Today’s reality is that most businesses, large or small, will face a crisis at some stage of their life cycle. Increasing interconnections in social, economic and political systems make us more vulnerable to crises. Our growing dependence on technology exposes us to risks such as disinformation, ransomware, malware, and data leaks. Globally intertwined supply chains have made us more susceptible to crises brought about by geopolitical tensions and war. Whatever the case, when a business anticipates and responds to crises brought about by disruptions in supply chains, geopolitical upheavals, economic instability, climate change or cybercrime, it is better prepared to survive. A leader who can manage a crisis effectively has the skills to navigate uncertainty, take decisive actions, and communicate effectively and with empathy. However, one thing can derail any dedicated efforts to enhance crisis preparedness and improve response effectiveness when it counts the most. An unchecked ego can play havoc on crisis leadership: the kind that can make or break a crisis.
A few years ago, the Harvard Business Review published an article highlighting how leaders risk getting an inflated ego if they isolate themselves from their colleagues, workplace culture and even clients. A leader’s big ego can pose a huge problem in the workplace, clouding their judgement and making them oblivious to their weaknesses and flaws. Failure to listen, accept constructive feedback or be open to different points of view can hinder the most intelligent and talented leaders. While leadership might come with power, more money, a fancier office and people who hang onto your every word, it also comes with the danger that impacts the ability to lead successfully, especially in a crisis. Power can inflate the ego, leading to corrupt behaviour, judgement and morality.
The collapse of the Fortis bank and insurance group during 2008 and 2009 provided a powerful case study demonstrating the downside of big egos. Acquisition activities driven by inflated CEO and Chairman egos played a decisive role in the company’s demise during the global economic crisis. The quest to become one of the most important European financial organisations provided a stage for ego, power, tactical games and politics in the actions of top executives on critical and timely issues. In October 2007, Fortis formed a consortium with the Royal Bank of Scotland and Banco Santander to take over ABN AMRO. The combination of a high takeover price and the severe global credit crisis confronted Fortis with serious problems, ending in an acute liquidity crisis in mid-2008. In early October 2008, the Belgian and Dutch governments stepped in to nationalise the bank to prevent it from going under. The case highlights how ego played a role in compromising the CEO’s logic during a takeover. It also points out how previous acquisition experiences boosted his self-esteem, resulting in overconfidence and leading to riskier behaviours.
The press was also identified as a factor in massaging the ego of board members and CEOs, giving scant attention to social responsibility issues such as accountability to bank customers and employees.
Ego was on the centre stage of the crisis that evolved after the former Spanish football federation president, Luis Rubiales, planted a controversial kiss on star footballer Jenni Hermoso at the Women’s World Cup Final in 2023. She later said the kiss was non-consensual. Even as public fury grew over Rubiales’ actions and the Spanish Football Federation’s (RFEF) perceived tolerance of sexism within the organisation, the federation was slow to respond. It appeared not to comprehend the gravity of what happened and initially dismissed the crisis and supported Rubiales. A week after the controversial event, the RFEF changed tactics, announcing an “extraordinary and urgent” meeting in Madrid with the heads of Spain’s 19 regional football federations to assess the impact of the crisis.
Meanwhile, Rubiales, whose first response to the public outcry over the kiss was that his critics were ‘idiots and stupid people,’ was forced to apologise the day after Spain’s World Cup win, saying he was “completely wrong.” Many deemed his words a non-apology. In a subsequent apology, a week later, he said his behaviour “seems like it has caused a commotion.” This tone-deaf response, too, garnered criticism for obvious reasons.
In the following days, while public protests continued, coaching staff resigned, condemning Rubiales’ conduct. The international governing body of association football, FIFA, removed Rubiales from office with a 90-day suspension. Three weeks after Spain’s win, Rubiales resigned. In late October, FIFA banned him from the sport for three years for misconduct at the Women’s World Cup final.
In July 2019, party members elected Boris Johnson as Conservative Party leader, and he became Prime Minister after Theresa May resigned. However, scandals and poor decision-making marred his leadership. His move to suspend Parliament triggered outrage, and the UK Supreme Court ruled it unlawful. His leadership during COVID-19 and the Partygate scandal further damaged his credibility. He was eventually forced to resign amid widespread dissent.
Elon Musk forged a market for the electric car when he launched Tesla and disrupted aerospace with SpaceX. However, his takeover of Twitter led to controversy. He reduced the workforce drastically, and advertisers left as hate speech concerns grew. He rebranded Twitter as X and introduced controversial changes, contributing to a significant loss in value.
A healthy ego has helped to drive many success stories, but an over-inflated ego can be toxic. Bad decisions happen when ego takes over. A leader who listens and is open to criticism and new perspectives is more approachable and able to make better decisions. Openness and collaboration help build trust and stronger teams, which is essential in a crisis.
Certain attributes are essential to lead effectively in uncertain situations. Leaders who practice humility foster openness, trust, and collaboration. Ultimately, crisis leadership is about navigating adversity while maintaining stakeholder trust—something that becomes difficult when ego gets in the way.
Caroline Sapriel is Managing Partner of CS&A International, specialising in risk, crisis, and business continuity management, with over 30 years of experience.
