Step 0 is admirable. I've come across business cultures where people got ahead (really!) by "outrunning their mistakes." Lots of rapid promotions and job transfers, leaving messes behind them -- and then blaming problems on their inept successors, or other saboteurs, etc. No accepting of responsibility.

Most of those places eventually go bust, but they can ruin a lot of people's lives before the final collapse happens.

Step 3.2 feels forced and a little Orwellian. Even something as hazy as invoking "bad judgment" -- and leaving the scene -- is often sufficient, at least at first. If errant people need a bit more time to process reality's sudden slap in the face, I'm in favor of giving it to them.

Eventually a lot of them do reach a fuller understanding. Or they redeem themselves in other ways. In the right settings, a little bit of mercy can be very powerful