Crisis Survival Kit: The Wrong Way To Fire PeopleCrisis Survival Kit: The Wrong Way To Fire People

They kid themselves. No one likes to lay people off or close facilities. Faced with such nasty tasks, leaders tend initially to kid themselves in underestimating the scope of a downturn -- and as a result, they find themselves chasing a falling revenue curve and risking death by 1,000 cuts. Don't fall into this trap. Instead, get your core team together and take a brutally honest look at how bad things are likely to get for your business. Then size your business to make a profit at the level of revenue you think is most likely. Don't bet that the sales department is going to pull a rabbit out of its hat, or that some new product you are about to launch is going to solve all of your problems.

They make across-the-board cuts. A common approach in a downturn is to declare reactive, across-the-board reductions -- which usually just make things worse. Tough times require leaders to think deeply about their business models and focus cuts in such a way that they can protect or even extend the core. It should become clear that many projects, initiatives, and even departments hatched during good times are not at the core of your business. Indeed, it is vital that a company know exactly how much money it makes by customer group and by product. Roll up your sleeves and make a clear-eyed analysis of your company's position. Identify the 20% of the activities that produce 80% of the results -- and protect them at all costs.

They fail to demonstrate generosity and concern. One reason some leaders perform poorly in a downsizing is that the process is painful for them. Many feel the situation may be their fault, and they attempt to minimize bad feelings by avoiding contact with those losing their jobs. Doing so makes them appear miserly with their time or their pocketbooks. Show courage and commitment -- meet with people you have to lay off, help them transition, commit to show a generosity of spirit. Survivors in the organization will be watching you closely, and they will judge your character based on the empathy you show to those who are losing their jobs. If they see even a hint of dispassion, they are likely to lose faith in you and begin to look for another job.

They clam up. For good reasons, communication with the troops about impending expense cuts is usually carefully and tightly controlled. But people get antsy when they know their job or department might be on the chopping block, and it's important that leaders send a clear signals on how serious the financial challenges are likely to be and exactly how the company will respond.

Be honest: The worst thing a layoff can be is full of shit. At least have the common courtesy to tell the truth.

But not too honest: Perfect honesty demands admitting that the people you laid off are the ones you consider disposable. Don't do that. You must, must fellate your departing employees to the extent possible without seeming absolutely fake.

Remember your audience: Your audience here -- your most important audience -- is people who are being laid off. Employees with safe jobs, the media, and the general public will all get hold of these memos and read them, but really, you have to cater to the dead here.

Look like you put some thought into it: Being cold and perfunctory is almost as bad as being a see-through fake. Sure, executives and their flacks would rather be sniffing blow in a golf cart than approving layoff memos. But you people still have jobs, so suck it up and try to say something non-robotic.

Every time you use corporate doubletalk, an angel dies: Actual human sentences -- try them! When ushering hundreds of people out the door, avoid standard management-speak.