Common steps organisations make to save a sinking ship
The first major step is announcing a new leadership team to “save” the organisation. This often starts with the appointment of a new CEO, followed by reshuffling or replacing key members of the executive team.
Published: 04:07 PM,Jul 07,2025 | EDITED : 08:07 PM,Jul 07,2025
Last week, my article was on the aftermath (as in what happens) when senior leaders and/or influential members (such as shareholders, partners, etc.) ignore vital signs of a sinking organisation, especially when there is a consistent pattern of low and degrading financial performance. This week, I will focus on the common steps that many organisations tend to follow in an attempt to prevent such a situation from occurring.
Briefly put, the usual approach is as follows: 1) organisations introduce a new face (typically after firing the CEO and/or other senior executives), 2) promote strong profiles (to instil internal and external trust), and finally 3) make big and bold promises (usually around positive change). The expectation is a total turnaround, gaining new customers, launching fresh solutions, increasing revenue, and ultimately improving profit margins.
The reality, however, is often different. Most of the time, the initial changes produce short-term optimism and maybe a slight uptick in performance, but they rarely lead to sustained improvement. In some cases, these actions might even accelerate the organisation’s decline. Here are the most common steps I have observed, based on my own experiences and research.
The first major step is announcing a new leadership team to “save” the organisation. This often starts with the appointment of a new CEO, followed by reshuffling or replacing key members of the executive team. Previous executives are asked to leave, and new faces are brought in with bold promises to drive change and “save the ship”.
While this may look good on paper and may even be the right move, it’s unfortunately most of the time executed poorly. In many cases, the new CEO surrounds himself with loyalists, be they friends, former colleagues, or individuals who align closely with their personal vision and agenda. The problem is that this loyalty does not always translate to competence or the ability to challenge flawed assumptions. Instead of addressing the root causes of failure, the new team may end up reinforcing the same mistakes, simply dressed in a new narrative. Time typically reveals the outcomes of such choices.
The second step revolves around cost-cutting. Once the new leadership is in place, aggressive cost-cutting measures follow next. These may include slashing project budgets, freezing or reducing headcounts, minimising marketing spend, trimming employee benefits, and even halting innovation initiatives. On paper, these cuts show instant financial relief. Expenses go down, and profit margins may temporarily look better. However, the impact is often negative in the medium to long term. Key operations can be disrupted, innovation is paused or even abandoned, and employee morale plummets drastically. While some level of trimming might be necessary, the problem arises when cost-cutting becomes the primary strategy, especially when done without a clear, longer-term vision. Cost optimisation should be strategic, not just reactive.
Thirdly, sales teams become the next area of focus. Targets are increased, and performance pressure mounts. Leadership demands higher revenue to demonstrate a recovery. The logic is simple: just bring in more money, and we are saved. This approach often ignores a fundamental issue, which is why the revenue was declining in the first place. Were customers dissatisfied? Was the product or service outdated? Was competition stronger? If these underlying issues aren’t addressed, revenue might temporarily rise due to short-term deals or pressure tactics, but the growth won't last. Understanding the “why” behind performance problems is essential. Otherwise, any gains will be temporary and unsustainable.
A change in leadership, cost cuts, and aggressive sales targets might buy time and instil hope. Nevertheless, without a deeper diagnosis and a more thoughtful, evidence-based plan, they rarely deliver lasting results, trust me. Organisations that fail to grasp this reality often repeat the cycle until there is nothing left to save. Next week, we will look at what true transformation for organisations looks like. Until then, continue observing and stay positive.
Tariq al Barwani
The writer is the founder of Knowledge Oman.
Briefly put, the usual approach is as follows: 1) organisations introduce a new face (typically after firing the CEO and/or other senior executives), 2) promote strong profiles (to instil internal and external trust), and finally 3) make big and bold promises (usually around positive change). The expectation is a total turnaround, gaining new customers, launching fresh solutions, increasing revenue, and ultimately improving profit margins.
The reality, however, is often different. Most of the time, the initial changes produce short-term optimism and maybe a slight uptick in performance, but they rarely lead to sustained improvement. In some cases, these actions might even accelerate the organisation’s decline. Here are the most common steps I have observed, based on my own experiences and research.
The first major step is announcing a new leadership team to “save” the organisation. This often starts with the appointment of a new CEO, followed by reshuffling or replacing key members of the executive team. Previous executives are asked to leave, and new faces are brought in with bold promises to drive change and “save the ship”.
While this may look good on paper and may even be the right move, it’s unfortunately most of the time executed poorly. In many cases, the new CEO surrounds himself with loyalists, be they friends, former colleagues, or individuals who align closely with their personal vision and agenda. The problem is that this loyalty does not always translate to competence or the ability to challenge flawed assumptions. Instead of addressing the root causes of failure, the new team may end up reinforcing the same mistakes, simply dressed in a new narrative. Time typically reveals the outcomes of such choices.
The second step revolves around cost-cutting. Once the new leadership is in place, aggressive cost-cutting measures follow next. These may include slashing project budgets, freezing or reducing headcounts, minimising marketing spend, trimming employee benefits, and even halting innovation initiatives. On paper, these cuts show instant financial relief. Expenses go down, and profit margins may temporarily look better. However, the impact is often negative in the medium to long term. Key operations can be disrupted, innovation is paused or even abandoned, and employee morale plummets drastically. While some level of trimming might be necessary, the problem arises when cost-cutting becomes the primary strategy, especially when done without a clear, longer-term vision. Cost optimisation should be strategic, not just reactive.
Thirdly, sales teams become the next area of focus. Targets are increased, and performance pressure mounts. Leadership demands higher revenue to demonstrate a recovery. The logic is simple: just bring in more money, and we are saved. This approach often ignores a fundamental issue, which is why the revenue was declining in the first place. Were customers dissatisfied? Was the product or service outdated? Was competition stronger? If these underlying issues aren’t addressed, revenue might temporarily rise due to short-term deals or pressure tactics, but the growth won't last. Understanding the “why” behind performance problems is essential. Otherwise, any gains will be temporary and unsustainable.
A change in leadership, cost cuts, and aggressive sales targets might buy time and instil hope. Nevertheless, without a deeper diagnosis and a more thoughtful, evidence-based plan, they rarely deliver lasting results, trust me. Organisations that fail to grasp this reality often repeat the cycle until there is nothing left to save. Next week, we will look at what true transformation for organisations looks like. Until then, continue observing and stay positive.
Tariq al Barwani
The writer is the founder of Knowledge Oman.