Dear Aunty B,
Several of my key management are resisting a business restructure that will double the size of our profits next year.
I am getting very frustrated with them but cannot seem to change their minds.
It does not seem as if they are resisting the new direction – they just don’t like the change. Two of them in particular want to take on new job titles but not the extra responsibilities.
The problem is if they don’t accept their new roles, then they effectively are working at a more junior level and this does not justify the large salaries I am paying. They have even been offered profit share but that does not seem to have swayed them.
However, I don’t want to let them go as it will be very disruptive.
You have no choice. You have to make a hard decision and are making excuses not to. Keeping them will be far more disruptive if they are resisting the new direction – especially without reason. Having a core management team that is on board, shares the vision and striving in the same direction is the key reason an entrepreneur succeeds.
In fact research shows that the entrepreneur’s careful selection of the key management team and ability to motivate that team is more crucial to the company’s success than the entrepreneur!
If you don’t move them on now, you will have to down the track. Many key staff cannot make the transition to the next level up. And many entrepreneurs report it is the hardest thing they ever have to do – move key management staff on because they cannot evolve with the business.
It sounds to me like you have clearly explained the vision. And the fact they are not motivated by profit share to take the next step means they probably can’t.
Simon, you have hit a major growth hump. Many entrepreneurs don’t make it over to the other side with the old team in tact.
Your Aunty B.