I just read an article in Fortune Magazine about Sandler O'Neill, a company that had 83 people report to work in Twin Tower 2 on Sept.11, 2001 and by the end of the day only 17 were alive. Two of the top 3 men who ran the company were dead--one was out of the office that day. Jimmy Dunne was left to pick up the pieces and see if Sandler O'Neill, part of the Manhattan financial world, could keep going. Altogether they had 171 people employed by the firm, so they had lost 40% of their personnel. They soon recognized they lost whole "divisions"and virtually all of their financial records. But most important, it was not just personnel, but people--their knowledge, contacts, memory.
So where do you go from here? Perhaps some of the lessons learned could help other small businesses:
1. Look straight ahead and be direct. Be focused. This gave the employees something to think about besides their grief. For us Panoramic viewers, you remember to start and look at the whole view, regain your reason why you picked your business sector, and then the specifics of what you do best.
2. Find some people who just recently retired. They were able to hire several who had long lists of contacts which they needed to build up their business again.
3. Don't hesitate to ask for help--from your competition. And in this case, the big Wall Street institutions wanted to assist and did. Even strangers showed up and helped the newly hired, sitting side-by-side to complete deals.
I like to think that some of our entrepreneur centers are very much like this, where similar companies network together even though they are in the same business sector.
4. Perhaps this sounds like #2, but really it is about hiring. Look for some really good experts. Besides the retirees and some less experienced, Sandler O'Neill hired those laid off from larger companies.
Within a year, they were 90% complete. By Dec. 2003, they had "established a beachhead--relationships" that they needed to in order to compete again.
5. The company returned to what they were good at and then added some new ideas. Through a catastrophic situation, it meant people had to sit down and think about a new vision, mission, and strategic plan. This somewhat reminds me of Ohio's auto industry with Tier I/II companies who have successfully become suppliers for other industries. Of course, it doesn't need to be said, but...don't wait for a similar situation to look at your strategic plan and be open to new industries now.
6. Leadership cannot be underestimated. I have seen where 1 person, especially in small businesses, "Are the Company". Without them, the company dries up. Have a succession plan, always train your replacement. Luckily, one of the major players wasn't in town. Jimmy had some experience with grief. His mother died when he was in high school and was the oldest child at home. He helped his 2 younger sisters make it through those dark days. Now, he was speaking at funerals, day after day, and sometimes 2 per day. The grief counselor hired by Sandler O'Neill saw Jimmy strong, but he also was aware that Jimmy had one time where he "let go" and got it all out. Jimmy chose in that moment to combine his human side with his business side and move forward as a person.
Sandler O'Neill did something immediately where other firms debated about:
1. paid full salaries to the victims' dependents until the end of the of 2001.
2. paid bonuses as well, based on the employee's at or above the maximum level the employee had ever earned.
3. covered health insurance for 10 years.
4. outside friends of the firm set up a foundation for all of the children of the deceased, fueled by the firm, to pay 100% of college tuition regardless of merit or need.
The grief counselor is convinced this is why the company has bounced back so quickly. Their profits are now 4-5 times greater than before 9-11. The counselor firmly believes that Sandler O'Neill is truly unique on Wall Street. Not only are they making money, but they know what they are doing matters. They are helping those families.
Maybe this becomes #7 on the list of lessons learned and the best one of all.
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