“To see what is right and not to do it is want of courage.”
—CONFUCIUS
EVEN IF YOU APPLY EVERYTHING that we’ve shared with you in the previous chapters, and despite your best efforts, you’ll occasionally have a direct report that isn’t behaving or performing at or above The Bar—your minimum acceptable standard for Great People. You may find yourself hoping upon hope that they’ll turn things around. However, a problem doesn’t fix itself. Here we will show you proactive and constructive ways to deal with people issues.
When we don’t address people issues, there are consequences for us, our department, and our organization. They’re already hurting you, and there’s no way to hide them. Everybody knows. Out of your earshot, they’re talking. You have to trust your gut and do what’s right for the good of all. Too often we fail not because of our people, but through lack of courage to address people issues.
On the surface it would seem that there are hundreds of people-related issues, but as we described in chapter four, there are actually only four.
THE FOUR PEOPLE ISSUES
1. Right Person, Right Seat
2. Right Person, Wrong Seat
3. Wrong Person, Right Seat
4. Wrong Person, Wrong Seat
You will undoubtedly encounter each one (if you haven’t already), so now we’ll explain how to address each one of them.
Issue Number 1: Right Person, Right Seat
How is Right Person, Right Seat an issue? After all, it is your definition for a great person. However, it will become an issue if you aren’t giving those individuals your time and attention. Think about how they feel. On the one hand, they are the ones rowing harder to compensate for others that aren’t rowing. They’re the ones most likely to raise issues that are hampering your department’s performance. On the other hand, when you spend what precious time you have for your people focused solely on resolving “wrong seat” and “wrong people” issues, the Great People may feel that you’re taking them for granted. Without your recognition, they won’t contribute to their full potential.
One boss shared that early in his career, after being promoted to a middle management position, he would meet his father-in-law monthly for a “businessman’s lunch”—an informal chat. One day his father-in-law asked him who he was spending most of his time with: his good managers or his poor managers. He told him, “My poor managers, of course. They need me the most, and my job is to help them get better.”
“Well,” his father-in-law replied, “I wouldn’t want to work for you. I’d be one of your best managers, but I’d rarely see you. Why would I continue to work for you if you didn’t spend the time to help me get better?”
Think of the upside when you spend time with Right People who are in the Right Seats. They’re the folks that are actively engaged at work. They’re the ones who energize you, challenge your thinking, and make you a better boss. They’re also the ones best equipped to fill any vacuum and rise up to seize an opportunity—to take the ball and run with it. You must give them your time. And one great way to do this is through the Quarterly Conversation.
When asking, “What’s working?” ask what you can do to make them more effective. Ask what they would do to make the company or department even better. A good question is, “If you were running the department [or company], what would you do differently?”
When asking, “What’s not working?” ask them what process or procedure should change or could be simplified. A good question is, “Where are the breakdowns happening, why are they happening, and what would you do to correct them?”
Sometimes what’s not working with them is that they have become complacent. It’s a clear sign that you haven’t kept the circles connected. One great boss, a client of ours, shared that, early in his career, his boss called him into his office and began a conversation with a simple question: “How do you think you’re doing?”
He said that this question from his boss made him a bit nervous, because in his heart of hearts he had to admit that he had been coasting, confident in the fact that his performance was head and shoulders above that of his peers. However, he had underestimated the expectations that his boss had of him. He had a lot of respect for his boss; as tough as he was, he genuinely cared about his direct reports.
After our client answered that he thought he was doing really well, his boss looked him straight in the eye and told him how disappointed he was with his lackluster performance. (To be blunt, the boss’s exact words were, “You’ve been a big f—ing disappointment.”) He could say these words because they had built a very strong relationship. His boss made it clear that he had higher expectations of his hire than he had of himself, and ended the conversation by asking him if he was up to the task of improving his performance. The choice was yes or no . . . in or out. Our client went on to say that that conversation changed his life. He stepped up, met expectations, and eventually became the company’s president.
