HBR IdeaCast

Why Great Turnarounds Start with Culture, Not Strategy

34 min

In this episode of HBR IdeaCast, Verizon CEO Dan Schulman discusses his turnaround strategy for the struggling telecom giant, which had been losing market share and customer trust for years. Instead of starting with a new business strategy, Schulman focused on changing the company's culture—shifting from risk-averse and inward-looking to customer-centric and willing to play to win. He emphasizes radical honesty, making tough decisions like laying off 13,000 employees, and investing heavily in AI and customer experience to drive long-term growth.

Summarized by Podsumo

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✨ Key Takeaways

1

Schulman's first move was to confront the company's problems head-on with radical honesty—he told employees 'we are losing' and that they needed a full-scale internal revolution.
2

He prioritized a customer-centric cultural shift over a strategic one, launching 'Every Customer Has a Name' to treat customers as people, not accounts, and simplifying pricing plans.
3

To fund the turnaround, he laid off 13,000 people in month two, saving $5 billion, which he reinvested into customer experience—leading to 650,000 new subscribers in the first quarter.
4

Schulman warns that with AI accelerating, companies must become 'AI native' to avoid falling behind; he has put in place $20 million in AI reskilling programs and doubled down on training.
5

He emphasizes humility, authenticity, and a willingness to make difficult decisions as core leadership traits, noting that 'there's no substitute for a lot of years of experience.'

💬 Notable Quotes

"Customers fire companies all the time in quiet ways because they feel disrespected. They feel like there's gotta be a better way than this. It's too hard to be a part of your company."
"When the pace of change external to a company is faster than the change of pace internal, you're falling behind."
"Winning is contagious. You have to see that."