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Leadership Training/Mentoring Section - January Leadership Situation
THE LEADERSHIP TRAINING/MENTORING CORNER
In August of last year, the Silver Fox Advisors introduced a new offering in its monthly newsletter, which is called the Leadership Training/Mentoring Section.
In this section, a thought-provoking situation will be presented. In most cases, these situations will be real-life circumstances. Our readers will think about them and play them out in their minds or on paper, as they consider what they would do or should have done if these incidents actually happened to them in their businesses.
Being a good leader requires you to be able to react to unexpected happenings or developments. Our Silver Fox Advisors have experiences they want to share with you that they have managed through, with the hope of providing you with some touch points so you can become more than a good leader, but a GREAT LEADER.
There is an added benefit: if you respond to us and provide a reply to this situation, and your response is selected as the best, you will be awarded a seat at one of our Lunch & Learn events.
JANUARY LEADERSHIP SITUATION
Business Scenario: The Morale Challenge at BrightPath Consulting (this is a real case, and the names have been changed).
Background:
BrightPath Consulting is a mid-sized management consulting firm with about 120 employees. For over 15 years, it was owned and operated by its founder, Sarah Mitchell, who fostered a collaborative culture where employees felt valued and heard. Under Sarah's leadership, BrightPath developed a reputation for excellent client relationships and low employee turnover.
The Change:
Six months ago, the company was acquired by Vanguard Business Group, a larger corporate entity expanding its consulting portfolio. The new owner, Jonathan Price, a data-driven executive with a background in corporate turnarounds, stepped in as CEO.
The Problem:
Since the acquisition, employee morale has visibly declined. Several senior consultants have left, citing "cultural misalignment" and "lack of transparency." Remaining employees are expressing frustration due to new policies and shifts in management style:
- The company now focuses heavily on billable hours and automation tools rather than relationship-based consulting.
- Jonathan has centralized decision-making, reducing team autonomy.
- Long-standing company traditions, such as quarterly retreats and peer recognition programs, were canceled in the name of "efficiency."
- Communications from the new management team have been formal and infrequent, leading to rumors and uncertainty about the company's direction.
Current Situation:
Performance is slipping - client satisfaction scores are down, project deadlines are being missed, and engagement survey results show morale at an all-time low. Jonathan notices the decline but attributes it to "resistance to change/" Mid-level managers, however, warn that the company is at risk of losing more key talent if trust and motivation aren't rebuilt soon.
Your Task:
Develop possible strategies for Jonathan to:
- Understand the root causes of low morale.
- Rebuild employee trust and engagement.
- Align the new business direction with the company's valued culture.
Please provide us with a brief write-up of "What are your next steps?" Send your write-up to Lynn Rosado at [email protected]
In our February 2026 Newsletter, one or more of our Silver Fox Advisors will respond to what he or she would have done and what precautions he or she would have taken in the January leadership Situation.
If you need assistance in becoming a better leader, I recommend you start by contacting the Silver Fox Advisors. Silver Fox Advisors are former or present business owners themselves, and they have leadership experience in running a business, and in some cases several businesses, and have dealt with unforeseen and unplanned situations throughout their careers. We encourage you to visit our website at www.silverfox.org to select a Silver Fox Advisor and also to learn more about the Silver Fox Advisors, as well as our great programs and community outreach endeavors.
The Leadership Training/Mentoring Corner - December Next Steps
THE LEADERSHIP TRAINING/MENTORING CORNER
In August of this year, the Silver Fox Advisors introduced a new offering in its monthly newsletter, which is called the Leadership Training/Mentoring Sectio,n in which we posed a thought-provoking situation for you to think about and put yourself into the situation, detailed and ask yourself – “What are your next steps”. Below is the situation that was in the December 2025 Newsletter.
DECEMBER LEADERSHIP SITUATION
You and your spouse own a $25.0 million commercial service business, and your spouse is very active in the business and originally started the business, thus he knows every aspect of the operation of the business inside and out. You have really never taken an interest in the business, but have been involved in some of the decision-making over the years. Part of the management group is a husband-and-wife team who have been employees for a number of years in the business, but neither one has an employment contract or any ownership interest. The husband is the head of operations, and the wife is the controller. The business’s debt is on the land and building and is in the form of a long-term mortgage, which is current, and a revolving line-of-credit with no outstanding balance. The owner and the spouse have wills in place stating that upon the demise of one spouse, the other spouse inherits 100.0% of the deceased spouse’s belongings.
On a dark and stormy night, the owner is driving home from the airport and is involved in a fatal accident, and passes away on the scene. You are the surviving spouse and now the 100.0% owner of a business you know little about, and you do not have any experience in running a business. You know a number of the business’s suppliers, larger clients, bankers, and attorneys socially. You do have a degree in business from a major university, and you have a pretty good understanding of financial matters.
We polled some of the Silver Fox Advisors, and below are some recommendations on what your next steps should be:
To get ahead of the uncertainties of this change with all the groups described, it would be a good idea to take a day-one approach, stating there will not be any changes in the business operation or ways of doing business. This should be communicated to each group, except the competitors, as soon as possible. The communication vehicles and messaging should be well-thought-out and crafted to relay a tone of serenity and certainty.
- Within a 30-to-60-day period, after the incident, it would be advantageous to establish and assemble an Advisory Board made up of yourself, the two key husband and wife employees, the employees' management team members, the business’s legal and accounting representatives, and a trusted family friend who has business experience.
The purpose of the Advisory Board would be to meet, initially weekly, to determine what needs to be done legally and financially, if anything, as the result of the owner change, and detail a plan of action needed to be taken with assignments of who will do what, as well as a timeline of a starting point and a finish line.
- Once this initial work of the Advisory Board has concluded, the Board can continue to meet either every other month or quarterly to assess the various elements of the business, such as revenues, gross profit margin, total operating expenses, and bottom-line profitability. In addition, this Advisory Board can work on developing a SWOT analysis for the business and financial goals, market conditions, and, annually, a business plan.
- At some point, probably within a year or two of the incident, you will want to make a financial and business decision if you want to keep the business and operate it, and what that will look like, or if you want or need to sell the business.
Again, this is the kind of decision that you should seek the advice and counsel of trusted legal, financial, business advisors, and family.
If you like being an entrepreneur and enjoy working in the business world, then keeping the business might be your desired outcome. If you want to spend time with family and friends and do some traveling, then selling the business might be the path to take.
