True Story. Business is business, but if it doesn’t hurt sometimes you may not be human.
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Note from the Editors: This story was shared with us with the understanding that we would protect the identities of all parties. Therefore all names and countries referenced have been changed.
On Friday, June 27th 2014, crude oil closed at $105.74 / barrel on the New York Mercantile Exchange.
Over the next six months, oil prices fell by almost 50 percent — the most they had fallen in five years.
On Friday, January 2nd 2015, oil had slumped to $52.69 / barrel. While consumers rejoiced for low gas prices, oil companies scrambled to cut costs. Major oil companies started to announce cuts in planned spending. Companies that served the oil majors announced cuts in people.
This is the story of how I cut my own mentor.
The Unassuming Teacher
I first met Gary six years ago.
He was a field engineer and I was his trainee. In the oilfields under the hot Californian sun — we would travel from one oil gathering station to another. Our job was to prove that the measurement device our company made was working well. I would collect produced fluids from the well and he would calibrate the measurement device.
He was a good engineer and teacher. And an ever better man.
But how much do you try to change a person before you give up? Shouldn’t you just appreciate their strengths instead?
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Gary must have never heard of bullying trainees. I wasn’t permitted to drive, so he would pick me up from the hotel in the morning, drive me all over the oilfields till evening, then send me back. He took care of the little things too — like ensuring I had enough to eat during lunch. And driving me to the nearest town for a bit of entertainment during weekends.
He never knew it, but during my four-week stint with him the girl I was dating back home called to tell me she’d found someone else. There was nothing I could do about it. Heartbroken and far away, the only constant I had was the steady field work and his companionship.
The sad thing was that, despite all his good points — Gary was never a great communicator. Neither written nor verbal.
In future years, I would often suggest grammatical improvements to his emails. They just weren’t clear and direct. Colleagues said that he wasn’t firm enough — that he let his only subordinate bully him. Other managers frequently commented on how he appeared nervous in front of clients.
But how much do you try to change a person before you give up? Shouldn’t you just appreciate their strengths instead?
I did. The problem was most people within the company didn’t. Gary just wasn’t one of those people who ooze charm and confidence.
Right Place, Right Time
I was promoted ahead of Gary. Twice.
By the time I was a regional manager, Gary was still a field engineer. Exactly the same as when we first met.
Perhaps it was because I reported to the regional office. But he — being of a different nationality, reported to his home country’s office. In corporate speak, it’s called visibility. It’s always advantageous if you regularly meet the big bosses. It’s human nature to be easily forgotten if you’re not frequently seen.
Shortly after I took my first promotion, Gary moved to Argentina. While I was managing operations for the whole region, he was doing what he does best — installing measurement devices in the oil fields. Some of the other seniors were unhappy that I had jumped the promotion queue. But not Gary. I never had any trouble with him.
He wasn’t one of those people who look for position and power. He just wanted to do a good job, get paid well, and go home to his family.
… it’s easier to make a decision when you just see entries on an Excel spreadsheet with dollar signs. Instead of thinking of what it really means: taking away a man and his family’s source of income.
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We didn’t talk much when Gary was in Argentina. Until the day he called — telling me that he was going to quit. His boss just wasn’t treating him right.
But the timing was. We had just won a contract in Venezuela and I needed someone trusted there. So I convinced him to stay, and moved him to Venezuela.
Don’t Hate the Player, Hate the Game
During downturns, the man higher up the ladder decides how many people need to be cut. Sometimes it’s a percentage like 15%. Sometimes it’s an actual figure like 150 people. Then he passes this number to those below him to discuss, choose and execute.
It’s a brutal process that no one likes. But the oft-repeated phrase during these times is:
“If we don’t do it, they’ll find someone else who will.”
My boss clearly told me, “You have to take all emotions out of it.”
You really have to — because it’s easier to make a decision when you just see entries on an Excel spreadsheet with dollar signs. Instead of thinking of what it really means: taking away a man and his family’s source of income.
