In every business, challenges are inevitable. Some are tiny—barely a blip on the radar—while others seem to tower like mountains. The real test of leadership lies not in whether challenges arise, but in how they’re handled. Emotional intelligence (EQ) becomes essential when determining the true size of a problem and deciding how to respond. If a small issue—a molehill—is blown out of proportion, it can quickly turn into a mountain, sapping the energy and morale of the entire team. But what’s equally dangerous is the opposite: avoiding problems, allowing small issues to grow unchecked. In my children’s book Molehill Mountain, we explored the concept of small worries ballooning into overwhelming obstacles. The lesson resonates deeply in business, where understanding the difference between a molehill and a mountain—and responding appropriately—can mean the difference between success and burnout. Recognizing the Molehill or the Mountain The first step in addressing any challenge is determining its true size. Not every issue is a mountain, but not every issue is a molehill either. Leaders with strong emotional intelligence can pause and reflect: Is this a small concern, or does it have the potential to become a bigger problem? This self-awareness helps leaders see things clearly, recognizing whether the issue requires immediate action or a measured response. Identifying the size of the problem—mountain or molehill—sets the stage for how the team will react and the emotional energy they will invest. The Dangers of Avoiding Problems However, there’s a risk in downplaying problems as well. Avoiding issues entirely, especially out of fear or pride, can cause even the smallest molehills to grow into mountains over time. Leaders who lack humility may avoid admitting their mistakes or refuse to confront problems, letting them fester. This avoidance, often driven by a fear of being wrong or appearing weak, leads to greater challenges down the line. Emotional intelligence, on the other hand, encourages leaders to confront problems head-on and create an environment where admitting wrongs is seen as a strength, not a weakness. It is through humility that a leader can prevent molehills from becoming mountains in the first place. Opportunities to Build Confidence When a problem is addressed with humility and clarity, it becomes an opportunity to foster confidence within the team. Leaders who handle issues calmly, even when they’re molehills, send a message: “We can handle this.” Addressing problems appropriately helps the team build resilience and trust. It shows that challenges—no matter their size—can be faced and conquered, which boosts morale and fosters a proactive work environment. On the other hand, leaders who inflate every molehill into a mountain risk burning their teams out. When everything is treated as a major crisis, employees quickly feel overwhelmed, as though they’re perpetually climbing mountains they can never summit. This erodes trust in leadership and diminishes the team’s confidence in their ability to solve problems. Recognizing Problems with Your Leadership Team A strong leadership team can help balance these perspectives, providing natural checks and balances. When leaders involve others in evaluating the size of a problem, they’re less likely to overreact or underreact. Emotional intelligence fosters collaboration, encouraging leaders to seek advice from their teams. By working together to gauge the size and scope of an issue, leaders can avoid the trap of turning a molehill into a mountain—or worse, ignoring a mountain altogether. Sometimes, the Mountain Is Real While many challenges are merely molehills, sometimes the issue is truly a mountain. Emotional intelligence also means knowing when to recognize a large problem and communicate it effectively. Being clear about the size of the challenge and rallying the team around a collective effort can turn even the biggest mountain into a manageable climb. Rallying the troops to tackle a major issue not only aligns the team but also provides the chance for everyone to work together, bringing their strengths to the table for an efficient ascent. Avoiding the Overreaction Spiral But even when problems arise, it’s important for leaders to regulate their emotions. An overreaction from a leader can send the wrong signal, creating unnecessary stress and a sense of panic within the team. In business, emotions are contagious. When leaders overreact, the molehill becomes a mountain simply because of the emotional response it triggers throughout the organization. Emotional intelligence allows leaders to stay calm, take a step back, and approach each problem with clarity, ensuring the entire team remains grounded. Turning Mountains Back into Molehills Even when a situation escalates, emotionally intelligent leaders can reverse the course. By stepping back and reframing the problem, they can turn mountains back into molehills. This not only reduces stress but also reinforces a culture of calm, pragmatic problem-solving. Every time a leader successfully navigates a challenge with perspective, they model behavior that encourages resilience and reinforces trust. The Cost of Ignoring EQ Without emotional intelligence, teams may find themselves caught in an endless cycle of stress and escalation. Problems that could be solved with ease turn into long-standing issues, creating a tense and unproductive environment. Worse, when leaders consistently turn molehills into mountains, the company culture becomes inwardly focused. Instead of addressing market challenges or pursuing growth opportunities, the team becomes bogged down by internal issues, missing out on external possibilities. Over time, this focus on internal problems erodes innovation and competitiveness. Conclusion: Keep Molehills in Perspective The lesson of Molehill Mountain applies just as well to the business world as it does to children. Emotional intelligence helps leaders not only assess problems accurately but also handle them in ways that build confidence and keep teams energized. Whether you’re dealing with a molehill or a mountain, the key is responding appropriately, using emotional intelligence to guide the team through challenges without creating unnecessary stress. By keeping molehills in perspective, leaders can prevent burnout, build trust, and ensure their teams are always ready for the next climb.