E+R=O — and why the “+” is perspective
You encounter, you react, you get an outcome. But the part you actually control sits in the middle — how you choose to see it.
E+R=O is a well-known formula — Encounter + Reaction = Outcome. You encounter a person, a thing or a situation; you react; and that leads to an outcome. But the part you actually control sits in the “+”: it is your perspective. How you perceive an encounter dictates how you react — and therefore the outcome.
The formula — and the part you control
As I describe it in my sessions: “E is encounter — you encounter somebody, or a thing, or a situation. You have to make a decision, and from that encounter we react. We lean in, we move out of the way, we make a hiring decision, a firing decision — whatever it may be. And that leads to an outcome. But in this equation, the plus symbol is our perspective. How I perceive that encounter will dictate how I'm going to react, and therefore the outcome.”
That's the whole point. The event isn't usually yours to choose. The outcome follows from what you do. The leverage — the bit you own — is the perspective you bring to the moment in between.
We're wired to believe we're right
One of our core biases is believing we're right. That's confirmation bias: we go looking for the information that backs up what we already think, and we quietly discount the rest. E+R=O only works if we start from a more honest place — accepting that we are not always right, and that our perspective is exactly that: a perspective, not the truth.
Stop arguing the outcome — get curious about the “why”
Where it usually goes wrong is that we spend all our energy on the outcome. We end up butting heads — “I think this, and you think that.” The shift is to step back and ask why: why do I think this? Why does it matter to me? And why does the other person hold a different view?
Their background, their faith, their ethnicity, their gender identity, their sexuality, even something as ordinary as their hearing — all of it shapes the perspective they bring. So don't just focus on the outcome. Think about the why, and why it matters. Understand where someone's belief system has come from, and the conversation changes completely.
Hold your views with an open hand
This sits right alongside an idea I return to often — the forecaster Paul Saffo's phrase, “strong opinions, weakly held”. Have your belief, but relax the grip. Be prepared to challenge, and to be challenged. That's how you overcome confirmation bias, listen to a different perspective, and let a better outcome emerge.
Why this matters for inclusion and leadership
E+R=O is, at heart, an emotional intelligence tool. It's what lets us stay aware, knowledgeable and confident enough to lean in to a difficult conversation rather than away from it. For inclusive leaders, the perspective you choose in a charged moment is culture-defining — it's the difference between a team that feels heard and one that learns to stay quiet. It's also the everyday engine of #PositivePeopleExperiences: change the perspective, change the interaction, one encounter at a time.
Take it further
Pair this with strong opinions, weakly held and emotional intelligence & inclusive leadership, or browse all guides. Hear these ideas in conversation on the Inclusion Bites podcast.
Bring this thinking into your organisation
Book a free 30-minute discovery call to explore a keynote or workshop on conscious inclusion, perspective and the human side of leadership — practical, honest and built around your people.
Book a discovery callFrequently asked questions
What does E+R=O mean?
E+R=O is a well-known formula — Encounter + Reaction = Outcome (often written as Event + Response = Outcome and popularised by Jack Canfield). You encounter a person, thing or situation, you react, and that leads to an outcome. The way I teach it, the part you actually control is the "+": it's your perspective. How you perceive an encounter dictates how you react — and therefore the outcome.
Why is perspective the most important part of E+R=O?
Because we're wired to believe we're right — confirmation bias means we look for information that backs up what we already think. If you change nothing but your perspective on an encounter, you change your reaction, and you change the outcome. That's where your agency lives: not in the event, and not in fighting over the outcome, but in the perspective you bring to it.
How does E+R=O help with difficult conversations and inclusion?
When people disagree, they usually butt heads over the outcome — "I think this, you think that." E+R=O says step back and get curious about the why: why do I think this, and why does someone else hold a different view? Their background, faith, ethnicity, gender identity, sexuality or lived experience all shape perspective. Understanding the why — rather than defending the outcome — is what makes inclusive, leaning-in conversations possible.