It was one of those mornings – coffee spilling, keys missing and, of course, running late for an important meeting. As frustration grew, I realized the biggest issue wasn’t the messy morning, but how I was choosing to handle it. 

Problems. We’ve all got them. And truthfully, how we handle them is what sets great leaders apart from the rest. I’ve learned – often the hard way – that problems don’t magically get better or vanish on their own. In fact, the outcome entirely depends on what you choose to do (or don’t do) when facing them.

Let’s start with the “don’ts.” Here are four common pitfalls I’ve seen leaders stumble into – and yes, myself included:

1. Don’t underestimate the problem. 

Pretending it’s “not that bad” won’t shrink it. The longer you ignore its true size, the more overwhelming it’ll become when reality hits.

I remember a team leader who consistently brushed off employee dissatisfaction. Eventually, morale dipped so low that productivity tanked. Addressing issues early could have prevented a total team breakdown.

2. Don’t overestimate the problem. 

Panic helps no one. Magnifying the issue beyond its actual impact creates anxiety and clouds your judgment. Stay calm, objective and grounded. 

Think of that time when your colleague spiraled into anxiety over an unexpectedly tight deadline. Their panic not only slowed progress – it spread to the entire team, making everyone less effective.

3. Don’t wait for the problem to go away. 

It won’t. Problems ignored today become crises tomorrow. Leaders act decisively, even when it’s uncomfortable. 

A friend of mine postponed dealing with minor financial irregularities in their business, hoping they’d resolve themselves. They didn’t. Eventually, they faced a major audit that cost them both time and money.

4. Don’t make it worse. 

Sounds obvious, but when stress spikes, rash decisions follow. Pause, breathe and think clearly before acting. Your reaction shouldn’t amplify the issue. 

Ever fired off an email in anger only to regret it immediately afterward? A heated moment can leave lasting damage to professional relationships.

Now for the “Do This” section:

1. Anticipate the problem. 

This doesn’t mean worrying – it means keeping your eyes wide open. If you need one, consider your clean-up plan and clean it up quickly! 

Like when Netflix anticipated streaming would overtake DVDs, they proactively shifted their entire business model, staying ahead of the curve.

2. Communicate the problem to those who need to be in the know. 

Not the whole world. Not on social media. Otherwise, you sound like a victim, and no one enjoys hanging around a victim. Got that? 

Take the airline industry as an example – effective airlines communicate delays and cancellations clearly to passengers, easing frustration and preventing unnecessary backlash.

3. Size up your problem. 

Get perspective. Ask yourself, “What’s really going on here and how will it affect me or us?” Name the real issue; this takes honesty without the urge to find excuses. You game? 

I recall a nonprofit director who noticed declining donations. Instead of panicking, they investigated and found it was simply a shift in demographics. Adjusting their outreach strategy quickly turned things around.

4. Be grateful for the problem. 

There’s a lesson hidden somewhere within it. Be smart enough to find it and use it to your advantage. 

Remember the story of Pixar? When their first computer-animated film faced endless technological hurdles, rather than seeing these as setbacks, they embraced each problem as an opportunity to innovate, ultimately changing animation forever.

Consider Johnson & Johnson’s iconic response in 1982 when their Tylenol capsules were deliberately contaminated. 

They swiftly pulled all Tylenol products nationwide, clearly communicated their actions, and prioritized public safety over profits. This bold, transparent handling not only resolved the immediate crisis but set new industry standards, ultimately restoring trust and strengthening their brand.

Your leadership is defined not by a lack of problems, but by your response when they show up. You’ve got this. For more on mastering your response under pressure, check out Episode #12 of the Leader Fuel Podcast: Master Your Freakouts: The Secret Leadership Skill Everyone’s Missing. It’ll give you deeper insights and practical tips to keep your cool and lead effectively when problems arise.