Women Excel in Crisis: Leading Struggling Firms

Women are increasingly occupying top leadership roles across organisations, political parties and even nations. This may seem unequivocally like a good thing. Yet, many of these roles are undertaken in precarious circumstances, with inherent risks that might make them unattractive to men.

Authors

  • Rita Goyal

    Assistant Professor, Centre for Resilient Business and Society, Coventry University

  • Nada Kakabadse

    Professor of Policy, Governance and Ethics, Henley Business School, University of Reading

High-profile examples illustrate this pattern. Sarah Mullally , the incoming Archbishop of Canterbury and first female leader of the Church of England, steps into a landscape marred by scandal . Sanae Takaichi has become Japan's first female prime minister - albeit the fourth PM in five years. She inherits a stagnant economy, record inflation and a declining population.

Carly Fiorina became CEO of Hewlett-Packard during the bursting of the tech bubble. And Mary Barra took over as CEO of General Motors shortly before a major car recall. In the UK, politicians like Conservative leader Kemi Badenoch have also assumed high-profile roles during periods of heightened risk.

Two decades ago, this phenomenon was labelled the "glass cliff" . It highlighted a pattern where women are more likely than men to be placed in leadership positions during times of crisis.

But the perspectives of women leaders and those navigating organisations in precarious situations are rarely examined. Our study conducted in-depth interviews with 33 women in senior leadership positions in 2023 and 2024. Our goal was to explore the motivations behind appointing women to high-risk leadership roles and the strategies the women use to navigate challenges once they're in post.

The study revealed that women are often selected because of their distinctive leadership style and ability to manage crises. In their early careers, women may be invited to lead organisations in distress (so-called "basket cases"). Yet, by focusing on collaboration and consensus, and by ditching egotism, they can often turn around precarious situations.

One woman who chaired boards told us: "Women are often given basket cases because they will often be more supportive, better listeners and more nurturing. They're better able to cope in that environment."

Key to this is a combination of intuition, humility and an ability to manage colleagues and associates. We found that in organisations facing scandals, inefficiency or financial mismanagement, women leaders often focus on human aspects rather than just operational factors.

Study participants consistently emphasised that people skills (such as empathy, communication and the ability to unify people) are critical for managing risk-laden environments. They felt that women often excel in these areas. For instance, Mullally has cited her background as a cancer nurse as providing a strong foundation for managing the challenges that the Church of England is facing.

Why go there?

Our study also explored why women accept these precarious roles. Early in their careers, the opportunity to lead a major organisation can be compelling, offering a sense of purpose and fulfilment - even if the organisation is in crisis.

But with experience, women become more discerning about accepting leadership positions. The research highlights that precarious appointments carry heightened reputational risks, as women are held to stricter standards (in the media, for example) than men.

One participant told us: "When a man fails or makes an error … it's the individual man who failed; 'he' had no ethics. When a woman does it, it's like, 'Ah well, women'."

The study also underscores the importance of networks, mentoring and alliances. Women leaders recommend having trusted advisers and mentors who can provide guidance, support and insight as they face challenges. Some emphasised that operational challenges is a normal aspect of leadership.

But women should think carefully about accepting a leadership role where problems of integrity or governance, for example, are more entrenched. As one participant in our study noted: "Don't let challenges deter you if you believe you can lead effectively. But when structural or ethical challenges exist … leaders must assess them carefully."

A mixed blessing

The conventional belief is that women are offered precarious roles because they are seen as expendable. But beyond this, our study identifies alternative reasons.

Speaking generally, women's capacity to manage chaos, practise ego-less leadership, and encourage collective decision-making often makes them attractive candidates. Viewing it through this lens shifts the conversation from victimhood to capability. It suggests that women are not merely filling high-risk roles but are chosen for their leadership strengths.

The findings also have implications for strategy and talent management within organisations, who should recognise the specific competencies women can bring to complex, high-risk leadership scenarios.

Organisations can benefit from ensuring that women in challenging leadership roles receive appropriate support and resources, and that expectations are realistic.

At the same time, women leaders must balance ambition with caution. While challenging roles offer opportunities for development and recognition, taking a role that is not aligned with a woman's values or if her due diligence comes up short can carry high professional risks.

The study's participants recommend strong negotiation and careful assessment of the potential outcomes before accepting senior positions. When leaders align their expertise and values with the needs of the organisation, they can transform crises into opportunities for growth. This is based on our finding that women, before they accept precarious leadership roles, carry out due diligence, consider the pros and cons and negotiate.

Women in leadership are increasingly seen at the helm during organisational turbulence. While these roles come with greater risk, they also offer opportunities to demonstrate capability, strengthen reputations and improve the culture of an organisation.

Rather than a poisoned chalice, these opportunities can be reframed as a mixed blessing. Challenges, if navigated well, highlight and make use of women's distinctive leadership styles. Women can lead organisations through uncertainty and at the same time redefine perceptions of leadership and expand opportunities for women in the future.

The Conversation

Rita Goyal received funding from the British Academy/Leverhulme Trust.

Nada Kakabadse received funding from the Institute of Company Secretaries and Administrators (ICSA).

/Courtesy of The Conversation. This material from the originating organization/author(s) might be of the point-in-time nature, and edited for clarity, style and length. Mirage.News does not take institutional positions or sides, and all views, positions, and conclusions expressed herein are solely those of the author(s).