Chapter 3: Time for Change

The following morning, I asked Sue for some of her time in private. I wanted to discuss salaries.

"Can you give me a salary schedule for the staff, please?" I began.

"Of course," she smiled, reaching into her bottom drawer and extracting a file. She pulled out a computer printout and passed it to me.

I looked at it and immediately had a number of questions. An hour later, I had a pretty good idea of who was properly paid and who was not. Don had looked after the four key ladies on staff and they were properly compensated. Sue agreed with my assessment. It was some of the other areas that caught my attention. When I saw Don and Walter's compensation, I got a shock. Don was earning very little more than Sue and his salary had been fixed for some time. Walter, on the other hand, was earning just as much as Sue and that was a travesty when their value to the company was compared.

"Do you know the background on this?" I asked Sue when I pointed out the two incomes.

"No, I don't. It was done before I arrived and I was told just to leave it in the hands of San Francisco ... and that included Walter's compensation. My salary is negotiated with Don, but I think he gets some guidance from headquarters. I have no complaint about my compensation."

"Some of that won't change. My salary is in the hands of my brother, whom I love dearly," I grinned. "The sales manager and comptroller are both at the discretion of the branch manager, but still have to be within guidelines for the corporation. Naturally, the cost of living in each area is taken into account.

"Are you satisfied that you are able to pay your staff according to their abilities and value to the company?"

"Yes, I am," Sue replied. "Don left that up to me, but always wanted to know the budget numbers. I've been fairly careful not to over or under-pay my staff. I think in general, they are satisfied with my methods."

"That's just the way it should be. The sales guys aren't exactly getting rich out there, but that seems to be all a matter of commissions. If they don't sell, we don't pay, so the budget isn't a consideration. I'm surprised there hasn't been more turnover. We have guys in East Gooberville making more than most of these guys."

"I think that's a reflection of the current business economy. Jobs aren't easy to come by and a lot of these guys have families and mortgages. Walter is really holding them back, but I don't think they realize it. If they see an opportunity to make more, I'm betting they'll grab it. But they need to know how, and they need support. They don't get any of that from Walter."

"Yeah ... the same old story. Walter's the problem. I'm anticipating that given some leadership and motivation, most of them will respond. It usually takes a glimpse of the possibilities to get them going in the right direction. That will be my job, along with the new sales manager."

"On that subject," Sue said, "You could do worse than appoint Jan as the sales manager. I think she has all the right instincts and is plenty smart enough. Mind you, I'm biased," she said with a big smile.

"That thought has crossed my mind, Sue. I have to make sure that whoever takes over for her in the office is fully capable of continuing the good work she does with the help of you, Lori and Lexi. But your assessment parallels mine. She has the right stuff. She could really make a difference here."

I dropped in to see Don and gave him a sketchy outline of what I'd been up to. I didn't mention the evening meeting and I didn't say anything about the salary schedule. He did seem to be curious about what I was thinking and I decided to see what I could learn about the computer systems.

"Don, do you know what has happened to all the computer updates and programs that San Francisco sends you?"

Don looked quite surprised. "Uh, well, I assume Sue Barnes has them. I know I don't. When they arrive, I forward them to Sue. Computers aren't my thing." Since I don't hear anything back, I assume it's all taken care of.

"Unfortunately, it isn't. I'm pretty confident that Sue isn't getting your forwarded e-mails. I'm going to have Jim Stokes have a look at your computer and see if we can figure out what's going on. We're way behind here on computerization."

"Well, that's probably my fault. I'm not very good on the computer and I don't use it very much. It never seems to have much useful information. Walter doesn't use it much either. I know Sue needs it for accounting, but what other programs are we missing?"

"Quite a few. Scheduling, estimating, sales reporting and production records to name just a few. Jim will be the go-to guy for the new programs, updates and general system maintenance. He will still report to Sue, but we'll rely on him to keep in touch with IT in San Francisco. The idea is that pretty much everyone here will be a user and not have to be their own technician."

