60 Second Snippet #132 - Navigating loyalty v progress

Navigating loyalty v progress

Generally speaking business owners are loyal to the team members that have helped them get to where they are.

Couple this with not liking confrontation and although you have admirable character traits, you also have a potential recipe for stalling your progress.

Think of your team like any sports team. For them to go from mid table to champions, often some of the players and the backroom staff need changing out. Some of the team that have helped you get to where you are (mid table) just are not capable of helping you get to where you wish to be (champions).

Sometimes, you have to put loyalty to one side and make tough decisions. For your sake and theirs.

It’s a delicate balancing act: honouring loyalty while pursuing progress. Often, long-term team members become the backbone of a business, contributing not just skills but trust, business and sector knowledge, and a shared history. Yet, as businesses grow and their needs evolve, the question arises: is loyalty enough to keep these individuals in roles that may no longer align with the company’s future? Here I explore both sides of the argument.

The case for the status quo

Loyalty is a two-way street, and small business owners often credit their early success to those who stood by them when times were tough. These employees may have worked for less pay, taken on multiple roles, or made personal sacrifices to help the business survive.

Replacing them might seem not only heartless but counterproductive, as their knowledge of the company’s operations and culture is difficult to replicate.

Moreover, long-term employees contribute stability, particularly in small businesses where relationships often matter as much as technical skills. Transitioning them out could lead to disruptions, lower morale, and even resentment among other team members who value the company’s loyalty to its people.

Maintaining the status quo can reinforce a culture of trust and demonstrate that the business values people as much as profit and is an approach that is taken more often than not. It’s the easy route.

The case for change

As businesses evolve, the skills needed for growth may outpace the abilities of long-term employees. Keeping someone in a role they can no longer fulfil risks stagnation and inefficiency. This is particularly true when scaling up requires technical expertise, leadership, or innovation that existing staff cannot provide.

Replacing these employees doesn’t have to mean burning bridges. Redeployment to roles that better suit their strengths or offering transitional support can preserve relationships while enabling the business to adapt.

Ultimately, prioritising the company’s future ensures continued success, which benefits everyone in the long run, including loyal team members. This is the more difficult route.

Additionally, some team members will recognise they have hit a ceiling and don’t want to be driven to develop new skills and work differently. Often, this environment is one that they don’t like as much as they once did.

Your good team members won’t thank you for hanging on to people that are now stopping them from achieving better results.

How to resolve - developing a succession plan

Much like that sports team that develops a plan of the players and back-room staff needed for success (and often the manager/ coach), it is sensible for a business to have a succession plan.

Map out the roles and names you have in each technical area and level of seniority. Then map out the roles (no names just yet) that you want in place in say 24 months to deliver the targets you have set (revenue, profit, new business, service levels etc).

Then put names of the current team into the new roles.

You will develop a list of:

• Those that fit perfectly
• Those that could fit with coaching/ mentoring/ training
• Those that just won’t make the grade (exit plans needed)
• Gaps for new recruits

Then break the transition plan into quarterly segments of what you will need to do each period.

This is what we do with every high growth client and it gives them an executable plan. Nobody has ever let a team member go and regretted it three months later – the business potential gets unlocked.

The fact that you are now looking at needs in 24 months rather than incrementally, identifies bigger gaps and exposes those that won’t make the grade.

Building a dream team for future growth should now become a higher priority than misplaced loyalty.

Balancing loyalty and progress

The answer isn’t simple, but a fair approach combines honesty, the above planning, and empathy. By clearly communicating the business's needs, providing development opportunities, and making decisions based on strategic needs, business owners can honour loyalty while driving their businesses forward.

Taking the easy route maintains the status quo and you may see modest growth. Taking the difficult route unlocks greater potential but involves getting out of the old comfort zone and putting some loyalty to one side.

Best of luck with finding the right balance for you, your business and your team.

Gary

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