Many readers of this blog tell me their favorite posts are the ones that feel very real, very practical,
I think this one will do exactly that.
Before getting into a very interesting story, let me start with a few questions that leaders ask me all the time:
These are not theoretical leadership questions. They are real-world challenges that leaders face every day. And interestingly, they all came together during a recent conversation I had with a sales leader while conducting subject matter expert interviews for a new business acumen simulation we are building.
The Story
Last week, I conducted seven interviews with sales leaders as part of this project. It’s a pretty intense initiative, as most of the learning will be about sales business acumen and customer data analysis, mixed with a heavy dose of business leadership, particularly developing better coaching skills in a new AI-driven data analysis environment.
One of the questions I ask every SME is about their team's culture and the coaching skills they need to be successful moving forward.
One leader took the conversation in a totally unexpected—but incredibly insightful—direction.
He explained that his biggest challenge was being an effective coach in what he called a “post-toxic clean-up situation.”
The leader shared that they previously had someone on the team who consistently hit their numbers but created a serious disruption inside the group.
“The negativity, backstabbing, and outright trying to steal business became so demoralizing that the people on my team started to shut down, and we dropped to the bottom of the rankings. We eventually exited that person from the team and the company, to the great relief of everyone, including many of our customers. Now I have the challenge of rebuilding the team, and I’m not sure I have the business acumen and leadership acumen to do that.”
What an incredibly transparent and thoughtful reflection from a leader.
That conversation sparked several follow-up discussions with other leaders inside and outside that organization, along with some research on best practices.
Much of what we learned will become part of a customized simulation scenario, but I thought the insights were too valuable not to share.
So, here are five things leaders can do when rebuilding a team after a difficult cultural disruption.
Five Leadership Moves That Rebuild a High-Performing Team
1. Acknowledge What Happened
Many leaders try to “move on quickly” after a difficult team situation.
But teams remember.
People may still quietly be asking themselves:
The first step in rebuilding a healthy culture is acknowledging what happened and reinforcing the standards going forward.
A simple message goes a long way:
“We had behavior that hurt our team and our customers. We addressed it. And we are committed to building a stronger culture moving forward.”
Clarity rebuilds trust.
2. Redefine What “Performance” Really Means
One of the most dangerous myths in business is that performance is defined only by numbers.
Great organizations look at performance through a broader lens:
A high performer who damages collaboration can create hidden costs leaders rarely measure:
From a business acumen perspective, these costs can quietly destroy more value than the revenue that person produced.
Strong leaders reinforce that how we win matters just as much as what we win.
3. Rebuild Psychological Safety
Teams that experience internal conflict often become defensive.
People stop sharing ideas.
They stop helping each other.
They stop raising problems.
In other words, they stop doing the things that drive innovation and performance.
Leaders rebuilding a team need to intentionally restore psychological safety through actions such as:
Psychological safety is not “soft.”
It is a performance multiplier.
4. Return to Coaching
One of the most powerful moments in the SME interview came when the leader said:
“For two years, I realized I was managing around the problem instead of coaching the team.”
That happens more often than we think.
When strong personalities dominate a team, leaders often spend their time refereeing conflict instead of developing people.
Once the disruption is removed, leaders should quickly return to a coaching mindset:
Coaching rebuilds both capability and confidence.
5. Create Momentum Through Early Wins
Nothing restores morale faster than progress.
After a difficult period, leaders should look for ways to create early team wins, such as:
These wins help the team rediscover something powerful:
Working together actually produces better results.
And that realization often becomes the turning point for the entire team.
Final "Robservation"
One of the most interesting insights from these conversations is that cultural damage rarely happens overnight. It builds slowly. Morale declines. Trust erodes. Collaboration fades. Performance eventually follows.
But the opposite can also happen.
When leaders address cultural problems and intentionally rebuild the team environment, organizations often experience a powerful rebound in engagement, innovation, and performance.
In that sense, rebuilding after a difficult team situation isn’t just a leadership challenge.
It’s a business opportunity. And leaders who combine strong leadership acumen with business acumen can turn a difficult chapter into one of the most defining moments for their team.