Situation: Historically the management of a company has been family and a few long-term managers who’ve grown with the company. Some of these managers have reached their limit. Over the last couple of years, the company has added new, high capacity management. Who do they do with existing managers who can’t keep up? How do you facilitate management change?

Advice from the CEOs:

• This is why packages exist. Employees, even key managers are not forever. As a company grows both its needs and culture must grow. There comes the time in the life and growth of most every company when certain managers are unable to accommodate this growth or adapt to the changing culture. You may well find that these managers are not very happy and no longer feel at home. Whatever the case, it is better that they move on.
• Who creates the package?
  • You or your HR manager come up with the outline.
  • Get professional advice if you have none in-house.
• Is there a moral issue – our commitment to our employees?
  • If an individual is demotivated, they are not contributing – this solves the moral issue.
  • If the individual is terminated amicably this can be for the best – for both parties.
• How do you ease the pain of separation, both for the individual and the company?
  • Packages can be adapted to the situation.
  • Take the example of a manager who has made important contributions in the past, and who has good relations with others in the company, but doesn’t have the skills to adapt to the next level. Include a generous term of job search assistance. If the separation is amicable, offer them space, computer and a telephone to facilitate their job search. This can ease the separation.

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