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The Early Hire Conundrum

10/28/2012

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I wish I had gotten to this topic sooner so I will have to give Alex Williams of Tech Crunch credit for this summary of Cindy Alvarez's (of Yammer) insight into the types of people she wished she had fired sooner.  Those of us who have worked in start ups in any capacity will certainly recognize the majority of the people described.  The one type that is identified in Ms. Alvarez's list is the Early Hire, and this is what I call the Early Hire Conundrum (EHC).  In the early days of a start up, the type of people who get the company off the ground are not necessarily (and often are not) the same people who will be successful as the company matures.  This is an extremely difficult fact for leaders to process, let alone take action on.  The Early Hire is one of the reasons the company has moved from start up mode, this individual brought a certain set of skills that enabled the company to succeed.  It seems somewhat Machiavellian to take advantage of these skills and then fire the poor bugger.  Chances are the EH has put in untold hours, and energy to get the organization off the ground...he/she has taken on a variety of roles, did what was needed to be done, and now...the organization has no place for them.

Companies grow, they mature...and the company starts changing.  Anyone who has been a long term relationship may be able to relate to this analogy; both parties sometimes fail to change at the same rate.  The Early Hire would need to be an exceptional individual to be able to maintain his/her level of contribution through all cycles of a business' maturity.  That is not to say there are not individuals out there who can do exactly that, but they are rare. 

I have seen the full gamut of the EHC.  The best cases are when the EH recognizes for his/herself that it is time to move on.  I have seen founders come to this realization and quite frankly, I find that level of insightfulness humbling.  I have also seen the opposite, EHs who should have left the organization years earlier.  Management has a very difficult time addressing this issue, they still remember the long hours and the dedication that the EH brought to the team.  I would remind the management team that this is why they get paid the big bucks, you have to make the tough decisions, and yeah, as decisions go, this is one of the worst ones. 

At the time, the EH is unlikely to thank you for releasing them from the organization.  We hear a lot of talk about how it is best for everyone, but at the time, and for some time after, I promise you the EH is NOT thanking you, but that is okay.  Time is a wonderful healer, and there will be a time when both the organization and the EH will look back and realize that it was the right decision.  Handle the situation with dignity and consideration, treat the EH with respect, and make the hard call. 
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