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The Pygmalion effect, also known as the Rosenthal effect, describes how a person's expectations can influence another person's behavior and performance. In essence, if someone expects a person to succeed, that person is more likely to achieve success, and conversely, negative expectations can lead to poorer performance.

The original Rosenthal effect experiment, also known as the Pygmalion effect, was conducted by Robert Rosenthal and Lenore Jacobson in an elementary school setting. They manipulated teachers' expectations about their students' potential, leading to a self-fulfilling prophecy where students labeled as "intellectual bloomers" showed significant performance improvements compared to their peers.

So what exactly is the Pygmalion Effect?

At its core, it’s the idea that what you expect—either of yourself or others—can dramatically shape performance and results. When we believe in someone’s potential, they often rise to meet those expectations. And when we expect little or hold limiting beliefs, performance often falls short. It’s a self-fulfilling prophecy.

This concept comes from a famous psychological experiment. Back in the 1960s, psychologist Robert Rosenthal conducted a study in an elementary school. Teachers were told that certain randomly selected students were “intellectual bloomers” and would likely make great strides during the school year. These students weren’t special—just chosen at random. But by the end of the year, those students did perform significantly better. Why? Because their teachers believed they would.

That belief changed how the teachers treated them—more encouragement, more attention, more patience. And the students responded to that. They internalized those expectations and performed accordingly.

Now let’s take this into your world.

Let’s say you’re an entrepreneur, a content creator, or someone working toward a financial or personal goal. When you believe in your success—when you expect growth—you begin to make decisions aligned with that belief. You show up differently. You speak differently. You become more resilient. And that starts to create momentum.

But here’s the catch: the opposite is also true. This is where the Golem Effect comes in—the darker side of the Pygmalion Effect. When you expect little of yourself, or others expect little of you, performance drops. You internalize those low expectations, and you start holding yourself back. You settle. You hesitate. You play small. All because you don’t expect more.

This is why your mindset matters. It’s not just a feel-good idea—it’s a driver of results.

Here’s the good news: You can change it. You can consciously raise your expectations.

Think about how you talk to yourself. What’s your inner dialogue? Is it full of doubt? Fear? Hesitation? Or are you telling yourself: I can do this. I am built for success. I find solutions. I grow from challenges.

How you see your future. Are you visualizing struggle and failure, or are you expecting things to get better, to grow, to thrive?

When you start expecting more, you’ll start doing more. Because your subconscious will begin aligning your actions, habits, and focus with that higher vision.

This also applies to leadership—whether you’re managing a team, raising kids, or coaching others. If you want to bring out the best in people, you have to believe in their potential. Speak it. Show it. Hold that higher vision for them until they can hold it for themselves. The best leaders, the best mentors, the best teachers—they set high expectations, and they make others feel like they can rise to meet them.

Now, let’s talk profit—because this is the Year of Profit, after all.

If you’re looking to grow financially, you need to expect profit. You need to believe that growth is coming. That abundance is within reach. That you’re capable of generating value, income, and opportunities. Your financial breakthrough starts with your mindset.

I’m not just talking about blind optimism here. I’m talking about training your mind to focus on progress, to seek out solutions, to act with confidence—even before the results show up.

Because when you expect progress, you find ways to make it happen. You take more chances. You recover faster. You invest smarter. And slowly but surely, your reality begins to match your expectation.

How it works:

The effect is a self-fulfilling prophecy where expectations, whether positive or negative, can become reality. A manager who believes their team is capable, for example, might offer more support, encouragement, and opportunities, ultimately leading to better performance. Conversely, a teacher who expects little from a student might unintentionally provide less attention or challenge, potentially hindering the student's progress.

Key aspects of the Pygmalion effect:

The core of the effect is that expectations, whether conscious or unconscious, influence the way we interact with and treat others.

The effect is considered a type of self-fulfilling prophecy because the initial expectations can create a cycle where the expected outcome is more likely to occur.

The Pygmalion effect can have both positive and negative consequences, depending on the nature of the expectations.

The effect can be observed in various settings, including classrooms, workplaces, and even personal relationships.

Examples:

• In a classic 1960s experiment by Robert Rosenthal and Lenore Jacobson at an elementary school, teachers were given false information about students' potential. Randomly selected students were labeled as "intellectual bloomers," and the teachers' subsequent interactions with these students, influenced by these expectations, led to significant academic gains for those students compared to their peers A teacher who believes a student is gifted might provide extra attention and challenging assignments, leading to improved academic performance.

A manager who has high expectations for their team might foster a positive and supportive work environment, resulting in increased productivity.

Conversely, a student who is constantly told they are not good at a subject might internalize that belief and perform poorly, even if they have the potential to succeed.

Raise your standards. Raise your vision. Raise your voice.

You don’t become what you wish for—you become what you expect.

The Pygmalion Effect is real. It’s powerful. And if you use it—if you expect more from yourself, your business, your relationships—you’ll start to see everything rise to meet that belief.

3. How It Applies to Personal Growth & Business

When you expect yourself to grow, you naturally take actions aligned with that.

Expect more out of yourself.

Hold yourself to a better standard and tell yourself you can do what you’re working on.

Show others that you hold yourself to a Highter standard.

When leaders or mentors believe in your potential, it boosts your performance.

The more you tell yourself that you are better then what your thinking now the more your subconscious will notice.

Your subconscious takes cues from your conscious beliefs.

The Year of Profit podcast, hosted by Joe Shortridge, is your go-to resource for transforming every aspect of your life. As a seasoned life and financial coach, Joe brings a unique blend of personal development and financial wisdom to each episode. This podcast is designed for anyone looking to improve their mindset, boost productivity, manage stress, and achieve financial success. Whether you're striving to overcome personal challenges, build better habits, or enhance your financial literacy, The Year of Profit offers actionable strategies to help you reach your goals.

Joe’s expert advice covers a wide range of topics, from mental wellness and time management to wealth-building techniques and entrepreneurial mindset. Each episode provides listeners with practical steps they can immediately apply to their daily lives, leading to long-term growth and fulfillment. Through relatable stories and proven strategies, Joe empowers you to take control of your life, create positive change, and maximize your potential.

If you're ready to take your life to the next level and start living with purpose, The Year of Profit podcast is the perfect place to begin. Tune in each week for new insights, motivation, and inspiration to start your journey toward lasting success and well-being.