How to overcome hidden reliability tax of leadership turnover
Key Highlights
- Frequent leadership changes can lead to trust erosion, delayed initiatives, and employee skepticism, collectively called the 'reliability tax.'
- New leaders should spend their first 30 days understanding existing systems, identifying what works, and protecting valuable initiatives.
- Building resilient systems requires clear documentation, disciplined work practices, and a culture that values long-term stability over short-term wins.
- Effective leadership involves giving credit to predecessors and maintaining proven processes, which fosters trust and continuity within the organization.
- The ultimate goal is to develop a reliability culture that survives leadership transitions, ensuring sustained performance and continuous improvement.
About 30 years ago, a coworker who had been a Navy officer told me something I have never forgotten:
“No new leader is content polishing the previous guy’s trophies.”
His point was simple. Even if an organization was performing well, even if the culture was strong, and even if the previous leader had built something worth preserving, change was still likely. New leaders want to make their mark. They want to demonstrate value. They want people to see evidence that they are now in charge. That instinct is understandable. It can also be incredibly expensive.
In manufacturing, we often talk about the cost of downtime, poor planning, inadequate preventive maintenance, weak problem-solving systems, and aging equipment. We measure production losses, maintenance costs, schedule compliance, overtime, and failures.
But there is another cost that rarely appears on a financial statement. I call it the reliability tax of leadership turnover.
Every time a new plant manager, maintenance manager, operations manager, or corporate leader arrives, the organization braces for change. Priorities shift. Terminology changes. New dashboards appear. Consultants may be brought in. Existing programs are renamed. Long-term plans are questioned. The previous leader’s initiatives are often quietly pushed aside.
Sometimes these changes are necessary. The problem is that many leaders change things before they understand them. They assume that because they did not create a system, the system must be outdated. They feel pressure to deliver quick wins. They want to separate themselves from the person they replaced. Instead of polishing the previous leader’s trophies, they begin replacing them.
The workforce notices, and experienced employees have seen this cycle before. They have watched leaders arrive with excitement, launch a major initiative, create new slogans, hold kickoff meetings, and promise that this time things will be different.
Then, the leader leaves. The initiative disappears. The signs come down. The consultant moves on. The metrics change. A new leader arrives with a new program.
Eventually, employees learn a rational survival strategy: wait it out. This is often labeled resistance to change, but that description may be unfair. People may not be resisting improvement. They may simply be protecting themselves from investing energy in another program that will soon be abandoned. They have learned from experience.
The cost of reliability tax
This creates an enormous reliability tax. The first part of the tax is lost trust. Every abandoned initiative makes the next initiative harder to sell. Employees begin to question whether leadership is serious. Supervisors become hesitant to commit. Craftspeople hold back ideas because they doubt anything will be sustained.
The second part is delayed execution. Instead of moving quickly, the organization pauses. People wait to see which priorities survive. They continue using familiar routines while management debates new systems and expectations.
The third part is initiative fatigue. Plants can only absorb so much change at one time. When leaders constantly launch new programs, the workforce becomes overwhelmed. Important work competes with presentation work, reporting work, training work, and meeting work.
The fourth part is the constant restarting of reliability. Reliability improvement requires repetition, discipline, and time. Planning and scheduling do not mature in a quarter. Preventive maintenance optimization is not a one-time event. Defect elimination requires years of consistent leadership. Operator care, root cause analysis, precision maintenance, and improved storeroom practices must become habits.
When leadership changes direction every few years, these systems never mature. The plant remains trapped in the early stages of improvement.
One of the most destructive questions a new leader can ask is, “What best practice can we implement?” A better question is, “What should we protect?”
New leader: 30-day plan
A new leader should spend the first 30 days understanding why the plant operates the way it does. What is working? What is broken? Which systems have credibility? Which initiatives were abandoned too soon? What did the previous leader begin that still deserves support? Gaining knowledge of current state must include extensive time in shop floor observation.
The goal should not be to preserve everything. The goal should be to separate weak traditions from valuable foundations. Strong leaders do not need to invent every good idea. They are secure enough to continue work started by someone else.
In fact, one of the clearest signs of mature leadership is the willingness to give credit to a predecessor. Imagine the message sent when a new plant manager says, “The previous leadership team built a strong planning and scheduling process. We are going to protect it, strengthen it, and help it mature.”
That statement builds trust. It tells the organization that good work will survive leadership changes. It tells employees that their effort was not wasted. It also sends an important message to future leaders: our systems are bigger than any one personality.
How does reliability survive leadership turnover?
Reliability must be built to survive leadership turnover. That means having clear-documented processes, agreed-upon precision standards, disciplined work systems, and long-term measures that do not change every time a new manager arrives. It means creating a leadership team that understands not only what the plant is doing, but why it is doing it.
The best reliability cultures are not dependent on a charismatic champion. Champions leave. Managers are promoted. Corporate structures change. The system must remain.
My Navy officer coworker was probably right. Very few new leaders are content polishing the previous guy’s trophies—but perhaps the greatest leaders are. Where do you fall?
They recognize that leadership is not always about replacing what came before. Sometimes leadership is about protecting good work, removing barriers, providing resources, and allowing an existing system enough time to produce results.
A plant does not need a new reliability program every three years. It needs leaders with enough humility to recognize what is already working and enough discipline to stay the course. The real test of leadership is not only what you start, but what you are wise enough to preserve.
About the Author
Joe Kuhn
CMRP
Joe Kuhn, CMRP, former plant manager, engineer, and global reliability consultant, is now president of Lean Driven Reliability LLC. He is the author of the book “Zero to Hero: How to Jumpstart Your Reliability Journey Given Today’s Business Challenges” and the creator of the Joe Kuhn YouTube Channel, which offers content on creating a reliability culture as well as financial independence to help you retire early. Contact Joe Kuhn at [email protected].