Steve was the Venezuela country manager. He had been in the job for almost two years now, and I knew he didn’t like Gary. Officially, Gary was a coordinator (one step below a manager), and reported directly to Steve. Practically — Steve never really understood what Gary was doing.
It’s a challenge I see throughout my industry. How to get men who’ve worked with “dumb iron” tools all their lives to understand cutting-edge electronics.
Business in Argentina had tapered off over the past two years. Steve had wanted to get rid of him on two previous occasions. Gary was an expensive expat. But I believed that we could turn things around. And always found a business justification to keep him.
One Monday morning, my boss called me. Oil was hovering below $50, and things were getting serious. With the expected reduction in revenue, Steve and he had devised a plan to get rid of two expats and pass the responsibilities to one local instead. That meant Gary had to go.
I quickly organized an online meeting with my boss, Steve, and Steve’s boss. I presented my case and an alternative plan. I didn’t want to lose Gary of course. I would rather lay off somebody else and continue paying the higher costs for him.
But they told me it wasn’t an option. Things were different now. And financially speaking — I knew they were right.
In the oil industry, companies like Exxon, Aramco and Petrobras are king. When oil prices drop to such low levels, they cut their spending. This means all the companies that supply services to them suddenly make a lot less money. So we rapidly scale down our operations, and cut down our headcount. I hate it, but that’s just the nature of the industry.
“OK, let’s do it.”
Steve scheduled the cut to happen on Tuesday the following week. I started asking my counterparts in the rest of the world to see if there were any potential job openings for him.
And then — against company policy — I called Gary to tell him we were looking at his position. I never specifically used the words “you’re going to be laid-off”, but he understood. “Thank you for everything,” he said, “It’s been a good two years.”
The Unkindest Cut
It wasn’t my first cut. In 2014, I had already laid off one of my first hires. I asked my then-boss how to do it. He told me the exact same thing, “You have to take your emotions out of it. It’s business, not personal.” And then he added “But if you don’t feel bad after you’ve done it — you probably have no business being in management.”
Tuesday came.
What typically happens is Human Resources calls you for a meeting in the afternoon. You enter, and the HR manager is there with your direct supervisor. They explain to you that the company is going through difficult times and needs to cut costs. Unfortunately you’re going to be let go — but you will be fairly compensated according to the laws of the land. They then give you a letter to sign, accepting the compensation.
The reporting structure meant that I could not be there in person. I was the regional manager. But he reported directly to the country. The country manager handles it. The company wasn’t going to pay to fly me there either. Heaven forbid such frivolous expenses in times like these.
At least Steve was there in person.
There’s a thirty day notice period. For outgoing staff to do a proper handover to whoever is going to take over their job. But usually the company lets you go immediately. Why have an unhappy employee sulking around for another thirty days?
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Gary called me after the meeting. “I got my letter,” he said. “Steve said it was OK if I wanted to go immediately. But I told him I’d stay and finish handing everything over.” “You’re free to go,” I said, “But if you still want to stick around, we really appreciate it. And everything you’ve done so far. There’s an opportunity in the Middle East that I’m recommending you for. Would you be interested?”
Besides, I had no time to feel bad. There were more costs to be cut. And more people to lay off.
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“Yes. Thank you. God bless you.”
I put down the phone. It didn’t feel bad. In fact, it almost felt good.
I had already pleaded his case with senior management three times — but there was finally no other option. He would get fair and due compensation by law. The company would even pay to send him home and cover all his moving expenses. And I was going to continue to work my counterpart in the Middle East — to find him a new job.
Besides, I had no time to feel bad. There were more costs to be cut. And more people to lay off.
But then I went to the washroom and caught a glance of myself in the mirror. And then I wasn’t sure.
I wasn’t sure if I liked the man in the mirror anymore.
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Photo: Flickr/Federico Racchi