#31: Making Difficult Management Decisions, Differently

Chip Royce, Flywheel Advisors

Leaders often say you must do the hard things, even if they’re unpopular.

This means making tough choices, like changing how your team works, cutting costs, or stopping underperforming projects.

It sounds simple, but it’s really complicated. You need to think about the present and the future at the same time.

I learned this the hard way during the 2020 pandemic. As CEO of Fusion3, a 3D printer manufacturer, I faced a huge challenge. One week, hospitals needed all our products, and the next, demand plummeted due to lockdowns and cash flow issues. It was incredibly stressful. Everyone kept saying, “You have to make tough choices.” They meant layoffs.

Considering layoffs was a difficult path to take. Our team members weren’t just employees; they were friends who knew our operation inside out. If we let them go, replacing them and their knowledge would set us back even further. Firing people felt terrible, but it seemed like the only option.

But then I stopped to think. Maybe “tough” didn’t mean what everyone thought. Layoffs felt like the easy answer, but was it the right choice? Could we do things differently?

I started looking for alternative solutions. Could we give people more responsibilities? Could we teach them new skills? Could we find ways to use their talents to help us get through this?

It wasn’t easy, but we found ways to conserve working capital and ensure a steady pipeline of sales. We helped our team learn new skills, so they could work on new projects. It took creativity, flexibility, and a willingness to accept uncertainty.

And you know what? Fusion3 not only survived but became even stronger. My team didn’t feel defeated; they felt like they were part of the solution. They learned that “tough” wasn’t just about cutting costs, it was about adapting and working together. This showed me something important: the “hard thing” isn’t always what seems easiest.

The world is changing fast – new technology, politics, and changing consumer needs. If you stick to the old ways, you’ll get left behind. Leaders need to ask questions, challenge their assumptions, and try new things.

Here at Flywheel Advisors, we help other companies grow. It’s not just about making more money; it’s about finding ways to do better. This means finding hidden opportunities and taking smart risks. We encourage teams to be creative, adapt to changes, and rethink what “tough” means. We always remember our main values: being honest, fair, ready for the future, and flexible. These values guide us when we make tough calls, even when things are crazy.

So, doing the hard thing is still important, but it means more than making tough choices. It’s about creativity, problem-solving, and fair, brave leadership.