and bright-eyed young adults you knew in University, in the army, etc. How many lost their shine, after five to 10 years in the workforce?
Conversely, the opposite can be true. Even if you take a mature-age person with a fixed mindset, and immerse them in a dynamic work culture or community, a growth mindset starts to emerge. One example of this would be Singapore’s Seniors Go Digital programme.
This means that, besides focusing on yourself, you need to pay attention to the people you work with. Who is present to mentor you, and does your employer support your attempts to be different? These factors are just as important as your own willingness to adopt a new mindset.
Not all criticism is positive, or comes with good intentions. There are people who will say things just to inflict hurt, or who speak out of personal biases.
We hear many such criticisms on a daily basis, such as “people in finance are all out to cheat you”, or “if you don’t have a degree you can forget about making $X”. These forms of criticism are over-generalised, and accepting them wholesale just causes you to accept the same prejudices.
Taking all criticism seriously, without thinking it through, can actually lead to a fixed mindset. So while it’s important to be open to feedback, never assume that everyone’s opinion is equally valuable. Before you accept the feedback, think about who it’s coming from, and what qualifies their point of view.
At Exodus Capital, we understand that cultivating growth mindsets is more than just using buzzwords, and having “feel good” sessions. We steward both veterans and new entrants to the finance industry, in getting ahead with their careers. Do reach out to us for help, if you want career opportunities that can match your wider goals.
