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Happy Healthy Leader Newsletter

Smart Stress: The Hidden Edge of Sustainable Performance

By June 27, 2026No Comments

The best leaders don’t avoid stress; they know how to use it. Here’s how to stay sharp without burning out.

We often talk about stress like it’s the enemy and something to be avoided or eliminated. But not all stress is bad. In fact, without some stress, we’d never perform at our best. The real challenge is knowing when “good stress” turns into overwhelm, and when overwhelm slides quietly into burnout.

The Science of Stress

Psychologists across clinical, organisational and sport settings call positive stress “eustress.” It’s the kind that energises and motivates us to grow, focus, and perform. Eustress gives short bursts of adrenaline and cortisol, sharpening attention and helping us rise to mental and physical challenges.

Research shows that moderate, short-term stress can:

  • Boost focus and memory (Du et al., 2025; Hermans et al., 2022; Schwabe & Wolf, 2022)
  • Build resilience when followed by recovery (Degering et al., 2023; Maunder et al, 2023; Russo & Nestler, 2023,
  • Enhance meaning and engagement (Chen & Nakagawa, 2023; Zhang, Sun, & Li, 2023; Yildirim & Solmaz, 2024)

The key is that stress needs to be short-term and followed by recovery. Without recovery, the chemistry that once sharpened us begins to wear us down.

The Three Stress Zones

Think of stress like a traffic light. Green keeps you moving forward, amber warns you to slow down, and red means stop before something breaks.

🟢 Green Light — Healthy Stress (Eustress)

You’re in the sweet spot. You feel energised, alert, and motivated. Challenges feel stretching but manageable.

Signs you’re in the green:

  • You feel focused and productive
  • You can switch off and recover after work
  • Sleep and concentration are steady
  • You still feel connected to your purpose

This is where performance thrives. Stress hormones spike briefly, then settle. You’re using energy efficiently and not leaking it.

Tip: Stay here by balancing intensity with recovery. Plan short pauses between high-stakes moments. Try Mindful eating twice a week (eating lunch without a screen). Mindful eating not only slows down digestion but can also quieten the mind, reduce emotional/reactive eating, and sometimes lead to eating less and reduce ‘arvo coma’.

🟡  Amber Light — Overwhelm (Distress)

This is the warning zone. You’re still functioning, but the edges are fraying. Cortisol stays elevated, and your “thinking brain” starts to fatigue.

Signs you’ve hit amber:

  • You’re more irritable or impatient
  • Focus is harder to maintain
  • Sleep becomes patchy, you’re “tired but wired”
  • You rely on caffeine, alcohol, or screens to cope
  • Recovery takes longer than it used to

You can still perform here, but not for long. Without recovery, the body stays in fight-or-flight mode.

Tip: Pause before it becomes the new normal. Implement good sleep hygiene- no devices, sugar or alcohol one hour before bed time. Get back to do daily physical activity, walk between meetings. And create 10–15 minutes of “no input” time daily (long bath, journal, fiction book, try a Mindfulness app).

🔴 Red Light — Burnout risk

Now you’re running on empty. Your body and mind are trying to protect you by shutting down motivation and energy.

Signs you’re in the red:

  • Persistent exhaustion, even after rest
  • Feeling detached, cynical, or ineffective
  • Physical issues like headaches, gut problems, poor sleep
  • Loss of meaning or motivation. More negative self-talk

This is when the brain’s prefrontal cortex (responsible for focus, empathy, and regulation) goes offline, while the emotional brain stays on high alert.

In 2025, 43% of the Australian workforce reported Burnout, with people in leadership roles sitting around 58%. The World Health Organisation defines burnout as: “Chronic workplace stress that has not been successfully managed.” This is more often a dysfunction of the workplace, not you. The good news is that you have the agency to get yourself out of it.

Tip: Don’t white-knuckle it. Focus on what you do have control of- your body. Prioritise sleep and diet first. Even one good night of sleep can be a game-changer. Swap one bad habit with a good one- wine o’clock now becomes walk o’clock (this helped me to stop drinking for good!). Speak to someone. Anyone. Burnout can be a lonely place. The irony is that most leaders will experience it at some point in their professional life.

🧩 How to Get Back to Green

You can’t remove stress, but you can manage it intelligently.

Interrupt the loop. Your body doesn’t know the difference between danger and deadlines. Slow breathing (in for 4, out for 6), a walk, or changing posture tells your nervous system you’re safe. Try and understand how to practice Mindfulness. Mindfulness meditation is not a quick fix; however, most people report clearer thinking and better sleep after 8 weeks of daily practice. The science proves this daily technique decreases stress. More info HERE.

Rebuild meaning. Burnout thrives in disconnection. Reconnect with why you do what you do. Leaders who work with clear purpose report significantly lower burnout rates (McKinsey Health Institute, 2023). If you are struggling with purpose, read this article.

Seek support early. Talking to a professional isn’t a weakness. It’s prevention. And in my experience (and many years of 360 data), your team can see you are struggling. When leaders model change and self-care, their teams follow.

The Goal Isn’t Less Stress — It’s Smarter Stress

You can’t avoid the waves. But you can learn when to surf them and when to come back to shore. Smart leaders don’t chase balance; they build it through awareness, recovery, and connection. Lead smarter. Live stronger. Impact more.

Sustainable performance is not built on constant pressure. It is built on leaders who understand the difference between productive challenge and the slow drift into burnout.

The question is not whether burnout exists in your organisation.

The question is whether you are recognising it early enough to protect yourself, leadership effectiveness, team culture, retention, and long-term performance.


If this article resonated with you, Margie Ireland’s Beat Burnout webinar offers practical, evidence-based strategies to help leaders and teams identify burnout, respond early, and create healthier ways of working that support both wellbeing and results.