Letting someone go can be one of the most difficult decisions for managers to make; once it has been determined as the only course of action, holding on to ineffective or obstructive people can harm an organization.
It is a task that executives dread most, a task they are tempted to delegate as we saw in the recent George Clooney movie Up in the Air – letting people go. For some managers, this task proves so difficult that they put it off indefinitely. What they often fail to realize is that they may be harming their department, the organization, and even the person in question by doing so.
HVS Executive Search is a strong proponent of finding out what is not working and trying to fix it before letting anyone go. When a company comes to us because they think they need to replace an incumbent in their organization, we first ascertain why they think this person is not working out. In the past, we have advised potential clients that some intensive coaching or a redistribution of responsibilities may be the less invasive and more effective solution for them.
The reasons for underperformance or obstructive behavior can be as varied as the personalities in an organization. Some people are simply not able to keep up with the pace of progress or adapt to new situations. This may be due to their personal circumstances, changes in their surroundings, or even the possibility that the wrong person was hired for the job in the first place. One of the more common reasons for letting an employee go is structural; where a company or property has redundant or overlapping positions.
Once it is clear that the person in question is not capable of handling the responsibilities of the position, that they may be mismanaging their team, creating an atmosphere of fear and repression or simply be negligent in performing their duties, this needs to be addressed as soon as possible. Not acting may have far reaching consequences for the entire organization.
Imagine the Director of Sales & Marketing who, due to unfortunate events in his personal life has begun to drink on the job. As this begins to affect his judgment and performance, he starts to hide his shortcomings by laying the blame on more junior team members. Afraid of being replaced by his number two, he undermines her at every turn, to the extent that a once promising high flyer resigns from the company. As a result of all this, not only is the bottom line affected, team cohesion and morale sink across the board. Such situations can begin to corrode hotels or even entire companies.
Assuming that all attempts to coach and correct said employee have failed, and acting within the parameters of local labor laws and employment contracts, managers should set up an employment termination meeting. This is one of those delicate moments where executives really earn their salary. They should communicate the objective of the meeting in the first few sentences: "Thank you for coming in today. The purpose of this meeting is to advise you that your employment is being terminated and we will go through your entitlements and the process going forward." They should not succumb to the temptation of small talk; the employee is likely to know why they have been called in, and not coming to the point immediately simply amounts to torture. This should be followed by an explanation of the reasons for termination and possibly some advice for the future. The manager should do their utmost to keep the discussion to the point while remaining compassionate.
During a discussion with Michael Sengol, the recently appointed CEO of Meritus Hotels & Resorts, Michael described how, after taking stock of the company, he made some very drastic changes. As difficult as it was, this also entailed letting people go. By doing so quickly and efficiently, he turned around the numbers and put the company on track for further expansion. When asked by a journalist whether he felt bad about letting some staff go, Michael replied, "It's about time to shake up, and for a good cause. It's not personal." (From the TTG Asia interview Man for Meritus, April 30 - May 6, 2010)
He further explained to us that some of the employees had become so entrenched in their departments that not only were they inefficient, but they were also hindering more qualified staff from developing and moving up the career ladder. When done correctly, freeing the organization of this career thrombosis can have a liberating effect on the rest of the staff and the bottom line.
In some instances managers may appear perfectly capable, hitting their numbers and really doing everything by the book, but they can still be an obstructive force within the organization. To quote John Kotter's 8 Steps for Leading Change: "[A] barrier to effective change can be troublesome supervisors. Often these managers have dozens of interrelated habits that add up to a style of management that inhibits change. They may not actively undermine the effort, but they are simply not "wired" to go along with what the change requires."
In scenarios where the CEO is attempting to affect a turnaround of the company or a fundamental shift in the company culture, such obstructive employees have the potential to derail the entire effort.
As human capital advisors we often get a very unique and largely unbiased snapshot of companies and how their executives interact. We have often witnessed the finance executive that is solely obsessed with cutting costs, at the expense of potentially performance improving initiatives.
We have seen companies that miss developing their star players and lose them to their competitors. Others become so obsessed with defending their position of power that they hinder new talent from joining the company or moving up the hierarchy. Senior management must have the courage to identify and address such situations, and where necessary, to make that really difficult decision.
In the movie Up in the Air, George Clooney's character uses a phrase to inspire and reinvigorate the recently let go: "Anybody who ever built an empire, or changed the world, sat where you are now. And it's because they sat there that they were able to do it." Although a cliché, a small kernel of truth remains. People who are unproductive and uninspired in their work are often weighed down by their predicament.
Sometimes it takes a jolt such as being let go for them to take stock of their lives and make a real change for the better. As mentioned at the outset, letting people go is not something to be taken lightly and it should only be used as a last resort, after all else has failed.
But when it becomes clear that it is the necessary, indeed the only course of action, don't put it off indefinitely. Sometimes you have to replace the one cog for the rest of the machine to run smoothly again.
About Chris Anklin
Chris Anklin is Vice President at HVS Executive Search in Hong Kong. After graduating from Ecole hoteliere de Lausanne, Chris joined HVS Executive Search in London where he spent four years recruiting senior executives for hotel management companies such as Hilton, Marriott and Rezidor, as well as hotel real estate companies including Morgan Stanley Real Estate and Invesco. Chris transferred to HVS Executive Search Hong Kong in 2009 to apply his skills and expertise in the Asia-Pacific region. Chris is no stranger to Asia, having grown up in the Philippines and Singapore and speaking a host of European languages, he epitomises the experience of being completely multi cultural.www.hvs.com 
