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them.
    Just as important, you have to get rid of the people who don’t.
    And this is key: don’t get rid of “value offenders” surreptitiously with excuses like, “Charles left for personal reasons, to spend more time with his family.” You need to stand up and publicly announce that Charles was asked to leave because he didn’t adhere to specific company values.
    You can be sure Charles’s replacement will act differently, not to mention anyone else doubting your commitment to the values.
    Now, obviously, every company wants people who deliver great results, like Charles. Your goal is to make sure your employees can do that and demonstrate good behaviors at the same time. No one should get ahead on the backs of other people. All that does is build an atmosphere of resentment and fear. Sure, you can win with that kind of culture—but not for very long.
    So, grit your teeth and get rid of Charles. It might be painful for a minute, but you’ll quickly be surprised by the increased effort—and improved results—you get from the rest of the team as a result of your decision to stand up and “walk the talk.”

WHEN TO CUT THE CORD
     
 
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    As a small firm, we have plenty of typical start-up issues, like cash flow, but our real problem right now is “Mark,” one of the managing directors, who just blew a major project and doesn’t seem to understand the damage he’s caused. My gut feeling is Mark should be fired, but his absence will, at least at first, hit us hard. Mark is a technical expert who’s been with us from the start. Still, his poor management style and double agenda have reached an untenable level. Mark believes his decade of service and “loyalty” should protect him. I agree to a point, but believe performance matters more. What should we do?
     
    — JOHANNESBURG, SOUTH AFRICA
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    S mall companies really have a raw deal when it comes to letting people go. Big companies can carry turkeys for a long time; there are so many other people to cover for their mistakes. And when an underperformer is finally asked to leave a big company, he or she can usually slide out a side door without showstopping trauma to the individual, organization, or the work.
    In small companies, by contrast, the blunders of bad performers usually hit the bottom line hard and fast. And just as bad, when it comes time to let them go, there is something that just feels so personal about it. A departure can feel like a death in the family. And that doesn’t even take into account the impact on the work. Even if the fired employee was more bad than good, his removal can significantly affect operations, not to mention client relations.
    Still, as you know in your bones, Mark has to go.
    There are really only four kinds of managers in the world, classified by how well they perform—i.e., deliver results—and how well they demonstrate good values, such as candor and customer responsiveness. Managers who deliver great results and adhere to good values are easy. They should be praised and rewarded at every opportunity. Managers with poor results but good values deserve another chance, maybe in another position within the organization. The third kind of manager, with great results and lousy values is the kind that usually destroys organizations. They deliver the numbers, but usually on the backs of their people. Companies very often keep these jerks around for way too long, destroying morale and trust as they do. But that isn’t even your problem.
    With Mark, you have the easiest kind of manager to deal with. He’s got poor performance and poor values. You mention, for instance, his “double agenda.” Not only did he blow a major project, he’s out for himself and playing politics. He’s “loyal,” he says. Doesn’t sound that way.
    Look, the game is over. You may very well miss Mark’s technical expertise until a replacement can be found, but when you finally get the guts to cut the cord, you’ll wonder why you