Let me tell you a true story…
A couple years ago an individual was let go by their employer. They were told their position was being eliminated (restructured out). In reality, it was because the organization’s president and another employee didn’t like them very much. It was personal.
What was the eventual cost of the individual being restructured out? A million bucks.
The other employee was promoted to head of the organization. The first year after the former employee was restructured out, the organization lost a million bucks in revenue.
According to a three-year study by Darren Hardy, publisher of Success magazine, the cost of a poor-performing team member is 6 - 15 times their annual salary. Seems correct. Doing the math and multiplying the six-figure salary of the promoted employee by the 6 - 15 times range, you get a million bucks.
As Liz Ryan writes “If Hard Work Doesn't Guarantee Success, What Does?”
Leaders at an organization don’t always make good business decisions. Many times, it’s personal. At this organization, it cost them a million bucks!