Best Practices

Story

How does a company explicitly committed to relationships in business handle laying people off?

Victor Ho founded Fivestars with the mission of “transforming transactions into relationships.” Then the start-up hit a rough patch and needed to lay off 50 people.  Best practices suggested handling the lay-offs with surgical precision.  Victor felt compelled to take a different approach that was consistent with the company’s values: humbly admitting his mistakes, honoring the workers’ contributions, and mobilizing the entire firm to help those being displaced.