Stress is a constant presence in today’s fast-moving business world. From tight deadlines and ambitious targets to unexpected challenges, teams regularly find themselves working under pressure. Gregory Hold, Founder & CEO of Hold Brothers Capital1, recognizes that stress can feel like a threat, something to minimize or avoid. Yet, when managed effectively, stress can actually help teams grow stronger, more resilient, and more capable of handling future challenges.
Leaders play a crucial role in helping their teams transform stress from a source of strain into a source of strength. By understanding the science behind stress and applying practical strategies, leaders can guide their teams to thrive even in the most demanding situations.
How Stress Shapes Team Behavior
When stress levels rise, our natural response is to focus intently on what feels most urgent. It can help teams act quickly and decisively in high-stakes situations. But stress can also narrow thinking, reduce flexibility, and limit creativity. Teams under stress often default to familiar approaches rather than exploring new solutions, because taking risks can feel more dangerous when pressure is high.
Leaders can help counter these effects by creating an environment where stress is acknowledged openly and managed as a shared challenge. When teams feel that they are facing pressure together, rather than in isolation, they are better able to support one another and stay focused on the bigger picture.
The Role of Stress in Learning and Growth
Not all stress is harmful. In fact, moderate levels of stress, sometimes referred to as eustress, can be beneficial. Eustress can increase motivation, sharpen focus, and encourage people to stretch beyond their comfort zones. The key difference is how stress is perceived. When seen as a challenge, stress can drive learning and growth. When seen as a threat, it can trigger fear and avoidance.
Leaders powerfully influence this perception. By framing difficult moments as opportunities to develop new skills, solve problems, and strengthen collaboration, leaders can help their teams build resilience. Recognizing small wins, celebrating progress, and emphasizing learning over perfection all contribute to this positive framing.
Communication Under Stress
Stressful conditions often cause communication patterns to shift. People may speak more abruptly, skip important details, or assume that others understand their intentions without checking. It can lead to confusion, errors, and frustration, particularly when time is short, and the stakes are high.
Leaders can set the tone for clear, thoughtful communication even under pressure. Modeling behaviors like pausing to confirm understanding, asking clarifying questions, and using tools such as checklists and briefings help ensure that the team stays aligned. These practices don’t slow work down; they make it more effective by reducing the need for rework and preventing avoidable mistakes.
Building Psychological Safety in Stressful Moments
Psychological safety, the belief that it is safe to speak up, ask questions, and admit mistakes, is critical when teams face stress. Without it, people may hold back ideas, concerns, or feedback that could help the team navigate a difficult situation more effectively.
Leaders build psychological safety through consistent actions: listening actively, responding respectfully, and treating mistakes as opportunities for learning rather than reasons for blame. When team members see that their input is valued, they are more likely to contribute openly, which strengthens collaboration and supports better outcomes.
Encouraging Flexibility and Adaptive Thinking
Stress can make teams more rigid, as the desire for quick solutions leads them to turn back to familiar methods. Yet stressful moments often require fresh thinking and the ability to adapt as conditions change.
Leaders can encourage adaptive thinking by asking open-ended questions like, “What other options could we consider?” or “Is there a simpler solution we haven’t tried yet?” These prompts help keep the team’s mindset flexible and focused on possibilities rather than limitations. When adaptability is encouraged, teams are better equipped to respond creatively to unexpected challenges.
Supporting Well-Being Without Sacrificing Urgency
One of the biggest challenges in managing stress is balancing the need for urgency with the need to protect the team’s well-being. Sustained pressure without relief can lead to fatigue, mistakes, and burnout. Leaders must be intentional about helping teams manage their energy, not just their time.
Simple practices like setting realistic deadlines, prioritizing tasks, and encouraging short breaks can help. Under Gregory Hold’s leadership, Hold Brothers Capital leaders regularly check in with their teams about how they’re managing stress. This sends a powerful message that well-being and performance go hand in hand.
Promoting Reflection After Stressful Periods
Every stressful period presents an opportunity for learning. Leaders who create space for reflection after high-pressure moments help their teams build confidence, improve their processes, and prepare for future challenges.
It can be as simple as asking questions like, “What went well?” “What could we do differently next time?” and “What did we learn about how we work together?” These discussions reinforce the idea that stress can be a source of growth rather than simply something to endure.
Practical Steps Leaders Can Take
Leaders can help their teams turn stress into strength by taking thoughtful, practical actions:
- Set clear priorities. Help teams focus on what matters most when everything feels urgent.
- Promote open communication. Encourage regular updates, questions, and clarifications to maintain alignment.
- Support flexibility. Make it safe to suggest changes in plans or approaches as new information emerges.
- Model calm and focus. Leaders who stay steady under pressure help their teams do the same.
- Recognize contributions. Small moments of acknowledgment help sustain morale during stressful periods.
- Encourage recovery. Remind teams to take short breaks and regroup, especially after particularly intense efforts.
By applying these strategies, leaders can create a culture where stress becomes a catalyst for focus, learning, and strength rather than a source of harm.
From Stress to Strength: Leading with Purpose
Stress is a reality for any organization striving for excellence. What distinguishes strong teams is not the absence of stress, but how they respond to it together. Leaders who understand the science of stress and who take purposeful steps to guide their teams through challenging moments help build resilience, trust, and long-term success.
When leaders turn stress into strength, they not only help their teams succeed today but also prepare for tomorrow’s challenges.
1 Hold Brothers Capital, is a group of affiliated companies, founded by Gregory Hold.