Veteran staff can equal real problems

[lordofpi]

I know my first post ought to be in the INTRO forum, and I promise to get there, but I should like to share an issue with which I have been dealing in order to see how the rest of you feel about it as it applies mainly to management.

Without going into tremendous detail, two years ago I was made the general manager of my father's business as he went into retirement (and has since passed away, reqiescat in pace). I had helped him out in this business off and on throughout my life where needed, but I always enjoyed being on my own in a completely different field. When the time came, I was highly pressured to take the aforementioned position of GM by my father and his partner. They were aware of my reluctance, so they offered me a very good salary (compared to what i was making anywhere at the time) and the promise of casual hours (I think we all know what that means!).

I know this business like the back of my hand, but dealing with the aspect of managing the veteran staff is monumental on a scale I could never have imagined. You see, these are all people who were highly trusted for many, many years; they were treated as family, and they learned to behave as such.

Enter the mid-twenties child prodigy they watched grow up who thinks he is going to change anything. Well, the so-called "most honest staff in the world" is full of people doing drugs on the job, people stealing, and people who just think they are going to continue to do things the way they want despite my insistence on some rules. Hell, they helped build the business in the first place, right? --ahem--

I'd have strugged if it were just a few who were like this, but as I peel back the layers of the onion, I find that 90% of the whole damn thing is spoiled. Even people I personally trusted because they exposed some of this wrong-doing to me turned out to be finks.

I've gotten up my resolve and gone through the /very/ painful process of firing a couple, but the whole tone of the place seems to be the way of the veteran. My brother-in-law, a former professional soccer player, entrepreneur, and all around wise man, described it this way: when you have a group of players who have all won tournaments, all won the Super Bowl a couple of times, and so on -- they are no longer hungry. They are complacent and lazy; they think that their stagnancy is the path toward continued sucess -- which also isn't that important to them.

This appears to be what is going on. All I know is that I have grey hairs coming out on my head, and I've been working seven-day weeks for close to a year just to keep an eye on these finks. I feel that my job ought to be to carefully monitor a well-oiled machine and make incremental adjustments along the way; instead, it has become worry-yourself-to-death because as soon as you turn your head, they will take advantage.

[Chris Brooks]

Hmm there is a quote from Jack Welch, of GE "if you can't change people, change people" Meaning that yes, these people are great at what they do, but if they treat the business like dirt, it is bound to spill over into other aspects like customer care. And if that happens you need to get rid of them. You will find others that are more trusting and will be in turn better for your business. I agree 100% with the quote your friend said. You need to instill some hunger back into them. Shaking things up might be the only option. Best of luck!

[mcstartup]

I don't mean to sounds harsh, but fire them all, and fire them now. There is nothing that's going to destroy your father's legacy faster then letting a bad company culture take over like a cancer. All of the worries you have about ramping up a new staff and dealing with new people pale in comparison to having a screwed up company culture.

If you have the capacity to do it, I would hire a high quality recruiter to come in and to help devise a plan to hire a full replacement staff rapidly. If there are a few good apples among the bad, I would have them "re-interview" for the job along side the new candidate the recruiter brings, and then you can decide who you want to keep. You are better off erring to the side of letting a few good people go by mistake, rather than keeping a few bad people around due to fear.

I realize this will not at all be easy to do -- but like ripping off a band-aid, you're going to be far better off if you just rip once and are done with it. It's going to suck, I guarantee it. However, your only other option is to let the business die a slow and painful death while you pile up doctor bills from dealing with stress induced ulcers. Save yourself the pain of doing that, and take the action that I suspect you already know is necessary.

Good luck. I can only wish you the best in what is a very difficult situation.

[clabrat]

You also have to realize that you guys are from different generations with different cultures and expectations. The key is for you to figure out where you want to take the company (vision setting) and how you can utilize their skills to meet that vision.

