April 10, 2026
Vejaa/Depositphotos.com
How Can Morale Be Kept High During Lengthy Turnarounds?
“I’m so tired, and I know you are too, of talking about fixing this business,” Nike’s CEO Elliott Hill told staffers, following last week’s announcement of a bleak forecast, in a bid to shore up morale.
“I want to move to inspiring and driving growth and having fun,” he added, according to a recording reviewed by Bloomberg News.
His blunt comments came after Nike warned that quarterly sales would continue to fall for the rest of the calendar year, briefly sending the company’s shares to an 11-year low.
Hill told his employees that while progress is being seen in North America and in the running category, other parts of his strategy “took longer, way longer than I’d like.”
Hill, a Nike veteran appointed CEO in October 2024, has faced numerous obstacles in his quest to return Nike to growth — including needing to liquidate massive quantities of Air Force 1, Air Jordan 1, and Dunk inventory after prior management became too reliant on the classic franchises. Nike has also had to repair relationships with wholesale partners after fixating on direct-to-consumer for several years. It also faces newer competition from newer brands — including Hoka and On — as well as weakness overseas. The restructuring has also included several layoffs.
He added, “I hate to lose, and we’ve got work to do in some of these places.”
Turnarounds in Retail Can Be Turbulent, But a Steady Hand in Leadership Is Key
Nike is far from the only brand or retailer facing a longer-than-expected turnaround effort.
A Harvard Business Review article — “Keeping Morale Up During a Turnaround,” featuring a number of turnaround experts — suggested the key to maintaining team morale during difficult times is leading with empathy, transparent communication, frequent recognition, and fostering employee empowerment.
“During a turnaround, keeping employees motivated isn’t easy,” said Patti Sanchez, chief strategy officer at Duarte, on LinkedIn. “But you can make their journey smoother with clear, timely, and caring communication.”
Peter Cuneo, who has earned credit for turning around Marvel and Remington Products, believes fixing a company’s culture is critical in executing a turnaround… but it takes employees up to the task. He said on a Harvard Business Review podcast, “My experience is that most human beings have a very hard time being inside a turnaround because it’s scary. You don’t know what the future is. And it takes a certain type of person that will be comfortable with that risk, usually because they see what the rewards could be, particularly financially.”
He likewise promoted the value of being open with staff about progress, noting the staff “would rather hear bad news than no news.” However, he said any communication and body language coming from the c-level has to remain optimistic.
Cuneo said, “If things aren’t going well, you can go home and scream in a pillow. That’s cool. I won’t say that I haven’t done it, but you’re on stage. You’re literally on stage. And even in the case of bad news, you have to be projecting a positive image and optimism.”
BrainTrust
Shep Hyken
Chief Amazement Officer, Shepard Presentations, LLC
Brad Halverson
Principal, Clearbrand CX
Neil Saunders
Managing Director, GlobalData
Recent Discussions
Discussion Questions
Will Nike’s employee morale benefit from management being open about admitting its recent shortcomings?
What’s your advice on how to avoid eroding morale during turnaround efforts?
What have you learned in working for companies undergoing turnarounds?
Poll
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The key thing is for leadership to have a vision and to communicate this clearly to all employees, complete with milestones and expectations. Updates should be given regularly. What most people find exhausting is uncertainty and constantly changing plans.
Agree, Neil. Transparency is key, both the positive and the areas of continued struggle. Guessing is demoralizing.
People are mostly concerned with day-to-day matters that effect them, so listening to those concerns is important. That having been said, not every concern can be met, of course – “listening to” isn’t the same as blindly following – and many employers paint themselves into a corner by equating “turnaround” with “cutting costs”.
During a performance trough, clarity and stating how long its expected to last is communication 101, but its not enough – employees want to feel emotionally tied to, even challenged toward something better. This is the time to share a glimpse into new products or services that will be game changers, that will solve something for customers, that will get everyone feeling good about their jobs and their future. Steve Jobs and his return to a a dark and nearly dead Apple is one of the greatest examples.
Many ideas were covered in this short article, but I’m going to emphasize the consistent communication. Knowledge, even if it’s not what someone wants to hear, creates confidence and comfort. So, transparent communication that provides good information, on a cadence the customer can count on, is one of my top suggestions for keeping morale high during long turnarounds
The 2020s are like change management on crack. Effective change management is all about clear communication for unity, alignment and buy-in.
Help staff at all levels understand why a turnaround is necessary, the cost of clinging to the status quo and how they will benefit from the company’s evolution. A desirable future state can replace workers’ anxiety with confidence, optimism and renewed loyalty.
The lesson for Nike is that while Elliott Hill’s transparency is refreshing, transparency alone doesn’t fix morale if the underlying ‘fear’ of constant layoffs remains. Hubert Joly from Best Buy proved that you can’t cut your way to growth; you have to invest in the people who actually sell the dream. Nike needs to shift its focus from ‘fixing the business’ to ’empowering the fixers’ by prioritizing small, immediate operational wins that make the daily lives of their employees better right now.
The need for turnaround likely shows up in employees’ morale before the executives read it in the numbers. With confidence in that leadership, many employees will welcome management’s recognition that change is needed.
But that doesn’t negate the need for leadership to communicate, and maybe hyper-communicate, what the plans are and how long it may take. With good leadership, employees will get on board with enthusiasm. They must give employees something to buy into.
