Staff groups cost a fortune, they are overhead, some think of them as a tax on the business. They key questions about staff groups are these: Who do they serve and how? What is their valued added to the organization?

I once had the head of an internal Tax group tell me their job was to keep the IRS happy and make sure the organization complied with IRS rules and regulations! No wonder they got outsourced! The only reason (as the business) that you would have an internal tax group would be that they somehow added value to the business, not just assured compliance with an external regulator. Well there is one other possible reason you might think it is less expensive, but fact is, that is almost always not the case. You can outsource a staff group cheaper than you can sustain it as part of your business. That is UNLESS it creates value.

This is the crux of why staff groups are being outsourced left and right — put bluntly the business does not see them as value added, so wants to get the job done as cheaply as possible. And “the job” is often seen as compliance, caretaking (of the employees) or keeping up appearances (PR).

Too bad. Most staff groups really have a great deal of value to add and the expertise to help the organization in critical ways. But they didn’t know it and they didn’t do it.

Over the next weeks weeks I’ll explore the how and why of it. For right now, consider this: If you are a member of a staff group, and you don’t get that your survival in the business depends on you articulating your expertise and making a case for how it can add value to the business, AND THEN PROCEEDING TO ADD THAT VALUE, then get your resume ready. Your days are numbered.

One of my favorite sayings about change (I think originated by Charlie Seashore). Why is change so difficult? Sure, when change is somebody else’s idea, then it is understandably difficult. I might not even agree with it, like it or want it. But even when it is my own idea it can seem impossible. Let’s start with looking at change that just involves the three of us: me, myself and I. That should be simple.

Yeah sure. Simple, but not easy. Don’t believe me? Try an experiment. Try making a simple change, say for a week initially. If you normally put your right shoe on first, put on your left first. If you normally shave, then shower; shower then shave instead. If you go to work on a beaten path, change it to a new way of getting there. If you are usually silent in a crowded elevator, try talking. Or think of an experiment of your own creation.

Don’t judge or push yourself, just notice as you try on one of these simple changes — observe yourself, watch, pay attention. You will learn a great deal about change, why it is difficult and how to go about it.

One of the greatest social scientists of all time, Kurt Lewin, approached things this way. He set up simple, live, real time, experiments. We’ll be visiting some of his theories soon. For now, watch yourself and let the rest of us know how did your change go? Oh, wait a minute, you don’t want to try the experiment — now what does that tell you about your approach to change!?!

Change Principle #2: If you want something to happen, make space for it.

• They have become your friend – even family – you know them well as people, you know their spouses, their kids, their financial situation, and you may spend some spare time with them.
• They have, at times, been there for you, especially when you needed someone to go beyond the call of duty.
• They might sue you because you know they will be angry and feel ill used if fired.
• And everyone else will be mad at you, the other employees will see you as the bad guy and might even side with the fired employee and quit.
• They will file unemployment on you.
• A part of you thinks it probably is all your own fault anyway (isn’t everything in your business?) and you will do no better replacing them.

From there you can make your own list for you own particular situation, point is, it is very difficult to step up to dealing with a poor performance issue. It is easier to just get by, make do, adapt around their problems, gripe about them to others, give them a break and hope they will arrive at work next Monday as a completely different person.

I have news for you – they won’t! Next Monday they will be exactly the same. Remember that even MORE difficult issue going broke?! That is what you are risking, besides you are not enjoying yourself, you might even be miserable. Something has to change, and what that is, is YOU.

