When Things Go Wrong: Leadership Mistakes of Handling Mishaps

We've all witnessed it: a leader faced with criticism, a mistake, or an unexpected obstacle who responds with defensiveness, blame, or hostility. Maybe they lash out at the messenger. Or, out of stubbornness, double down on a failure. They dismiss concerns, or worse, people who dare to disagree.  

Whether in government or in business, navigating mishaps is the foundation upon which good leadership and innovation is built.

And yet, we're seeing a troubling pattern emerge in leadership circles where the instinct to defend overshadows the wisdom to listen, learn, and adapt.

When a leader handles mistakes badly, trust is shattered.

The Trust Equation

Innovation and trust are inseparable. A culture where people take intelligent risks, propose bold ideas, or push boundaries can’t exist if those people fear failure’s consequences. When setbacks result in punishment, public shaming, or combative defensiveness, leaders aren’t just handling one situation poorly: they’re dismantling the trust that makes progress possible.

When a leader reacts badly to dissent or disagreement, team members take note. They learn that speaking up invites hostility not dialogue. That questioning? It makes them a target rather than a problem-solving partner.  The result is a culture of silence where problems fester, warning signs are ignored, and people wait for someone else—anyone else—to be the one to point out that the emperor has no clothes.

Transformation naturally involves navigating uncharted waters. Mishaps come with the territory. The question isn't whether things will go wrong—it's how leaders respond when they inevitably do.

Leading to Succeed (Even When Things Go Awry)

Test Before You Transform

Leaders, eager to prove their vision is the right one, can fall into the trap of “starting big” before validating their approach in smaller, controlled environments.

Target’s bold move to Canada anyone?

Smart transformation means starting small. Proof of concepts. Interviews and feedback from clients on low-fi mock ups. Heck, I feel like sometimes “pilots” are sometimes too big a place to start, especially if they suck up a lot of resource and time. Limited rollouts that allow you to learn before you're locked in aren’t timid but intelligent.

Constant collaboration and co-design with stakeholders are also wise. The people closest to the work often see potential problems that leaders, viewing things from 30,000 feet, can’t. When you involve them early and often, you're not just gathering input: you're creating shared ownership and distributed risk assessment. You're also building the trust that will be essential when you have to course correct.

Reframe Failure as Feedback

When something goes wrong, as a leader, you face a critical choice: you can treat it as an opportunity to learn, or as a moment to assign blame and protect your own ego.

The punitive approach—calling out individuals, making examples of mistakes, responding with anger or dismissiveness—might feel satisfying in the moment. It might even create the illusion of accountability.

But it guarantees one outcome: people will hide problems, sugarcoat challenges, and avoid difficult conversations. They'll tell you what you want to hear rather than what you need to know.

Instead reframe mishaps as valuable data. What did we learn? What assumptions proved incorrect? What didn't we anticipate? Where do we need to adjust?

This doesn't mean avoiding accountability or pretending failure doesn't matter. It means separating the problem from the person, focusing on systems rather than scapegoats, and treating setbacks as the inevitable tuition paid for doing something difficult and worthwhile.

When you model this approach—acknowledging your own missteps, responding with curiosity rather than defensiveness, and engaging constructively with criticism—you give permission for everyone else to do the same. You create psychological safety, the cornerstone of high-performing teams.

Take Stock, Adjust, and Move Forward

The paralysis that follows a mishap can be as damaging as the mistake itself. After the initial response you need to move forward decisively.

This means:

• Conducting a thorough but time-boxed review

• Identifying specific, actionable changes based on what was learned

• Communicating transparently about both the problem and the path forward

• Making the adjustments and moving on rather than dwelling in recrimination

The goal isn't perfection—it's progress. It's building an organizational culture where people understand that mistakes, while not celebrated, are genuinely treated as opportunities to be better.

The Leadership Litmus Test

The question facing you as a leader isn't whether you’ll face criticism, setbacks, or mistakes. The question is whether you’ll respond in ways that build the trust necessary for tomorrow's challenges or erode it in service of defending today's ego.