The need for challenge, the need to burst through the constrictions of tasks and situations already seen and mastered, can affect anyone, even those enjoying the greatest gains from success.

The best worst example of making people feel unappreciated today lies in the casualness, indeed indifference with regard to massive lay-offs even when there isn't a financial crisis. That is a message to employees that they are expendable, interchangeable, easily dismissed and replaced, often by younger, less experienced and cheaper employees. The essential message being conveyed to people is, You are worthless. What an incredibly dumb thing that is for management to say!

The Psychological Recession is the cluster of feelings that the present is really scary and the future will likely be worse. It comes from the sense you have no control over what's happening to you and you don't see a way to get your life back under control. It's the feeling that life is unfair; you paid your dues, you worked hard, and you ended up naked and vulnerable. There is no comfort to be found in the dismissal of the Psychological Recession as being just an idea; it is a real phenomenon with real consequences, all of them bad.

In truth, it's usually failure, disappointment, and frustration that motivate people to reexamine that which they've taken for granted. It's rare to find big change without significant bad news. ... In that sense, the pain of failure creates the largest opportunities for progress.

... we know that productivity suffers when uncertainty is high. But we've failed to realize the equally destructive effects of too little anxiety. ... By protecting people from risk, we destroy their self-esteem. We rob them of the opportunity to become strong, competent people.

Trust is perhaps the most critical single building block underlying effectiveness. Without trust leaders do not have followers. Without trust, leaders are impotent despite great rhetoric or splendid ideas. Trust rests on the belief among followers that the leader is transparent: What you see is what there is. Trust means followers believe there is no duplicity; no manipulation just to satisfy the leader's ego. Very simply: The effective leader is transparent; that's why that person is trusted.

I think the characteristics of really effective leaders when people are frightened and depressed are the same qualities that leaders need when people are optimistic. The difference is when people are frightened the need for these few qualities becomes much stronger because frightened people are desperate to have someone they can trust and believe in and who seems to be able to create a better future.