There are leaders that underestimate how much psychology shapes execution. They jump to processes, dashboards, and org charts. But if people don’t believe their actions matter, none of that sticks.

Decades of research in positive psychology shows that in any group, roughly two thirds slip into a form of learned helplessness when the environment feels uncontrollable. They disengage because they assume the outcome is fixed. Only about a third stay engaged under the same conditions. Those are your natural optimists. They keep trying because they believe effort still moves the needle.

But optimism (and its opposite) isn’t a fixed personality trait. It’s a learned skill that can shift with the right coaching and environment. Studies consistently show pessimistic thinkers are two to eight times more likely to shut down under pressure. Coach people to challenge catastrophic assumptions or reframe setbacks, and measurable things happen. You unlock the energy your organization is missing. Engagement rises, depressive behavior drops, follow-through improves. Even simple interventions shift belief and agency.

This is why stabilization fails when leaders treat it as a mechanical exercise. Before you fix processes or align the org chart, you have to rebuild belief in the organization’s North Star. You have to inspire. People need to think a better outcome is possible and that their effort plays a role in getting there. Once that moves, everything else starts to move. Without it, nothing moves at all.

This is the work that determines whether a turnaround turns.