In a turnaround, a leader's most critical first step is restructuring their direct reports. McLaren's CEO replaced every key leader—CFO, HR, commercial, etc.—to create a unified group that could then drive cultural change down through their own departments.

A superior crisis response playbook goes beyond acknowledging a mistake and taking responsibility. To truly rebuild trust, leaders should overcorrect with a positive action that is disproportionately forceful compared to the initial error, demonstrating a profound commitment to the values that were compromised.

During a major crisis, a leader cannot rely on team consensus because everyone is still aligned with the old, now-invalid strategy. The CEO must dictate the new direction and be willing to be inconsistent to reset the organization quickly.

Nomad's new CEO has followed a classic script: take over, reset expectations by highlighting problems like underutilized plants, and then build anticipation for a new strategy to be unveiled at an upcoming analyst day. This "kitchen sinking" often creates an attractive entry point for investors before the turnaround story is fully priced in.

To rebuild trust during its turnaround, Ørsted's management announced a 25% workforce reduction that would take over a year to complete. The CEO believed providing this long-term clarity, despite the negative news, was crucial for restoring credibility with his team.

Dan Schulman prioritized fixing Verizon's risk-averse, hierarchical, and inwardly-focused culture as the first step in its turnaround. He believed that fostering a "play to win" mindset was the necessary foundation before any strategic or operational changes could succeed, moving the focus from the network to the customer.

When hypergrowth causes you to fail internal stakeholders (like Operations), apologies are insufficient. Rebuild trust by going to the CEO and board *together* with the slighted team to advocate for a drastic roadmap pivot that prioritizes their needs, demonstrating true commitment to their success.

To fix an underperforming division, the CEO reset its strategy by identifying where the company had unique assets (e.g., managing complex international programs) and focusing on specific customer segments. This reduced exposure to commoditized markets and leveraged unique strengths.

During a crisis, a CEO's job is twofold. First, ensure the best people are activated and fully supported. Second, focus on high-leverage tasks only the CEO can perform, like public communication or raising emergency capital overnight.