When I heard that Dan Cross said to his boss, “We’re not going to hit our numbers this year—and that’s the only way we’ll survive to hit them next year,” I felt something catch in my chest.
Not fear.
Awe.
Dan and I first met years ago, when I was facilitating a culture change workshop for a regional leadership team he was part of. He stood out then as a thoughtful, values-driven leader. More recently, I interviewed him for my research on empathetic performance improvement—and this story stayed with me.
He told me about a time when he’d just inherited a sales team deep in burnout. It was 2020, early-pandemic, and the pressure was high. His team needed support—but his leadership expected results. Instead of pushing them harder, Dan made a different call: he managed up to create space for his people to heal.
That one decision changed everything.
The next year, despite tougher conditions, his team hit their numbers—and became one of the top-performing groups in the organization. But that wasn’t a miracle. It was a product of empathy, clarity, and a willingness to lead through the valley instead of rushing people out of it.
Dan’s story is a perfect example of what I call a Leader as Regulator. He didn’t just absorb the team’s anxiety or ignore the executive pressure; he regulated the environment. He diagnosed the real problem (burnout), and then provided the necessary support (space and time) to restore his team’s capacity. He managed the system, not just the symptoms.
This is the central challenge for leaders today.
Do you ever feel like the ground keeps shifting under your feet? It’s not just a feeling. The pace of change has reportedly jumped a mind-boggling 183 percent since 2019. This acceleration is creating widespread “change fatigue”—a state that seems emotional but is grounded in our fundamental social biology.
In any team, emotions are contagious. We instinctively read and react to the non-verbal cues of others, a well-documented phenomenon known as Emotional Contagion (Barsade, 2002). In a professional hierarchy, all eyes look to the leader.
This is where leadership regulation becomes a critical skill.
A “Leader as Regulator” is not a therapist; they are the team’s gyroscope. They understand that their own managed response to stress and ambiguity directly impacts the team’s ability to think clearly. They strategically provide social support (both emotional and instrumental) to turn solo struggle into shared strength.
While leaders can’t always slow the pace, they can shape how their teams move through it. This article breaks down the predictable performance curve of change—The Change Dip—and equips you with a practical diagnostic toolkit to identify exactly what your team needs to get back on track.
What is the Change Dip?
Even a positive change can stir up stress. Think of it as a predictable “dip” in performance and morale that occurs as a team moves from the old way of working to the new one. This journey generally moves through two distinct phases:
1. The Launchpad This is the start of the project, often marked by high excitement and energy. Team members focus on the potential benefits and are not yet aware of the full complexity or obstacles ahead. You’ll hear: “This will be great!”
2. The Labyrinth This phase begins when the team hits the first major, unexpected roadblock. The work is harder than anticipated, and the initial enthusiasm fades. You’ll start to hear: “Uh-oh—this is harder than we thought.”
As the team gets deeper into this “sloggy middle” where the old way is gone but the new way isn’t working yet, motivation can bottom out. This isn’t failure; it’s a predictable part of the process. This is when a team’s self-efficacy, their core belief that they can succeed, is at its lowest.
You’ll hear people question the entire project: “Why did we even do this?” This is the critical moment where a “Leader as Regulator” must step in, not to manage the emotion, but to diagnose and fix the underlying performance problem.
Why does change feel more overwhelming than before?
It’s not just you. The volume of change has increased dramatically, with professionals reporting a 183% rise in the pace of change since 2019. And 88% of executives say it’s about to accelerate again.
Our current rate of speed comes at a cost. Nearly two-thirds of workers now say they’re overwhelmed by how quickly their work is evolving (according to LinkedIn and Deloitte). There’s less time to absorb new tools, fewer moments to reflect before pivoting again. Leaders feel it, too.
One client put it bluntly in one of our sessions: “Change is here. I’ve gotta figure it out.” The pressure to absorb and adapt without faltering is enormous.
