Generally speaking, when leaders go mad, their subordinates usually try to stop them.
In most functional enterprises or groups, survival often doesn't rely on the leader being particularly rational or wise; it's more about the leader listening to advice during reckless moments or having internal factions to balance power, so that their chaos turns into superficial chaos and doesn't unleash destructive consequences.
If no one stops them, then you can only hope the leader is truly a Divine Master. However, even the most rational and intelligent leader is likely to become absurdly arrogant under unchecked internal praise, making one careless move that sends the company into oblivion.