I manage a medium sized business for a large corporation. I have an operations manager that works for me, essentially my right hand. I've moved her up rather quickly, she's very intelligent with good instincts and is pursuing her MBA.
She had an indiscretion with a co worker in her past and I overlooked it, gave her the talk about that before moving her up (she's married). Well, I just found out that she had a huge party at her house this weekend, and everyone that works for her was there, most people (non management) from other departments as well. A lot of drinking and some debaucherous type activity, they are all young.
If this were anyone else, I would immediately let them go or begin to move them on. However, she is so sharp...I really want to make it work and develop her into my successor. I just don't think you can come back from this sort of thing. Am I wrong? Can she ever be respected, do I look like an idiot if I don't get rid of her or at least change her capacity? My gut says she can't take it back and I can't afford the assault on my integrity. Help...