Should You Let People Go?

Is firing people wrong? Depending on the circumstances firing a person or a group of employees might be necessary for an Entrepreneur.

A continually poor performer in any enterprise becomes a liability to the other team members and the organization. If there is no change in the employee’s performance after repeated attempts to improve it, it would be wise to part company. Similarly if a third-party service provider does not consistently provide excellent service there is cause for firing that provider.

In a broader sense, for the survival of a company and a majority of its employees if a few employees have to be let go (after all other options have been exhausted), it is most often the right thing to do. As Spock used to say in Star Trek, “.. for the survival of the many, a few have to suffer.”

Firing people for spite, revenge, uneconomic, or irrational reasons is never appropriate, but letting go of people for the right rationale is not necessarily wrong.

Ravi Patel

http://www.patelCFOservices.com

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Letting Customers Go

Should you let your customers go?

Some might ask what kind of question is that? Why would someone think of getting rid of their customers?

While the old saying “the customer is always right” might be thrown around, it is not necessarily true that all customers are always good for your business.

Entrepreneurs might have to stand up and exercise their leadership by letting some customers go. Which customers are the ones that might be on the firing list?

Customers who are consistently not profitable for your business are not good for the long term. It is acceptable to have lower profits or losses from a customer over a short period for a potential lucrative strategic relationship. However, if the customer over a longer period continues to be a drain on your profitability, it might be time to let them drop off the list.

Chronic complainers, without legitimate reasons, are very difficult to service and cause undue headaches for your employees. Unless the customer has genuine reasons to be dissatisfied, it is not in the best interest of management to service clients that constantly create irrational demands on your staff.

Entrepreneurs need to develop an excellent reputation for service and customer relations, but if need be it is okay to fire certain problem customers.

Ravi Patel

http://www.patelCFOservices.com

Published in: on August 11, 2014 at 1:45 pm  Leave a Comment  
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Is Firing People Wrong?

There seems to be a lot of controversy in the Presidential primaries regarding Romney’s much publicized out-of-context remark that he likes firing people.

Is firing people wrong? Depending on the circumstances firing a person or a group of employees might be necessary for an Entrepreneur.

A continually poor performer in any enterprise becomes a liability to the other team members and the organization. If there is no change in the employee’s performance after repeated attempts to improve it, it would be wise to part company. Similarly if a third-party service provider does not consistently provide excellent service there is cause for firing that provider.

In a broader sense, for the survival of a company and a majority of its employees if a few employees have to be let go (after all other options have been exhausted), it is most often the right thing to do. As Spock used to say in Startrek, .. for the survival of the many, a few have to suffer.”

Firing people for spite, revenge, uneconomic, or irrational reasons is never appropriate, but letting go of people for the right rationale is not necessarily wrong.

Ravi Patel

www.patelCFOservice.com