Meeting Your Obligations

Last week, we discussed the traits of a visionary leader and the importance of being an effective leader in order to guide your company and its employees to where you want the company to go. During tough economic times like these, being a leader can mean making difficult decisions, taking different approaches or adjusting your business strategy in order to protect the well being of your company. TAB San Antonio business coach recently published a blog discussing a small business owner having to make a very difficult decision in order to meet his leadership obligations:

I spent some time this week with a client who was implementing his first-ever layoff. He has been in business for over 17 years and has become very close with many of his employees. Some were friends before they were hired. Others have become friends over the years of working together.

When the term "layoff" is heard, 99 percent of the world thinks about the impact on the downsized employee. That's understandable, but I think about the other one percent, the entrepreneurs who feel like their employees are family and that they are failing in their obligation to them.

Small business owners are generally a self-abusive bunch. They frequently work longer hours than any of their employees (especially Tweeners- see 3/22). They almost never compensate themselves sufficiently for their investment or risk in the company and usually take the first hit when cash flow is tight. Yet they frequently feel an obligation to sacrifice their own welfare in a futile attempt to save employees for whom they simply don't have enough work for.

As a business owner, you have an obligation to all of your employees. The long-term well being of your company and their livelihood depends on your commitment to keeping the business healthy and profitable. Like the captain of a ship, or a physician in a MASH unit, the burden of leadership sometimes entails making tough decisions.

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