The 5 Stages of Grief - CEO Edition

David Morgan January 2026

The Five Stages of Business Grief: A CEO's Reflection

TL:DR

Arriving at Acceptance isn't the end; it's the beginning of a powerful turnaround, the foundation for thriving in the future, and the ultimate source of sustained competitive advantage - BUT businesses need to arrive here quickly.

This isn't about giving up; it's about letting go of what was, to fully embrace what can be. The value of processing through each stage, as painful as it might be, lies in arriving at this point of clarity and strategic agility.

So What Have I Discovered?

In recent months, I’ve had the privilege of interviewing 40 to 50 founders and CEOs from a diverse range of industries. It’s been an illuminating experience, offering a panoramic view of the current business landscape. As I listened to their stories, their challenges, and their hopes, a peculiar pattern began to emerge – one that resonated deeply with a concept we usually associate with personal loss: the five stages of grief.

Now, before you balk at the comparison, hear me out. The current business climate, with its relentless pace of technological advancement, geopolitical shifts, and evolving customer expectations, can feel like a profound loss of the "way things used to be". And just as individuals process personal grief, it seems many leaders are navigating their businesses through a remarkably similar emotional and strategic journey. My aim in sharing these observations is not to offer a definitive diagnosis, but rather to provide a mirror for you, my fellow leaders, to reflect on where your own business mentality could currently reside.

Stage 1: Denial – "It Won't Affect Us."

This is the initial shock. The market is shifting, a disruptive technology is emerging, or a new competitor is gaining ground. In this stage, leaders often downplay the threat, clinging to the belief that their established methods and past successes will somehow make them immune.

I've heard variations of, "Our customers are loyal," or "That's a niche trend; it won't impact our core business."

This denial, while a natural coping mechanism, can lead to dangerous inaction. Employee engagement may suffer as the workforce senses the impending shift, but leadership remains stubbornly optimistic, often leading to missed opportunities and a growing disconnect with market realities. The pressure on pricing and negotiations might intensify, but the denial prevents a proactive reassessment of value propositions.

Stage 2: Anger – "Why Is This Happening to Us?"

As the undeniable evidence mounts, denial often gives way to frustration. This isn't just external anger; it can manifest internally. Leaders might lash out at teams, blame market forces, or express resentment towards competitors or regulatory bodies.

"This AI craze is ridiculous!" or "These new laws are stifling innovation!" are common refrains.

This anger can create a toxic environment, impacting morale and making employee engagement a significant uphill battle. Budgeting and forecasts become fraught with tension, as leaders struggle to reconcile past performance with a rapidly changing future, often leading to unrealistic targets or punitive measures. Customer attraction can also suffer as an angry, reactive approach replaces a proactive, problem-solving one.

Stage 3: Bargaining – "If Only We Had Done X..."

This stage is characterised by a desperate attempt to regain control. Leaders might try to negotiate with reality, proposing quick fixes or "Hail Mary" strategies that often lack long-term vision.

"If only we had invested in that software five years ago," or "Maybe if we cut prices aggressively, we can weather this storm."

This can manifest in frantic, often uncoordinated efforts, leading to resource drain and a lack of clear strategic direction. Confidence generally fluctuates wildly, as each potential "bargain" offers a fleeting moment of hope before its inevitable shortcomings are revealed. Employees can become disoriented by the constant shifting of priorities, further impacting engagement and overall productivity.

Stage 4: Depression – "What's the Point?"

When bargaining fails, a sense of hopelessness can set in. This isn't necessarily clinical depression, but a deep feeling of discouragement and uncertainty about the future of the business. Leaders might withdraw, express cynicism, or struggle to articulate a path forward.

"We're just treading water," or "It feels like we're constantly fighting fires."

This stage can have a profoundly negative impact on all aspects of the business. Employee morale plummets, and attracting new talent becomes incredibly difficult. Decision-making slows, and the ability to innovate or adapt is severely hampered. This is a critical juncture where the business risks becoming truly stagnant, and even the most loyal customers may begin to look elsewhere.

Stage 5: Acceptance – "This Is Our New Reality, Let's Build from Here."

And then, a glimmer of light - for the few leaders that are ahead of the market.

Acceptance is not about liking the new reality, but acknowledging it fully and strategically. It's the moment when leaders pivot from resisting change to embracing it as an opportunity. This is where competitive advantage is forged.

"Yes, AI is transforming our industry, so how can we leverage it to our benefit?" or "The market has shifted, so how can we reinvent our value proposition for this new landscape?"

Leaders in acceptance are characterised by a renewed sense of purpose and a clear, forward-thinking vision. They proactively re-evaluate their costs, adjust their budgeting and forecasts with realism, and engage in constructive negotiations. They understand that customer attraction now requires adapting to new needs and communication channels. Employee engagement flourishes because leadership is transparent, empowers their teams to innovate, and fosters a culture of adaptability.

Conclusion

This isn't about giving up; it's about letting go of what was, to fully embrace what can be. The value of processing through each stage, as painful as it might be, lies in arriving at this point of clarity and strategic agility.

Acceptance isn't the end; it's the beginning of a powerful turnaround, the foundation for thriving in the future, and the ultimate source of sustained competitive advantage.

I urge you to reflect on these stages. Where does your business, and more importantly, your leadership mentality, currently stand?

Recognising where you are is the first, most crucial step towards navigating these turbulent waters and emerging stronger, more resilient, and truly ready to embrace the opportunities of tomorrow.

Where are you on the Cycle?

Reach out to me if you recognise this.