Tag Archives: Fair

How Do You Handle Underperforming Employees? Four Points

Situation: A CEO has several employees who report to a single manager but who are not performing to expectations. The manager is seeking the CEO’s assistance. When faced with a similar issue in the past, the CEO has turned up the pressure on an individual until he or she decided to leave on their own. Is this the best option? How can she resolve this situation and, at the same time, improve company morale? How do you handle underperforming employees?

Advice from the CEOs:

  • Letting underperformers go sends a positive message to the rest of the team. It reinforces the message that a high level of performance is expected, and that a low performer won’t be allowed to penalize the overall performance of a team.
  • There is a serious downside to just turning up pressure until an individual leaves.
    • Even low performers usually have friends among the staff.
    • Turning up the pressure on an individual without telling them why creates an impression of unfairness. “Why is Joe being asked to do all of this – particularly when it doesn’t look like he can handle the work?”
    • The most serious downside is that a high performer becomes fearful that the company may have the same “unfair” expectations of him.
  • It is healthier to sit down with an underperformer and face the problem. This also reduces exposure to charges of discrimination.
    • Plan a meeting with the manager and each of the under-performing employees. In each meeting, tell the individual that specific areas of their performance are not up to company standards. Provide objective, measurable examples. Listen to the individual’s reaction.
    • Work with the manager to develop a program with each individual to assess whether they are willing to improve their performance over a specified time frame. Inform them that there will be a decision as to whether they will remain on the team at the end of the time period. Again, listen to their reaction.
    • If an individual does not respond positively and improve performance, it will be necessary to fire them. However, they have received fair warning and a fair chance to demonstrate that they can produce the expected performance.
    • If an individual isn’t interested in performing to company standards, the assessment period gives them time to look for another job.
  • Because these individuals report to their manager, coach the manager on the process outlined above and have her oversee the outcome. Help the manager to make a call after a period as determined with the manager.
    • Continue to coach and support her during this process.
    • Make it clear to the manager’s team that she is in charge of this process.

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What are Best Practices for Interviewing and Hiring? Three Points

Situation: A company typically interviews candidates for open positions in a two-day process. The candidate talks to four or more people. The total time with a candidate is about 6 hours, and the hiring process, once a good candidate is identified, takes about 1 week. Is this typical of other companies? What are best practices for interviewing and hiring?

Advice from the CEOs:

  • Extend the process – add some pressure to it.
    • All companies deal with pressure and stress from time to time. The team is frequently under pressure. Artificially create a pressure situation for a candidate – preferably later in the day when they are tired. This will help to identify whether they are cool under pressure, irritable or sloppy.
    • For example, put an engineering candidate in front of a computer and give them 30 minutes to do a job that you know would normally take 60 minutes. Don’t mention the mismatch to the candidate. The point is NOT whether they can complete the task, but to watch how they respond under high pressure.
    • This is not unfair to the candidate. It puts them precisely in a situation that they will find while working at the company. Give them the opportunity to demonstrate through their behavior that they either respond positively or really don’t want to be put into these situations.
  • Conduct thorough reference checks – including past employers or clients.
  • DISC profiles (Dominance, Influence, Steadiness, Compliance) are used to improve teamwork and understand different communication styles
    • Identify an experienced local resource who can help to assess the DISC profile of the company.
    • This individual can advise human resources and hiring managers on the use and interpretation of DISC profiles of candidates to help assure good company fit.

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How Do You Motivate the Team to Act Proactively? Four Thoughts

Situation: A company has developed a good team to support its projects. They work together well and demonstrate good work habits. However, the CEO wants to improve communications between team members, and also between herself and team members. When challenges arise, she wants to hear about them proactively, on a timely basis and with recommended solutions. How do you motivate the team to act proactively?

Advice from the CEOs:

  • Is this just a question of communication within the team, or is there also concern with communication beyond the team?
    • There are two long-term employees who consistently demonstrate a poor work ethic; however, due their seniority and relationships with the Foreman, this is tolerated.
  • What steps should be taken to deal with this situation?
    • The Foreman reports directly to the CEO. The proper way to deal with this is to develop a solution that serves the interests of the company.
    • The company lives and breathes on customer satisfaction. If any worker shows a pattern of substandard work, this negatively impacts both the image and the value of the company.
  • Clear and fair standards and expectations are critical:
    • Establish a policy that workers are responsible for assuring that work meets standards before completing a job.
    • Establish a list of specific standards for work, and job checklists to assure that work is complete and meets standards. Spot check to assure that the work and checklists meet standards.
    • If a supervisor finds work performed below standard this will result in a warning to the worker. If the worker continues to perform substandard work, this becomes grounds for termination.
    • If a worker misrepresents the quality of work performed on a final project checklist, this is grounds for immediate termination.
    • Ask key managers and supervisors for input on the policy. This is not a democratic process, but others should be given an opportunity for input.
    • Post the policy and provide all employees with a copy. Communicate the policy openly both verbally and in writing.
  • Meet informally and frequently with the team to deepen relationships with them and between each other.

