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LB: Sit down and say: “I get the feeling you're not as happy with us as you used to be. Is anything wrong?”

RC: If a key employee is leaving, how do you respond?

LB: A bad manager offers money. That probably won't work. A good manager asks: “Have you told anyone else?” If they have, it's so long, good luck, and we'd love to have you back if you change your mind. If they haven't, you say: “Let us have 48 hours to put a plan together to correct whatever it is that caused you to think about leaving.” Then ask what's making that employee want to leave. If it's a high-value employee who's difficult to replace, it's worth the effort.

RC: How do you prevent that departure from damaging company morale?

LB: Have a group meeting. Be as open and honest as possible in explaining what happened. Tell them you feel badly about losing the person, and that if any of them are thinking of leaving, you want them to talk with you first. That's also a good time to discuss the organization's future. Give them the sense that your company is going places and that they can go with it.