Instead of hiding the decision to layer a star employee, Harvey's CEO advises involving them directly in the hiring process for their new manager. While this risks them leaving, it's a calculated bet on trust. Success means they respect the decision, feel valued, and are primed to learn from their new leader.
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To overcome loyalty bias toward long-tenured employees, leaders should reframe performance reviews. Instead of asking if they are "good enough," ask, "Knowing our future needs, would I hire this person for this role today?" This clarifies whether their skills match future requirements, enabling objective talent decisions.
When an executive leaves, the CEO should step in to run their department directly. This provides invaluable operational context for hiring a replacement and empowers the CEO to make necessary but difficult changes (org structure, personnel) that a new hire would hesitate to implement.
To motivate and retain employees, especially in a challenging market, leaders must shift their perspective from 'they work for me' to 'I work for them.' This servant-leadership approach involves genuinely caring about your team's well-being and success, which fosters loyalty and improves performance.
Consistently investing in your team on a personal level builds a reservoir of trust and goodwill called "emotional equity." This makes them more receptive to difficult changes like price increases or new strategies, as they believe you have their best interests at heart.
When hired externally into a role existing employees wanted, your first job is to build trust. Frame your presence as a net positive for their careers by understanding their goals and actively helping them grow. Show them you are an enabler for their success.
To clarify difficult talent decisions, ask yourself: "Would I enthusiastically rehire this person for this same role today?" This binary question, used at Stripe, bypasses emotional ambiguity and provides a clear signal. A "no" doesn't mean immediate termination, but it mandates that some corrective action must be taken.
A manager's highest duty is to an employee's fulfillment, not just their performance. When a top performer is not personally aligned with their role, a leader should actively help them find a better fit—even if it means using their own social capital to place them at another organization.
Younger managers often feel threatened when hiring someone more senior. This is an ego-driven mistake. Recruiting an 'all-star' who improves the team reflects well on the manager and demonstrates a powerful commitment to the company's success, not a personal weakness.
Firing someone feels adversarial until you reframe it as a win-win. The employee wants to be successful and valued; if your team isn't the right place for that, helping them move on is a service to their career, not a disservice. This mindset changes the entire dynamic.
Successful delegation is not an abrupt handoff but a gradual process. Bring in a senior person and collaborate with them, then slowly cede specific responsibilities (e.g., customer interviews). This allows you to transition your own role from day-to-day operator to an internal advisor, ensuring continuity.
