June 2008 Harvard Business Case - Why Are We Losing All Our Good People

So, The June 2008 Harvard Case is extremely near and dear to me. It doesn't completely mirror my personal experience, but it is close. I will give a very brief synopsis now:

A company, Sambian Partners, is losing its talented people. Many of those that are leaving are the star employees. The case starts with Mary Donillo, the HR VP talking with Tom Forsythe. Tom is leaving the company after 8 years and a great deal of success at the company. Mary is trying to identify why he's leaving. He mentions a partner position at a larger firm and more oppportunities. She doesn't understand exactly why he's leaving. Sambian has been very good to Tom, and is on the CEO's short list of high performers....but Tom still left.

Helen (the CEO) and Mary decide that there have been a number of "high flyers" leaving the company recently and are trying to determine why. So, they do an employee survey. In the meantime, another high flyer is rumored (accurately rumored) is talking about leaving. So, Helen brings this employee into the office and just promotes her on the spot. Mary (HR) doesn't feel that this was a good decision.

When the survey comes back there isn't any defining problem that the employees identify, but a few employees talk about "deadwood" in the PM ranks.

So, the question: How can Sambian discover what's really driving people out the door?

My personal take: (I have not read the "expert advice" yet)

This company sounds like it is at a turning point. It is either time to let go of some of the stars that the company has developed....or it is time to grow the business. My entire reason for starting a second Master's degree was based upon what I see in the case. A lack of career advancement opportunities. As a "high flyer" at a small office with low turnover rates it is impossible to advance up the management ranks. Even during times of layoffs....who's the last to get fired? Management. Unfortunately, what is likely the root problem that causes layoffs...Management. So, how does an employee continue in the same role while still seeing light at the end of the tunnel at their next job role without communiation from management?

Management needs to start clearly defining the expectations that they have for their employees and what is required to advance in the company. If employees meet those requirements, management has to "make good" and increase the responsibility level of their employees.

comments? Alternate takes?