Have you ever noticed that when things go well, it seems they’ll always go well? And when things go bad, it seems they’ll never get better? In reality, things are never as good, or as bad, as they seem to be.

An economic boom can lead people into a kind of intoxication for excess and greed. It inspires and accelerates overconfidence and can lead to a frenzy of seemingly irrational activity. Before we know it, we’re back to the same problem we experienced in previous years: yet another economic slowdown. But success can also lead to complacency. We get lazy and take our eye off the proverbial ball. I’m not sure which is worse: excessiveness or complacency.

Challenging economic times can call for decisive action: aborting a project the market will no longer support, firing a top level director due to questionable behavior, or facing a product recall that could jeopardize future business. Difficult times force us to get back to basics and to make tough choices, even if we don’t want to. But such times may well create opportunities in disguise.

A recession forces you to take a deep look at every facet of your business and, often, every aspect of your life. We forget that what goes down will eventually come back up. We forget that great innovations are often born out of difficult economic times. We forget that necessity really is the mother of invention.

One of the greatest challenges for a leader is to face the reality of the times. But one of the greatest traits of leaders is that they learn to create their own reality. Both good times and bad have their fair share of both trouble and opportunity.

Be alert for trouble in good times; look for opportunity in bad times.

Tags: Advice, Business Development, Business Tips, Character, Crisis Management, Developing Leaders, Leadership Problems, Learning, Life Tips, Motivation, Personal Development, Reality, Success, Wisdom