Lessons Learned

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     Although Macias had the option of buying Gini out, he instead worked with him to define a new role for Gini, who is now a second partner reviewer, a role he can fill from the office or from home.  The firm bought out many of his shares of company stock to match his new role.              
     Macias believes he is fortunate not to have exercised the buyout option because he subsequently learned that the community was watching to see what he would do. The lesson he learned:  “It’s good business to do the right thing. People know what good business is when they see it.  We hung in there and kept working, and we retained Ernie. Our firm has garnered a lot of respect for that.”            
     Macias’ bottom-line advice to other businesses is to “do right by your people,” he says.   

Developing a Plan
     Most companies don’t take the time to develop contingency plans for coping with the sudden loss of key employees. But doing so can help prevent one employee’s personal tragedy from becoming a business catastrophe for the rest of the organization.  This is especially true for small and growing firms, where one executive, often the firm’s founder, might be so steeped in all aspects of the business as to have given no thought to how the company would function in his or her absence.            
     According to Ron Wu, an executive coach and certified management consultant, and president of Ron Wu and Associates in Sacramento, many business owners have the attitude that, “Hey, this is my company,” and nobody else can run it.            
     Macias, who says he has always run the business in a way in which all partners know other partner’s clients, now eases his mind by carrying permanently disabled buyout insurance on all the firm’s partners.  “Our clients are willing to work with multiple partners from our firm (so) we always have other people available to handle accounts.”             
     Good contingency and transition plans reflect the value of a business and the personal worth of its key employees. Consequently, plans should be revised periodically as the business grows.  Finding good advisers can start with broaching the subject with the company attorney, insurance agent or accountant.  

All in the Family
Continued...

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