Forget disruptive innovation, commodity pricing and fierce competition… they pale in comparison to the greatest enemy any company has ever confronted: the past.

For most companies, the past is their greatest impediment to future success. Here are three examples of what I mean:

• Firms with a proven recipe for success have immense difficulty shifting gears when market conditions change.
• Management teams used to relying on longstanding systems and software fail to comprehend the wisdom of adopting “untested” alternatives, even when the legacy systems can’t keep up with customer and employee needs.
• A company’s consistent drive for short-term profits eventually undercuts any hope of long-term viability.

Unfortunately, by the time most management teams realize that the past is eating their company alive, chaos has already begun to reign. Uncertainty is everywhere, as is anxiety. If you find yourself trying to turn such a firm around, here are four ways to start regaining a firm footing and a brighter future:

Always Do The Right Thing: Even when it’s hard…even when it costs money….even when you have to tell ownership ‘no’……even when others are telling you ‘no’… do the right thing.

You will have to make some compromises, no doubt. It won’t be possible to satisfy every customer demand and keep every employee happy. But even in bad times, you can be honest and ethical. You can warn people while they still have time to pursue other options. You can often meet people and partners halfway.

Most importantly, do the right thing even when no one is looking. Above all the other benefits – and there are many – this will help you restore trust. When you refuse to cut ethical corners, people learn who you really are, and what your company stands for.

Provide a Path to Hope: When I stepped into the leadership role at one troubled firm, the teams were demoralized. The culture of the company – and its methods of doing business – had expanded to become nearly their entire world, and that world was falling apart. I brought positive energy and optimism, and did my best to lead by example.

Over time, the teams became energized. As this happened, they started contributing more. One strong-headed but quiet associate remained unconvinced for a long time. I knew the tide was turning when he came up to me and said, “I think we just might save this company after all.”

Keep Communications Open: Reach out to people in the most direct manner possible. At times, I have pushed the ‘reset’ button on several relationships by directly asking whether we could do so. Don’t hesitate to apologize for past issues. Make a personal commitment to maintain a productive, positive, and mutually beneficial relationship going forward.

You Need A Champion: While it generally is not a complex process to produce solid results, any ongoing plan requires a champion. Someone needs to be a conduit for change. This person must not only see the path ahead as possible, but also take repeated actions to make the goals a reality.

This person – or team – has to own a vision so compelling that people can see no other result. When people embrace such a vision, and when the team persists in pursuing that vision, change actually happens.

Jeffrey S. Marsh, an expert in growing middle-market businesses, and developing and managing high-performance teams, is Chief Managing Officer of Millennium Capital and Recovery Corporation, and member of the board of advisors of the R.J. Matthews Company.

Image: Hartwig HKD/Flickr