Leadership comes with immense responsibility, but often, the hidden price of this role is the toll it takes on mental health. Many leaders push through stress, sleepless nights, and overwhelming pressure, thinking it’s just part of the job. What’s rarely discussed is how mental health directly influences decision-making, sometimes in ways we don’t even realise. Ignoring this connection can lead to mistakes, poor judgment, and even the downfall of great companies.
Let’s start with a statistic that highlights how pervasive the issue is: 72% of entrepreneurs say they have mental health issues, mostly anxiety and depression, according to the National Alliance on Mental Illness. Leaders in corporate settings face similar challenges. Howard Schults, the former CEO of Starbucks, openly shared how his mental health struggles shaped his leadership. Despite his success, he emphasised the importance of reflection and seeking support to maintain clarity in decision-making. Stories like Schults’s remind us that even the most accomplished leaders are human.
When stress is left unchecked, it alters how we process information and respond to challenges. Research shows that chronic stress shrinks the prefrontal cortex, the part of the brain responsible for rational thinking and decision-making. At the same time, it amplifies activity in the amygdala, the emotional centre of the brain, which can lead to impulsive choices. In leadership, where the stakes are high, these shifts in brain function can have serious consequences. Leaders under stress might react emotionally rather than strategically, leading to decisions that harm the organisation.
Consider the case of Adam Neumann, the former CEO of WeWork, who struggled to handle the stress of the company’s rapid growth. He ignored his own well-being, which led to poor decisions. His unpredictable leadership and inability to stay emotionally balanced pushed people away. In the end, he was removed as CEO, and the company’s value dropped significantly. His story is a reminder of why mental health is so important.
On the other hand, some leaders demonstrate how prioritising mental health can lead to remarkable outcomes. Arianna Huffington, founder of The Huffington Post and Thrive Global, is a powerful example. After collapsing from exhaustion in 2007, she realised she had been sacrificing her well-being for success. Huffington redefined her approach, incorporating mindfulness and self-care into her routine. This shift not only improved her decision-making but also inspired her to create a company that focuses on well-being.
So, what can we take away from these examples? First, we need to recognise that mental health isn’t just a personal issue—it’s a leadership issue. Poor mental health clouds judgment increases the likelihood of conflicts, and can even damage an organisation’s culture. Leaders who ignore their mental health can make decisions that harm their teams and companies, leading to long-term problems.
Second, it’s essential to address these challenges proactively. Building habits that support mental health is non-negotiable. Regular exercise, prioritising sleep, and seeking therapy or coaching are practical steps. Even small changes, like setting boundaries around work hours, can make a big difference. Howard Schults credits his morning walks and time for reflection as critical for maintaining perspective. Similarly, Arianna Huffington advocates for scheduled breaks and digital detoxes to recharge the mind.
As leaders, we also have a responsibility to model healthy behaviours for our teams. When we openly prioritise our mental health, we create a culture where others feel safe to do the same. This not only supports individual well-being but also improves collective decision-making, innovation, and resilience in the face of challenges.
Ignoring mental health might seem easier now, but it leads to bigger problems later. We’ve seen leaders derail their careers and damage their companies because they didn’t address their mental health. At the same time, we’ve seen how leaders who prioritise well-being can inspire their teams and make decisions that stand the test of time. Leadership demands clarity, focus, and resilience. By taking care of our mental health, we equip ourselves to meet those demands while setting a powerful example for others. Let’s not overlook the hidden cost of leadership. Instead, let’s face it head-on and make choices that benefit not only ourselves but everyone we lead.
Feeling stressed as a leader? It’s time to take care of your mental health. Talk to Jonathan Riley at My Practice Counselling to get help. Visit https://mypracticecounselling.com.au/ to book your session. Become a better leader by looking after yourself.