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How Do You Set Up Co-Development Partnerships? Five Thoughts

Situation: A company has clients who are interested in projects for which the company’s partners already have partial designs. There is an opportunity to leverage these partial designs into development of full solutions for their clients. How should the company approach this in a way that satisfies their customers and is fair to their partners? How do you set up co-development partnerships?

Advice from the CEOs:

  • Given this opportunity it is no longer important who performed what part of the development. As long as your partners have quoted you what they believe to be a fair price for their development pieces, you are free to accept their price, complete development to your clients’ specifications, and sell the full solution to the client at market prices.
  • What you bring to the table is the opportunity to rapidly monetize the technology. This is something that your partners can’t do, so by filling this role you are acting in the interest of all parties.
  • What you charge for your work and the full solution depends on the potential value to the client. Time is money, and delivery now is worth a premium price to a client who needs your solution and wants to release their product as soon as possible.
  • This strategy is particularly applicable to early stage companies who need to release their initial products and start generating revenue.
  • Take a note from Bill Gates – sell the product for a good price and then buy or acquire the supply.

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How Do You Hold High Performers Accountable? Five Guidelines

Situation: A company has a key employee who is a high performer; however the company has not developed a good accountability structure to direct this person. The CEO wants to add additional accountability to cover everyone, both current employees and new people as they are hired. The system should be fair and apply to all. How do you hold high performers accountable?

Advice from the CEOs:

  • High performing employees are essential assets to a company. They thrive on meeting and exceeding expectations. However they need to recognize and accept accountability for the inevitable mistakes or misjudgments that will occur.
  • Lay out the challenge, and ask your high performing employee, and this individual’s manager, to help design the system for monitoring accountability around results.
  • Within position descriptions, include not only the role and expectations within the description, but also expected progressions for development. These should be objective, measurable and based on specific skills or capabilities within the development progression. Gather input from current employees as you create position descriptions, so that they reflect the experience of employees rather than idealized generalities.
  • Set your expectations for new employees appropriately. Expect perhaps 60% of optimal performance early on. As new employees gain understanding of the company and their roles, coach and expect them to increase their performance over time. Provide training to assist their development.
  • James Fischer, in Navigating the Growth Curve, argues that expectations, for the CEO, management and employees, change as a company grows from start-up to a large firm. If a company is small, it doesn’t want the same structure or processes required to operate a 250 person company. Too much structure stifles creativity and growth if applied to small, nimble companies. Institute a level of structure appropriate to the size and stage of the company.

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How Do You Handle Allegations of Employee Theft? Four Guidelines

Situation:  A company’s leadership is wrestling with how to handle an accusation of employee theft. In the case presented, the accuser lacks credibility, but the charge is serious. The leadership team wants to deal fairly and equitably with the case, but doesn’t want to send the message that pilferage is acceptable. How do you handle allegations of employee theft?

Advice from the CEOs:

  • To assure fairness and equity, determine a way to substantiate, with objective or third party information, whether charges of pilferage are valid.
    • Express your seriousness about the situation, and ask the accuser what evidence they can provide to substantiate the allegations.
    • In a warehouse or stock room situation, install inexpensive video equipment to record and verify pilferage.
    • To assure that messages to employees are clear, revise employee manuals to specify serious repercussions for pilferage as well as measures being taken to prevent it. This will demonstrate awareness of the issue as well as the company’s determination to discourage pilferage.
  • If you can verify the allegation, either through objective or third party evidence, face the employees involved. The choices are simple:
    • Either the behavior stops and the estimated damages repaid to the company by the employee, or
    • The employee is fired.
  • Do not think that this is something that will go away on its own. If there has been pilferage and the situation proceeds unchecked, it will damage you both financially and in terms of employee respect and morale. Employees will be watching your response closely.
  • To protect yourself, once you determine a course of action be sure to document everything.

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