The lifeboat drill is a great way to evaluate your managers and
staff from a whole new paradigm.  I especially like it because it not
only evaluates the importance of each employee to the company, it ranks
them by importance relative to every other employee of the company.

Here’s how it works.  A luxury cruise ship with all your employees
on board has just sunk and every one of them are in the water awaiting
rescue.  You, as CEO, have the only lifeboat.  There’s limited space so
you probably can’t get everyone in.  As CEO you must choose those
employees without whom the company could not survive, starting at the
most important and continuing to bring people on board until the
lifeboat is full.  Good luck.

I know when I’ve done this in the past, the first person I pulled in
was the CFO.  He was a brilliant man, and one without whom I could
survive.  Next , the CMO and CIO for obvious reasons.  After that, it’s
whomever is most critical in moving the business forward.  The best way
to bring people into the lifeboat is to use the phrase, “Okay.  These
people are a good start, but I know if we’re going to succeed, we
absolutely have to have…. (insert name here,)” and then bring the next
person aboard.  Do that over and over until the boat is full.

What you’ll likely find is that people you thought were quite
important to the company maybe aren’t all that important and vice
versa.  For example, I’ve had people who were really quite good at what
they do.  But after doing a lifeboat drill, I’ve realized I don’t
really need someone who does what they do as much as I thought I did. 
Other times you’ll find a person who you thought was basically just a
“steady” employee.  Then you realize that what she does is of infinite
worth to the company.

I encourage you to do a lifeboat drill today.  Do it first by
yourself.  See what you come up with.  Then have your senior managers
do it by themselves.  Then middle managers.  Then get together with
them individually and ask why they chose / prioritized as they did. 
Then meet together with everyone to talk about what you all learned.

This is a great exercise on several levels.  1) You think about your
managers and employees in a new way, giving you new insights into who,
what and why.  2) You get a new insight into the thought processes of
your managers.  Learning how they think will help you understand why
they do what they do.  3) You start to get a better overall  idea of
both people and functions and how they rank in importance to your
business.

This is a great exercise.  I encourage you to use it, especially
during times of down-sizing and employee evaluations.  (NOTE:  Most
CEO’s assume they’re the first one back in the boat.  If you’re going
to get the most bang for this exercise, you have to honestly evaluate
yourself and your importance to the company as well.)