Separating from executives is not typically an easy or pleasant thing to do for companies, but it is a regular and necessary aspect of organizational life. There are a wide range of reasons for executive separations. Sometimes it is connected to some internal occurrence within the organization such as new leadership, a merger, or change in strategy. Sometimes it is a conclusion that the executive’s performance or skill set falls short of what the company needs for the role, either currently, or going forward.
Regardless of the reasons, outside of actual malfeasance on the part of an executive, it is usually in the company interest to treat the outgoing executive with respect and offering various elements of support that will enable the executive to move forward one’s career. Of course, a severance agreement that a departing executive sees as fair is an important part of that, but the support should not end there.
Explaining the Separation
The first aspect of respect involves candor for the executive as to the reasons for separation. Although notwithstanding that Involuntary departures can sometimes become entangled in legal issues, to the extent possible, executives appreciate understanding the reasons for a termination, even if they don’t agree. Among the executives I’ve coached, the most frustrated are those who didn’t get clear explanations of why they were being terminated. Some managers withhold explanations fearing that they will turn into debates—but they don’t need to. It’s not the manager’s job to convince an executive being terminated that’s it’s the right decision–only some of the reasoning that informed the decision.
Executives are businesspeople. They understand that difficult business decisions often need to be made and they have made hard decisions themselves. But they appreciate understanding the business reasons behind a decision. Again, they might not like it; they may not agree but at least they have a sense of what is informing their departure. It is also important to a lot of executives that I’ve worked with that they receive an expression of genuine appreciation for their efforts and/or contributions while at the company. Managers may worry that it feels trite to thank a person as you are firing them, and a thanks may not fully register at that moment. However, I’ve worked with enough executives to know that when thanks are not given, that is something they remember.
Internal Communications
A second aspect of the respect and support involves working with the departing executive to align communications, both internally and eventually externally. At the core, this represents the narrative for how the organization, and to some extent the executive him or herself, conveys the departure to others. The internal part of the communication is generally straight forward with some announcement, often in the form of a company-wide email that conveys that the individual is leaving, though it need not give a lot of context as to why. Sometime though, an executive and a company can coordinate as to a reason that makes sense for both. It may also contain information about the departure date and transition process. Companies should thank and enumerate the major contributions of the executive, whenever possible. Even though employees generally can read between the lines to differentiate voluntary from involuntary separations, a respectful internal communication signals something important to the rest of the company, regardless of the reasons for the departure.
The latter is especially important if the executive is staying on during a transition period. Of course, there are times when having a terminated executive staying on beyond their termination date is unwise or unfeasible. However, when possible, it is generally better for both the organization and the executive to have some period of transition between the announcement and the departure. That not only can help the organization with the pragmatic element of the transition, but it can also convey that a split was amicable, which can be of value for both the company and the executive.
External Communications & References
More important than what is said internally is how messages are conveyed externally. One of the first questions organizations or recruiters will ask a prospective executive is “why did you leave your last role”? The key to an effective answer is one that protects the individual’s competence and integrity while also passing the credibility test. It also shouldn’t come off as bashing the executive’s former company; prospective organizations tend not to look fondly at folks who do that.
There are a variety of archetypical reasons why executives involuntarily depart organizations. Many have little or nothing to do with their direct talents—mergers, changes in leadership, strategy changes, budgetary downsizing, etc. When I coach executives on how to communicate their reasons for leaving a company, I am always looking whenever possible, to try to ground the reasons into these archetypes. There are also situations where an executive is conveying that a departure was his or her own decision, or at least that the decision was mutual. However, I remind clients the reasons they give for leaving the company need to align with what those inside the company may or will say.
That leads to the topic of references. At a certain point, a departing executive’s focus is less on the disappointment of leaving an organization, to the prospect of finding the next opportunity. One of the most supportive things an organization or a manager can do is agree to provide a strong reference despite the departure. That usually involved aligning a narrative with the executive that speaks to the reasons for the departure in a way that supports, and does not undermine, the executive’s core abilities. Obviously, this will not apply in the case of sheer malfeasance on the part of the executive, or perceived incompetence. Yet most departures are more contextual than that.
Here again, candor is important. A manager should at the least, if they are willing to provide a reference at all, speak honestly about what will and won’t be said, not only about the departure but about that executive’s functional and interpersonal skills. Faint praise is damming in executive references. It is better for an executive to come up with a difference reference strategy (sometimes proactively explaining why they have not chosen to put a previous manager on a reference list) than to list someone who they worry will give what amounts to a halfhearted or outright bad reference. As an aside, I generally fine that written references, unless they are coupled with an individual’s willingness to speak directly with a reference checker, are of limited value. They tend to be seen for what they usually are, an element of an agreed upon legal arrangement, not a full-throated recommendation.
Appropriate Executive Transition Support
Executives need an appropriate level of senior transition support. Many executives have never been separated from a job before. Even those who have may find the current situation daunting. Nonetheless, sometimes executives may be skeptical of traditional outplacement offering because it is hard for them to see how the same type of support that is provided to roles multiple organizational layers down from theirs could be of great help. Very often, that assumption proves correct. Senior executives have issues, options and needs that are objectively different than more junior roles. They need transition assistance that speaks credibly to those differences.
Genuine executive specific transition support should have a variety of elements to it. First, it should be with consultants and firms that work exclusively with senior executives. Executives want to work with consultants who understand specifically the ins and outs of a search as applied specifically to executives—from personal branding, messaging, and strategy to all the tactical aspects of a job search including effective networking, recruiter, and company outreach. Executive compensation is different from the compensation for more junior professionals and often extraordinarily complex. For example, executives often need help evaluating and negotiating offers that are heavily based on upside potential. Transition support exclusively for senior executives also provides folks with a natural peer group of people like themselves from which to share advice and networks.
Additionally, because executives have different options, they need, and executive transition should provide, expertise across these different areas. That might pertain to a similar role or the potential for some career change, a corporate board role, an entrepreneurial opportunity, or the creation of a consulting practice. Many executives are also at a time when they may want to explore an “active retirement”, shifting personal priorities from work and finances to spend more time on other objectives, while still retaining some of the intellectual satisfaction they derived from work. Because an executive separation often represents an inflection point for an individual, appropriate transition assistance should also include a comprehensive assessment process to aid the executive in clarifying one’s interests, priorities, and options.
Given the complexities of an executive transition, genuinely executive programs should not have any restrictions on time allocations with consultants or program duration. Executives should be able to receive all the help they need until they get to their next career or life destination.
Why provide this kind of support?
Why go to this kind of trouble expense for an executive leaving the company? There are pragmatic reasons why support for outgoing executives makes good business sense. Outgoing executives are still often the key to a smooth transition and, outside of the effective performance of those transitional duties, the respect with which they feel they are being treated can influence how they signal, both verbally and non-verbally to their teams, how they feel about the company. Former executives still represent the brand, and how they feel about a company can likely dictate how they present that brand externally. In some cases, an outgoing executive may eventually join a company that is a business partner or customer. Additionally, appropriately supporting an executive in transition enables the person to focus on the future and not the past, helping soften the unsettled feelings that can lead to unnecessary legal entanglements.
But perhaps as important, handling departures in the right way is the right thing to do. It represents the message that for some reason, this isn’t the right fit, at least currently, but you were successful before stepping into this role and we want you to be successful going forward. That message will resonate with the executive, but it will also reverberate with current employees. As I’ve heard more than one senior HR executive say, an organizational culture is not only defined by how you treat people within a company, but by how you treat people when they leave.