Contingency Theory: why do some leaders succeed in one context but fail in another?

You might know someone who was a great leader in one company but struggled in another. Or maybe you have seen someone do well during a crisis but not in normal times. Contingency Theory helps explain why this happens. It says that leadership success depends on the fit between the leader and the situation.

What the Theory Says

Contingency Theory means there is no one best way to lead. A leader’s style might work well in one setting but not in another. This idea was shaped by Fred Fiedler in the 1960s. He studied how leadership style and the work environment must match for a leader to succeed.

Fiedler said leaders usually have one of two main styles:

1. Task-focused leaders: They care most about getting the job done.
2. Relationship-focused leaders: They care more about team harmony and people’s feelings.

Each style can be effective, but only if it fits the situation.

What Makes a Situation?

Fiedler pointed out three parts of a situation that affect how much control a leader has:

• Leader-member relations: Does the team trust and support the leader?
• Task structure: Is the task clear and easy to understand?
• Position power: Does the leader have the authority to reward or punish?

If all three are strong, the leader has high control. If they are weak, the leader has low control. Some situations are in between.

What Works Best

Task-focused leaders do well in very high or very low control situations. They can push for results in a crisis or keep things steady when everything is going well.

Relationship-focused leaders do better in middle-ground situations. These are times when teamwork and support really matter.

Real-World Example

Think of a CEO who turns around a failing company. They are firm, goal-driven, and make tough calls. That approach works in a crisis. But if they move to a stable company with a strong team culture, their direct style may feel too harsh. The same leader, in a different setting, may not do as well.

Another example is Ron Johnson, who helped design Apple’s retail stores. When he became CEO of J.C. Penney, he tried the same ideas, but they did not match the company’s customers or values. What worked at Apple failed in a new context.

Contingency Theory reminds us that leadership is not just about skill. It is also about fit. A great leader in one place may not be the right one in another. That is not a failure. It just means the match was not right.

This is useful for hiring too. Instead of just looking at past success, ask: will this person’s style work in this environment? What does the team need now? Clear direction? A calm listener? Someone to build trust?

There is no perfect leadership style for every situation. What matters is the match between who you are and what the moment needs. Contingency Theory helps us see that success is not just about leading well. It is also about leading in the right place, at the right time, with the right people.

Questions to Ask Yourself

• When do I feel most effective as a leader?
• What kind of situations bring out my best?
• Do I adjust my approach when things change, or do I stay the same?

Knowing your natural style and your limits can help you find roles where you do your best work.