In his 38-year tenure as chairman of Re/Max, Dave Liniger had never experienced an officer quitting the company. He prided himself on maintaining close friendships with his team, often traveling and socializing with them outside of work. However, in 2011, despite record company profits, Liniger noticed a decline in his team’s performance. Specifically, four officers were no longer pulling their weight, even after receiving feedback in performance reviews.
Liniger realized that his desire to avoid hurting their feelings was damaging the team and sending the wrong message about commitment and hard work. Finally, Liniger summoned the courage to address the issue. He met with each of the underperforming officers individually, giving them the option to resign or face termination.
The decision was met with anger and hurt, and the four officers left the company. The next day, at a quarterly employee meeting, a communications department employee questioned why Liniger hadn’t fired the officers sooner. While there was some laughter in the audience, Liniger acknowledged that the fault lay with him for allowing the situation to persist.
Liniger replaced the departed officers with a mix of internal promotions and outside hires. The result was an immediate increase in enthusiasm and morale, and Liniger gained respect as a leader who was willing to make tough decisions.
The experience taught Liniger the importance of facing difficult conversations, even when they involve close friends. He recognized that maintaining a high-performing team requires having the best possible people in place, and that sometimes difficult decisions must be made to achieve that goal.
