Terminating a relationship of any kind really sucks. There’s just no getting around that. However, so often we find ourselves in situation where we need to cut the fat in our organizations. Sometimes we need to get rid of a toxin. So whether you are cutting the fat or creating addition by subtraction, there are many times when you will have to terminate relationships in your company. You may do it in the form of a layoff, a firing for cause, or a resignation. Ideally you will be able to open the barn door and your ‘horse’ will know it is best to trot on out to greener pastures. This can be accomplished with patience, diligence and good preparation. This is the most you can do to mitigate (not alleviate) the chances for a poor outcome that will cost the company value. Remember, you want to create long-term value for your venture. You need to cut the fat while ensuring you don’t harm any of the muscle. Make sure you aren’t sending value out the door with those you need to escort to the door.
- 3 Red Flags of a Bad Leader
- Takes too long getting back to someone
- Is late to meetings and appointments
- Name drops
- Implementing a Layoff (revisit show 13 https://unapologeticcapitalist.com/13)
- Ensure you’ve educated your folks along the way to ensure they are marketable
- Be appropriately generous to encourage loyalty
- Be up front so that you can be supportive of a potential transition
- Retain necessary intellectual capital and relationships so value doesn’t go out the door
- Be transparent
- Offer tangible support
- Get exit in writing
- Make all efforts to maintain a good relationship
- Dealing with Dinosaurs
- Be thoughtful
- Be supportive
- Be deferential
- Terminating for cause
- Remember that it is ALWAYS best to suck the oxygen out of a fire rather than throw kerosene on it
- Intervene early
- Give an opportunity to turn the bus around
- Have a process with tangible steps and milestones