Don was nodding. "That makes sense, but to be honest, I'm just as happy I won't have to learn all that stuff at my age," he chuckled. "I have enough problems trying to remember simple things, much less how to handle a computer."

"For your information, I'll be talking to David about Walter Trimble. I see us as having two options. One would be to fire him and pay his severance. The usual is two weeks for each year of employment. When I checked his employment record with Sue, it would amount to about a year's pay.

"Option two would be to bridge him to age sixty, roughly two years. He would pay taxes on the income, then qualify for his maximum pension. We would be able to write it down in our books over the two years. I hope he accepts that, assuming I can get approval from my brother. If he accepts option one, he will pay tax on the lump sum unless he shelters it in a registered plan. On top of that, his pension would be reduced if he took it before sixty. Either way, option two is the better for him and us."

"That's pretty generous, Gabe. I'm with you. It would be cleaner and better for both parties if he went gracefully. I hope he's smart enough to see it's the better way."

"I do too, Don. I do too."

"Are you confident you need to do this fairly soon, Gabe?" Dave asked as we discussed severing Walter Trimble.

"Yes, he's an obstacle and not at all liked by the staff. I'd rather take my chances on the good people we've got to push us ahead. I've got a good core inside the office and now I need to assess the sales staff. I can't do that with Walter in the way."

"Okay, it's expensive whichever way you decide, but I trust your judgment. It's your branch and your decision."

"Thanks. I'll let you know how it works out. Do you have any feedback from Dad about Don Nichol?"

"I'll be talking to him tonight, so I'll ask. How is he doing?"

"Well, I discovered he's not computer literate and has been forwarding all our computer communications to Susan Barnes, our comptroller. Unfortunately, Sue hasn't been receiving any of his forwards and Don hasn't been curious about it."

"Is he still cooperative?"

"Absolutely. I don't have a single complaint other than he really doesn't have any management tools to do the job and he has far too much reliance on Walter's input for sales advice. I don't think he knows what's going on sometimes."

"Okay, I'll get back to you about what Dad has to say. Otherwise, keep on keeping on."

"Will do, Brother. Say hi to Gloria for me."

I picked up the phone again and punched in Sue's local.

"Sue Barnes," she answered promptly.

"Sue, can I meet with you again. I need to let you know what's about to go down."

"Ah, yeah, sure. Now?"

"If it doesn't mess up your day, yes please."

"Okay, my office in five minutes," she suggested.

"I'll be there," I said, smiling at the quick responses I got from her.

I knocked on the door frame, entered and closed the door behind me.

"Thanks for seeing me on short notice. I want you to know what I have decided to do about Walter Trimble."

She nodded wordlessly, a pen in hand and a pad nearby.

I explained the two options I would present to Walter and what the most desirable outcome would be.

"I take it you're not going to wait until after the sales meeting next Monday?" she asked.

"No. No point. The sales guys might as well know there's a whole new game in town. Walter won't likely cooperate and would just be an obstacle to getting our message across. The sooner Walter is gone, the less resistance to change."

Sue was nodding in agreement with my thinking.

"I'll get the paperwork prepared in either case. Just so you know," she grinned, "I'm also the human resources person here."

"Well, we don't want to let anyone know just what the agreement with Walter is, no matter which way he decides to go. So for now, it's just between you and me. If Walter decides to share it with others, that's his decision."

Again, Sue was signaling her approval.

Now it was a matter of timing. When to do the deed.

I'd had two days to think over just how to handle the termination of Walter Trimble. I was pretty sure it wasn't going to be accepted easily by him. I'd done this before and it was almost never easy. Some people could see it coming, others deluded themselves into thinking they were safe and secure. It was always going to be difficult and I wanted it that way. I wanted to be sure I was doing the right thing, both for the company and the individual.

In Walter's case, he made it pretty clear he wasn't going to cooperate with my sales direction. I was sure he would fight my changes every step of the way and make the path very rocky for me. I didn't have the patience to convert him, since that wasn't what he would be inclined to do. Every time I went over the issue, the answer was the same. Walter Trimble had to go, and Friday afternoon was the appropriate time.

