(Image courtesy of Jason Goodman, unsplash.com)
The principles of turning around challenged operations hasn’t changed. It entails much more than simply laying off folks. It involves examining systems, teams, processes, simplification, and thoughtful action. It means checking in and reconnecting with the customer. While layoffs may often be the gut response, a turnaround should first examine other areas and may require changes in leadership before resorting to general headcount reductions. “Who, or what allowed things to deteriorate? How and why?” are typically questions I might be asking. Give a great contributor a terrible system and there are but two consequences. This valuable person’s output will either suffer and/or they will quit.
In the world of modern business, the greatest threat to an organization’s success is often its own inertia. Many companies, despite once-thriving reputations, begin to falter when they lose sight of the customer, fail to develop robust internal processes, exhibit leadership hubris, and focus excessively on short-term numerical targets rather than on delivering genuine quality. An organizational culture of fear and low morale will sabotage other improvements. When such issues take root, the decline can be swift and severe. I know. I once worked for a widely respected industry leader of some 70 years that fell prey to these issues, and effectively no longer exists. Fortunately, organizations can reclaim their place in the market by rapidly pivoting toward customer-centric strategies, systematic improvements, and a culture free from toxic behaviors. This is where leadership enters.
1. Reconnecting with the Customer
Organizations that struggle are typically disconnected from the people who once drove their success: their customers. In a hyper-competitive market, losing this connection is tantamount to losing direction. Executives and managers may rely on outdated assumptions or historical loyalty, forgetting that consumer preferences evolve constantly. To reestablish alignment, leaders must re-engage with their customers—soliciting real-time feedback (face-to-face is best), conducting thorough market research, and building open communication channels. By genuinely listening to customers’ needs, companies can develop products and services that resonate, forging a renewed sense of loyalty and relevance. Next and just as important, the relationships with the myriad of internal customers should be examined and thoughtfully responded to. Internal customers are just as critical as external ones.
2. Building Effective Systems, Processes, and Teams
A second, equally critical issue is the lack of coherent systems, processes, and teamwork. I am amazed today that issues like “internal customers” are not given more attention in establishing effective systems and communications. Even the most innovative products will fail if an organization lacks the operational framework to deliver them effectively. Employees might be committed to serving the customer, yet if they’re hamstrung by disjointed workflows, unclear roles, functional silos, and cumbersome procedures, they fail. Instead, leaders must invest in streamlined processes that minimize bottlenecks, empower cross-functional collaboration, and hold people accountable. This shift requires honest internal auditing—identifying wasteful steps, eliminating redundant tasks, misplaced incentives, and standardizing best practices. When employees understand their roles and work together under an efficient system, they become far more capable of meeting (and exceeding) customer expectations.
3. Shifting from Arbitrary Metrics to Quality Delivery
A third stumbling block for declining organizations is the tendency to obsess over arbitrary numerical targets. Of course, revenue and profit matter, but focusing solely on these figures can distract from what truly creates sustainable results: delivering high-quality products and services. In effect, the chase for immediate bottom-line gains often leads to cutting corners, demoralizing teams, and undermining customer satisfaction. Leaders need to adopt a more holistic approach—measuring success not just by this quarter’s profit margin but by the long-term health of the brand, customer loyalty, and the employee experience. When organizations concentrate on consistently delivering excellence, the numerical goals will follow organically.
4. Decreasing Complexity, Waste, Fear, and Toxicity
Addressing these core issues requires more than structural adjustments—it demands a cultural pivot. In many faltering companies, complexity and waste become normal. Fear, fueled by arbitrary metrics and top-down pressures, breeds toxic behaviors that inhibit collaboration and trust. By dismantling these negative forces, leaders create a space where innovation, accountability, and synergy can thrive. This means reducing bureaucratic layers, empowering employees to make informed decisions, and modeling transparent communication at the highest levels. It also means actively rooting out toxic attitudes—whether they stem from hostility, fear of failure, or internal competition—so that progress becomes a shared goal rather than a political battleground.
5. Acting Quickly for Lasting Transformation
Leadership is a tireless, never ending task. Any leadership hubris resting on yesterday’s accomplishments is a death knell to tomorrow’s. First, organizations continually need to know how they’re trending. An organization in decline often cannot afford a leisurely turnaround. Rapid transition can be its saving grace, provided leaders are adaptive, decisive, and strategic. First, they must conduct a swift yet thorough assessment, identifying the key pain points in customer engagement, operational workflows, and cultural climate. Next, they must design a focused plan that addresses these gaps head-on—establishing clear objectives, timelines, and accountability. Finally, it’s crucial to communicate the plan openly with employees, securing their buy-in and commitment to the journey ahead. Today, those who lead by fear and cannot motivate or communicate doom any operation. By moving quickly yet methodically and thoughtfully, a company can stabilize itself, rebuild trust with its workforce, and reestablish credibility in the marketplace.
Conclusion
Ultimately, organizations that are out of touch with their customers, lacking robust processes, and fixated on the wrong metrics are setting themselves up for failure. While inadequate systems may be to blame, who is to blame for them? It is leadership. Yet this fate is not inevitable. By placing genuine customer needs at the heart of every decision, refining internal systems and teamwork, and focusing on delivering real value rather than chasing numbers, businesses can reverse their decline. When these efforts are paired with a determined push to eliminate complexity, fear, and toxic behaviors, the stage is set for rapid, meaningful transformation. In the end, the path to revitalization lies in a simple but powerful shift: from reactive and shortsighted approaches to proactive, customer-centered, and sustainably-minded leadership. If you are a leader or oversee them, check to see not only the visions, but the ability to inspire and execute on these issues.
