Tag Archives: Legal

How Do You Correct Inappropriate Behavior of a Productive Employee? Four Points

Situation: A CEO has a key manager who frequently uses inappropriate language and demonstrates lack of care towards co-workers. This individual is smart, has great drive, and does the work formerly handled by two employees. How do you correct inappropriate behavior of a productive employee?

Advice from the CEOs:

  • Create a firm company policy on swearing and the use of inappropriate or abusive language.
    • Each time any individual swears or uses inappropriate language, they must put $1 into a pot. Anybody can call anyone else for swearing and the one who’s caught has to pay. The money in the pot goes to buy pizza on Fridays.
    • This is a creative and even entertaining solution and should resolve the problem in a short time.
  • Sit down with this individual and go over their positives and value. Besides these, emphasize which behaviors are unacceptable.
    • Explain the legal implications and consequences for the individual and company. Provide goals and set objectives.
  • Send this individual alone or with a team to a Pryor Customer Relationship seminar, for example the seminar “How to Communicate with Tact and Professionalism”.
    • Let the instructor know in advance that you want to be sure that certain behaviors are covered during the seminar.
    • This may provide the individual the incentive to behave like an owner of the business.
  • Make it clear who’s in charge, and at whose discretion the individual remains with the company.

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What is a Fair Revenue Split? Five Pieces of Advice

Situation: A professional services company is constructed as a network of members. The company’s contract specifies that if a member of their network goes to work for a client – even a client that the member brought to them – the client owes the company a fee of 50% of either the member’s salary or the annual consulting revenue paid to the member. This is onerous. What is the best way to respond? What is a fair revenue split?

Advice from the CEOs:

  • This does seem like an onerous provision. It is unclear whether the bite is as fierce as the growl.
  • Consult a lawyer. If you quit the network and go to work for the client, what is the level of risk that the company will successfully sue, and what you can do to mitigate this risk?
  • If the offer from the client is appealing, quit or avoid using this company’s services. Given their cut to your revenue you will see a net gain in your own pay for services rendered.
  • If several members agree that this stipulation is onerous, team up and start your own network with better terms. This can provide you and the others with an annuity revenue stream.
  • Integrity in professional circles is everything. Whatever course you decide on, be up front.

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How Can a Lawyer Help You Meet Your Goals? Five Ways

A small company has need for legal advice, but is unsure how to properly utilize a lawyer. Legal costs have gone up over the last decade, so expense is one concern. Another is a desire to understand how to form an effective relationship with a lawyer or law firm, and how to effectively manage billable hours. Bottom line, how can a lawyer help you meet your business goals?

Advice from the CEOs:

  • First, seek the counsel of a firm that specializes in small businesses. Just as you would seek a specialist physician to treat a serious medical condition, SMBs are best served by corporate lawyers who understand how they are different from large corporations and who can advise them at a rate and under an arrangement that fits their financial situation.
  • Schedule regular “off the clock” lunches and conversations with your lawyer. The ideal lawyer for smaller companies serves as an “outside counsel.” Your outside counsel is essentially your legal quarterback and should be willing to meet with you off the clock to discuss general business needs. Of course, as a courtesy to your lawyer, if your conversation starts getting into areas where you are receiving legal advice you shouldn’t expect free advice.
  • Know what to ask your lawyer versus what to ask your auditor and tax specialist. Each has a separate and distinct domain.
  • Trust your lawyer – or find a new lawyer. The best legal relationship is when your lawyer is treated as a member of your team. Sharing the business context aids your lawyer in advising you.
  • There is no need to overspend on lawyers, but you do need to assure that you spend for what you need. A good relationship with your lawyer can help you to walk the line where you are spending appropriately.
  • Special thanks to Deb Ludwig of DJL Corporate Law for her contribution to this discussion.

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