How to Release Someone with Compassion (Quick Study)

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1:11This means a major change in somebody's life. It can be so humiliating to the person, so troubling to them. It may mean that they have to tell their kids they're moving. It may mean that they can't make their mortgage payment, etc. So you want to make it as smooth as you can. We're all in this together. We're all responsible for each other. I've been at this 45 years, either running companies or being on boards, etc. And in one case, we had to take the size of the company from 3 ,500 down to 2 ,800. In other cases, we've had to shut down divisions. You're building a Super Bowl-winning team, and that just takes work, and you're going to have some layoffs and some benchings.

1:56Mistakes made in firing people are multifarious and I think I made all of them. I think I tried to give the reasons, I gave a big long discussion, I offloaded it on other people. Yes, I've been fired and it's not fun and I had a bad experience with it so I've developed over time a better, a far better script.

2:22So good bosses have human emotions just like the employee that's being terminated has emotions. People don't like to hear the word, you're fired. It has a connotation that people just don't like to hear. You can be sad about it and say, I'm sorry this hasn't worked out, but you're firm. It's essential when you let someone go to let them know in the first 30 seconds what the decision is. You're trying to help them to move on to a new place that's better for them and is smooth for the company. I like to do my own firing. I don't like to do it, but I want the organization to know that I'm not afraid to do difficult things.

2:58That's fair to the party being let go, and it's fair to the rest of the team that's watching.

3:06Most people delay. They procrastinate. They're often waiting for a triggering event. You know, say, well, I can't do it now. I know this isn't working out, but they've not done anything terrible. So I'll just wait until they do, and then I'll make it happen. And then the emotions are much higher. I had one where I had to walk the person to the elevator, lock them out of their office, encourage them to get a lawyer. And so that didn't go well. Most of the time, firing does take place over a period of time. There are some events where people actually breach some kind of a moral turpitude, or there are things like that where firing happens on the spot.

3:48But in most cases, you realize things aren't going well. You need to pull people aside in the moment and say, that meeting didn't go well, or did you recognize what happened in that exchange? Nobody should be surprised when they're fired. People are smart. They sense, I'm not really doing very well. The more that you realize that you're solving for a good outcome, it's not nearly as stressful. It's a better outcome generally for the person who's being let go. It's a better outcome for the enterprise. I try to regard everybody that I've let go as an alumnus that I'm going to work with. I'm going to run into them in the marketplace.

4:25They may be friends. Their kids may date my kids. And so if you think about them that way, it's not as stressful. Let's move forward in the most elegant possible way. I don't want to be known as the firing guy. I was introduced at a private equity conference by one of my former students, and she said, you know, Joel teaches the leadership. He teaches a class on... This class talks about... Well, it's basically a class about firing people. I mean, I teach all kinds of things, and I just hate... That's not the brand I want. It's just I think it's one of the really critical things that you do as an entrepreneurial leader to build a great organization.

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