Leadership in an organization is about accountability and merit—at least, that’s what we like to believe. Yet, every organization has its “untouchables”—leaders who wield so much influence, power, or perceived value that they become immune to challenge.

This week, I hosted an executive roundtable to talk about this reality. The conversation was raw, unfiltered, and deeply insightful. We tackled the uncomfortable truths about untouchables—who they are, how they emerge, and what organizations can (or fail to) do about them.

These are some of the key lessons that stood out.

How Do Leaders Become Untouchable?

“Untouchables” are not born—they are made.

At the roundtable, we explored the different paths that lead to leadership immunity. While untouchables come in different forms, the real question is: how do they reach a point where their authority is unquestionable, even when it shouldn’t be?

In our discussion, we identified three primary ways leaders become untouchable:

• The Founders & Family Insiders – Power from Ownership: Some untouchables built the company or inherited their place within it. In family-owned businesses, leadership isn’t always about capability—it’s about last names and legacy. Founders and family members hold power that isn’t easily challenged because the company itself is seen as an extension of their identity. Even when their leadership needs to evolve—or even when they become a barrier to progress—challenging them is seen as a direct threat to the company’s foundations.

“If the founder was right once, the assumption is that they will always be right.”

• The Rainmakers – Power from Performance: Then there are the rainmakers—the executives who bring in so much revenue, investment, or key client relationships that they are deemed too valuable to challenge. Their financial contribution speaks so loudly that it drowns out concerns about their leadership style, decision-making, or behavior. As long as the numbers are strong, their flaws go unnoticed—or worse, ignored. Rainmakers don’t need to demand power—it’s given to them by organizations that fear what would happen if they left.

“When results are great, how they’re achieved is rarely questioned.”

• The Loyalty Brokers – Power from Relationships (“Amiguismo”): Some leaders don’t become untouchable through ownership or performance, but through personal influence. This is “amiguismo”—a deep-rooted culture of loyalty-based leadership. These leaders have built strong personal relationships with the real decision-makers—CEOs, board members, or powerful investors. This form of untouchability is the hardest to confront because it isn’t based on logic—it’s based on personal bonds, loyalty, and unspoken agreements. Even when they make bad decisions, no one challenges them because doing so would mean breaking political ties.

“They are “one of us”—and that is enough to keep them untouchable.”

But why do we call them “untouchables” in the first place?

If their leadership was flawless, if their decisions were always sound, if they adapted and evolved as the business required, we wouldn’t even be having this conversation. The term untouchable only surfaces when something needs to change—their leadership style, their decisions, or their behavior—and yet, attempts to address it hit an invisible wall.

At some point, they create friction within the organization, the need for intervention becomes clear—but so does their immunity to it. Organizations adapt to them instead of holding them accountable.

But at what point does protecting an untouchable become a liability rather than an asset?

Challenging the Untouchables

In most corporate settings, results are the catalyst for change.

Even the most powerful untouchable can be addressed when performance declines—at least in theory. When revenue, market share, or efficiency drop, leadership is forced to react, and governance structures step in. But this holds true mainly in corporate environments.

At the roundtable, we discussed how family-owned businesses, partnerships, and firms with entrenched power operate differently. Even when results fall short, the untouchable’s role is rarely questioned. Instead, blame shifts to external factors, others take the fall, or leadership simply waits for a turnaround that never comes.

• In corporate America, bad results demand action—but often too late. The issues are eventually recognized and tackled, but only after they’ve grown too big to be easily fixed, shielded for years by the illusion of stability.
• In family-owned businesses and partnerships, bad results don’t always trigger action. The untouchables remain protected by personal ties, ownership structures, or power dynamics that make their accountability a taboo subject. Even when failure is evident, they remain above scrutiny.

The problem is clear: when accountability is tied only to financial performance, we risk letting leadership dysfunction persist far too long—until the damage is irreversible.

So what can organizations actually do?

What Can Be Done?

Challenging untouchables is never easy—but it’s not impossible.

At the roundtable, the conversation concentrated around 3 practical alternatives for dealing with untouchable leaders:

1) Focus on What You Can Control:

When facing an untouchable leader, attempting to change them is often futile. Instead, some executives found success by strengthening their own position first. Rather than confronting power, they built influence where they could, gradually expanding their reach until their leadership became too valuable to ignore.

One participant described how they slowly increased their control within the company by taking leadership of additional business areas. They focused on expanding their responsibilities and making tangible improvements where they could. Over time, their growing control over key functionsgave them the ability to shape decisions without direct confrontation.

For them, the strategy was clear: rather than fighting for influence, they built it where it didn’t yet exist.

2) Build Alliances:

No one can challenge an untouchable alone.

We discussed how building strong allianceswithin the organization can create the collective weight needed to push for change. Whether it was a board member, an external stakeholder, or a key investor, securing the right backing made all the difference.

One participant shared how they partnered with an investment fund that had significant influence over the company. Instead of pushing their ideas through internal channels—where resistance was inevitable—they worked with the fund to frame the necessary improvements as a business priority.With pressure from the financial side, change became unavoidable, even for the untouchable.

Another participant took an even bolder approach: structuring a Management Buyout. When it became clear that meaningful changes would never happen under the existing leadership, they and a group of aligned executives secured financial backing to buy the company themselves.By taking ownership, they didn’t just introduce new ideas—they removed the untouchable’s influence entirely.

In both cases, the approach was the same: if you can’t challenge an untouchable directly, you need to work with those who can.

3) Know When to Leave:

But not every battle can be won.

In some organizations, untouchables are so deeply embedded in the leadership culture that no amount of effort can create change. When that happens, the only choice is whether to stay and adapt—or leave and protect your ability to lead.

One participant shared how, after repeated attempts to add value, they realized that the issue wasn’t just the untouchable leader—it was the entire system protecting them. The founders maintained absolute control, and the board was too weak to challenge them. Every proposal for improvement was dismissed, every attempt to influence the business was blocked. After months of frustration, they made the only viable decision—they left.

Their takeaway was clear: when an organization has fully adapted to its untouchables, staying often means sacrificing your own ability to lead effectively.

Our take-aways

Untouchables are everywhere. Whether they earned their shield or had it given to them, we will always face them in some way.

Having untouchables in organizations isn’t necessarily a bad thing—as long as their leadership brings positive outcomes for the company and isn’t silently hindering its future. But when an untouchable leader’s influence becomes a roadblock rather than an asset, ignoring the problem only makes it worse.

Leading with untouchables who don’t contribute positively to the company is hard—but not impossible. Many things can be done, but the real question is: Are we willing to do something about it?

Dealing with it or adapting to it—both are hard choices. The decision is ours: which “hard” are we willing to choose?

What’s Next? Join the Conversation

This roundtable was just the beginning. I will continue hosting these conversations on the topics we all care about but rarely find the space to discuss openly and risk-free.

If you’re interested in participating, please fill out this form to receive invitations for the upcoming sessions: Sign me up!

Spots are limited to ensure a truly engaged and participative discussion.

Let’s keep the dialogue going. Hope to see you at the table!

Good Luck!

Ximena Jimenez

Founder – Managing Director LITup

Care for a chat? book a call here