3 Top Leadership Qualities For Difficult Times

This article originally appeared on Forbes.com.

According to the Gallup International End-of-Year Survey of nearly 60,000 adults across 60 countries, only 37% believe 2026 will be a better year than 2025, producing a net hope score of just +11. Economic sentiment is even grimmer: only 24% expect prosperity in 2026, while 40% expect difficulty, resulting in a net prosperity score of -16, Gallup reports. Turning to sentiment on an interpersonal scale, the growing adoption of AI is troubling. According to the Pew Research Center, 50% of Americans believe AI will damage our ability to form meaningful relationships at work and beyond (only 5% believe it will improve them).

With all of this and more to contend with, conscientious leaders can feel like it’s no longer possible to lead effectively. But there is still hope. Here are the top three leadership qualities to leverage when leading your team through difficult times.

Honesty. Acknowledge The Reality Instead Of Denying It

The conditions leaders and their teams are navigating right now are genuinely difficult. With 63% of Americans saying it’s a bad time to find a quality job—the most pessimistic labor market reported since January 2021, according to Gallup—and major employers like Morgan Stanley laying off 3% of its workforce despite record revenues in 2025, pessimism and worry are understandable. Pretending otherwise or performing positivity only creates cognitive dissonance for everyone in the room, including you as the leader.

The more strategic and effective move is simply to be honest and acknowledge the reality. You do not need to have a solution; many of the problems are not yours to solve. But telling your team, “This is a difficult situation. And we’re going to figure out how to move forward together,” is not only meaningful, it is achievable. Doing this consistently, and backing it up with action, will do far more to stabilize and galvanize your team than pretending everything is fine.

Self-Awareness. Focus On What’s Within Your Control

Before you try to steady anyone else, turn inward and find your own footing. As I’ve shared with many of the senior leaders I’ve coached: “If you are not well, your people will not be well.”

Start by going back to basics. Remind yourself of your “why,” what truly matters about your work, what’s still within your control right now. Then reflect on what the answers to these questions would be for your team members and use those insights to inform your leadership. Finally, ask your team members these questions in your one-on-one meetings to coach them through what’s within their control, too.

Most importantly, remember that grounding and re-grounding yourself (and your team) is an ongoing process. Ultimately, effective leadership requires knowing the difference between what you control, what you influence and what is beyond both.

Focus. Choose One Thing That Will Move Your Team Forward

One of the most effective antidotes to hopelessness is forward movement, however small. If your team is already mired in hopelessness and overwhelm, do not adopt a new strategy or push another initiative. Take the time to focus on one concrete action that can create a real, tangible sense of progress for them.

That “one thing” will look different for every leader. It may be operational, i.e., identifying a deliverable close enough to completion that the team can get across the finish line to remember what progress and closure feel like. It may be relational, i.e., looking back over recent weeks to highlight individual and team wins to boost morale in a meaningful way.

Whatever you choose, keep it focused so you can execute on it this week, and make identifying the “one thing” a regular practice. Even one step in the right direction is enough to spark hope and start rebuilding momentum, even in challenging times.

Leadership Qualities For Moving Through Tough Times

The bottom line is that leading through difficult times does not mean performing positivity. It does not require having answers, or even feeling particularly hopeful yourself.

It simply means acknowledging what is real, doing the internal work to find your footing and taking one step forward with your team. And then repeating the process as many times as it takes.

These are the leadership qualities to leverage in challenging times. And for your team, it will make all the difference.