Leading in an Age of Fear: How to Build Resilience When the World Feels Unstable

By Ulrika Gustafson LL.M. PCC

The other day, I was talking to my mother in Sweden. While on FaceTime, she stepped into another room, lowered her voice, and confided that she hadn’t been able to sleep for several nights. She was worried – very - about me and my sister living in the U.S. because of what she’d been hearing in Swedish media. The message? The new U.S. President is unpredictable (as in dangerous), global instability is rising, and Sweden is at risk of war because of the chaos America is allegedly fueling.

That took me by complete surprise. Not because things aren’t complex in the world, but because I had never heard that sheer level of fear and certainty in her voice - and it didn’t match the reality I see daily. Here in the U.S., while political debates are alive (as always), no one is walking around in a state of total panic, bracing for immediate collapse. The disconnect made me think - this is fear-mongering in action. It’s happening everywhere, on all sides, from all directions. And it’s seeping into our organizations, our leadership teams, and our employees’ mental well-being.

So the real question is - how do we, as strong leaders, lead through this? How do we help our people stay focused, engaged, and resilient when fear is being pushed at them from every angle?

Why Fear-Mongering Works (And Why Leaders Use It)

Fear is a shortcut. We all know that it’s easier to scare people into compliance than to build real trust and motivation. That’s why politicians do it, the media thrives on it, and yes, some corporate leaders use it to control their teams.

And history backs this up. Anyone who knows their world history knows that fear has always been a tool of control. Extremist regimes throughout history have used it to manipulate public perception and maintain power. Both Nazi Germany and Stalin’s Soviet Union institutionalized fear to keep people in line.

• Under the communist dictator Joseph Stalin, fear-mongering wasn’t just a tactic - it was a system. People were encouraged to report on one another, fueling paranoia that led to mass arrests and executions of those labeled “enemies of the state.”
• The Nazi regime created external and internal threats to justify extreme measures, keeping people too fearful to resist.
• In the U.S., the Red Scares and McCarthyism era were all about fueling paranoia and shutting down opposing voices. The fear of communism led to blacklisting, loyalty oaths, and people losing their jobs over nothing more than suspicion. Just like in Nazi Germany and Stalin’s Soviet Union, fear was used as a tool to control public opinion, keep people in line, and make sure no one questioned the narrative.
• Even today, similar tactics are resurfacing in places like Russia, where fear-based narratives keep the public in a state of compliance.

Why? Because fear works.

It works because:

• Fear triggers fast action. If people think the world (or their job) is at risk, they react instantly.
• Fear overrides logic. When emotions take over, people stop questioning things critically.
• Fear creates dependency. A scared workforce is less likely to challenge authority.

I see this not just in politics, but in organizations everywhere. Leaders warning that if targets aren’t met, everything is doomed. Managers who make people feel like they’re constantly on the edge of failure. Entire leadership teams that run on “if we don’t move faster, our competitors will kill us.”

The result? Anxiety, decision paralysis, and exhaustion.

The Real Cost of Leading by Fear

Fear might get short-term results, but over time, it erodes everything that makes a business (or a society) strong.

?? People stop thinking critically. They just react. They do the minimum to survive. They avoid risks.

?? Mental health takes a hit. Chronic stress leads to disengagement, burnout, and even physical health issues.

?? Trust is lost. If leaders use fear to manipulate, eventually people catch on - and when trust is gone, it’s hard to get back.

?? Decisions become defensive. Instead of thinking long-term, teams scramble to fix short-term “emergencies” that may not even be real.

I’ve had clients from all over the world share their struggles with this. One senior executive in a European tech firm told me his team was so caught up in external fears (market crashes, wars, industry disruption) that they had stopped focusing on what they could control. Another client in the U.S. said the constant fear-driven news cycle was making it hard for his leadership team to stay strategic - everything felt like a crisis.

This is exactly why leaders need to step up and lead differently.

How to Lead Through Fear and Build Resilience in Your Organization

1. Be the Anchor in the Chaos

When the world feels unstable, people look to their leaders for certainty. Not fake optimism, but steady, grounded leadership.

?? Stay calm. If you panic, your team will panic.

?? Separate fear from facts. Help your team focus on real risks, not exaggerated ones.

?? Keep perspective. Remind people that uncertainty has always been part of business and life - and we’ve always navigated through it.

Instead of saying “The market is unpredictable, and we need to brace for impact,” say, “Yes, there’s uncertainty, but here’s how we’re positioning ourselves to adapt and thrive.”

2. Lead with Transparency, Not Fear

Fear thrives in secrecy and speculation. If people don’t know what’s happening, they assume the worst.

?? Communicate clearly and often. Even when you don’t have all the answers, sharing what you do know builds trust.

?? Acknowledge concerns - but don’t catastrophize. Your team can handle reality. What they can’t handle is vague, anxiety-inducing messages.

?? Encourage open dialogue. Fear-driven leaders shut down hard questions. Resilient leaders welcome them.

Instead of saying “We might have to make some tough decisions soon,” say, “Here’s what’s happening, here’s what we know, and here’s how we’re approaching it.”

3. Help Your Team Manage Anxiety and Overwhelm

Your people are absorbing stress from all directions - political tensions, economic concerns, personal challenges. As a leader, you can’t ignore this.

?? Encourage balance. Long-term resilience requires breaks, mental recovery, and realistic workloads.

?? Provide stress management tools. Coaching, wellness programs, and professional development help people feel more in control.

?? Model resilience yourself. If you’re constantly overwhelmed, your team will be too.

Instead of pushing a “grind through it” culture, create space for meaningful check-ins on how people are coping. A simple “How are you managing all this?” can go a long way.

4. Focus on Purpose, Not Panic

Fear-based leaders say, “If we don’t do this, we fail.” Great leaders say, “Here’s why this matters.”

?? Shift from fear to mission. Why does this work matter? What impact does it have beyond just avoiding risk?

?? Keep the long-term vision front and center. Fear makes people focus on short-term survival. Leaders need to lift their teams above that.

?? Inspire rather than intimidate. People don’t do their best work when they’re afraid - they do it when they feel connected to something bigger.

Instead of saying, “If we don’t close these deals, we’re in trouble,” say, “Let’s focus on what we do best - solving real problems for our clients.”

Final Thought: Be the Leader Who Brings Stability, Not Fear

The world isn’t going to stop throwing uncertainty at us. The media will keep pushing fear. Politicians will keep using it. And some leaders will keep relying on it.

But you don’t have to.

Your job is to cut through the noise. To be the leader your team can trust. To bring clarity, confidence, and purpose instead of panic.

Because in the end, fear fades. But real leadership? That lasts.

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