Nike’s transparency about its recent challenges is likely to help morale — but only if it is paired with a clear path forward. During a recent all-hands meeting, Nike CEO Elliott Hill openly acknowledged employee fatigue and frustration, telling employees he was “tired” of talking about fixing the business and wanted to shift toward growth, inspiration, and having fun again — a message designed to reconnect employees with Nike’s core culture and purpose.
That kind of transparency matters in any turnaround. Research and leadership commentary around the Nike situation reinforce that uncertainty is often more damaging to morale than bad news, and that leaders must communicate a vision, milestones, and regular updates to keep teams aligned and engaged. Employees are more likely to stay motivated when they understand where the company is headed and how they contribute to the recovery.
In practice, morale challenges are inevitable during any turnaround. The key is balancing realism with optimism. Nike remains one of the most formidable brands in the world, and that alone provides a strong foundation for recovery. Reconnecting employees to the brand’s purpose — innovation, sport, and performance — can help rebuild momentum. And culturally, few companies have the advantage Nike does; sometimes, reminding teams of the power of the brand — or even a symbolic visit from #23 — can reinforce belief in the future.
To avoid eroding morale during turnarounds, leadership should:
- Communicate transparently about current performance
- Provide a clear roadmap with milestones and expectations
- Share early wins to build momentum
- Reinforce the company’s long-term vision and purpose
Experience across many turnaround environments suggests that employees don’t expect perfection — they expect honesty, clarity, and leadership. When teams understand the challenge, see progress, and believe in the future, morale can stabilize even during difficult periods.
Ultimately, turnarounds are as much about belief and culture as they are about strategy and execution. Nike’s transparency is a positive step, but sustained morale will depend on delivering visible progress and reconnecting employees to the energy and competitive spirit that has long defined the brand.
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The key thing is for leadership to have a vision and to communicate this clearly to all employees, complete with milestones and expectations. Updates should be given regularly. What most people find exhausting is uncertainty and constantly changing plans.
Agree, Neil. Transparency is key, both the positive and the areas of continued struggle. Guessing is demoralizing.
People are mostly concerned with day-to-day matters that effect them, so listening to those concerns is important. That having been said, not every concern can be met, of course – “listening to” isn’t the same as blindly following – and many employers paint themselves into a corner by equating “turnaround” with “cutting costs”.
During a performance trough, clarity and stating how long its expected to last is communication 101, but its not enough – employees want to feel emotionally tied to, even challenged toward something better. This is the time to share a glimpse into new products or services that will be game changers, that will solve something for customers, that will get everyone feeling good about their jobs and their future. Steve Jobs and his return to a a dark and nearly dead Apple is one of the greatest examples.
Many ideas were covered in this short article, but I’m going to emphasize the consistent communication. Knowledge, even if it’s not what someone wants to hear, creates confidence and comfort. So, transparent communication that provides good information, on a cadence the customer can count on, is one of my top suggestions for keeping morale high during long turnarounds
The 2020s are like change management on crack. Effective change management is all about clear communication for unity, alignment and buy-in.
Help staff at all levels understand why a turnaround is necessary, the cost of clinging to the status quo and how they will benefit from the company’s evolution. A desirable future state can replace workers’ anxiety with confidence, optimism and renewed loyalty.
The lesson for Nike is that while Elliott Hill’s transparency is refreshing, transparency alone doesn’t fix morale if the underlying ‘fear’ of constant layoffs remains. Hubert Joly from Best Buy proved that you can’t cut your way to growth; you have to invest in the people who actually sell the dream. Nike needs to shift its focus from ‘fixing the business’ to ’empowering the fixers’ by prioritizing small, immediate operational wins that make the daily lives of their employees better right now.
The need for turnaround likely shows up in employees’ morale before the executives read it in the numbers. With confidence in that leadership, many employees will welcome management’s recognition that change is needed.
But that doesn’t negate the need for leadership to communicate, and maybe hyper-communicate, what the plans are and how long it may take. With good leadership, employees will get on board with enthusiasm. They must give employees something to buy into.
Nike’s transparency about its recent challenges is likely to help morale — but only if it is paired with a clear path forward. During a recent all-hands meeting, Nike CEO Elliott Hill openly acknowledged employee fatigue and frustration, telling employees he was “tired” of talking about fixing the business and wanted to shift toward growth, inspiration, and having fun again — a message designed to reconnect employees with Nike’s core culture and purpose.
That kind of transparency matters in any turnaround. Research and leadership commentary around the Nike situation reinforce that uncertainty is often more damaging to morale than bad news, and that leaders must communicate a vision, milestones, and regular updates to keep teams aligned and engaged. Employees are more likely to stay motivated when they understand where the company is headed and how they contribute to the recovery.
In practice, morale challenges are inevitable during any turnaround. The key is balancing realism with optimism. Nike remains one of the most formidable brands in the world, and that alone provides a strong foundation for recovery. Reconnecting employees to the brand’s purpose — innovation, sport, and performance — can help rebuild momentum. And culturally, few companies have the advantage Nike does; sometimes, reminding teams of the power of the brand — or even a symbolic visit from #23 — can reinforce belief in the future.
To avoid eroding morale during turnarounds, leadership should:
Experience across many turnaround environments suggests that employees don’t expect perfection — they expect honesty, clarity, and leadership. When teams understand the challenge, see progress, and believe in the future, morale can stabilize even during difficult periods.
Ultimately, turnarounds are as much about belief and culture as they are about strategy and execution. Nike’s transparency is a positive step, but sustained morale will depend on delivering visible progress and reconnecting employees to the energy and competitive spirit that has long defined the brand.