Monday, July 26, 2010

Fat & Happy

I will admit it. My company got fat and happy. Management, including myself, got complacent. We let our guard down and now we are paying the price for our mistakes. My company is going through a rough patch. This trouble came to us much later than most companies because we had done a fairly good job before the recession. But we are dealing with it now.

Within the last few weeks we have laid off a hand full of employees. Our overhead is increasing and we are struggling to ship product. The layoff was the right thing to do to help our overhead issue and it should not affect our ability to ship product. It is just a minor readjustment that was long overdue.

Sometimes a company has to make the tough decisions. When times are good, companies sometimes put these decisions off. This is a really bad thing. It is important to continue to make the tough decisions even when times are good. We did not do ourselves any favors by putting these decisions off. If an employee is not carying their weight you need to cut them loose. A company cannot afford to absorb the overhead of an unproductive employee.

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