Private crises on senior executive level and in the boardroom are like hairline cracks in a building’s structure: invisible, but with serious consequences. Today we present four levers companies can use to take structural precautions.
Private crises among executives are among the quiet but consequential risks facing modern organisations. While operational or market crises are usually addressed clearly, personal stresses – divorce, illness, family commitments or loss – often go unnoticed. What happens when the stability of those who are supposed to provide support for others is shaken? And who catches the manager when they themselves need support?
Current data says: 49% of German executives cite their own resilience and performance as their greatest challenge, while 61.6% report exhaustion (New Work SE, 2025). Internationally, the pressure has increased: 71% see higher stress levels since taking on their role; 40% of those under severe stress are considering resigning (DDI, 2025). This signals risks in leadership pipelines.
What does this say about our corporate cultures?
One thing is clear: mental stability has a direct impact on culture, performance and loyalty. Personal stress leads to cognitive overload, emotional distance and indecisiveness – with consequences for trust, team dynamics and psychological safety.
Today’s episode of our ‘LeadershipImpulse’ series in the Valdivia Newsroom deals with these issues and ways of dealing with private crises at the highest level. Let’s consciously embrace this topic.
When private matters influence leadership skills
Private crises have an impact on several levels. Emotional stress narrows one’s perspective, promotes impulsiveness and makes it difficult to make differentiated decisions. Leadership is resonance – tense leadership unconsciously transmits uncertainty to the environment. In practice, this manifests itself in withdrawal, control-oriented actionism or imprecise communication – effects that weaken trust and psychological security.
The German Social Accident Insurance (DGUV) emphasises the proven connection between leadership behaviour, self-management and mental health: healthy leadership behaviour strengthens resources and stability; a lack of self-management weakens them – with long-term consequences for performance and loyalty.
The silent decline in performance
In Germany, recent surveys show an increase in psychological stress at management level:
- According to New Work SE (2025), 49% see mental stability/performance as the biggest challenge; 61.6% report exhaustion, partly due to role diversity and constant stress.
- The Bertelsmann Foundation (2023) shows that higher resilience scores correlate with lower emotional exhaustion and higher performance (RFI®).
- The BAuA study (2024) proves that a lack of self-management and social support increases the risk of mental illness and performance slumps by up to 45%.
This is also evident in data raised nternationally:
- 79% of those affected in the UK report limited ability to work; 60% cite anxiety, depression or stress (Rayden Solicitors, 2021).
- 23% needed sick leave or unpaid leave, 39% experienced declines in productivity, and 15% made more mistakes/accidents (Rayden, 2021).
- Almost one in ten managers left their company within a year of divorce; employees in SMEs changed jobs four times more often than those in large companies (Rayden, 2021).
- In the first six months after a divorce, productivity drops by an average of 40%, and by a further 20% in the following year (marriageteam.org, 2024).
- In a US study, 44% reported measurable impairments to their work/career/commitment as a result of divorce/separation (University of Minnesota, 2024).
The conclusion of these findings is that personal crises are not an individual fate, but a business risk. Where support, opportunities for discussion and prevention are lacking, entire systems become unbalanced.
What companies can do
Organisations are responding with programmes that are low-threshold, destigmatising and management-oriented: Employee Assistance Programmes (EAP), resilience training, crisis coaching, flexible working models and an open culture. These offerings protect the mental health of managers and ensure team stability.
- Employee Assistance Programs (EAP). Confidential counselling, guidance and rapid referral reduce absenteeism and increase the ability to return to work. Typical life crises (separation, caregiving, financial issues) are addressed; compatible with occupational health management structures.
- Resilience training. Focus on mindfulness, emotion/impulse control, realistic optimism, self-efficacy, goal orientation – factors that correlate with less exhaustion, less cynicism and higher performance (RFI®/Bertelsmann study).
- Coaching & crisis sparring. Protected spaces for reflection stabilise decision-making quality; regular pulse checks and strength orientation promote loyalty and security.
- Structural relief & culture. Temporary flexibility, clear escalation paths, peer support and transparent communication (‘error correction rooms’) reduce control actionism. The BAuA/S‑MGA emphasises the long-term connection between working conditions, mental health and functional capacity – a strong argument for preventive, culture-based solutions.
Our recent expert tip article on the topic of mental health takes an in-depth look at the topic with regards to all employees. It shows how psychological safety and prevention form the basis of healthy leadership.
Making resilience measurable: The Executive FiRE model
The Executive FiRE model (Factor of Individual Resilience and Effectiveness) systematically and practically measures resilience in managers. It summarises the results in a 28-page report, including recommendations for action. Four core dimensions that can be developed:
- Focus (clarity and prioritisation)
- Integration (value and self-congruence)
- Regeneration (active energy management)
- Effectiveness (decisiveness under pressure)
The index combines personality diagnostics with behavioural factors and shows how leadership can maintain stability and effectiveness in challenging phases.
The Bertelsmann study uses a different system: the RFI® (Shatté) with seven factors (emotion control, impulse control, causal analysis, realistic optimism, empathy, self-efficacy, goal orientation). Higher resilience quotients correlate negatively with exhaustion/cynicism and positively with performance – resilience can be trained and has a protective effect against burnout symptoms.
Specific areas of action for boards and management teams
- “First aid playbook” for life crises: A defined procedure for managers, HR and works councils provides guidance in personal crises: clarification of roles, communication guidelines, escalation channels and quick access to external support (e.g. EAP). Goal: Within 72 hours of becoming aware of the situation, an initial professional point of contact should be active – structured, confidential, unbureaucratic.
- Resilience screening for top management: Standardised screening (e.g. Executive FiRE Index) enables objective assessment of individual and organisational resilience; programmes can be designed on this basis – including re-measurement after six months. Goal: Visible progress instead of symbolism – mental strength as a lived leadership reality.
- Loyalty as a leadership KPI: Emotional loyalty is measurable and should be part of target agreements. Key figures such as absenteeism, turnover rates, accident frequency and productivity reflect the effects of leadership on culture and health. Goal: Measure leadership by its effectiveness – those who build trust strengthen performance and loyalty.
- Breaking down taboos: Separation, family, overload: Address common stress drivers openly: Clear HR guidelines, manager briefings, flexible time slots. Goal: Remove the taboo surrounding private stress – and thus prevent resignation and performance risks, which currently affect almost one in ten managers after a separation.
These levers show that mental resilience and strength are not soft skills, but leadership responsibilities. Making them visible, measurable and accessible protects the entire organisation.
Conclusion: Showing strength means staying the course.
Private crises are part of life – even at management level. How you deal with them is crucial. Mental strength is not an add-on, but the foundation for stability, culture and performance. Systems such as the Executive FiRE model provide a sound basis for making them measurable and developable.
Beyond any diagnosis, the following applies:
Those who think of leadership as a supporting structure create forward-looking statics: identifying cracks early on, assessing loads realistically, and reinforcing reinforcement in a targeted manner.
This keeps the building stable – even when the storm begins in private life.
Sources (Extract)
- New Work SE (2025): How personal crises threaten corporate success#
- Bertelsmann Foundation (2023): Leadership, Health and Resilience (RFI®)
- BAuA (2024): Mental health at work (S‑MGA)
- DGUV: Brochure on leadership and mental health
- DDI (2025): Global Leadership Forecast 2025
- Rayden Solicitors (2021): Divorce in the Workplace UK Study
- hellodivorce.com (2024)
- marriageteam.org (2024)
- University of Minnesota (2024): Personnel Psychology – Effects of Divorce at Work#
- Harvard Business Impact (2025): Global Leadership Development Study
(Image source: istockphotos.com)