After the Break: How to Recover from a Separation in the Executive Team

Conflicts are part of everyday life in companies. They often arise from different visions, objectives, or communication problems – both in the executive team and among employees. But what do you do when the conflicts are so deep that a separation becomes unavoidable?

A separation at the leadership level can represent a massive turning point and often presents the remaining team members and employees with the challenge of being reorganized and stabilized.

In this article, you will learn how to reorganize teams after internal conflicts and restore trust to create a positive working atmosphere.

When the executive team falls apart

Working in an executive team is like a balancing act. Everyone brings individual strengths, weaknesses, and opinions, which do not always work out harmoniously. When internal conflicts escalate, it can endanger the entire company – especially if these conflicts affect the working atmosphere and decision-making processes.

The separation of one or more members is not only emotionally stressful but can also create operational gaps, especially if the distribution of tasks and responsibilities is not clearly defined.

It becomes even more challenging to maintain the trust of the remaining executive team and employees and to restore faith in the company’s mission.

Creating a new beginning

1. Open communication: creating clarity

After a separation, transparency is crucial. The remaining executive team and employees need clarity about why the separation occurred and what impact it will have on the company. Communication should not only take place internally but also externally – especially with stakeholders such as customers, business partners, banks, shareholders, and investors. This honesty creates trust and reduces fears within the company and among third parties.

2. Redefine responsibilities

Conflicts often arise from unclear roles or overlapping tasks. After a separation, it is advisable to redistribute responsibilities and create clear structures. This process can help stabilize the organization and avoid future conflicts. Both management and employees should know who is responsible for which areas and what goals are being pursued. That creates a clear direction and reduces the risk of misunderstandings.

3. Intensify cultural work

Conflicts can also be a symptom of a weak corporate culture. After a break in the executive team, it is critical to redefine the corporate culture and focus on shared values. What makes the people in the company a unit? Which behaviors should be encouraged, and which should be prevented? Here, it can be helpful to listen first and arrange goal-oriented team meetings, including the opportunity for everyone to speak openly about their expectations to define common values.

Case study: realignment after a change in the executive team

In 2017, SoundCloud was on the verge of bankruptcy and experienced massive internal conflicts. One of the co-founders, Alex Ljung, resigned as CEO. Ljung’s departure led to a major realignment. The remaining leadership team implemented new strategies to save the company by focusing more on its core business and the needs of its users.

Restructuring the team helped SoundCloud stabilize and restore trust among employees and investors¹. Today, SoundCloud is one of the world’s leading platforms for audio streaming and creative music creators.

Reorientation as an opportunity

A separation in the executive team often feels like a failure but might also be seen as an opportunity to put the company on a new footing. Executive teams and employees who emerge from crises stronger are more resilient – and often better prepared for future challenges. They learn how critical open communication and clear responsibilities are. Instead of mourning the loss, you should use the opportunity to rethink old structures, improve inefficient processes, and put the company on the road to success.

There are numerous examples of successful companies that have mastered crises. Airbnb, for example, struggled with internal tensions and financial difficulties during the 2008 financial crisis. However, by concentrating on the core idea and having a tight organization, the leadership team managed to steer the company successfully through the crisis². Today, Airbnb is one of the best-known companies in the world and shows that new strength can emerge from conflict.

Conclusion: courage to start anew

Conflicts and separations are painful, but they also offer the opportunity for a fresh start. It is crucial to tackle the challenges proactively after a break in the executive team. Open communication, clear structures, and a strong corporate culture are the keys to taking the people in the company along on the journey, reorganizing, and keeping the company on the road to success.

If you are currently going through a difficult phase in the executive team, take the time to reflect on the situation and use this opportunity for positive changes. The greatest successes often come after the greatest challenges.

Stay strong!