"Walter, I'm sure it will come as no surprise that you and I don't see eye-to-eye on the need for drastic change here. My principal concern involves the stagnant sales picture and your belief that the answer is lower pricing. On that, we do not agree. Don Nichol will be retiring in the next month, and you will be reporting to me. I think you can see where I'm going with this. I have an extensive sales and marketing background and I know what's required to move this operation forward and it's not lower prices."

He was staring at me with a cold, unblinking look. I don't think he was expecting this conversation and it was beginning to sink in which direction it might be taking.

"I don't see any point in our butting heads on a continuing basis. Since the branch is my responsibility, I will have the final word on policy. In that case, I don't think you'll find it a comfortable place to work unless you decide to accept my sales approaches."

He still said nothing, continuing to show me an icy countenance.

"Assuming that, I have two options I would be prepared to offer you," I said, gathering myself for the next few minutes.

I went over his choices and while I knew he was listening, I could see the color of his complexion change. He was flushed and now showed signs of perspiration on his brow. When I finished explaining his options, I sat back and waited for a response.

"You son of a bitch!" he snarled. "After all the years I've given this company, you waltz in here and take a quick look around and decide to throw me out with the trash. I'm going to get a lawyer and sue your ass, Hancock. No snot-nosed owner's son is going to treat me this way. By the time I'm finished with you, I'll own this place. You've got a nasty shock coming to you."

With that, he rose, gathered some items from his desk, threw what I assumed was the office key on the desk, put on his coat and stomped out of the office. I watched from the window and saw him get into his car and drive away. I didn't expect him to be grateful, but neither did I expect the eruption that happened. I stood at the window until I sensed someone standing nearby. I turned and saw Sue watching me.

"Are you all right?" she asked. I could see the concern in her expression.

I nodded. "Yes. It wasn't pleasant and he threw out some threats about a law suit, but it's done. We start anew on Monday."

"I can't imagine he has cause for legal action," she said.

"He doesn't. Our settlement terms are generous. There's nothing about what we did that is unfair. He's a victim of the times in a way. Unable to meet the demands of the business. It isn't about his age or length of service, it's about his attitude and performance. We won't have legal problems and if he's smart, he won't waste his money. I gave him the written options, so his lawyer should give him some proper advice."

"You look like you could do with a drink," Sue said. "It's past five, so why don't we adjourn to the hotel."

"That's sounds like a good idea. Let me get my stuff and we'll go. I guess I'll take over Walter's office for the time being."

We met at the hotel and I was surprised to see Lori, Jan and Lexi already seated at a table.

"Hello, ladies. Is this a usual Friday afternoon place for you?"

"No, we usually go to the Terrace Bar, but Sue suggested here today," Jan said.

I looked at Sue and saw a small smile. I knew what she was thinking. This was phase one of the changes and the women would be interested in hearing about it.

I sat and ordered for Sue and me. The other three were already working on their first cocktail.

"So ... what happened?" Lori asked, anticipating the same question from the others.

"I terminated Walter Trimble this afternoon. He didn't take it well."

"Oh," Jan said wide-eyed. "He didn't get violent, did he?"

I shook my head. "No, just angry. It won't change anything. He's gone and won't be back. Monday morning at eight o'clock we will announce it to the staff before we meet with the sales group here. Sue, can you look after that. I'll send you something by e-mail that you can read and post. Then I'd like you to join us at the hotel for the sales meeting."

"Yes, of course," Sue agreed. "I was going to suggest you write up some notes of what you remember being said at the meeting just in case Walter makes good on his threat to take legal action."

I saw a look of surprise on the faces of the other women.

"No need," I smiled. I pulled a small recorder out of my shirt pocket. "It's all on here and I've transcribed it onto my laptop. I have a verbatim copy of what was said and we have the original of the proposals I handed him. I've been down this road before."