Pete inadvertently spread damaging ideas
NB names and details are fictional. Any resemblance to actual persons or events is entirely coincidental!
Background
Pete had run his printing company for many years, and enjoyed working with his team.
He heard about EOTs. He knew he wasn’t ready to step back for a while yet, but thought it sounded lovely for further down the line. On a staff social, he mentioned it as a throwaway comment.
It was met with awkward silence. Nobody knew what to say. Pete moved the conversation on, and forgot about it.
However, the seed was planted. Also each staff member had a different seed in their mind.
What happened
Legally/practically, nothing happened! It was just an idea Pete mentioned, with no thought to implement it.
The most senior employee, Debbie, knew Pete was talking about an EOT, and wasn’t pleased. As the most long-standing employee, she assumed she’d take over the company. They’d never discussed this, but Debbie expected to buy Pete out some day. She’d inherited money a few years ago which she’d earmarked for this purpose.
Another senior staff member, John, had a different idea of what Pete meant. John assumed Pete meant a management buyout. John had just bought his first home. He had no spare cash, nor scope to borrow further, so how on earth could he buy in.
The third most senior employee, Penny, loved working for Pete. He was a great boss. She didn’t get on so well with Debbie, and feared if Pete gave up ownership, he’d leave too. Penny expected Debbie would take over as head honcho. Reporting to Debbie didn’t appeal.
Pete had annoyed his three most senior employees, for very different reasons:
- Debbie was unhappy she wasn’t going to acquire the company like she expected.
- John was unhappy as he thought everyone else would buy in and he’d be left out.
- Penny was unhappy as she thought Pete was abandoning her and making Debbie her boss.
Pete was unaware of all this. He knew he had no intention of doing anything significant soon. He was happy as things were, and threw it out there as a silly conversation piece.
Debbie, John and Penny all felt their future with the company didn’t look good. They searched for jobs elsewhere and handed their notices in.
Pete was gutted, and panicked. What on earth had happened?! Employee ownership could only possibly be interpreted by staff as a good thing, right?! Turns out he was wrong.
What he could have done differently
Whilst it was just an idea, he could have discussed it with a close friend or family member. They could give their general views, but also help him think through how others people might feel hearing the news.
If staff ask, sure, Pete could say he had no firm plans, but discuss his ideas. He should stress these are just ideas, nothing more.
Maybe a year before pressing ahead, he should discuss individually with each senior employee. Taking their views into account.
- Debbie could buy shares directly. Not a controlling stake, but an investment for her.
- John could be comforted he didn’t have to “buy in”. Indeed most staff members wouldn’t.
- Penny could be comforted Pete would remain post sale. And/or her role tailored to minimise working with Debbie.
Moral of the story
Take care with significant ideas relating to the future of the company. Even without doing anything, just mentioning things can cause problems. Once the cat’s out of the bag, there’s no going back!
Be careful with the “what” and “when” of the message you give. People may hear it differently.
When to tell people about your EOT sale
An EOT will have a big impact on senior staff members. Do consider their thoughts, and try to solve/alleviate concerns before pressing ahead.
Other Go EO founder flops:
- Vanishing Vanessa
- Generous Jenny
- Greedy Greg
- Controlling Connor
- Premature Pete
- Tracy’s Terrible Trade Sale
Summary
Making changes can be scary for people…but even talking about them can be scary too, and cause problems!
- People’s jobs are a significant part of their lives.
- Changing ownership/power in the company is a big change.
- Think carefully about what you’ll tell staff.
- Think carefully about when you’ll tell staff.
- People’s imaginations can run wild if information provided is limited.
- Whilst the idea may only be theoretical, the damage can be real!