Question
A shocked and angry business owner from Woolwich, New South Wales asks:
I just
had coffee with a competitor. He put a printout on the table of an email
between my managing director and one of his staff. The thread was a
venting session but my managing director disclosed revenue and profit
figures, plus a range of HR sensitivities. What on earth do I do?
Answer
Kenelm Tonkin, Chairman, Tonkin Corporation answers:
Keep your cool. Maintain control. True, this is an amazing situation
which I am certain arises rarely. You probably have a range of emotions:
anger at your managing director, embarrassment at your staff selection
and gratitude to your rival for the information. The question is, what
do you do?
First, pay for coffee and thank your competitor. He did not need to
assist and it’s the least you could do. Second, assuming you have a
regularly communicated policy of email review in your company, check the
breadth of your managing director’s indiscretions. This is imperative.
The behaviour falls into the realm of fiduciary duty breach. Third, you
should draw on your succession planning processes to ensure you have a
replacement managing director ready if necessary. Fourth, gather the
evidence, both email threads and employment agreement. Weigh the
evidence and decide the company’s position. Fifth, you should schedule a
meeting with your managing director indicating the purpose is to review
standard employment conditions. Organise a trusted advisor to be
present, perhaps a lawyer. Sixth, at the meeting, ask the managing
director to read the standard confidentiality clauses from her
employment agreement. Further, ask her whether she would agree that
staff are in breach if they make unauthorised disclosures about revenue,
profit and talent to competitors. Seventh, ask your managing director
if she has breached these provisions. Allow her to respond and have your
witness make notes of this. Eighth, if there is an admission, qualified
or otherwise, offer her the opportunity to resign immediately without
notice. If there is a denial, confront the managing director with the
evidence. Allow a further response, and have this noted. In all but a
defence that the alleged email thread is a fiction, read the summary
dismissal provisions. State clinically that the company relies on them
given the evidence and despite her denial. Ninth, hand her your
pre-written summary dismissal letter, collect her keys, access cards,
phone, laptop and cancel her passwords. Tenth, walk her from the
premises. Trust has been irreparably damaged and the relationship cannot
be salvaged.
Post script: your employment lawyer will caution you against this
course of action, siding instead with a low-key acquiescence to full
notice. You should always seek counsel. However, there are times in
business when an entrepreneur must stand on principle. This is such a
time!
