Business Blog: How to fire your best friend

Hey, it's Ryan.

This week, I'm tackling one of the hardest parts of leadership: firing someone you actually like.

You know the type…the lovable slacker who means well but keeps missing deadlines, dropping balls, and forcing everyone else to pick up the slack.

Inside, I'll show you:

The 5-step framework I use to know for sure when it's time to reset, reassign, or release an employee
The one question to ask before you ever consider firing someone
How to get underperformers to resign on their own (if you handle this the right way)
The exact script I use to start an "Accountability Conversation" that gets to the truth…without putting them on defense
How to structure a Performance Improvement Plan so it feels like a reset, not a pre-firing death sentence

If you've ever kept a "good" person around because you didn't want to be the bad guy, this will give you the clarity and the courage you need to make the right call.

Let's get into it…

P.S. I'll be doing a full session on how we build AI employees (and plenty more) at Get Scalable Live…3 days, 700+ founders, zero fluff. If you're serious about building a business that can run (and grow) without you, this is the room to be in.

(Accidental MBA Subscribers Save $800 + 25% with code: amba)

The Fair Firing Framework

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Firing an employee is brutal.

Firing an employee you like…the lovable slacker…the human version of the cute little puppy (who can't stop pooping on the carpet)…is downright gut-wrenching.

They're nice. They care. They're trying.

But they're also missing deadlines, botching client work, and dragging the rest of the team down. What do you do?

That's where the Fair Firing Framework comes in. This step-by-step process shows you with certainty whether it's time to reset, reassign, or release a "good" but underperforming employee. In fact, if you do it right, most underperformers will resign on their own before you ever need to fire them.

Here's how it works…

Step 1: Clarify Before You Blame

When something breaks, don't jump to, "Who screwed up?"

Start with: "Is someone directly responsible?"

If no…clarify. Who should own it moving forward, even if it's on an interim basis? Update the job description, title, and reporting lines if necessary. Have them resign their job description if the role has evolved. Reset expectations, and move on…no grudges, no marks on their "permanent record."
If yes…pause. Take a breath. There's still a good chance it's not their fault (even if it was their responsibility). That's where Step 2 comes in…

Step 2: The Accountability Conversation

If someone who was clearly responsible dropped the ball, it's time for an Accountability Conversation rooted in Extreme Ownership:

"Hey, I know this fell through. I also know you care. So I'm going to assume this failure is on us as leaders. We either failed to clarify expectations or we failed to provide you with the necessary resources to succeed. Let's talk about what happened so it doesn't happen again."

This flips the script. Instead of putting them on defense, you uncover whether the real issue is workload, skills, or systemic cracks in your process.

If there's a genuine flaw, fix it, reset, and move on. Again, no grudges.

If it really was their fault, this becomes a "Strike 1" moment:

"Ok, but now that we're both clear on the expectation and we both agree that you have everything you need to be successful, can we also agree that something like this can't ever happen again?"

If there's another issue, move on to Step 3.

Step 3: Confirm Resources

By now, you've had two significant issues with the same person. Before raising the stakes, ask again:

"Did they have everything they needed to succeed?"

If no…give them what they need: tools, training, bandwidth. Then, reset.
If yes…now it's time to raise the stakes. Two "strikes" means it's time for Step 4.

Step 4: The Performance Improvement Plan (PIP)

A Performance Improvement Plan (PIP) outlines the specific improvements an employee must make to keep their job. It includes:

Clear Expectations – The specific, measurable outcomes that must be achieved and by when.
Review Period – Typically 30 - 90 days, depending on role complexity, with weekly scheduled check-ins.
Manager/Employee Buy-In – Team member and manager should sign the Performance Improvement Plan so everyone knows the rules of the game.

A PIP isn't just pre-firing paperwork. Done right, it's an opportunity for extra support and a fresh start.

If they improve, it's a true reset…a comeback story worthy of celebration.

But PIPs also carry real consequences, which brings us to Step 5…

Step 5: Let Them Leave On Their Own Terms

When performance still doesn't improve, give them the chance to leave on their own terms.

At Scalable, we allow team members to resign before starting a PIP and still receive the same separation pay they would have earned during the PIP.

EXAMPLE: If a team member is given a 30-day PIP, they can choose to resign and still be paid 4 additional weeks (typically 2 more pay periods) assuming they leave on good terms.

Most take the opportunity to opt out. They know they're failing, and this lets them walk away with dignity.

If they don't resign and still don't improve, termination is unavoidable, and the conversation is simple:

"You and I agreed these things must be completed for you to stay in this role. They haven't been, so unfortunately, we need to part ways."

They still may not like it, but if you documented the employee's performance (or lack thereof) and gave them multiple, DOCUMENTED chances to improve, at the very least, you can hold your head high knowing you did everything you could do to set them up for success.

IMPORTANT: Employment law varies from state to state and country to country, so consult with an attorney and/or an HR professional before implementing any termination policy.

Takeaway: Clarity = Kindness

While it may seem "nice" to let a lovable slacker hang around, it isn't nice…it's cruel.

It's cruel to the employee to let them languish in a role where they can't succeed. And it's cruel to the rest of the team to force them to pick up the slack.

An unwillingness to part ways with an underperformer doesn't make you loyal. And it certainly doesn't make you noble. It just means you're too scared to have the tough conversations leadership requires. (Sorry, but this is me modeling what a tough conversation looks like.)

If you follow this framework, you can be confident you're doing right by your business and by the people you hire.

⚡ Action Step: Think of one struggling team member and mentally run them through this framework. What's the next step—clarify, reset, PIP, or fire? Decide now. Because the fastest way to ruin a great employee is to let them see you tolerate (and enable) a poor one.

Give it a shot and let me know how it works.

Ryan Deiss
Co-Founder and CEO, The Scalable Company

P.S. I'm looking for 5 business owners who want to work 1-on-1 with my team and me to install a custom "operating system" so your business can scale and so you can exit the day-to-day. Click here to get the details.

Quick Hits

Here's some other content from the Scalable network, plus some other cool stuff I liked and thought you might like, too:

🧰 Tool of the Week: This free budgeting tool finds "hidden" profit and cash flow in your business.
🏛️ Here are 10 marketing rules that never stop working (YouTube)
🪤 The Subscription Trap - Why recurring revenue isn't always the "perfect solution" it's cracked up to be (Business Lunch Podcast)
💰 This is how you turn consulting gigs into equity…without burning the relationship.
🏖️ Leave the kids at home! Why vacations WITHOUT your kids are essential for entrepreneurs. (This one made a lot of people angry.)