CEO Ryan Cohen revealed that GameStop went from over 1,400 corporate employees to just 400, yet became more productive. He argues large corporate teams create bloat, perverse incentives, and delegation of work. The radical downsizing improved focus and business results.

When Trello's PMM team shrank from ten members to two, the crisis forced them to build robust systems for tracking projects, assessing bandwidth, and prioritizing tasks. This extreme constraint became the necessary catalyst for developing a more strategic and organized workflow out of sheer survival.

A near-bankruptcy experience instilled in Ed Stack an aversion to debt. This "paranoid" financial discipline, while criticized by Wall Street as suboptimal, became a key strategic advantage. By self-funding growth, Dick's maintained control and agility, allowing it to survive downturns that crushed its highly-leveraged competitors.

CEO Larry Culp's successful turnaround of the GE conglomerate relied on operational fundamentals learned at Danaher. His philosophy of 'common sense vigorously applied' focused on implementing lean manufacturing principles, simplifying the business, and empowering employees on the shop floor, rather than complex financial restructuring.

Firing decisions should be a function of both incompetence and business constraint. Not all underperformers are equal priorities. Some are like a "trash can on fire in the driveway"—a problem, but not the company's main bottleneck. Focus firing efforts on roles that are the direct constraint to growth.

For years, Sonya Lee's founder was financially supported by her husband, stuck on a "hamster wheel" of just sustaining her studio. The emotional and financial strain became untenable, creating a one-year "pressure cooker" ultimatum. This crisis forced a complete business re-evaluation that she had avoided for years, ultimately leading to success.

During the 2008 financial crisis, Backroads didn't just cut costs. They re-tooled the company to amplify their strengths, adding a third leader and a second van to trips. This premium shift improved their value proposition and led to higher profit margins post-recession, a counterintuitive move in a downturn.

Frequent organizational change, such as reorgs, serves as a natural filter. People who are uncomfortable with flux will self-select out, leaving a team that is more adaptable and aligned with a fast-moving company's needs.

The strategy of eliminating the "worst 20%" applies across the business. Beyond firing unprofitable customers, analyze your product lines and even your team. Discontinuing low-margin, high-hassle products or removing toxic employees can free up immense resources and improve overall business health just as effectively.