Letting Off Managers

just like onboarding new executives requires more than a basic employee orientation, the termination of executives should be approached in a planful fashion so as to minimize risks and hardship for the organization and the terminated executive alike. Following are some diagnostic questions and guidelines for leaders and HR professionals to consider:

The first step in the process is to objectively evaluate the performance of the manager:

• Are there clear criteria upon which to evaluate the manager and have these been communicated clearly to him/her? These criteria may be a combination of leadership competencies and job requirements specific to the manager’s role profile. It may seem self-evident but managers should be informed as explicitly as possible in the first place of what is expected from them.


• How does the executive measure up against these requirements? Is the manager delivering appropriate performance results? What is the balance of strengths and areas for development for the manager? Special attention should go to “fatal flaws” that hinder performance and can hardly be balanced by the individual’s other good qualities.


• Has the manager received constructive feedback about his or her behavior? If not, this may be reason enough to move the discussion to a performance contract vs. termination. If feedback has been provided in the past, what has the manager done in response? There is a stronger case to be made for terminating managers who have made little to no adjustments in their behaviors following warnings and suggestions for development.


• Members of HR and Legal should be involved from the start. If the manager is a senior person, a senior member of HR or/and an employment lawyer should be engaged in the process. HR will ensure the process is fact-based, compliant with existing laws, and opens opportunities for improvement. Before you decide to let off a manager, you need to have your ducks in a row in case he or she comes after you with a lawsuit.

Planning the Termination Process

Asking the following questions will help determine your level of readiness for moving forward with the termination process:

• What is the financial risk and cost of termination? What level of impact will termination have on the organization and its performance? In making this assessment, consider both what the negative and the positive consequences may ensue from termination.


• What lag of time can the organization afford in replacing the manager and how does it compare to how long it is likely to take to replace the manager? It takes at least 6 months to replace and another 6 months to ramp up a new person. Is there someone on deck to be promoted?

Consider how the organization structure and/or roles could be adjusted to make up for the manager’s termination:

• What contingency plan is in place in case the manager has to leave immediately?


• How do you plan to communicate the termination decision to stakeholders?


• What measures can you deploy to avoid other terminations in the future?
  

Factors Hindering Leaders to Take Action

As leaders consider terminating a manager, they are likely to encounter a number of obstacles; first amongst them, their own beliefs and apprehension. Here are some common reasons why leaders often avoid making the tough call:

• Avoidance of coming across as the “bad guy.
• Belief that one can always change the flawed behaviors of others.
• Feelings of guilt – for placing the manager in his or her role, failing to see “the writing on the wall” and taking the appropriate measures.
• Lack of experience in dealing with poor performance.
• Fear of a “shock wave” inside or outside the organization with potential negative business impact.
• Belief in needing more data to back a claim for termination.
• Lack of confidence in being able to replace the manager being terminated.
  

Guidelines for Managing and Communicating Termination

Three things you should do after you have made the decision to terminate the manager:

• Clearly explain the rationale for termination. Anyone being terminated will want an explanation of why he or she is being let go. Having a clear, forthright and non-negotiable explanation of the reason for the decision is a minimum standard. The rationale should be succinct and backed up with data. At this stage of the process it is a good idea to engage an outplacement counselor who can help the manager being terminated focus on next steps in a safe and professional manner.


• After the decision is made, focus on transition. No termination discussion should be started unless the decision is irrevocable. Since the decision is not up for debate or modification, there is no point in churning on the details behind the decision. Help the individual to understand the decision, then quickly move on to discuss the ways in which you are prepared to assist his/her transition into the next segment of his/her career.


• Follow principles of effective communication. You should identify and prioritize the various stakeholders who need to understand the termination decision. Frame the decision in the context of the organization’s strategy execution plan and build understanding through consistency of message. Also, be explicit about what this decision means for the individual(s) with whom you are communicating, and provide regular updates on any related changes, which will impact them. Your objective at this point is to help the remaining members of the organization focus on the going forward objectives of the organization and their own accountability for achieving these objectives.