In the Crosshairs of a Crisis

“Resilience in a crisis ultimately depends on the people in the room – their presence, their judgement, and their ability to stay centred when everything around them is shifting.”

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Leaders rarely get fired for incompetence. More often, they lose their jobs because of how they behave when they feel threatened.

A regulatory probe, a court verdict, a front-page story – these are the moments that strip away the polish and show what lies underneath. And when a senior figure begins to crack, the effect rarely stays confined to them. A single fracture can throw the whole team off course.

This case, drawn from a major asset management firm facing a high-value tax ruling, illustrates that point. The names and some details have been changed, but the pattern is one I’ve seen many times.

Setting the strategy

At first, the foundations looked solid. The executive team was experienced. The General Counsel (GC), known for his clear thinking and firm conclusions, had guided the firm through complex legal matters before. The CEO trusted him, and with good reason.

So when the tax authority handed down a ruling that could leave the firm with a substantial liability – and potentially create a precedent for the whole sector – the GC advised taking the case to court. The board agreed. Preparations began: filings, briefings, coordination with external counsel.

The plan seemed promising and the direction was clear.

A change in momentum

As the hearing unfolded, doubts began to surface. The Chief Risk & Compliance Officer (CRCO) raised concerns about exposure and downside scenarios – but the GC dismissed them as “noises-off.” The legal strategy continued.

By the final day of the hearing, however, credible signs suggested the verdict would go against the firm. The CEO, who flew back early from an overseas trip, called a late-night meeting. The task was straightforward: prepare for impact.

The senior team gathered, and responsibilities were divided: investor communications, stock exchange notifications, media handling, operating budgets. The machine of crisis response began to turn.

From dialogue to disruption

And then came the fracture. While the CEO was now focused on managing the expected loss, the GC remained fixed on the legal fight. Again and again, he pulled the discussion back to the possibility of appeal. He repeated arguments already heard. He spoke over colleagues. He resisted closing the legal thread so the team could advance operational plans.

Momentum stalled. Eventually, colleagues who normally deferred to him began pushing back. Others disengaged. Some stopped updating their areas of responsibility. And in the end, focus splintered.

After an hour of going in circles, the CEO pulled him aside: contribute constructively, or step out so the team could move forward. He chose to leave. And within a week, he was gone from the firm.

Lessons for leadership teams

The details may be specific, but the dynamic is not unusual. When a leader’s sense of identity rests heavily on being the expert, the steady hand, or the person with the answers, a crisis threatens more than the organisation’s position. It threatens their own too. And when that identity is shaken, their capacity to lead constructively can unravel in real time.

In times like these, the real danger often isn’t the crisis itself, but how we react to it.

Emotional inflexibility, fear of losing face, and scattered thinking can all throw us off course – right when we need a clear head the most.

Crisis playbooks and well-designed processes have their place. They provide structure, direction, and a framework for action. But their effectiveness depends on something more fragile: how leaders actually behave when the pressure is on.

That’s why true preparedness needs to account for the human factor – personal triggers, team dynamics, and the ways stress can shape behaviour around the table. Famn’s Crisis Leadership Assessment is built with this in mind. It identifies those pressure points before they surface, mapping out both the individual reactions and the ripple effects across teams.

Because resilience in a crisis ultimately depends on the people in the room — their presence, their judgement, and their ability to stay centred when everything around them is shifting.

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