Why Permanent Staff Fail at Manufacturing Turnarounds

Not enough time to read the full article? Listen to the summary in 2 minutes.

The CEO knew the numbers were sliding. The ops team was loyal. But six months into the manufacturing turnaround, the KPIs still hadn’t recovered.

No one was slacking. No one lacked commitment. But the transformation wasn’t happening. The truth? Loyalty and familiarity often become liabilities in a turnaround.

This article isn’t about blame. It’s about clarity.

Many manufacturing companies attempt to fix a failing operation using the very team that led it into decline – and it backfires. Not because they’re bad leaders, but because they’re not the right ones for a rescue mission.

Let’s break it down.

The Harsh Truth – Why Internal Leadership Falls Short

1. They’ve Never Done It Before

Most permanent staff – from CEOs to plant managers – are hired for stability or growth. Crisis leadership is a different skillset entirely.

A manufacturing turnaround demands:

• Fast decisions under pressure
• Aggressive cost and process cuts
• Tactical resets of culture, systems, and pace

This isn’t business-as-usual leadership. It’s crisis execution. And most internal leaders have never done it.

“It’s not a skill gap. It’s an exposure gap.”

2. They’re Too Close to the Problem

You can’t fix what you won’t face.

Permanent executives often have emotional attachment to legacy systems, teams, or strategies they built. That loyalty becomes a blind spot.

• They hesitate to shut down underperforming product lines
• They delay removing ineffective managers
• They rationalize poor results as temporary

In a turnaround, bias = delay. Delay = danger.

3. Internal Politics Slow Them Down

Even in a crisis, permanent teams may:

• Avoid ruffling feathers
• Delay tough calls to maintain internal harmony
• Seek consensus when speed is required

That’s why many manufacturers bring in interim leaders to play the so-called ‘bad cop’ – making the tough calls that permanent staff can’t risk politically. It’s not about blame, it’s about clearing the way for real change.

4. Magical Thinking Replaces Tough Calls

Denial shows up in quiet ways:

• “Let’s give it one more quarter.”
• “It’s just market conditions.”
• “We’ve bounced back before.”

This mindset leads to surface-level fixes and missed windows for meaningful change. Hope is not a turnaround strategy.

5. They’re Out of Bandwidth

Even the best internal leaders are stretched thin. They’re managing operations, compliance, reporting, and people – all while trying to rescue a sinking ship.

That’s not sustainable.

There’s no room left for:

i) Strategy redesign
ii) Cultural reset
iii) Morale rebuilding
iv) Hands-on execution

This is where interim leadership unlocks capacity and clarity.

What’s Really at Stake When You Wait Too Long

Over 70% of turnaround efforts fail.

And leadership inertia is a top cause.

The longer you delay decisive action, the more you risk:

• Employee burnout as teams lose hope
• Supplier and customer erosion from broken trust
• Declining valuation, lost EBITDA, and failed recovery

Every week without change, the clock runs out on your turnaround.

What an Interim Turnaround Leader Does Differently

Let’s be clear – interim doesn’t mean temporary babysitter. It means crisis-tested operator with one goal: get the turnaround done.

Here’s how they operate:

• Zero onboarding – They hit the ground running, mission-ready.
• No internal bias – No ego, no legacy, no politics.
• Tough calls made early – Cost cuts, headcount resets, restructuring – done fast.
• Credibility reset – Seen as neutral and fresh by staff, suppliers, and stakeholders.

✅ At CE Interim, we deploy turnaround leaders who’ve executed dozens of complex recoveries across Europe and the Middle East – stepping in precisely when permanent teams hit a wall.

Are You Leading the Team – or Protecting It from Reality?

If you’re a CEO or plant director, ask yourself:

• Are we treating symptoms instead of causes?
• Are decisions being delayed to preserve comfort?
• Are we waiting for internal approval while performance slides?

Even great leaders aren’t always the right ones for this phase.

Sometimes the bravest move is bringing in someone who isn’t tied to the past – to protect your team by changing what they can’t.

“We’ve worked with directors who later said: ‘I wish we’d called you six months earlier.’”

You Can’t Lead a Breakthrough With Business-as-Usual Thinking

Permanent staff are essential to long-term rebuilds. But turnarounds? That’s a different game.

You need urgency. You need objectivity. You need leadership that isn’t tied to internal narratives.

Interim doesn’t mean outsider forever – it means the right mindset, right now.

✅ CE Interim delivers manufacturing turnaround leaders who bring speed, clarity, and results – while empowering your internal team to succeed beyond the crisis.