Modell Ledger Phenomenon

December is a month filled with holiday celebrations, parties and shopping for gifts for loved ones. Unfortunately, in the sports world, it’s also a time for a change — a disruptive period when coveted jobs are lost and once-promising careers suffer agonizing setbacks. Leadership changes typically result from poor outcomes of the season and a desire to shake things up, shift the approach and bring in fresh perspective. Doing nothing when failure occurs is typically not viewed as acceptable, meaning someone ultimately has to pay the price regardless of whether he/she is responsible. 

We have all worked for owners or bosses who demand a change when things start to go awry. To save their jobs, they’ll make the change even though they’re largely responsible for the pitfalls and misfortunes of the person they ask to leave. Self-preservation replaces common sense. It also replaces getting down to the root cause of the problem and avoiding the hard conversations to find core issues. When change occurs, the person leaving becomes the scapegoat for every problem, and the new hire is tasked with addressing the former’s failures. This type of change is called the “Modell Ledger Phenomenon.”

In the Modell Ledger Phenomenon, the person being fired is asked to do 50 things exceptionally well related to their job description. If he/she does three things poorly, that person would be a +47. The new person entering does those three things exceptionally well but, and this is a big but, does only 24 other things well. So, that person would be a plus +27 on the ledger. When weighed against the former employee, the organization becomes worse in 20 areas with the move. Three years later, the new employee will probably lose his/her job for doing things poorly and will be replaced with someone who does those things well. The change cycle persists, with no one recognizing how to avoid the recurring problem. 

What should leaders do? Well, once they understand the real problem, they should offer to assist the person in the three lacking areas. Being the leader does not afford one the freedom to watch and observe. Leadership means getting involved and helping people improve in the areas they need. If after trying to fix the problem with your help, the problems still occur, then, as the leader, you are forced to make a change. Only now, because of having worked alongside the person, you have a better understanding of the real issues and can hire someone new without setting the company backward. 

Help those that need help. By helping, you can avoid making change for change's sake and instead begin making the appropriate ones. 

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