Leading Over or Leading Out

A few weeks ago, we talked about the conversation that I had with the CEO of a fast-growing company. You may recall, that he had recently made the difficult conversation to set accountability guidelines for one of the longest tenured employees, who also happened to be a friend of over 25 years. In this case, my friend was fortunate because the new structure allowed both the company and the employee to thrive. This was done through clear expectations and communication lines as well as restructuring responsibilities. The change allowed the company to streamline the process of how they serve their customers and at the same time take meaningless task off the employee’s plate. If you have not read it, be sure to check out the article here.

But what about the times that you as the CEO must lead someone over to a different role, or maybe even leading them out of the company? No one begins their entrepreneurial journey wanting to answer this question, but if you have a fast-growing company; you will have to answer it sooner or later.

This is one of the most difficult things that an entrepreneur faces, and there are many specific employment laws that deal with how to part ways with an employee. Be sure to consult your HR department or handbook. If you do not have either one of these, then I would recommend that you reach out to a specialist in the human resources field and put these in place ASAP.

 The point of this article is to give insight into how my friend had dealt with this situation and to provide you a point of view to consider as you move through this difficult, yet critical, situation.

It is a harsh reality of rapidly growing companies that the people that got you here; may not be the people that will get you where you need to go. As companies grow and evolve, they require different types of people to fill critical roles. I once had an entrepreneur look me dead in the eye and say “Greg, the only difference in me running a $7,000,000 company and a $70,000,000 on is 1 zero”. Thankfully, this entrepreneur was joking, as shortly thereafter they began to add layers of accountability and management that aligned with the long-term goals of the owner. If you are in a similar situation, I encourage you to conduct an assessment of what your company needs and have the brutal courage enough to determine if you have the right people in the right jobs. 

I recently read a headline that said that Americans spend more time at work than any other country. If this is the case, then isn’t it critical that employers find positions that maximize their joy and sense of meaning? In a rapidly growing company, employees often time have to “pitch in” so that all the tasks get accomplished. However, just because someone is willing to do a task, doesn’t mean that they are passionate or receive joy it. I would recommend that if you have an employee that is not accomplishing what you need them to, then you ask them about what drives their passion and joy. You may find that the person that is a mediocre sales person really has passion for (and maybe training in) film and photography. Who knows, if you lead this employee in a different direction and allow them to develop your brand and create your marketing campaigns. They may be able to empower your sales force in new and amazing ways. Not only because they know how your best clients get value out of your company, but also because they now are passionate about using their talent to communicate that value. Your most important assets are your employees, be courageous and find out what drives them. This will give you unbelievable insight as to who you is on your team that you can strategically move for their benefit and your companies.

Unfortunately, there are times that an employee just doesn’t work out and you have to part ways. Facing these situations is hard, but when you are convinced that it is the best path for your company, you must demonstrate Extreme Ownership of the situation. Realizing that everything, even the situation that led up to parting ways with the employee is your fault and responsibility. One of the characteristics that I believe best serves entrepreneurs in this situation is an unbelievable amount of empathy. Empathy means that you are able to understand and feel what the other person is going though. This does not make you weak, and in some ways, it makes this conversation harder, but it is vital for leaders to have the internal fortitude to do what is right.

 Being an entrepreneur is one of the most difficult and demanding things you can do. The good news is that entrepreneurship today is a team sport. Hit the connect button on LinkedIn or Facebook NOW and together we will start maximizing your profit, strengthening your leadership skills, defining your strategic vision, and transforming your banking relationship. When we connect, tell me about a time that you had to lead a teammate up into something greater and how it impacted your business.

Greg Martin is an entrepreneur’s insider to the banking industry and passionately believes that every person was uniquely designed for a higher purpose and calling. Greg guides entrepreneurs in defining and achieving their purpose and calling. His deepest passion is living life with his wife and their wonderful son.