Resolve, after you get out of this mess, you are going to look at hiring and performance management practices. I’ll blog more on those later. For now, let them go – you have to deal with the issue at hand. Call a disinterested, impartial, trustworthy third party (CPA, attorney, consultant, advisor). Go visit, talk through the situation with them. Here are the key questions to cover in the conversation:

• GET CLEAR: is the performance problem a skill issue (can be solved with training) or a willingness issue (requires confronting and a choice to change on their part)?
• From the viewpoint of what is best for the business – ask is the employee salvageable? Make a list of their strong points and weaknesses. Ask yourself if they are in fact better suited to a different job or role in your business. Make a list of what you have done already to try and resolve the problem and what the result was each time. WRITE this stuff down – you need it documented.
• Write a summary of exactly and precisely what the performance problem is – try to be behavioral. For example, if they just don’t care try to list what they do or don’t do that tells you they don’t care. Stay away from loaded and judgmental words or phrases (such as irresponsible, stupid, lazy, etc.). Then, ask yourself, honestly, if the person fixed what you have written down, would you see them as an asset to your business? If the answer is yes, then some effort is probably in order, if the answer is no … well?
  • is that because you don’t believe they will make the change (you don’t have any hope they will change)? If so, ask yourself how you know that (what is your evidence?) WRITE it down.
  • even if they did change, you still don’t see them as an asset to business, they should in fact, have never been hired and it has gone down hill since then!

Now you should have a better sense of the right thing (for the business) to do … make additional effort to try and keep the employee or let them go. If you are going to make an additional effort, get clear with yourself that it is a LAST additional effort. One more chance is all they get, things improve or they have to go. Take the work you have done and reframe it for a conversation with the employee – be specific, be calm, don’t get hooked, stay in good will toward them. This isn’t a fight, even if they want to make it one. This is a conversation about performance. Start off with telling the truth, “I have been thinking that things are not going well; haven’t been for some time. Partly it is my fault for not dealing with things sooner, but we are now at the point that to continue our working together some things have to change.” Then go into what you see needs to change. Ask them if they are willing to make the requested changes, and if so, what would be helpful from you to support them while they are doing so. Agree on a time frame to revisit how things are going.

Now write it all down – in two parts, the first part details the performance issue, ask the employee to sign and date it (this signature does not constitute agreement, but only means the issue has been discussed with them). If they refuse to sign, don’t argue, print their name put ‘refused to sign’ and put your name, date and time. The second part is the agreement you have come to with them – include what needs to be different, the time frame, and what you are going to do to support them, include a statement that you see this as a last chance. You both sign and date this one – signing DOES mean agreement, that is the point here. If they refuse to sign this time you have to let them go, NOW. (Be prepared for this, see below.)

Agree on ‘check points’ along the way – say weekly or biweekly you will visit and discuss how it is going. Document these visits. If at the end of the time you agreed, the problem is not solved, let them go. If it is solved GREAT!

If you decide you are best off just letting them go without a last chance, get ready to have a termination conversation. It is best to terminate folks on Friday morning. Next best is probably Monday morning. Why morning? Because you are going to have to talk to the rest of your folks, answer their questions, and probably deal with some fear. Prepare for that communication. Have a plan in place to replace the fired person (a temp, a person who is already selected to take over, yourself), know how their tasks are going to get done in the short term. If they have a work computer make sure you have the password or at least administrator access (verify they have not changed the admin password). Have their final check ready, you are not going to give them notice, instead you are going to pay as if you had given notice (2 weeks, a month, etc.). While you are having the termination conversation in private (or with one other trusted person in attendance), another person should take control of their computer, change the password and/or remove it from their office. A box for them to pack their things should be provided. If they have keys, you are going to ask for them in the termination conversation, but it might be wise to have a locksmith scheduled to come change all the locks that afternoon.

You have the documents you prepared as you talked things thru with the third party; they will help guide you thru the conversation. STAY in good will – you don’t want them around your business anymore, but you can still wish them well in life. Don’t beat around the bush start the conversation with “I have decided I need to end our working relationship. I based my decision on (fill in here from your prework with the third party). I am sorry it hasn’t worked out, I wish you only well.” Present them with their final check and ask them for your keys. Tell them someone will be in their work space to help them clear out their things now.

And how about a reference? This almost always comes up … my take is fairly simple: If anyone calls for a reference I will verify your dates of employment, pay rate including any increases you have received, and a statement that beyond that we don’t comment on individual performance. If they ask for a reason for leaving I will re-iterate we don’t comment beyond dates of employment and pay as a matter of policy.

Now, go talk to your other folks. They need to hear from you … don’t delay.