Dear Founder,
I am very sad that you find yourself in this situation. Most people truly do not like to inflict pain and discomfort on someone else, which is what happens when you take someone’s job away from them.
I was interviewed for my first management job at IBM when I was in my late twenties. My boss’s boss asked me if I could fire someone and I replied, “Yes, but I will never have to.” He laughed in my face and asked me why. I explained that I felt that most people wanted to do a good job, and that with the right coaching and the right manager they would blossom. (Somehow, I still got the job.)
Well, a few decades later, I’ve personally had to fire a fair share of people—thousands if you count organizations that I managed. It’s never fun, but it’s almost always necessary.
Organizations, even small startups, have great performers as well as people who aren’t so great. Big companies are notorious for having mediocre people. But startups can’t afford this. As a founder you have to view each employee as someone you are giving something very precious to—maybe a 50-yard line ticket to the Super Bowl. You’re going to change the trajectory of this person’s life, and to do so, you need to make them accountable.
Too often, we accept mediocrity. I routinely ask leaders to look at their teams and decide which of the people they would hire again if they had an open position. Sadly, the number is rarely above 80%. Remember, performance is not a static thing. Someone may be a great performer early and then check out later. Or their role or priorities may shift over time. The best cultures require out-performance at all times, and if something starts to go south, take steps to correct it quickly.
The fact is, most people wait too long to fire someone. That’s a problem because most great performers become very frustrated having to deal with the results of working with second-rate performers. They expect good managers and leaders not to tolerate this situation, and they’ll applaud it being resolved as long as it’s done humanely.
How do you know when it’s time to let someone go? By the time you start worrying about it, it’s probably too late. I estimate that in 80% of the instances someone starts wondering if an employee will measure up, they never will and the person in question won’t stay for long at the organization. Of course, sometimes it might work out, though. Therefore, be very crisp on what has led you to question their chance of success in the role. What is the driving issue of your concern: are they not making the commitment? Are they not working hard enough?
Once you have that clarity you have to assess:
- If they are recoverable: Go all in and try to help. Expect them to make it, but simultaneously work on your recovery plans in case it won’t work. (If you’ve already read “When you need to recruit,” you already know the value of looking before there’s an opening.)
- If it’s not fixable: Go into “dead man walking” mode. Treat everyone nicely, continue to ask them to deliver, put more check points in place, but don’t invest in preserving them in this role any longer. It is only a matter of time before they’ll be leaving the organization. Act in a way that will minimize damage.
Here are my recommendations:
- Do not put this off. The situation has to be addressed immediately.
- Project how it will be when this is over.I’ve always found that the act of thinking about firing someone was far worse than the actual act of doing so.
- Look back; have you done your job to set the person up for success? If so, keep moving. If not, do you think that you can effectively set them up for success? And are you and the team willing to try? If so, put the person on an improvement plan with clear expectations and checkpoints. If not, again, keep moving, but next time do a better job of setting your people up for success.
- Treat the person well on the way out. Be firm on why they are being let go, but explain what you’re doing to help them. Let them resign if they desire, and still give them whatever severance you were prepared to give them after firing them. Let them propose (subject to your review and approval) the messaging around their departure. Some people may prefer it to look like they voluntarily resigned. Let them opt out.
- Understand that how you treat employees who are being fired or placed under performance review is important, and will be remembered by all members of the company. Not only are your employees aware of what’s happening, they are all projecting themselves in a similar situation. A long time ago I had a boss who was fast and furious when it came to firing people. One time, he fired one of my employees so quickly—and without telling me—that the guy ran out, leaving his boots behind in his desk drawer. Don’t go into “smoking boots” mode. It creates lots of drama, leaves a big gap you have to fill, and introduces a lot of fear. Remember, how you fire people carries repercussions for everyone else. Use the Golden Rule and treat everyone the way want you’d like to be treated—even, and especially, on the way out.
- Think about what you will say as a reference—and talk about it. Having this kind of dialogue is a good way to ensure a smooth transition.
- After it’s done, be open with your team. Be willing to answer questions without disparaging the individual.
- Find someone great to fill the role being vacated. As difficult as it is to let someone go, understand that this is a great opportunity for someone else. Give one of your stars a chance to take it on. Throughout my career I’ve been more pleasantly surprised with “battlefield promotions” than by hiring rock stars from outside. Give someone on the team the chance to step up and to learn and grow.
- Commit to doing even better on the next hire. If the person didn’t work out, it’s not just their fault. It’s your fault too. You hired someone who wasn’t right, or you didn’t set them up for success. What are the signals and learnings for you to make sure you’re hiring right the next time?
Let me end where I started: I’m sad that you have to go through this. However, I’m also glad that you’re stepping up to it—it’s one of the most important pieces of your job, and one that too often is not done very well.
All the best,
Maynard