Jack Welch - Winning

Reading the ex-GE CEO, Jack Welch's book titled Winning. One of his chapter - LETTING GO IS HARD TO DO illustrated the reality of business and it is an necessary process to weed off the rotten apples. He mentioned that the most complex and delicate kind of firing is when an individual has to let do because of poor performance.

In my entire career, I have executed not once, twice but thrice layoff plan.
The objective of the layoff plan is to reduce manpower cost due to the significant slow down of business during the Internet Boom time.

The GM of the company executes the planning of the layoff in a professional manner with total transparency and no there is no traces of humilation. (This is a lesson that I learnt). The middle management (like myself) is called into the meeting and informed the layoff plan and package. We commenced our re-ranking exercise based on few critical criteria to ensure that the ranking is fair and open. All the middle management to discuss each performance with the quantified value related to it! The first round of layoff is easier and quicker as the recommended staffs are under-performancers. (as the managers seemed to understand who is delivering the value; while the rest is not! As Jack Welch mentioned about the 20:70:10 rule. The finalised list are submitted and approved. We talked to the individual staff in a quiet room to announce the bad news to them. The environment is serious and easier accepted (perhaps, the under-performers staff had already knew what had happened). There is a total of 10% of staff being layoff.

However, barely a quarter, due to recessions persisted, we had no other alternative to continue to reduce our manpower cut again. This time, some of the middle management was layoff as well. The ranking exercise became more difficult as we knew that those with us are really good person. However, we have no other alternative but to proceed on. The total % is more than 30% of the staff. The GM spoke to all of us in the conference and emphasised that the ONLY CONSTANT is CHANGE. I even offered to reduce pay cut instead as I do not want to see any of the good staff to go. However, GM had highlighted that everyone has a living based on the current package. Reducing packaging will immediately de-moralised everyone further and may hurt one's living as well. Hence, a bold and open decision made, and the second layout is done.

I called out my contacts so that I could find alternatives to them. Fortunaltely, I managed to get some jobs for my subordinates.

The last layoff is more amusing. After a year of the layoff, due to fewer staff and everyone need to do more with less, I was instructed to hire another presales engineer to offload the workload. After 3 months of searching, we managed to get this guy in. Howeevr, after just 3 months, my immediate boss (not the GM) requested me to fire him due to revenue has not grew as expected! I was confused but prefered to execute the plan by myself (instead of him).

Of course, layoff is nit a fun thing! At times, I felt gulit but believed that this is the reality of life. My dad was forced to open his workshop not because he wanted to, but rather he could not found a job in the 50's. Hence, I believed I am blessed that I still has a job.