43% of Australian workers are experiencing burnout right now. Up 17% from 2024. But here's the figure that should give every CEO and board pause:…
Margie IrelandMay 28, 2026
From Conflict to Capability: How One CEO Turned a Leadership Crisis into Growth
Background:
A mid-sized professional services firm, experiencing rapid growth and operating across multiple locations, was encountering internal leadership challenges. The CEO was dealing with a key leader who was increasingly non-compliant with directives and neglecting critical client issues, some of which posed potential legal risks. This situation was creating a ripple effect of instability within the organisation, with several staff members considering resignation due to the ongoing conflict.
Initial Assessment:
Upon engagement, I conducted a comprehensive assessment to understand the underlying issues. It became evident that the discord between the CEO and the key leader was not only affecting their relationship but also permeating the broader team, leading to decreased morale and productivity. Further investigation revealed that the leader in question was grappling with deeper, unrecognised personal challenges that were impacting their professional behaviour.
Trust amongst the executive leadership and partnership team further identified a break down in trust, in particular regarding accountability for results and behaviour. Some citing the above leader as the root cause.
Intervention and Resolution:
By establishing trust with the leadership teams, I facilitated open and honest dialogues that allowed for mutual understanding. Recognising the struggles and the broader organisational impact, we orchestrated a professional and respectful exit strategy for the leader in question. This approach not only resolved the immediate conflict but also stabilised the teams, retaining valuable staff who had been on the verge of leaving.
Expanding the Scope:
Impressed by the positive outcome, the CEO requested a broader evaluation of the leadership team. This review uncovered hidden capability gaps in two leaders who had been concealing their deficiencies. Through creating a psychologically safe environment, I worked closely with these individuals to develop self-awareness about their limitations and the implications for the organisation. With targeted coaching and the CEO’s support, both leaders embraced the opportunity for growth, ultimately enhancing their performance and being formally integrated into the executive team.
Developing Emerging Leaders:
To proactively address potential future challenges, I conducted a series of workshops with emerging leaders. These sessions focused on building trust, encouraging healthy conflict, fostering accountability, and driving results. By identifying specific areas for improvement and implementing actionable strategies, the teams demonstrated measurable enhancements in these key areas.
Addressing Burnout and Team Dynamics:
During the engagement, I identified two employees experiencing burnout. By providing tailored support and resources, we facilitated their recovery, ensuring they remained productive and engaged. Additionally, I assisted in the sensitive handling of a mid-level manager who, despite good intentions, was causing team friction. Collaborating with the CEO, we managed a respectful and positive exit, preserving team harmony and morale.
Methodology:
Throughout the engagement, I utilised a combination of evidence-based tools, assessments, individual coaching, and group facilitation techniques. This holistic approach ensured that interventions were grounded in best practices and tailored to the organization’s unique context.
Outcomes: (pre- and post-results below)
- Stabilised the organisation by resolving a critical leadership conflict.
- Retained key staff members who were considering departure.
- Enhanced the capabilities of existing leaders, integrating them into the executive team.
- Improved team dynamics and performance through targeted workshops.
- Addressed employee burnout effectively, maintaining productivity.
- Managed a sensitive personnel exit with dignity, preserving team cohesion.
Conclusion:
This comprehensive intervention not only addressed immediate leadership challenges but also laid the foundation for sustained organisational growth. By fostering self-awareness, accountability, and trust within the leadership team, the firm is now better equipped to navigate future challenges and continue its trajectory of success.
You may wish to read a further case study whose outcomes were even more interesting and successful. Read the study HERE
If you would like more information about this or other programs please email info@margieireland.com
If you would like to understand the ROI for Leadership Coaching, read this.
