What You Do Is Who You Are: How to Create Your Business Culture

by Ben Horowitz

There are three keys to assigning meaning: State the facts clearly . “We have to lay off thirty people because we came in four million dollars short of projections”—or whatever the case may be. Don’t pretend that you needed to clean up performance issues or that the company is better off without the people you so painstakingly hired. It is what it is and it’s important that everyone knows that you know that. If your leadership caused or contributed to the setbacks that necessitated the layoff, cop to that. What was the thinking that led you to expand the company faster than you should have? What did you learn that will prevent you from making that mistake again? Explain why taking the action you’re taking is essential to the larger mission and how important that mission is. A layoff, done properly, is a new lease on life for the company. It’s a hard but necessary step that will enable you to fulfill the prime directive, the mission that everyone signed up for: eventual success. It’s your job to make sure that the company didn’t lay off those people for no ultimate purpose—something good needs to come of it.