In Sefer Keser Shem Tov, the Baal Shem Tov learns out from the Mishnah in Maseches Kesubos about people seeing a marriagable age woman speaking with a man on the street that speech is a very powerful thing. He says that even when one is out on the street, being involved with Olam HaZeh, even then at all times one’s speech is by way of Yichudim (Divine Unifications). This is particularly interesting when we consider that Rebbe Nachman says in Likkutei Moharan that one can serve Hashem even through being m’vatel Torah, through not learning Torah, and that conversing with friends is important. Even mundane matters can be utilized for a holy purpose, specifically in reference to the Tzaddik.
I believe it is clear from much of R’ Nachman’s referring to the Tzaddik, he is referring to a part of each Yid. In Chabad and other Chassidus this is referred to as the Pinteleh Yid. R’ Nachman states in Likkutei Moharan that every Yid has some aspect of the Tzaddik within them, alongside his various reminders to us that every Jew can become a Tzaddik with work. The Baal Shem HaKodosh brings also from the gemoro that one thing we are to learn from Shas is that we all need to thank Hashem for everything, like it says in Maseches Brochos we need to bless Hashem for the things that are bad as much as those that are good, because ultimately everything is good, though it may not seem so according to our level of perception. He brings that Nachum Ish Gam Zu, known for saying “Gam zu l’tovah,” “This is also for the good,” was on the level to recognize that all the Dinim and seemingly evil things have their root in Chesed and ultimate goodness. The Baal Shem says there that this accomplishes a Hamtokas HaDinim, sweetening of judgements.
Even when things seem to be bad, ultimately they are still good. Hashem is not a cruel God, though there are unfortunately many who wish to paint Him as such. It requires tapping into the aspect of the Tzaddik which is a part of every one of us to realize this. The aspect of the Tzaddik is connected to Yesod, which is the last Sefirah before Malchus in reference to the Seder Hishtalshelus (Order of Emanation, loose translation). Yesod functions, l’moshol, like a birthing canal, wherein all the various forces and powers of the higher Sefiros are channeled through it to manifest in the physical world of Malchus. When the world is viewed through the eyes of the Tzaddik, that is the lens of Yesod, a person can see how various influences from Above impact things Below, and can see the roots of various circumstances as they play out in our reality. Through thanking Hashem for good as well as bad, and actively seeking to recognize His hand in everything, we can eventually merit to behold the ultimate roots of Chesed in all things that happen. This is a hard avodah, but it is relevant to every Yid, and over time it becomes easier. Simply through thanking Hashem for His Chesed as expressed through difficulty will lead to sweetening the harsh judgments and lead to revealing the proper intent and goodness underneath.