The Worst Way to Leave a Company and Start Your Own Business
5 tips for riding out the wave of a corporate buy-out
What I have to tell you is not so much about me, as what happened to me in the final stages of leaving the company I’d worked at for 14 years.
Maybe you’ll see some similarities in your own situation, and be able to avoid making the same mistakes I made when transitioning from an employee to a business owner.
Hired right out of college at twenty-two . . .
I went to work for a company called Cutler-Hammer. Unless you’re involved in the electrical control and power distribution industry, the name probably means nothing to you.
I have to admit, at the time, it didn’t mean a whole lot to me, either. But unlike most of the electrical manufacturing companies doing on-campus interviewing of engineering graduates, their pitch was different.
They were looking for sales engineers.
They offered a competitive salary, an annual bonus, a company car, an expense account, and flexible working hours — which meant I didn’t have to arrive at the office at eight, or stay until five.
I would be evaluated on performance, not by how much time I spent sitting at a desk.
Compared to the offers I received from industry giants like Motorola and Texas Instruments, it sounded like a dream job. After “negotiating” a start date and a preferred location for my eventual sales assignment, I accepted their offer.
Fast forward ten years later. . .
I was comfortable
I had a good relationship with my co-workers, and my consistent history of exceeding quotas, increasing market share, and keeping customers happy had earned me the privilege of “flexible” supervision. My manager was a thousand miles away, and as long as I continued to produce great numbers, he left me alone.
But there was a downside.
I was bored
The challenge was gone from the job and, as I looked into the future, I saw another two decades of redundancy and mental stagnation.
I began to dream of owning my own business. Tired of being a corporate puppet, I wanted to take charge of my professional destiny, answering to no one but myself.
But in spite of that dream, I held on to my job. Maybe it was the fear of giving up the erroneous security of a regular paycheck, or the lack of personal savings to finance the transition from employee to entrepreneur. But regardless of the reason, I stayed.
And then I received the letter
The company had been bought by Eaton Corporation — not just a giant company, but a massive, multi-division, international conglomerate.
The result? For the next four years, the company I had always known as a secure, pleasant, and predictably stable place to work was ravaged by nothing less than civil war.
And in the end, I found myself on the losing side.
Unfortunately, the end didn’t come quickly
Rather than recognize the take-over as the perfect time to use the strong relationships I’d established to kick-start a non-competitive business within the same industry, I fought back.
The process was called divisionalization.
It’s also called restructuring or reorganizing. Regardless of how it’s described, it usually results in political rivalries, ego clashes, and professional conflicts. In the case of Cutler-Hammer, it ravaged the very fabric of the company, destroying professional and personal relationships at every level.
Pitting employee against employee, manager against manager, each knew that for every surviving position within the company, there were two qualified, experienced candidates — one of whom must be eliminated.
I remember hearing managers joke about how the attrition was being handled, suggesting many of us were walking around with a huge red “X” on our foreheads.
“He’s a marked man,” they would say, or “Hey, I’ll trade you three division heads for a regional supervisor.”
But trivializing the situation could not white-wash the professional slaughter
Instead of handling personnel changes and terminations with dignity and professional respect, some employees were subjected to hostile innuendo and outright confrontation.
One technique was to question , even dispute, an employee’s professional ability — an overt and intentional act meant to discredit them in front of customers and co-workers.
For three years, I battled the politics, personal power struggles, and clandestine back-stabbing, believing I was doing the right thing.
Staunchly defending myself and my co-workers, I was quick to point out the hidden agendas and covert motivations of those determined to retain their position by eliminating the competition — by any means necessary.
I felt my actions were justified, not only from my own subjective reasoning, but because I received the moral support of my boss, as well as other mid and upper management personnel who also felt the divisionalization of the company — especially the way it was being handled — was wrong.
But over time, my allies became targets in the takeover, and when my boss and his professional equals — the ones who had protected and shielded me from the carnage — either left the company or were reassigned to other divisions, I became vulnerable.
Without a single remaining friend in high places, there was no one left with enough authority to save my ass.
So when the time was right — when the corporate lawyers were sure company liability was at its lowest — the opposition struck, unleashing an organized effort to push me out.
The initial attack came during a lunch meeting attended by managers and employees from both divisions, who were now openly warring with each other over customers, product lines, and market territories. During the meal, a particularly arrogant manager for the opposition did not suggest or infer, but rather flatly stated that I was nothing more than a straw-boss — and would soon be replaced by one of his people.
I didn’t take his accusations sitting down
I demanded he substantiate his claim and reveal who had instructed him to make such a statement. He simply smiled and continued chatting about how he found the new structure very promising for those who “understood” the transitioning regime and its long-term goals.
Ultimately, he was right
About a year later, I resigned, realizing I had nothing left to fight for.
That last year was infuriating, exasperating, and disorienting. Every new attack on my character prompted me to counter-attack, to challenge anyone — regardless of their status within the company — to back up their spurious accusations and bogus criticism.
