Imagine not having your cortisol and adrenaline levels spike the next time you’re told one or your senior employees has resigned and the related project he’s leading is now significantly behind schedule.

Or, not being overwhelmed with anxiety when a key client informs you they will not be renewing their managed services contract with your firm – a decision that will significantly impact your P&L statement.

These types of situations are faced by business leaders on a daily basis. Some are crushed by the event, immobilized with fear and fixating on the issue while others are driven into action to find a path forward.

How you approach the next crisis and whether or not you survive it is highly dependent on your mind set.

This distinction was drilled into my brain (literally) during my years learning to box. I recall having a very tough opponent, (a 3-times Golden Gloves champion) cornered, and I, being very much aware of his superior power and skills, hesitating to move forward.

I hesitated because I knew my opponent was a great counter puncher. He was waiting for me to attack so he could deftly evade my strike and counter with one of his. I was focusing on all the risks and dangers of moving forward.

I remember my coach yelling at me from ringside, “Andrew, are you challenged or threatened?”

When I fixated on how I could be countered, I froze, I was threatened. I paid the price as my opponent nailed me with a sharp combination of punches and quickly moved out of the corner.

When I was challenged by the opportunity, I looked for ways to setup my punches and I attacked with speed and confidence. The results were drastically different; my punches landed and my opponent remained pinned in the corner.

The obstacle was the same in both cases and the risks were similar however the outcome was dictated by my mind set.

Focusing on what might happen to me; getting smoked by an overhand right and getting knocked out inevitably led to a painful result.

However, when I quickly assessed my options and opportunities I was able to positively dictate the outcome. For example, my opponent tended to drop his left hand when I feinted a jab to his mid-section. Changing my mind set to being challenged to find openings allowed me to focus on what I could do and enabled me to act with confidence.

The boxing ring and the boardroom are obviously very different arenas, however the impact your mind set has on your performance is the same.

Many executives would agree losing a key client feels like a punch to the gut. The key to regaining that client or signing three more is highly dependent on being challenged not threatened.