Don’t be afraid to challenge people who are at or above The Bar. If you’re afraid that they’ve grown complacent, look at yourself in the mirror and ask yourself, “Have I myself grown complacent? Have I accepted average performance or performance that isn’t keeping pace with the demands of the business?” Challenge them to think outside the box, to take risks and act with the greater good in mind. And let them run with it.
Finally, thank them for their contributions. No one should feel that they are being taken for granted—especially those who are at or above The Bar. They’re the ones that accept responsibility, admit when they fall short, and quietly deliver the results week after week. They need to hear that they’re appreciated. They might not need compliments every day, but hear them they must. Keep the circles connected.
With the next three people issues, we will offer you a process for how to solve them. We urge you to check with your HR professional and labor attorney to ensure that they are in alignment with your company policies and state laws.
Issue Number 2: Right Person, Wrong Seat
You may have inherited, hired, or promoted the Right Person who you’ve come to realize is in the Wrong Seat. Although they’re a role model for your Core Values and fit your organization’s culture, they’re not producing.
And despite your Quarterly Conversations, they’re not responding. This is a difficult issue and one where you’re avoiding a decision because you genuinely like this person. Here are two examples:
• He has been with you through thick and thin, but he’s in over his head and has become a bottleneck. He can’t keep up with the volume and is stressed most of the time.
• Everyone loves her, but she isn’t completing tasks on time and is struggling in her role. Others are picking up the slack and letting their own responsibilities slide.
This situation is especially tough when yours is a small organization. These people likely have been with you since the beginning, and you don’t have another “seat” where the Right Person could fit. Assuming that you are a for-profit organization, you can’t keep someone on your payroll just because you like them. Ideally, if your organization is large enough, you might have another seat. This solution happens often and should be your first choice. Here’s a success story of moving someone to a more appropriate seat.
At Broder and Sachse Real Estate, Russell was sitting in the acquisition and development analyst seat, where he spent his days doing financial analysis. He was young and bright and shared the company’s Core Values to a T. His manager, Lee, and coworkers loved him, and he wanted to stay with the company. But, the truth was he wasn’t a very good analyst and he didn’t particularly like it.
After a year of valiant efforts by both Russell and Lee to make it work, Lee had a tough conversation with Russell. He had to consider his options with Russell—someone who was an absolute fit in the company, just in the wrong seat. His first goal was to find Russell the right seat, because if there wasn’t one, he’d have to go. Lee’s gut told him that Russell was more of a people person and not a spreadsheet person. Fortunately, there was a position available in the property management department.
Upon making the change, Russell immediately excelled in the role. He became an instant superstar. His tenants loved him and he loved the job. This simple solution had a huge impact on the company, Russell, his manager, and his customers.
Yet you have to take a further step if there are no other seats available. How you handle this people issue speaks volumes about how much you care about your people. You’ve created awareness through your Quarterly Conversations and you’ve completed the Three Strikes. You’re convinced that you’ve done everything you can to help, and you decide to let the person go. Here’s how:
• Schedule a meeting at a time and place where you won’t be interrupted. Follow your company’s termination policy, and if it offers a severance package, have that and your documentation completed before the meeting.
• State the issue clearly and get to the point quickly: “Herb, despite our conversations about the need for you to step up and keep pace with the growing demands of your job, you’ve continued to struggle. The results just haven’t been there. You’ve been a champion of our culture and I care about you personally. However, it’s time we part company so you can pursue a job that’s a better fit for you. I will help you as you search for the right opportunity. In the meantime, I’ve prepared a severance package for you to consider . . .”
• Keep the rest of the conversation focused on answering questions that Herb might have about his severance and how you’ll help him find the right opportunity elsewhere.
You’ve terminated Herb in a way that allows him to leave with dignity and to focus himself on his future. You’ve made the right decision for the greater good of your team—a decision that Herb will eventually acknowledge was difficult but necessary. Plus, you’ll sleep better knowing that you did everything you could to help Herb while he worked for you and during his search for a job better suited to his skills.
