Vol 2, No. 11
November 4, 2003
 
Hello.

It's a touchy subject and time we addressed it: long-time staff members, often officers or partners, staying on too long. How do you handle these delicate situations with dignity and fairness?

Don't look for pat answers below, but read on for some insight and a challenge to collaborate on solutions...as we all get a little grayer every year.


Joe Grant
joe@joegrantconsulting.com

 

 
     The Senior Issue
  There's a serious and potentially heart-wrenching problem in many agencies that bubbles just below audible conversation: senior executives no longer justifying their keep. It affects everyone. And it's time to talk about it.

Here's the problem. People work awfully hard in our business and use up a lot of themselves in the process. That may be why in their 50s some conclude they're not going to get a whole lot farther than where they already are, so why push so hard? Maybe I can coast a little and still be well paid. I'll retire soon enough, in a few years. But just not right now.

We call these people the "soon retiring" or SRs.

To some an SR who's contributing less and less to the bottom line can appear to be selfishly harvesting profits and bleeding off a 6-figure salary. Toss in perqs (bonus, car, club memberships, etc.) and there's a pretty big hole in the bucket.

Would the money spent on an SR yield a better return increasing new business efforts, developing new services, buying out a competitor, delivering serious training, or rewarding or hiring stronger talent? That's the heart of the dilemma because those kind of business opportunities can be seriously thwarted by supporting an SR. More than once we've seen an agency starve itself from growth because it was carrying this sort of burden.

Yet it wouldn't be fair to push that good ole' SR out to pasture, you say. He or she was there at the beginning, risked so much, spent all those nights and weekends away from home (was there a divorce along the way?). This is where it gets really torturous. You feel a moral obligation to be fair.

Alright. Let's talk about "fair."

Some say it's not fair to allow the company to be held hostage by a highly paid but no-longer-as-productive SR. It's not fair to those at full song trying to move the company forward. Ambitious folks may seek opportunity elsewhere...and suddenly your competition has all the good talent.

OK, but what about "loyalty" and "reward"? Doesn't the SR deserve a cushy last few years at the end of the work rainbow? Maybe, but some argue there shouldn't be an unspecified "obligation" to keep anybody aboard indefinitely.

Reading this far you're probably disappointed that we haven't revealed some bromide to fix this issue. Believe me, having guided several agencies through these treacherous waters there is no one-size-fits-all answer. It's a tight complex knot of human compassion, economics, emotional baggage and unspoken expectations.

But there are a few guidelines we use when helping agencies unravel these sensitive problems:

1. Eliminate denial. Don't pretend it isn't happening or will fix itself. You, the senior team, and the SR must acknowledge that something's out of whack. Face up to it because it's the kind of thing you get paid to face up to. A Chinese proverb we're fond of instructs that the beginning of wisdom is calling things by their right name.

2. See the whole picture. Decisions about SRs rest on the leadership team's responsibility to do the best for all employees. These difficult resolutions have to be right for the company and its health, not just the convenience of a few.

3. Dignity is fundamental. That's dignity for all. Resolve to honor everyone's ego and emotional needs as well as your own sanity and good conscience. I'm here to tell you that there are solutions available that can maintain self-esteem and not make the agency executives feel like dirt.

4. Be fair. But don't confuse fairness with generosity. Sometimes those of us with soft hearts make really dumb business decisions because our emotions overpower common sense. Your actions must be consistent with the firm's core purpose and values. Remember that treating one person with a heavy dose of "fairness" at the expense of others is wrong too. Principles by definition are ecumenical.

5. Get outside perspective. It's a sure bet that you're too close to the situation to see it objectively because, ironically, you know too much. Seek off-site counsel* - all parties deserve it.

6. Be safe. Wearing a life jacket doesn't mean you expect to end up in the water. Get legal guidance before any precipitous decisions.

One more thing. We better figure this out or the well-meaning baby-boomer SRs will unconsciously throttle down a lot of otherwise healthy agencies. I wonder - can we benefit from sharing some accumulated wisdom?

Let's begin a public dialogue about the SR situation. Drop me a note at joe@joegrantconsulting.com with your comments, suggestions, or insights and we'll publish it in this forum right after the first of the year (if you wish to be anonymous, just say so). How are you solving the problem at your agency, what advice would you offer others? If you're an SR yourself, how does it feel - and what are your expectations?

Remember, the clock ticks for all of us. YOU'LL be an SR some day.

We all will.

*We frequently get involved in these delicate situations; it's usually helpful to have a disinterested but caring outsider experienced in these matters act as a facilitator and counselor. Call us at 239/394-8220.

___________________________
 


 
A+ Mailing List

Agencies complain all the time that they don't know who to send new business mailings to. Who's the VP of Sales & Marketing at Company X? Well, here you go, along with their salaries, courtesy of Hoover's Online. See how much money you could be making if you were a client?
 
Stay Connected
We recently popped for Handspring's (now palmOne) new 'smartphone' Treo 600, a combo PDA, e-mailer, browser, and phone - and couldn't be happier. It opens and reads all attachments (pictures, Word, Excel, even PowerPoint), synchronizes seamlessly with Outlook or ACT!, and even snaps pictures. Sleek, intuitive and ideal if you travel a lot. Find out about it at Handspring.

 

Look it Up

Caution: don't go to this link unless you have time to spend. LibrarySpot is the easiest and quickest web information repository outside of Google. It's a portal to thousands of on-line libraries, reference sources, newspapers and magazines, quotes, book reviews, and info of every sort all easily categorized and accessible. It's part of StartSpot Network which is equally engaging. I'm tellin' you, these are great times we live in!  

 
An Entrepreneur's Education
How much better could you run your company if you took just 30 minutes a day to read an article about growing your business at EntreWorld?  
 
What We're Reading

I love knowing where other people get their ideas, so I'll share what's been on the reading table here this fall: The Blank Slate (Pinker), a brilliantly written exploration of human nature; Benjamin Franklin, An American Life (Isaacson), a little disappointing but enjoyable nonetheless because Ben's a hero; Sync (Strogatz), about 'spontaneous' synchrony all around us - fascinating; The DaVinci Code (Brown), a word-play rich bestseller; To Conquer the Air (Tobin), which demonstrates there was more politics than physics involved in the Wright's first flights; When You Ride Alone You Ride With Ben Laden (Maher), provocative and funny both; Bleachers (Grisham), not his best but good when you're stuck in the middle seat of the exit row on United; The Collected Stories of Arthur C. Clarke (Clarke), to keep the imagination oiled; Getting Things Done (Allen), how else do you think I get all these books read?


About Grant Consulting
Grant Consulting, formed in 1992 by Joe Grant, is a consultative resource for advertising agency principals who want to improve their agencies. The firm works exclusively with agency senior managers to help them discover and then reach their full potential. Contact us at:
 
Grant Consulting
239-394-8220.
joe@joegrantconsulting.com
www.joegrantconsulting.com

 PRIVACY              NEWSLETTER ARCHIVE              BACK TO TOP