As a result of lacking ICT competency and cultural pressures owing to collectivism, it is argued in this paper that the mental health of Japanese Higher Education Institution (HEI) teachers during the COVID-19 Pandemic was at serious risk. This was made worse by the frantic actions of HEIs forcing teachers to work online with little preparation or consideration for their emotional context. The author argues in this paper that in educational change, approaches to leadership can be usefully enhanced through a psychodynamic approach, as this enables leaders to consider how teacher anxiety can be acknowledged, expressed and contained. An analysis of the literature originating from Japanese universities, as well as perspectives from the author during the time confirms that the leadership faced significant challenges to reveal systemic issues in their response, and suggestions are given for future change.