We’ve had some bosses tell us that they’ve reached out to people in their network to help employees like Herb find employment quickly. They win because they get someone they care about into the right seat. Herb wins because he finds a new position that is a better match for his skills. They understand that people like Herb aren’t “bad people”—they’re just in the wrong seat.
Issue Number 3: Wrong Person, Right Seat
You may have inherited, hired, or promoted people who you’ve recognized and rewarded for exceptional production and output, only to hear rumblings that they are getting those results in ways that are damaging your company’s reputation, aggravating fellow team members, and undermining everything that you’re trying to accomplish for the long term. These are usually me-first versus we-first people who put their interests before the Core Values of the organization. In the meantime, they continue to produce results, but behave and get those results in ways that go against the company culture. In other words, while they are highly productive short term, they are killing your company long term.
When you ignore this issue, you’re telling your organization that the Core Values that you espouse don’t matter when compared to results. In describing these people, one boss stated, “Wrong people in the right seats are what we call ‘productive jerks.’ They’re arrogant and painful to be around.”
Do not let these people hold you hostage. Your reputation with your people and your customers is at stake. Here are three examples:
• You hired him for his technical knowledge to engineer a product that’s due to launch in eighteen months. He lords his knowledge over people and refuses to share his expertise with others. His massive ego and arrogance make him difficult to work with, but you’ve avoided rocking the boat until after the new product reaches the market. Meanwhile, he’s telling everyone that he should be running your department.
• You’ve awarded her Top Salesperson of the Year. She’s crushing her numbers. You know she’s not a team player but you tell yourself that hunting is rarely a team sport. You’re also afraid that if you fire her, she’ll take her customers with her. However, at a trade show your best customer tells you that she is abrasive and backstabbing. Your direct reports and peers give you specific examples of how she wins through intimidation. Still, you’re having a tough year, and firing your top salesperson will make it even tougher.
• You have a customer service representative in your department that you inherited from your predecessor. She has been with the company since its founding. She’s competent in her role but doesn’t share a Core Value: “Do What It Takes.” At times everyone in the department must put in extra time to fulfill a customer’s need, but she is unwilling to go the extra mile to make it happen. She leaves right at five o’clock despite being in the middle of a major customer issue. This is harming the entire team because she’s clearly viewed as someone unwilling to stretch as far as they do.
These are moments of truth for your Core Values. You must make them count. Unfortunately, people in this category are often blind to behaviors that undermine the culture. Or, they rationalize cynically that getting results is all that matters. You can imagine the damage they’re doing to your organization, especially when they’re rewarded for outstanding performance.
If your direct report’s behavior hasn’t changed despite your Quarterly Conversations and after applying two of the three strikes, they must go. But you must be prepared for how you handle this situation.
For example, you may have a deep concern that their departure will jeopardize the company because they might take key accounts and perhaps key employees with them. If this is the case, you must have a well-thought-out plan to minimize any exposure that the company might have. Some of our clients waited up to two years to make this difficult change because they needed that time to build a strong enough sales team around them, strengthen client relations, and generate enough revenue to be less vulnerable. As an example, you might arrange to contact every customer within twenty-four hours of the termination and meet with every employee.
You have scheduled the meeting to deliver the Third Strike. Here’s how:
• Ensure that you and your boss are on the same page with the need to terminate the person’s employment.
• If you have a human resources professional, ensure that they concur and that all documentation is completed.
• Schedule the meeting and follow your company’s termination policy. If it includes a severance package, have it and your documentation completed before the meeting.
• Meet with the person, state the issue clearly, and get to the point quickly: “Curt, despite our conversations about the need for you to become more collaborative, willingly share information with others, and live by the Core Values, it’s still obvious to me and the entire department that you haven’t done so. The latest incident is just one more case in point. You withheld your analysis of customer purchase patterns, causing our department to miss a critical deadline for completing our sales plan. This is unacceptable and shows a total disregard for the goals that we set as a team. I’ve decided that it’s time for us to sever our relationship.”
