One of our company’s local branches was falling behind target for a long time. It did not fulfill the plan. We were not satisfied with results but wanted to avoid tough measures. We tried first of all to give this branch our full support. We sent there our best people who tried to study the situation and find the best solutions. It did not help. It became obvious that the real problem of this unit was its management.
But changing the branch leader was not an easy task. His team was consolidated around him. We understood that if the leader leaves the company most of the branch employees would follow him. The unit might find itself in a critical situation. The business, the plans, and the customers’ service – it was impossible to cancel or put on hold all these things. On the other hand, although the branch was failing to meet the targets, it was developing. But the development was possible only because of the growing market. In the event this growth would slow down the unit would find itself in a much more difficult situation.
The decision to fire somebody never comes easy but you should remember that there is an individual, and there is a company. If an individual does not succeed in one company it does not mean that he or she can not be successful in another. It is possible that in another organization he or she will demonstrate much better results.
We analyzed the situation and understood that in any case, sooner or later, we will have to change the management of the branch. We have already lost enough of time trying to avoid tough measures. The longer we wait, the harder it will be to make this decision. That is why we decided not to delay it any more and to fire the head of the branch not waiting till the situation wouldbecome even worse.
As we expected, most of the employees followed their fired boss. Some of them made their own choice, some were fired. The unit was in crisis situation, but we were ready for it. It was a crisis which we should just go through. During the first three months we made big efforts to support the morale of the employees who did not leave the branch. Many of them felt uncertain being afraid that we would close the unit. How can you help a person out of the uncertainty? Give him confidence. Confidence is striving forward. I agree with Jack Welch who said that the work of any manager is constant talking with his people. We talked a lot with the employees about the future, not about past. I think that in situations like this just calming people is not right. It is not enough just to say: “Everything will be fine”.
It is necessary to reinforce this statement with arguments and specify: what you mean by “fine”, when and how it will happen.
Simultaneously we were hiring new employees for the unit. We did not use for this task any extra resources because our company is in a permanent crisis of growth. We always need new people and new qualities from those who are already working with us.
Gradually the situation got better and then the branch showed far better results.
The original Russian text
