"In today’s society (and economy) we keep hearing over and over again about fraud and scandal but mostly it can all be linked to failed leadership. What is one time when a group leader, whether it be company management, a boss, coach, etc. failed to manage or lead and how did you as and individual deal with it and also as part of the group?"

I can not think of a specific event right now in which this has happened to me, however I do know that I have been in situation similar to this before. One thing that I have often tried to do when confronted with such a situation, is not just take over as the new leader or try to make the person who failed feel bad but rather try to lead by example and help the "leader" with advice so they can grow and continue to contribute. Something that I feel is very important is that the failed leader remain in some sort of leadership roll or continue to be given the opportunity to be active. I believe this is important because if the person was the leader it is probably because they have a great deal of knowledge on the topic or they have a large amount of enthusiasm for the project.