[lordofpi]

These are some very interesting and helpful responses. As said by the responders above, I have been afraid that complete overhaul is my only option. I just finished reading E-Myth Revisited, and I was very impressed by the the author's insistence on quality systems.

I have used the knowledge gleaned therefrom to put systems in place that I knew would eventually force out those who refuse to comply. I no longer have to trust in them, but I rather have to trust in the systems that I have put in place to prevent losses and keep order. We have less than 50 employeees, and I have already fired about 8 and 4 are going to be taking positions elsewhere. Those who are staying are already changing their modus operandi to conform to my desires of change. In addition, the new blood that has been recruited has been trained properly. All woes are not disintegrated overnight, but I am starting to see a smidge of light at the end of the tunnel.

[nonrate]

Firstly, my condolences on your fatehrs passing, my dad recently passed away as well.

This can be a sucky position to be in. I have some management experience myself within a large organization.

My feeling on this is a managers job is to make sure things get done, not baby-sit those you can't trust. Stealing, doing drugs or drinking on the job, goofing off, etc. is the behavior of a dysfunctional family-like business environment.

One of my lessons I learned in management was the worst thing you can do is try to be your subordinates best friends. Respected? Yeah, you need that. But respect is a mutual thing; you need to respect the business too. It doesn't sound like your employees do not respect the business.

So, instead of just firing them all at once, maybe letting them know you're on their game and you won't stand for it any more is in order. But screw three strikes and you're out --1 strike and replace them.

The problem with any long-term employees that have got used to being "lazy" or disrespectful on the job and getting away with it, well, most likely these folks will need to be let go if they are to remain in their existing positions.

The analogy that your brother-in-law made regarding "being hungry", that's definitely a good one. But if they've won the superbowl, maybe it's time to change the game. If you're business can afford it, open a new service/product that you have not been established in yet and hire new employees to maintain the areas they became lazy in.

But, if your business has been hurt by this problem and you are not in a position to change things up, you have to do what's best to keep the business thriving and moving. This means you may need to replace these folks that have been with the company for awhile. Maybe they need to know their actions are negatively affecting the business, and thus, the livelihoods of the others in the business pulling their weight. That may be enough to get them to snap back in place.

But, this is not an easy problem to solve. Best of luck

[lordofpi]

Thanks for the regards. Despite it being almost a year since, I still feel I have not had the proper time to grieve having been dumped right into the boiling water of the business. I hope to take some major time off in the fall.

As far as the people go, I have definitely made myself distant. I refuse to go to out-of-work affairs or socialize on anything other than a business level. I dress differently, I keep different hours, etc. I am still amiable, and I do not talk down to people or parade about like a big shot. In a way, this is helpful for the adjustment by making the transition a much more gradual process. I believe that sometimes a stark over-night overhaul can seen as threatening to existing customers. Anyhow, my distance has helped quite a bit so that when confronting problems with people, it is not with someone with whom I went to dinner the previous evening, for example.

Another thing I gleaned from the E-Myth Revisited was the concept of the position contract. I have slowly begun preparing these for individual positions, and sitting down and spending time with each person who has to do sign one as a matter of course. I explain that one of the biggest problems we as an organization have always had is poor communication. If people are not told what is expected, how can they know? I go on to say that these contracts are not for any one person in particular, but rather are just a general way of organizing things. As we go over the contracts, a dialogue is opened up, and I am occasionally able to get some substantive feedback with these people rather than face a reprimand session. By the end of our discussion, they now know they will be held to their contract.

I have not implemented this to a great extent yet, so it may not turn out as idealistically as it sounds, but it feels like a sound methodology, and I am certainly willing to try it.

Are there any other books that some might recommend regarding managment? The classic One Minute Manager type of book I believe is quite dated, unless some feel otherwise, but I definitely could use some fresh guidance.

[SendBlast]

I wouldn't fire them all.

However..I think a company meeting is in order. Remind them that you are the boss, and anymore slip ups will cost them either a dock in pay or a pink slip.