Why Some Leaders Thrive in Crisis and Struggle When Things Work

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Published
Jan. 20, 2026
Why Some Leaders Thrive in Crisis and Struggle When Things Work
Leadership fit is often framed as a question of talent. In reality, it is just as much a question of timing. The behaviours that rescue organisations in crisis can become constraints in stability, not because leaders decline, but because the context shifts. This article explores why boards frequently anchor on past success, underestimate phase transitions, and misread misalignment as personal failure. The critical variable is not capability alone, but whether leadership behaviour matches the organisation’s current conditions.

The hidden dimension of leadership fit is timing, not talent

There is a pattern many boards recognise, but rarely articulate clearly.

The leader who stabilised the business under pressure, restored confidence and made tough calls is often the same leader the organisation starts struggling with a few years later, once things have settled.

Decisions slow down. Friction increases. Energy fades. Not because the leader suddenly became less capable, but because the context changed.

This is one of the most misunderstood aspects of leadership fit.

The flawed assumption: leadership quality is stable across contexts

Many leadership decisions are built on an implicit assumption that good leadership is transferable across situations. That if someone performed exceptionally well in one phase, they will continue to do so in the next.

In practice, leadership effectiveness is highly situational.

What creates clarity and momentum in one phase can quietly undermine ownership, learning and long-term performance in another.

This is not about personality flaws or declining capability. It is about misalignment between leadership behaviour and organisational needs over time.

Why crisis rewards one set of behaviours

In periods of turbulence, organisations tend to reward leaders who bring:

  • speed and decisiveness
  • strong central control
  • clear prioritisation
  • personal authority under uncertainty

Research supports this. Studies on stress and performance, including the Yerkes–Dodson law, show that heightened pressure can increase focus and execution for individuals who are comfortable operating under threat and ambiguity.

In organisational terms, crisis environments often benefit from leaders who simplify complexity, reduce debate and act with conviction. These behaviours are not only effective. They are often celebrated.

Boards remember these leaders as “strong”.

Why the same behaviours can fail in calmer phases

As stability returns, the organisation’s needs change. The challenge is no longer survival or rapid correction, but:

  • building sustainable capability
  • developing second-line leadership
  • distributing ownership
  • enabling learning and coordination

Here, the same behaviours that worked so well before can start producing unintended consequences.

Decisiveness becomes over-control. Clarity becomes rigidity. Personal authority crowds out accountability in others.

Why boards often misread the situation

There are three common reasons boards struggle with this transition.

First, they anchor on past success. The leader “proved themselves” in a difficult phase, which makes questioning fit later feel disloyal or risky.

Second, they underestimate transition risk. Stability is assumed to be easier to lead than crisis. In reality, it demands a different form of leadership discipline.

Third, they confuse continuity with safety. Keeping the same leader feels less risky than making a change, even when the cost of misalignment is quietly accumulating.

The result is often delayed decisions and gradual erosion, rather than visible failure.

Timing matters as much as competence

The uncomfortable truth is this: Leadership fit is not just about who someone is. It is about when they are asked to lead.

Some leaders are exceptional in turbulence and less effective in calm. Others struggle early, but excel once systems, people and processes need to mature.

This does not make one better than the other. It makes fit a moving target.

Boards that ignore this dynamic tend to optimise for yesterday’s problem. Boards that acknowledge it make better, earlier decisions.

A final reflection for boards and owners

Before doubling down on a leader because of past performance, it is worth asking:

What does the organisation actually need now? What behaviours are being rewarded by the current phase? And which strengths might quietly be turning into constraints?

These are not questions of talent. They are questions of timing. And they are often where leadership decisions go wrong in practice.

Selected references:

  • Kaiser, R. B., & Hogan, R. (2011). Personality, leader behavior, and overdoing it. Consulting Psychology Journal: Practice and Research.
  • Hannah, S. T., Uhl-Bien, M., Avolio, B. J., & Cavarretta, F. L. (2009). A framework for examining leadership in extreme contexts. The Leadership Quarterly.
  • Heifetz, R. A., Grashow, A., & Linsky, M. (2009). The Practice of Adaptive Leadership. Harvard Business Press.