When David Eckstein inherited a struggling business unit earlier in his career, he faced an uphill battle. The unit wasn’t one he had built, nor had he developed the frameworks or discounting policies in place. Yet, it was hemorrhaging money, and Eckstein quickly realized he had to act. “Just because you inherited the business doesn’t mean it’s not yours,” he says. “And you shouldn’t be thinking in terms of, you know, this isn’t mine.”

The first challenge was identifying the root of the problem. Was it high commissions? Support costs? After careful analysis, Eckstein uncovered the crux of the issue: the business was operating with a negative gross margin. Several factors were to blame, including a lack of control over discounting. “One person had full control over whether they gave an 80% or 20% discount,” he explains. “We needed to implement levels and thresholds to bring structure to the process.”

In addition, Eckstein found that the company hadn’t properly evaluated its costs to serve customers. Key personnel were misaligned to the cost of goods sold (COGS), and the company wasn’t capitalizing research and development (R&D). “We had to reassign resources to the right areas and ensure our investments aligned with revenue goals,” he recalls.

The experience reinforced Eckstein’s belief that leadership means taking full responsibility, even when circumstances are inherited. “You need to embrace change and the outcome,” he reflects. “That’s the only way to create ownership and drive meaningful results.” Through these efforts, Eckstein began to repair the business unit’s trajectory, validating that accountability and decisive action are essential to strategic leadership.