Read $PTON new CEO Barry McCarthy's email to employees.
Tough decisions were made swiftly and decisively to ensure survival.
This saga reminded me of @bhorowitz chapter on "When Things Fall Apart".
Lessons on managing crises from The Hard Thing About Hard Things:
Tough decisions were made swiftly and decisively to ensure survival.
This saga reminded me of @bhorowitz chapter on "When Things Fall Apart".
Lessons on managing crises from The Hard Thing About Hard Things:
@bhorowitz 1. Get your head right
It's hard to focus on the future during a crisis because the past will overwhelm us—but that's precisely what CEOs must do—focus on what needs to be done for the future.
It's hard to focus on the future during a crisis because the past will overwhelm us—but that's precisely what CEOs must do—focus on what needs to be done for the future.
@bhorowitz 2. Don't delay
Once a decision has been made to lay-off, execution should be as swift as possible.
If word leaks (if you delay), more problems will ensue.
Employees will start questioning the managers and create further agitation.
Once a decision has been made to lay-off, execution should be as swift as possible.
If word leaks (if you delay), more problems will ensue.
Employees will start questioning the managers and create further agitation.
@bhorowitz 3. Be clear why you are laying people off
If it was because the company failed to hit its plan, say it like it is.
Admit the failure and not sugarcoat it.
Rebuilding trust is key.
If it was because the company failed to hit its plan, say it like it is.
Admit the failure and not sugarcoat it.
Rebuilding trust is key.
@bhorowitz 4. Train your managers
Managers must lay off their own people.
You can't outsource if to HR or to a more sadistic peer.
People will remember the day they were laid off.
Every. Single. Detail.
Have the courage to admit the company's failure and lay them off.
Managers must lay off their own people.
You can't outsource if to HR or to a more sadistic peer.
People will remember the day they were laid off.
Every. Single. Detail.
Have the courage to admit the company's failure and lay them off.
@bhorowitz 5. Address the entire company
Before executing the layout, the CEO must address the company.
It should provide context and air cover for the managers.
The message is for the people who are staying.
They care about those who are laid off.
So do it with kindness and respect.
Before executing the layout, the CEO must address the company.
It should provide context and air cover for the managers.
The message is for the people who are staying.
They care about those who are laid off.
So do it with kindness and respect.
@bhorowitz 6. Be visible, be present
Be present. Be visible. Be engaging.
People want to see that you care.
The people whom you laid off will want to know if they still have a relationship with you and the company.
Talk to them. Help them carry their things.
Show your appreciation.
Be present. Be visible. Be engaging.
People want to see that you care.
The people whom you laid off will want to know if they still have a relationship with you and the company.
Talk to them. Help them carry their things.
Show your appreciation.
@bhorowitz That's the end of my thread on crisis management.
If you like this, follow me here @steadycompound
I write about investment concepts, business breakdowns and growth philosophies.
If you like this, follow me here @steadycompound
I write about investment concepts, business breakdowns and growth philosophies.
@bhorowitz More essential lessons on running a business by Ben Horowitz:
The Hard Thing About Hard Things.
amzn.to/36ay8oR
The Hard Thing About Hard Things.
amzn.to/36ay8oR
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