During my time in business school, there was a lot of discussion about feedback loops, both positive and negative, and how they can effect your organization. A manager must be willing to examine every part of his organization and operation to maximize the areas of strength and fix the areas that need repair.
Good managers do this well and it is part of their success. Bad managers ignore weaknesses they are uncomfortable changing, or strike too close to home, and those weaknesses are a drag on the company.
Which brings me to Bill Fennely. I attended dozens of women's basketball games at Iowa State before his tenure, and his program is light years ahead of his predecessors. I assume a program with continued success closely examines everything it does and changes any part that isn't working: an in-bounds play that fails to work, a bad defense against an opposing star, poor match-ups between players, how well an assistant breaks down tape or recruits, and on and on and on. Fix the problems or find a new gig, sometimes out of basketball.
Fennely's public reaction to a racial discrimination suit by a former player gives me pause, however. The "I've done nothing wrong" stance may be a smart legal strategy, and will play well to supporters, but I hope it is not the official line behind closed doors.
Fennely has an opportunity to improve as a coach, as the people around him will be most open at this exact moment. He needs to reach out to as many former players and staff as possible and ask "How can I not cause this level of rancor with a player in the future?". The solution isn't to abandon his coaching style completely and try to be a "player's coach", but I suspect it is in dialing back what he does with individual players a few degrees. Deliver criticism succinctly, and then move on. Demand what you have always demanded, but with a bit more restraint in the delivery.
If an assistant coach was being sued, that assistant would be expected to change or would be dismissed. For a program to be healthy and succeed, the same must be asked of the head coach too.