Of all the miseries that can dog the pursuit of Operations Excellence, surely the worst is high attrition – good guys leaving! 
I would rate it even above good customers leaving!

Firstly,  it is a sign that employees have lost faith in management. It is an  indictment that the top management is either totally unaware of the  attrition (maybe they are not tracking the metric at all!) or they are  in denial (no, it’s just a co-incidence) and basically, there is no plan  to take any corrective action.
Now, of course, whenever new  leadership takes position and ratchets up a sleepy culture, there is  anxiety and people too accustomed to a ‘comfortable life’ will leave.    This is not the same as the attrition I am talking about here.  Of  course, when undesirable people leave, it is great news…!  And if there  are way too many of the wrong types in an organization, even all of them  leaving is not such a bad thing to happen after all!
Yet, we would like them to leave in small lots, so customer service does not slip even further!
But  attrition is not always ‘self-propelled’.  One, often-seen, situation  is where a new competitor (any organization that is seeking the same  kind of staff) has entered the market and is systematically attacking  your company by making attractive offers to your staff that are too good  for them to refuse.  How does one react to such a situation?
I have seen a variety of reactions from leaders.
One obvious strategy is to ‘lock-in’ your talent with either ‘hard’ or ‘soft’ chains!  
Hard  chains are essentially legal bonds, which require the employee to pay a  large sum or give a very long notice, if they desire to leave the  company.  
The long notice rarely works.  Which company would  force an employee to ‘work’ productively, when s/he has already  professed allegiance to another company, possibly a competitor?  Rather,  many companies, on suspicion of an employee moving to a competitor,  will ask them to leave immediately, lest s/he learn even more strategic /  competitive secrets to be passed on to the new employer.
Monetary  provisions do work to a certain extent.  Senior management candidates,  who do not want to burn their bridges -- lest their sins come back to  visit them in an ever shrinking world -- rarely try to jump bonds,  unless of course, they have other legal reasons.  On the other hand, if  the person is really good, many ‘acquiring’ companies are happy to  pay-off the large sum.
Most companies today are  experimenting with ‘soft chains’.  These are essentially incentives --  stock options and other deferred benefits – which are available only  several years after they have been granted.  Of course, the  effectiveness of these measures is largely dependent on the amount  invested in these programs, as they increase the cost of hiring for the  acquiring company.
Another option is to take the issue  to an industry association / chamber of commerce-type entity, if there  is one and hope they intervene.  I have seen this attempted several  times, but have never seen it work.  The ‘attacking’ company always  refutes the allegation and says, possibly correctly, that “We never  target any one company.  We only use professional agencies to source our  talent and then allow our brand / company reputation to do the magic!   If more from any one company are leaving, they should look at their HR  policies, rather than blame any external entity!”
The  fact is that whenever a new business is launched, it has no alternative  but to source experienced talent from elsewhere.  Who has not done that?
I  have trouble believing consultants and academics who say employees  leave their managers when they do not find the job fulfilling and that  money does not count beyond a certain limit.  The fact is that most  companies are not so differentiated in terms of culture as to be able to  charge a ‘premium’ for it in the form of lower wages.  This means most  employees do not have a strong enough reason not to move to a company  that pays more.  After all, they do have an obligation towards their  family as well!  So, unless your employees just love their Monday  mornings, don’t believe money is not important.
An idea  whose time may well have come is to stay in touch with your ‘lost  talent’.  Some companies have launched or encouraged the setting up of  alumni groups on public access websites like Yahoo!, LinkedIn and  Facebook.  These places can enable you to keep in touch with good people  you know and woo them back.  In fact, should you have the vacancy still  open, it is not a bad idea to get in touch with your talent a few  months after they have experienced the new company.  Often, by this  time, the reality of the new culture hits them and they are wondering if  the move was after all a good decision! 
There is  another important point that is often overlooked.  When attrition levels  rise, management’s attention invariable turn toward HR policies, or  worse, the HR Manager!  This may not always be true.
Many  times the root cause lies outside the HR policy.  We just saw how a  change in market situation – the entry of a competitor can affect your  attrition levels.  Another, often invisible reason is the slippage of  practices and processes.  Established processes are allowed to go lax  due to cost or work pressures and become habits.  Lack of metrics ensure  that the slippage does not come to the attention of management at all.   Many examples come to mind:
- Delayed approvals of leave / expense claims and the like
 
- Delayed or even inappropriate hiring
 
- Performance Management (setting KPIs, providing feedback) becomes a mere formality
 
- Excessive hurdles in replenishing or supplementing staff strength
 
- Lack of effective orientation for new employees…
 
And yet, such is the nature of things that when things are going  bad, they do tend to go a lot worse before getting better.  It’s much  like a street that is a nightmare for traffic.  Whether this is due to  pot holes on the way or just more traffic than it can handle, the act of  repairing the road or laying a flyover itself causes things to go much  worse during the implementation.
When an organization  has lousy processes and staff is stretched thin in trying to keep the  operations going, management has little choice but to re-engineer the  processes and / or replace the systems.  However, this very act requires  the best of talent to come together and invest huge amounts of time in  the effort.  This in turn both exhausts the best people available and  impacts customer service.
Faced with such a situation,  many managements resist fixing the broken parts, arguing that time is  not right to make such big changes.  Sometimes, this may be the right  move.  But only if either the traffic is expected to recede or  management has an alternate plan to divert traffic to an alternate  channel / street.  Most often, however, this is just paralysis: morbid  fear of things going even more wrong; without a concern for the long  term or a strategy to fix things.
Good leadership,  however, is rarely daunted by such a situation.  Great leaders are able  to introduce a hitherto non-existing resource into the equation -- the  excitement and energy brought in by a shared vision!  They are able to  communicate effectively the unacceptability of the current situation,  the shape and contour of a new vision and generate a wave of excitement  and positive energy with that vision, at least in a small group of high  performers.  It is this new energy that is used for fixing the processes  and re-energizing the rest of the organization.
All  said, you’ve got to accept that some employees will leave whatever you  do.  The typical HR policy or practice is like a product.  It can meet  the requirements of one segment of customers.  It is either ‘mainstream’  – meaning a little of everything, or ‘hard’ as in measuring everything  in dollars or ‘soft’, i.e., you focus on providing a high quality work  life and pay a little below the market.  There is no point agonizing  over individual leavers, however valuable they may be.  What leadership  should focus on is trends.
Once a trend appears, perhaps the first  thing to determine is whether it is internally or externally  influenced.  Keep in mind though that it is always convenient to point  the finger outwards.  Perhaps, there is no better way of learning the  real causes than a heart-to-heart exit interview.
If you have not done this before, here are some good ideas you should practice:
- Do not try to win the employee back.  It is too late
 
- Do not make it compulsory for the employee
 
- Choose the interviewer carefully.  At the least, the interviewer  should be able to pierce the chill and get into a warm ‘personal’  conversation. 
 
- If the employee is senior enough or important enough, lock the time by going out for lunch or dinner.  It may be well worth it!
 
- Consider having one single, over-riding objective for the interview: to understand the real reason for leaving.
 
- Take his / her personal email / mobile.