If the organization is completely demoralized, then it needs to re-orient itself, through Observations.
In other words, the organization needs to understand the advantages it has Oriented itself to in the past and also understand the advantages it has in the future, if there are any.
If there are not any advantages observable in the future, then it is useless to continue in the environment they are presently observing.
If there are no past advantages, then they wouldn’t have been able to orient themselves in the environment they are processing through their OODA loop. So, as they observe past advantages, they need to understand those advantages explicitly, as they have obviously lost something implicit in the process of Observing and Acting.
I think einheit has something to do with their “way back”, but their problems are as much structural as cultural.