I Think I Can Manage, Thank You is a weekly column (daily for this story) by Steven Bates, manager of Bookery Fantasy, a million dollar retail operation in Fairborn, Ohio.  Today, he follows up on his column yesterday about a breakaway manager, who left his operation to open a competing store. 

Yesterday, I wrote about a situation that occurred at Bookery Fantasy when a manager recently broke away to open a competing shop.  He used Bookery time and resources, distributor and manufacturer contacts, and customer lists to build his rival business.  He even told customers we were closing and they would need to transfer their patronage to his store.  So how did he get away with this right under our noses?  And what could we have done to prevent this?  What can you do if it happens to you?

First, the department this manager oversaw occupied a separate building, a branch store.  As our business expanded, we found that one location wasn't large enough to house us, so we opened another shop near our main store.  It was large, close, affordable, and offered incredible opportunities for 'theater of retail.'  For all its plusses, however, there were disadvantages.  Almost from the get-go, the manager in question asserted an aggressive air of autonomy, which I interpreted at first as a healthy proprietary pride.  In time, it became obvious that he felt that the store was HIS store, not OUR store.  As manager, I had a number of one-on-ones, attempting to change his attitude and get him on board with the Bookery program.  That should've been the first warning sign.

Any employee can overstep his bounds.  It happens.  But when an employee, especially a manager or department head, must be repeatedly taken to task for attitude problems, insubordination, and reluctance to tow the company line, you're making a mistake not letting that person go.  Old dogs rarely learn new tricks, and leopards don't change their spots.  Even if change is frightening, and you worry about how it might affect morale and sales, consider the alternative: keeping him or her might be costing you more in the long run.

After we parted ways with this break-away employee, a number of customers came forward to voice their real feelings about this individual and 'his' store.  Many had felt alienated by his attitude, ignored in their requests for merchandise, and totally disrespected.  Though he had a clique of followers who spent good money, he had driven away many more, tearing down our business and reputation even before planning his coup.  Had we read the warning signs properly and earlier, we could've nipped the problem in the bud nearly two years ago.

Don't ignore your gut feelings.  Chances are, you're right.  Even if you don't terminate the relationship, confronting the problem head on makes more sense than ignoring it and hoping it goes away.  It won't, and you'll only pay a bigger price down the road for your reluctance to deal it.

Tomorrow, I'll continue with my analysis of what went wrong, what we could've done to prevent (or diffuse) it, and how employers can possibly safeguard themselves from similar situations.