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Serial Entrepreneur and Go BIG
Founder Wil Schroter's Blog!
How to Part Company with a Smile
Author: Wil Schroter
Wednesday, June 25, 2008
No matter how well your startup company does, sooner or later you're going to be faced with the fact that someone has to go.  It may be a disgruntled co-founder or it may be the intern that looked great on paper but turned into a disaster when they walked into the office.

While parting company is a tough thing to do, there are definitely better and worse ways to go about it.  There's an art to ending a corporate romance on a positive note, and it starts with looking past the moment of departure and into the future.

One Size Doesn’t Fit All

Unlike the big corporate machine where everyone is expected to fit in, a startup company is a perpetually chaotic, anxiety-inducing roller coaster of emotion that fits very few people real well.  Chances are the person you are sitting across from is just not a fit for any startup company, let alone yours.

A great way to set the stage is to explain how well you understand the incredible challenges of being in a startup company and that it’s very difficult for anyone to maintain their footing in this environment.  This isn’t about you patronizing your co-workers – it’s about recognizing the fact that there are often very good reasons the fit just isn’t right and using those reasons as a platform for departure.

In many cases the person you’re sitting across from has had to endure a lot of sacrifices just to be able to contribute at all.  Even if they didn’t work out as an employee, it’s a good idea to recognize and appreciate the sacrifices they have made up until this point.  Those sacrifices were part of their contribution.

Leave the Door Open

Although today you may feel like you can’t possibly get this person out of the door fast enough, always be sure to leave that door open for them to return.  This may sound ridiculous, since the last thing on your mind right now is ever seeing this person in your office again.

Yet your corporate life is very long, and it extends down many roads.  The gal that just walked out of your office today may be the key customer that hires you a few years from now.  It may be the person that was a bad fit in the formative stages of your company but is exactly who you need three years from now.  It never pays to be short-sighted when winding up any relationship, no matter how tenuous at the time.

Leaving the door open also shows a gesture of good faith.  If people know that they might have to deal with each other again in the future they’re a lot less likely to spew fire and brimstone today.  You may find that a few years from now, after you’ve both forgotten a about what brought you to this departure, that there’s a much better opportunity to re-connect.

Send People off with Dignity

There’s a big difference between just terminating someone and terminating someone with dignity.  No matter what the situation is, everyone deserves to be shown the door without being crucified in front of their peers.

Aside from the fundamental respect of another human being, you’re also setting an example for how you will treat the rest of the organization.  If all of your employees watch a person get humiliated in front of their peers the first thing that you’ve instilled in everyone else is that they will be treated the same way.  That kind of fear is incredibly unhealthy in any organization.  (Unless you are a pirate, in which case you’ll probably be just fine.)

Instead, go out of your way to make sure that this person’s departure ends on a positive and supportive note.  Even if the rest of the organization dreaded their existence, it’s important for you to be the bigger person and show that everyone will come and go with dignity at your company.

Think About the Ripple Effect

A departure affects more than just one employee.  It creates a ripple effect through the entire organization that’s impossible to ignore.  If you think that an employee walking out the door takes their drama with them, you’re dead wrong.

The gory details of what you’ve said, how the employee responded, and every moment thereafter will be repeated in infinite detail inside and outside of your organization.  Think of the termination event like a video clip on YouTube that is about to get re-broadcast endlessly. 

A simple, positive parting isn’t worth gossiping about.  There’s no story.  But an ugly and bitter battle is something that will keep lots of people talking for a long time, all at your expense.  When it comes to parting, creating as little drama as possible is absolutely critical.

Look at the Big Picture

Every time you let someone go you’re changing the face of the company and setting the tone by which it treats its people.  If you can use this opportunity to show that you’re supportive and respectful of the people leaving your company, you’ll make both the people that work there now and the people that will work for you in the future far more comfortable with living in your world.




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Comments About this story
It's worth mentioning that the ripple effect can be a good thing.
In my experience, one of the good things about startups, or small companies in general, is that everybody knows exactly who's a productive member of the team and who isn't. Enthusiastic and productive people don't appreciate working with duds. When you let the unproductive team members go, you're sending a clear message that you won't tolerate that, and that's a good thing for the rest of the team.
It's inevitable that a departure will create a drama. Therefore it's important to communicate the reasons clearly and truthfully. Employees worry: "Am I going to be next". This can be used as an opportunity to assure the team that you value them and their contributions.

Posted by: Elad Kehat 6/26/2008 at 2:40 AM

Very good blog.  I've worked for many small companies.  Some of the owners were smart enough to understand how small the business world can be.  I actually experienced a situation where I was blown off by a business owner, only to come across that person a few months later.  Unfortunately for him, when we met a few month later ,it was he who needed my business.  I was very polite, but had him removed from my property while politely reminding him how rude he was to me when I had approached he earlier in the year.  To tell you the truth, it was fun watching him squirm and. make excuses.
Posted by: Roland M. 6/26/2008 at 12:14 PM

Absolutely true.. if you have to terminate somebody... do it with dignity. Especially in the tech/internet world, you run into the same people over and over again. You want to keep the doors open. While somebody will have to be let go eventually, the key is to hire the right people and train them well. Go beyond standard training protocol (whatever that might be for your business) and really exploit self development. Understand the natural laws like: the law of attraction, the law of compensation, and the law of gestation. See what I mean here...
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Posted by: John A. 6/26/2008 at 1:56 PM

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Posted by: zakaria 7/1/2008 at 8:05 PM



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