Has to be a combination of ability and attitude...
LIFO does not work particularly when one is bringing a company with problems 'back to the top' and it soon becomes very obvious who is behind the company and wishes to go that extra mile to make things work for themselves and their associates...
Some (but by no means all) longer serving staff members can sometimes be particularly difficult to motivate and also can be negative/destructive to anything they see as change...this goes from the general staff right to the senior management and the board...after all you 'hire and fire' the latter two with regard to attitude and performance so why not the rest!