Setbacks are an unavoidable part of any team’s journey. Whether it is a missed deadline, a failed project, or an unexpected obstacle, crises test a team’s resilience, focus, and ability to adapt. While these moments can feel discouraging, they also present valuable opportunities for growth and learning. Teams that approach setbacks as a chance for progress often emerge stronger, smarter, and more cohesive. Gregory Hold, Founder & CEO of Hold Brothers Capital1, emphasizes that leaders who guide their teams through these experiences help create a culture where challenges are seen not as the end of progress, but as the start of something better.
Turning a crisis into a breakthrough requires intention, reflection, and action. It involves recognizing the lessons in difficult moments and using them as fuel for future success. Teams that learn to do this consistently build confidence, improve processes, and achieve long-term results.
Recognize the Value of Setbacks
The first step in turning a crisis into an opportunity is recognizing the value that setbacks can bring. It is natural to feel frustration or disappointment when plans fail or challenges arise. Yet setbacks often reveal gaps in strategy, communication or process that might have gone unnoticed during smooth times. They highlight areas where teams can improve and provide a real-world test of resilience and creativity.
By treating setbacks as learning moments rather than failures, teams shift their mindset toward growth. This shift lays the groundwork for thoughtful, innovative, and lasting solutions. Leaders who emphasize the importance of learning from setbacks help their teams stay motivated and engaged even during tough times.
Foster Open Communication
Open communication is critical during and after setbacks. Teams need a safe space to share observations, ask questions, and surface concerns. Leaders play an essential role in creating this environment. By listening actively, responding thoughtfully and encouraging participation from all voices, leaders show that honest dialogue is welcomed and valued.
This openness helps teams move beyond blame and finger-pointing. The focus turns to what can be done differently next time and how everyone can contribute to improvement. When communication is clear and respectful, teams are better able to work through setbacks together.
Conduct Meaningful Debriefs
Structured debriefs help teams process setbacks productively. A debrief creates time for reflection on what happened, what went well despite the challenge, and what could be improved. Asking thoughtful questions during these sessions, such as “What lessons can we take forward?” or “Where did we face avoidable obstacles?” promotes learning and accountability.
Debriefs are most valuable when they lead to action. The goal is not only to understand the setback, but to identify specific steps for improvement. Teams that build regular debriefs into their workflow strengthen their ability to respond to future challenges with clarity and purpose.
Encourage Adaptive Thinking
Setbacks often require teams to change course or rethink their approach. Adaptive thinking helps teams respond creatively rather than rigidly. Teams that embrace adaptive thinking ask, “What alternatives could work?” or “How can we adjust our plan to fit new circumstances?” This mindset turns barriers into opportunities for innovation.
Leaders can foster adaptive thinking by inviting diverse ideas, supporting experimentation, and showing openness to change. When teams see that flexibility is encouraged, they are more willing to explore fresh solutions and move past challenges.
Strengthen Problem-Solving Skills
Every crisis presents a chance to improve problem-solving skills. Teams that go beyond quick fixes and seek root causes build long-term strength. Asking deeper questions, such as “What patterns contributed to this setback?” or “How can we address both the immediate issue and its source?” promotes thoughtful solutions.
With three decades of leadership experience, Gregory Hold believes that those who practice deliberate problem-solving become more confident in handling challenges. They build habits that serve them well during future crises, leading to faster recovery and smarter decisions.
Build Emotional Resilience
Setbacks test emotional resilience as much as technical skills. Teams that learn to manage stress, disappointment, and uncertainty during crises are better equipped for the demands of their work. Leaders support emotional resilience by acknowledging the impact of setbacks, encouraging self-care, and creating space for teams to regroup.
Simple gestures, for example, offering encouragement, recognizing effort, or providing flexibility, help teams stay steady during difficult times. Firms like Hold Brothers Capital recognize that when people feel supported, they are more likely to stay focused and contribute constructively to solutions.
Apply Lessons Learned
Turning a crisis into a breakthrough requires action. Teams should apply what they learn from reflection and debrief to future work. It might involve revising processes, clarifying roles, improving communication, or adopting new tools. Documenting these changes and tracking their effects reinforces the idea that setbacks can lead to meaningful progress.
Teams that consistently apply lessons learned from setbacks grow stronger over time. They build a culture where improvement is continuous and where challenges serve as fuel for growth.
Celebrate Progress
When teams successfully turn a setback into a breakthrough, it is important to recognize and celebrate their efforts. Sharing these success stories reinforces the idea that resilience, learning, and collaboration lead to positive outcomes. Recognition can take many forms, for example, a note of thanks, a mention in a meeting, or a written reflection shared across the organization.
Celebrating progress helps build confidence. It shows teams that setbacks do not define them, and that what truly matters is how they respond. It also encourages people to stay proactive and positive when facing future challenges.
Prepare for Future Challenges
No team can avoid setbacks entirely, but teams can prepare for them. Building habits of reflection, communication and adaptive thinking ensures that teams are ready to respond thoughtfully rather than reactively. Leaders support this preparation by making learning a regular part of team life and by modeling resilience in their work.
When teams expect challenges and are ready to meet them, they approach crises with greater confidence and effectiveness. This preparation reduces stress and promotes thoughtful action when it matters most.
Finding Strength in Adversity
Setbacks are not the end of progress, but they can be the beginning of breakthroughs. Teams that reflect, learn, and act with purpose turn challenges into opportunities for growth. Leaders who guide teams through this process help create a culture of resilience, adaptability, and continuous improvement.
By seeing crises as turning points rather than stopping points, teams unlock their potential to achieve lasting success. They build the confidence, skills, and connections needed to navigate challenges together and emerge stronger on the other side.
1Hold Brothers Capital, is a group of affiliated companies, founded by Gregory Hold.