In the middle of that pressure, social support and psychological safety often disappear just when people need them most. This is precisely why a “Leader as Regulator” is so essential: to intentionally manage the team’s environment so that clear thinking and collaboration can survive the pressure.
How do you know if your team is in The Labyrinth?
The signs of a team being stuck in the “Change Dip” are not always loud. Sometimes they show up as flat affect (i.e., nobody’s smiling), quiet quitting, or grim stoicism. You might hear less laughter on Zoom. You might see cameras off and contributions wane.
These signs matter. (Note, however, that they are only signs—they are data that require interpretation and investigation before you decide what they mean).
One leader told me, “It feels like Groundhog Day… and that’s not satisfactory for me.” The spark was gone; not because she didn’t care, but because caring had become exhausting.
Another leader, wrestling with disengagement in a high-potential employee, said “I’ve done everything I can think of. What am I missing?”
What they were missing was a diagnostic framework. They were trying to manage the symptom (disengagement) without knowing the root cause. Applying more pressure (“more performance management”) would only make it worse.
When teams are burned out, they stop co-creating. They are stuck in The Labyrinth because of a specific, diagnosable breakdown—often a collapse in Psychological Safety (it’s not safe to fail) or Self-Efficacy (they no longer believe they can win).
The “Leader as Regulator” provides a path out. They do this not by just offering sympathy, but by actively providing Social Support and using their diagnostic tools to rebuild the team’s safety and confidence in the work itself.
A Leader’s Diagnostic Toolkit: How to Intervene in the Change Dip
Let’s make this practical. When you observe the data that your team is stuck in “The Labyrinth” (disengagement, low morale, cameras off that used to be on), it’s time to run the diagnostic.
Your job as an organizational leader is not to manage the emotion, but to find and fix the root cause. The problem is almost always a breakdown in one of these three areas: psychological safety, self-efficacy, or social & instrumental support. Here are specific, actionable interventions for each.
1. Tactics to Build PSYCHOLOGICAL SAFETY
Safety is the foundation. If your team is afraid to fail or speak up, you will never get the accurate data you need to solve a problem.
- Share the Map (and the Compass): At the start of any new initiative, show your team the “Change Dip” model. Walk them through it aloud: “This is a predictable performance curve. We will all feel the ‘Labyrinth’ phase. It’s not a sign of failure; it’s a normal part of innovation.”
- When people see the map, they are less likely to internalize the hard parts as a personal failing. This normalizes the process, which is a core part of building safety.
- Invite the “Red Flags”: A “weather check” is popular but unfortunately too vague and personal. Instead, build safety by making it safe to discuss the work. Actively solicit the “bad news.” Start your next meeting by asking:
- “What is the one part of this project that isn’t working?””What’s the biggest risk you see that no one is talking about?””Where are we most likely to fail in the next two weeks?”
2. Tactics to Rebuild SELF-EFFICACY
Self-Efficacy is a person’s belief that their effort can lead to a successful outcome. In “The Labyrinth,” this belief is shattered. Your job is to rebuild it with concrete proof.
- Reinforce Small Wins with Specific Praise: Marking small wins is critical for keeping a team energized during a long project. The most effective way to do this is to move beyond a generic ‘good job’ and provide specific, attributional feedback that links a team’s actions to a positive outcome.
- For any team, a verbal acknowledgment is powerful when it’s precise. For example: ‘You achieved the desired result on that presentation because your attention to detail and follow-through on the data was excellent. That’s the level of rigor that builds client trust.’
- This kind of specific praise builds your team’s confidence and shows them exactly what to do next. The vehicle for the celebration matters less than the clarity of the message: Your specific work led to this specific win.
- Re-Anchor in Purpose: When a team is stuck in the day-to-day slog, they forget why the work matters. Reconnect their specific tasks to the larger mission. Don’t just show a purpose statement.
- Ask: “Remind me, if we solve this complex problem, what does it make possible for our customers?” This re-engages intrinsic motivation. As one client said, “If I know what I’m protecting, I can make the hard call.”
