The $100 MBA Show – Ep. 2722: Who Do You Need To Fire Next?

Host: Omar Zenhom
Date: December 29, 2025

Episode Overview

In this candid and practical episode, Omar Zenhom dives deep into one of the toughest but most essential aspects of leadership: firing team members as your company evolves. Drawing from over 20 years of entrepreneurship and team-building experience, Omar addresses the uncomfortable reality that not everyone grows with your company—and that timely, thoughtful firing is often a crucial act of leadership. The episode offers actionable advice and thought experiments for founders and managers navigating team changes, always emphasizing fairness, clarity, and the relentless pursuit of excellence.

Key Discussion Points & Insights

The Growing Pains of Building a Team

[01:23]

• Omar explains that as your company surpasses five team members, "one of the most important questions you can ask yourself as a leader" is who should remain on your team.
• Early hires are often based on immediate, short-term needs, but as your company’s goals and standards rise, not everyone will keep pace.
• Quote: "Not everybody's going to grow with you. When you're small, when you're starting out, you're hiring based on immediate needs... as your company grows... you need more from people that you've hired." ([02:11])

Firing as Responsible Leadership

[03:35]

• Firing is gut-wrenching, even for seasoned leaders, but it's often the most responsible move for the company, customers, and the employee in question.
• Keeping underperformers can slow progress, dilute standards, and negatively impact culture and morale.
• Quote: "Keeping someone longer than they should be on the team really does a lot of damage... they drain energy from you and everybody around them. Worst of all, they drag down the top talent." ([04:38])

The "A Player" Standard

[05:10]

• Omar references Steve Jobs: "Exceptional players want to work with exceptional players."
• Nothing kills a strong culture faster than tolerating B and C players among A players, leading to frustration and demotivation.
• Draws a sports analogy: every team member must be on the same competitive and committed wavelength; slackers frustrate the high performers.
• Quote: "People on your team, they all need to be on the same wavelength of effort, energy, ambition, and care." ([06:19])

Hard Work Does Not Equal Results

[07:10]

• Sometimes the person who needs to be let go is the one working the hardest but not delivering required results.
• Leaders can’t run charities; business needs to be competitive.
• Quote: "No matter how dedicated they are, if they're not producing the results the role requires, they're holding the company back." ([07:37])

How Firing Protects Standards

[11:01]

• Top performers are acutely aware of underperformance and lose motivation if mediocrity is tolerated.
• Firing is not just removing weak links, but "protecting the strong ones and protecting your business standards."
• Quote: "If your team doesn't feel like excellence is the standard, they won't give you excellence." ([11:33])

When Is It Time to Fire?

[12:33]

• Use a coaching/mindset analogy: identify your “star players,” those who can improve, and those holding the team back.
• Core questions to assess team members:
  • Does this person consistently meet the standards of their role?
  • Are they hitting KPIs and improving?
  • Are they aligned with the company's vision for the next 1-5 years?
  • Would you enthusiastically rehire them today?
• Quote: "One of the best thought experiments you can do: If you were forced to fire everybody... who would you rehire?" ([13:36])
• If the answer is "no" to any of these, it's time to make a change: "When there's doubt, there's no doubt." ([14:35])

The Fair and Honorable Way to Fire

[15:03]

• Clarity is key: give struggling team members an honest, specific review, a 90-day improvement plan, and the chance to correct course.
• Most of the time, things don’t change, but sometimes they do—so give people that chance.
• Quote: "You're not blindsiding them. You're giving them the opportunity to rise to the challenge... Some will rise beautifully to the challenge and some won't." ([15:34])

The Purpose of Leadership & Firing

[16:36]

• Leaders must raise standards, protect culture, and serve customers above all else.
• Keeping the wrong person is not kindness but neglect of leadership duty.
• Quote: "You are responsible for the health of the company, not the comfort of one person." ([16:56])

Firing Can Be the Kindest Option

[17:08]

• Firing can feel painful and even like personal failure—but often it is a relief for everyone involved.
• Omar recounts a story where the fired employee was relieved and ready for a change.
• Quote: "Sometimes firing someone is actually the kindest gift you can give them because it frees them to go somewhere they can thrive." ([17:35])

Notable Quotes & Memorable Moments

• On rising standards:
  “The people who got you here are not always the same people who will take you to that next level. It's not betrayal, it's an evolution.” ([18:23])
• On leadership maturity:
  “Firing somebody is painful. It should be. Because you invested so much in this person... it means you care. It’s not a weakness, but it’s also a sign of maturity. It means you’re ready to lead. It means you are prioritizing excellence.” ([18:40])
• On company health:
  “You need to ensure excellence and you need to build a winning team. This is a skill set that you need to cultivate as a leader.” ([16:40])
• Action invitation:
  “If this episode helped you get some clarity, send it to a fellow founder, a fellow business owner who needs to hear it.” ([18:11])

Structure of a High-Integrity Firing Process

1. Assess honestly: Use tough questions to evaluate each team member (see above).
2. Communicate clearly: Review performance; share concerns and improvement plan.
3. Give a chance: 90-day plan with real support; make consequences clear.
4. Decide with conviction: If there’s no improvement, act promptly and compassionately.

Takeaway Wisdom

• Your business cannot outgrow the quality of your team.
• Protecting standards and culture requires hard decisions.
• Firing is sometimes the kindest way to respect everyone involved.
• Leadership is about serving the company and customers; comfort and loyalty aren’t excuses for tolerating mediocrity.

Suggested Action

If you’ve identified someone on your team who isn’t aligned, refer to the core questions Omar outlines, have the tough conversation, and—above all—lead with fairness and courage.

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