Leaders Can Regulate Their Stress for Peak Performance

With decades of experience helping organizations navigate change, HRTech expert Ling-Yi Tsai has become a leading voice on the integration of technology and human well-being in the workplace. She specializes in using HR analytics to illuminate the often-invisible stressors that impact performance, from the C-suite to the front lines. Today, she joins us to discuss the pervasive issue of leadership from a state of anxiety. We’ll explore how leaders can recognize their own stress-performance sweet spot, use practical tools like the APFAR checklist to assess their team’s well-being, and understand the tangible business costs of leading from a state of hyper or hypo-arousal.

The Yerkes-Dodson law describes a performance “sweet spot,” yet your article notes most people feel tired, overwhelmed, and anxious. How can a leader recognize they’ve passed their optimal point on the curve? Please share a step-by-step process for self-assessment in a high-pressure moment.

That’s a critical question because self-awareness is the first step, and it’s often the hardest when you’re already sliding down the other side of that curve. The data is clear: when I ask groups of executives how they feel, a staggering 80% use words like “tired” or “overwhelmed.” That’s not the optimal zone. In a high-pressure moment, the first step is to simply pause. Don’t react, just take one deep breath and initiate a quick internal scan. Second, check in with your body. Is your jaw clenched? Is there a tightness in your stomach or chest? These are the body’s early warning signs that it’s shifting into a fight-or-flight state. Third, notice your thoughts. Are they racing a mile a minute, jumping to worst-case scenarios? Or have you gone completely blank? Fragmented thinking is a classic sign of hyper-arousal. Finally, observe your behavior. Are you about to send a terse email or cut someone off in a meeting? Recognizing that impulse is evidence you’ve passed your peak. This whole process can take 30 seconds, but it’s the difference between leading intentionally and just reacting to the pressure.

You introduce the APFAR checklist as a tool for leaders. Focusing on “A for Argumentativeness,” describe how a hyper-aroused, “winner takes all” leader and a hypo-aroused, “why bother” leader might derail the same project meeting. What’s a concrete example of leading from the optimal zone here?

It’s fascinating to see how two opposite ends of the arousal spectrum can lead to the same dysfunctional outcome. Imagine a critical project meeting where the team needs to solve a complex problem. The hyper-aroused leader, running on adrenaline, comes in with a “winner takes all” mindset. They’ll dominate the conversation, shoot down ideas that aren’t their own, and get defensive at the slightest challenge. Their emotional reactivity creates a climate of fear, and no one dares to offer a creative but unproven solution. On the other hand, the hypo-aroused leader, who is in a shutdown state, will exhibit a “why bother” attitude. They’ll be physically present but mentally checked out, offering non-committal phrases like “whatever you want” to avoid any friction. This passive approach creates a vacuum of leadership, and the meeting drifts without a clear decision. A leader in the optimal zone, however, enters with curiosity. They might start by saying, “This is a tough challenge, and I don’t have the answer. What are your initial thoughts?” They listen, ask clarifying questions, and are willing to be changed by what they hear. They facilitate a debate where the best idea wins, not the loudest person, guiding the team to a collaborative solution.

The Gallup report you cite found stress and sadness were top employee emotions. How do these feelings manifest in the “Appetite” and “Rest” indicators of the APFAR checklist? Can you share an anecdote of how a manager spotted these signs in a team member and intervened effectively?

Stress and sadness directly disrupt the body’s most fundamental rhythms, which is why Appetite and Rest are such powerful indicators. Chronic stress floods the system with cortisol, which can either kill your appetite completely or trigger cravings for high-calorie “comfort” foods. Sadness, in a hypo-aroused state, often manifests as a general lack of hunger or using food to numb feelings. The impact on rest is just as dramatic. A stressed employee might complain of being “wired but tired,” lying awake with racing thoughts, while a sad or disengaged employee might oversleep and still struggle to get out of bed. I recall a manager I coached who noticed his top performer, usually the first one in and full of energy, had started skipping team lunches and looked perpetually exhausted on morning video calls. Instead of addressing performance, the manager took him aside and said, “I’ve noticed you seem to be running on empty lately. I just wanted to check in and see if everything is okay.” The employee admitted he was dealing with a personal issue that was disrupting his sleep. The manager didn’t try to solve the problem but offered flexibility with his start time for a few weeks. That small, human intervention rebuilt the employee’s sense of psychological safety and he was back on track within a month.

Your piece explains that hyper-arousal fragments focus while hypo-arousal moves it away from priorities. What are the tangible business costs of a leadership team stuck in these states? Please detail a specific technique a leader can use to help their team regain optimal focus before a critical deadline.

The business costs are immense and often misdiagnosed as strategy or market problems. A leadership team in a state of hyper-arousal is incredibly busy but not productive. Their focus is fragmented, so they jump from one “urgent” fire to the next, unable to concentrate on long-term strategy. This leads to costly mistakes, missed opportunities, and a culture of frantic busyness. A hypo-aroused leadership team is just as damaging; their focus drifts away from priorities toward distractions. They avoid difficult decisions, projects stall, and innovation dies on the vine because no one has the energy to champion it. In both cases, memory is affected, key details are dropped, and employee trust erodes. A powerful technique to regain focus before a deadline is a “hard reset.” Gather the team, and before diving into the to-do list, have everyone turn off their notifications. Then, lead a simple two-minute breathing exercise or just have everyone share one thing they are grateful for. It sounds simple, but this consciously pulls the team out of their reactive states and into the present moment. Only then should you re-focus the conversation, asking: “What is the single most important thing we must accomplish in the next hour?” This creates a shared point of calm, intentional focus.

You describe the hypo-aroused response to stress as a passive, “victim-mindset.” What are the early warning signs of this behavior in a high-performing employee? Please outline a conversational strategy a leader can use to help them move back toward engagement without causing them to shut down further.

In a high-performer, the shift to a hypo-aroused state can be subtle at first. You might notice a change in their language. They stop using “we” and start using “they” when talking about the company, creating distance. They may stop offering creative solutions in meetings and instead just agree with the consensus, or they might say things like “it’s out of my hands” for challenges they would have previously tackled head-on. Another sign is a degradation of their normally high standards; deadlines might be met, but the work lacks its usual spark and polish. The key to intervening is to lead with observation and curiosity, not accusation. Pulling them into a formal performance review can trigger a further shutdown. Instead, try a casual one-on-one and start with a soft, observational opening. For example: “I’ve always valued your perspective on our projects, but I’ve noticed you’ve been a bit quieter in our recent planning sessions. I wanted to check in and see how you’re feeling about the current direction.” This approach is non-judgmental. It validates their past contributions and opens a door for them to share what’s going on, whether it’s feeling disconnected from the mission or overwhelmed by their workload, without feeling like they are being put on the spot.

Do you have any advice for our readers?

My main piece of advice is to treat your nervous system state with the same importance you treat your P&L statement or your project timelines. It is the invisible engine driving everything you do. Start by recognizing where you are. Use a simple checklist like APFAR not as a tool for judgment, but as a compass. Once you know where you are—whether you’re revved up in hyper-arousal or shut down in hypo-arousal—you can take one small, intentional step back toward the middle. It doesn’t have to be a week-long meditation retreat. It can be a five-minute walk outside, a quick chat with a friend that makes you laugh, or simply turning off your phone for an hour. It matters less what you do and more that you commit to doing something. By taking accountability for your own state, you not only improve your well-being but also become a more effective, inspiring, and human leader for everyone around you.

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