And I did it not only when the assaults were aimed at me, but also when the cross-hairs fell on my co-working friends. They were just as confused as I was, but not as vocal. And I was often asked to find out as much as I could about how the takeover would ultimately affect their jobs.
What did I learn from the experience?
As an employee, the probability of future employment is at the whim and discretion of all levels of management above you. Trying to satisfy the idiosyncrasies of every member of the hierarchy is impossible — especially when each has a personal or even secret agenda.
You can’t anticipate how your employer will respond to changing conditions.
While your performance is an important criteria in maintaining your employment under normal conditions, no company continues to operate under normal conditions for very long. There are ups and downs in productivity, swings in the economy, changes in the competition and, of course, internal battles for control — based on the personal goals of upper management.
So while you may believe you can increase your job security with outstanding performance, always remember there are many others with equal talent and ability. You’ll keep your job by creating value for your supervisor(s), so determine how they recognize and evaluate your contribution.
For all you know, it may have more to do with the cup of coffee you pick up every morning and place on the boss’ desk than the meticulously crafted reports you generate, or your continuing pattern of exceeding sales quota.
As an employee, decisions concerning your longevity with your employer are ultimately not your own. The process of hiring and firing is fraught with personality matching, hidden agendas, and even physical attraction.
Here’s the bottom line:
During my last year with Eaton Corporation, I didn’t just burn my bridges . . .
I vaporized them.
The day I left, I turned my back on fourteen years of valuable professional associations. If I’d been smart, I would have identified those managers and division heads who could have provided me with the value of their influence and recommendation.
Here’s a few suggestions for anyone involved in a similar situation:
1. You should never “leave” a company
Instead, make a transition.
Keep your contacts — both within and outside the company — in good or at least salvageable condition. Avoid revealing any hint of animosity or bitterness — even when it’s deserved.
Your revenge will come in the form of the success you’ll enjoy from the new position or company you create for yourself.
2. Consider your manager as a personal asset
Your boss is a source of industry information and professional validation that can easily translate into dollars and cents. Obtain permission to use her as a reference (after you’ve announced your transition).
Even better, ask for a letter of recommendation on the day you inform your supervisor of your plans. While you may have no intention of using it, getting your boss committed on paper means she’ll be less likely to change her mind later.
3. Once you’ve decided to leave, put the priority on your future
Continue to do your job, but if you have a new idea that will increase market share, or you’ve designed a product or service that is similar or competitive, save it — and take it with you. It will make you more valuable, regardless of whether you go to work for the competition or start your own business.
(Always check the details of any non-compete and non-disclosure agreements to determine what is considered proprietary. If there’s any chance of infringement or possible accusations of appropriating intellectual property, have an attorney review your situation.)
4. As soon as you make the decision to leave, take control of your termination date
Make sure your actual termination date is one of your choosing, and not one that catches you by surprise. Never give any indication of your intention to end your employment unless you are ready to leave, which can literally turn out to be the same day.
Although you may feel a professional or personal responsibility to give your employer lots of notice, it isn’t uncommon — especially in large corporations — to dismiss an employee immediately upon receiving a letter of resignation or even verbal confirmation of your plan to move on.
And that means leaving the property within the hour. No ceremony, no good-byes, and not even a hint of cake and ice cream.
5. Make plans for your exit early in the game
Prepare for your eventual exit by getting to know the competition.
Attend trade shows within your industry. If legally permissible, refer business opportunities outside the product or service sphere of your company to a more appropriate vendor. And do it personally — so you’re remembered. The more people you know, the more contacts you’ll have to draw from — if and when you need them.
It’s not realistic to assume the positive atmosphere and comfort level you enjoy from your current position will continue indefinitely
Changes can occur at any time, and while some may be only minor alterations to the existing policy or procedures, others can bring about a complete overhaul of the company — eliminating your job and your future with that employer.
Remember, it’s your life first.
You don’t owe any more loyalty to your employer than what is being reciprocated. And when the circumstances or situation calls for it, employers will not hesitate to terminate. It can result from consolidating divisions, branches, or offices. Or it could be an austerity measure, due to a decline in the economy.
Whatever the reason, and regardless of how much you think you’re valued and appreciated, your employer will cut you loose without hesitation if it serves their short or long-term purpose.
Your career — unlike your job — belongs to you. Manage it as you would any vital and important asset.
© 2020 Roger A. Reid. All Rights Reserved.
© 2020 Roger Reid. All Rights Reserved.
Find more tips & strategies for personal and career success in Better Mondays
Roger A. Reid, Ph.D. is the founder|host of Success Point 360 Podcast and author of Better Mondays: The New Rules for Creating Financial Success and Personal Freedom (While Working for the Man) and A certified NLP trainer with degrees in engineering and business, Roger offers tips and strategies for achieving higher levels of career success and personal fulfillment in the real world.