3. Tactics to Provide SOCIAL & INSTRUMENTAL SUPPORT
Support is not just about “being nice.” It’s about providing the tangible, instrumental resources and social connection needed to get the work done.
- Run a “Clarity Check”: One of the biggest stressors is ambiguity. A leader provides immense support by simply creating clarity. When you sense frustration, stop the meeting and put up a virtual whiteboard.
- Say, “We’re spinning. Let’s not leave this room until we have defined:
- What is the exact problem we’re solving?
- What is the next single step?
- Who owns that step?”
- Structure Co-Working “Lifts”: Schedule 25- or 50-minute focused, cameras-on, no-talking co-working blocks on Zoom to tackle a specific, difficult task (like data analysis or report writing). This provides silent, shared accountability and reduces the isolation that kills motivation.
A Repeatable Workflow for Leading Through the Dip
Want a repeatable workflow? Here is a simple process you can tailor to your team to operationalize your role as a “Leader as Regulator.”
- Debrief and Refine. At the end of a project sprint, pause. Ask the team: “What worked?” “What interventions from leadership most helped us regain clarity and confidence?” Use those insights next time.
- Map the Journey. Share “The Change Dip” map at the start. Talk about “The Labyrinth” as a normal, predictable part of the process, not a failure.
- Run the Diagnostic. Make diagnostic check-ins a normal part of your meetings. Instead of a “weather check”, ask questions that build Psychological Safety and test for clarity. Use tactics like “Invite the Red Flags” to get real data on the work.
- Provide Targeted Support. Based on your diagnosis, provide instrumental support. Don’t just assign a “buddy”; schedule a structured “Co-Working Lift” to solve a specific problem or run a “Clarity Check” to get the team unstuck.
- Reinforce What Works. Create rituals for mini-milestones. Progress feels better when it’s acknowledged. Use the “attributional feedback” model to connect specific actions to positive outcomes.
Bring it home
Being a Leader as Regulator isn’t soft. It’s strategic.
It won’t work to force cheerfulness or minimize discomfort. When leaders steady the room by regulating their own response and modeling a calm, diagnostic presence, teams become more resilient.
Try one tactic from the Diagnostic Toolkit this week. Just one. Start small. And then notice what shifts in your team AND in you.
Frequently Asked Questions
Q: What is co-regulation in the workplace?
A: In a leadership context, this is the skill of managing your own response to stress to positively influence your team’s performance. It’s about strategically providing Social Support and countering negative Emotional Contagion by modeling a calm, diagnostic presence. It’s a key strategic component of being a “Leader as Regulator”. One of the key skills for a Leader as Regulator is holding empathetic accountability during times of stress.
Q: Why does change feel so overwhelming lately?
A: The pace of change has accelerated dramatically since 2019, leaving little time for recovery. This pressure can lead to burnout, emotional shutdown, and disengagement if not managed well.
Q: How can I tell if my team is experiencing change fatigue?
A: Look for observable data like quiet withdrawal, lower engagement, off-camera Zoom calls, or repetitive expressions of frustration. These are signs your team is stuck in “The Labyrinth”. This is your trigger to “ask questions” and run the Labyrinth Diagnostic: Is this a breakdown in Psychological Safety, Self-Efficacy, or Social Support? That diagnosis is the “action” you need to take.
Q: What are the key tactics from the “Leader’s Diagnostic Toolkit”?
A: The tactics are a diagnostic framework. First, “Share the Map” of “The Change Dip”. Instead of a “weather check”, “Invite the Red Flags” to build Psychological Safety. Use “Attributional Feedback” (our rewrite of ‘mini-celebrations’) and “Re-Anchor in Purpose” to rebuild Self-Efficacy. Finally, provide “Structured Co-Working Lifts” as a form of practical, instrumental support.
About the author
Amy Kay Watson, MCC, has guided over 3,000 leaders around the world to build high-performing, human-centered teams. She helps kind leaders manage with confidence—without losing what makes them human. Learn more at AmyKayWatson.com.
