President Harry Truman uttered the now-famous phrase “The Buck Stops Here.” Truman was a man who stood by those words come hell or high water. He represented the truest form of leadership. Leadership is fine when everything is hunky-dory. It is quite another thing when bad things happen, and you, as the leader, have to make decisions that affect people’s lives, and be held accountable for those decisions. Truman was accountable, taking credit when credit was due, and accepting the blame when things went south.
Unfortunately, in today’s world, there are very few Trumans in leadership positions. People want the titles – President, VP, CEO, Director, CSO, CFO, COO, etc. Looks good on the resume, LinkedIn and on your office door and business cards. On days when everything runs smoothly, it’s easy to be a leader. However, it is when those days are darkest is when a leader’s mettle is truly evaluated, honed and sharpened. When I say there are few Trumans left in terms of leadership, I am talking specifically about the enterprise world over the past few years where layoffs and reductions in force (RIF) have become commonplace.
Headcount and Headaches
Enterprises are usually “at will” organizations. Though a person is hired to do a job and hopefully has wonderful experiences, benefits and contributes to the organization, everyone employed at an at-will business recognizes they can be laid off at any time based on economic realities or an organizational whim. The tech industry is an ideal example and is where I served for 16 years as a CSO. When times are good, tech companies ramp up their hiring. When times are good, those same companies find themselves bloated, overstaffed and suddenly facing decreasing revenue. In order to cut costs, typically, OPEX (operational expenses) such as headcount is the first to go.
Back in my day, when managers were told we had to cut headcount, there was a process in place that held us, as managers, accountable for those decisions. We had to determine which staff members were on the chopping block. Obviously, this is not an easy decision. There was no “fat” in our organization. All of our employees were stellar, as we had weeded out the malcontents and bad apples over a period of years. So, we were being forced to make extremely difficult decisions involving key contributing members of our organization and the company. It wasn’t just me, but my peers in our uber organization that we rolled up under were having to make similar heart-rendering decisions. I would smile inwardly when our boss passed the word from on high that we were going to have to let people go and the corresponding numbers required.Some of my peers would argue and insist cuts were impossible. But I knew the debate was ignored. My manager was merely relaying the C Suite directive. Our job was to execute that decision whether we approved.
Our entire security leadership team was a part of the decision-making process. There were a lot of intense conversations with my team leaders as we made the best cases we could for each employee. But it was my call to make, and I had to stand pat with my decision. Difficult decisions define a strong leader. But that was only step one.
The Process
Step two was to actually conduct the RIF. This is where I see the lack of leadership in today’s executive organization. Traditionally I, along with an HR associate, conducted the RIF in person. Man was it ever hard! It is one of the worst, if not the worst things a leader has to endure. Sitting across from someone you value and admire as a colleague, even as a friend, and having to tell them they are being let go.
The knot in the pit of your stomach festers as the HR associate presents your employee with a package outlining what benefits they have for a period of time and resources to find other employment. Still, the looks of shock and surprise from your teammate are tough for any leader to compartmentalize. You try to be as compassionate as possible but that person leaving the room is now unemployed. I hated having to do what I did. But sports fans, that is the negative side of leadership.
Today, it incenses me when I hear stories about how people are being laid off in the most impersonal and cowardly ways. I have had friends who were told to log into a “Teams” meeting only to be informed they were being laid off. There are horror stories of people getting an email or text message announcing their job separation. Even worse, having a former colleague showing up to their place of work only to find their card access key is no longer valid -- cowardly.
Companies that practice this method of headcount reduction are unethical. This is an unpleasant task that must be done face-to-face. Some companies talk a good game about their valued employees and crucial team members and associates, however, too many fail to abide by their own mission statements or ethical codes of conduct. Employees are more than a commodity to be traded away like office furniture, and no solid leadership team would condone such practices.
Superior leaders take the good with the bad. You are fortunate if you are in a leadership position and have never had to let people go. Hopefully, you never will. But if you are in a leadership position, insist that if the occasion arises, the unpleasant deed is done in person. Look the person who is being released in the eyes. Demonstrate sympathy and concern, realizing your message is life-altering. Never hide behind virtual meetings to communicate career and life decisions.
Companies that reduce staff in an impersonal manner never bolster greater loyalty from the colleagues left behind. Typically, it breeds resentment from the ones let go and cynicism from the employees still working for the company. Organizations that preach employee value but at the same time display a callous disregard to employees that are jettisoned are destined to face morale issues among the remaining staff.
When it comes to making hard, critical decisions, be a Truman. The buck must truly stop with you. It ain’t easy, but to be a true leader, you can’t escape this part of leadership. Don’t hide. Step up and be accountable.