This type of termination can be difficult, but the impact that it has on your organization’s culture can be huge. In one of our sessions a boss shared that he had fired his top performer for blatant disregard of two Core Values. Within minutes of the termination employees knocked on his door, thanking him for firing the guy. Within days he was getting calls from old customers who wanted to reconnect.
Kelly Cuellar of Zoup! shares this story about the importance of making this tough decision, insisting that Core Values carry true weight:
“I had an employee who had just finished training in a management role. She had been very receptive during training and was performing to expectation. She was in her second month with the company, and we had begun the process of letting her take the reins. Two weeks into running her team solo, I began to hear unfavorable reports that she was not following proper processes, and how poorly she was speaking to her team. I quickly arranged a meeting and clarified our expectations that had been set on her first day. I reviewed with her our Core Values, and the importance of how we treat our people, and I put it in writing, which she also signed. At the end of the meeting, she stated she understood the expectations and she would achieve them. We agreed to meet again in thirty days.
“Two weeks later, we were still receiving complaints, had lost one of our great employees, and were about to lose a second. We could not wait the full thirty days to act. I had to terminate her. She was not surprised, and left within ten minutes without argument. It’s unfortunate that sometimes an employee knows they are being let go, and they wait for it to happen. When it’s a business-critical decision, you have to act. If you’ve given them the direction, you’ve given them notice, and they still aren’t performing, you’ve done all you can. It’s a ‘don’t care’ scenario and you can’t fix ‘don’t care.’”
Issue Number 4. Wrong Person, Wrong Seat
This issue is the most obvious and hopefully is discovered within the first ninety days of hiring someone or, if you inherited them, of your taking charge. If you’ve followed our strong recommendation in the previous chapter to keep the circles connected with a weekly Meeting Pulse, the deficiency will be glaring within weeks. Ignoring the issue has dire consequences, as shared by an employee who had this experience while working for a not-so-good boss:
“My boss had an employee in a critical position who was definitely the wrong person in the wrong seat, but he refused to deal with her. Despite being in her position for over two years, she did not understand the system-driven parts of her position and ended up making a lot of work for everyone else in our department. Part of the problem was that he hired her and did not want to admit that he had made a mistake. The other part was that he was one of those bosses who believe they can ‘save’ people and make them better. He was in fact destroying the morale of the entire department that caused some key employees to quit.”
Equally distressing is when a boss believes that having anyone in the seat is better than having an empty seat. One boss summarized this belief well when he said, “Half an ass is better than no ass.” This is actually a boss issue, not just an employee issue.
When you realize before, during, and after Quarterly Conversations and weekly meetings that the person is clearly below The Bar for Core Values and GWC and hasn’t improved even after Two Strikes, you must let the person go. Follow the same procedure that we outlined in Issue Number 3.
Sometimes, however, the issue is so blatant, as in cases of stealing, fraud, and damage to company property, that you should skip Strikes One and Two and move directly to Strike Three and terminate the employee.
In all of these employee situations, you should realize that you must take the lead. Though termination may make you uncomfortable, it is also part of being a boss. It’s unfortunate that in many companies, employee relations issues are thrown into the laps of the human resources department, putting them in the difficult situation of having to mediate every dispute. One company tasked their HR manager with terminating “bad employees.” These terminations occurred on Fridays, which, as you might guess, became known throughout the company as “Black Friday.” This practice led to a culture of fear.
You cannot abdicate your role as boss. When bosses fail to address employee issues personally and quickly, bad things happen. The worst blow is that you lose the respect of your people. They want to know that you care about them, their behavior, and their performance. HR should help bosses deal with employee issues in a consistent, fair, and timely manner—not do their work for them.
By addressing the Four People Issues head on, you will demonstrate that you have what it takes to be a great boss. Removing disruptions also counts when you are trying to breed a powerful culture with Great People.