Building Stronger Businesses And Stronger Families
Plan for family growth within your company.
By Camille Donnelly, Ph.D.
What do you have in common with NASCAR, Marriott, and Bush Brothers Beans?
You, too, are a successful, growing, family-owned business that contributes
to the economic vitality of this nation. Having worked long hours and
sacrificed personal time, you are proud to be able to provide an opportunity
for future generations as well as an enjoyable lifestyle for your family.
Having family members work with you in the business is the fulfillment
of a dream, and now you can relax and savor the joy that comes with knowing
your business will remain vital and alive for at least another generation.
Family businesses represent 80 to 90 percent
of all U.S. companies.
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Or can you? Lately, the Norman Rockwell scene of family bliss is fraying
at the edges as the signs of tension and strife move from the boardroom
to the dinner table. Grumblings about family gatherings turning into stockholders'
meetings and the fact that your five-year-old granddaughter asked you
why you are so mean to her Mommy at work have you dreading the next graduation
or birthday celebration. In addition, you found yourself looking through
sports catalogs to purchase a striped shirt and whistle to referee the
daily turf wars that are turning the business into a smoldering battleground.
You know how to run a successful, thriving business, but the family conflict
is affecting operations and taking precious time that needs to be spent
on superior customer service. The competition is getting fierce inside
as well as outside the business. How do others build stronger businesses
and still maintain family harmony?
Closing the door and ignoring the problem only diminishes the sound but
doesn't make the problem go away. In fact, you are in good company as
family businesses represent 80 to 90 percent of all U.S. businesses, and
60 percent of all public companies are family-controlled. What do these
other businesses know that you don't? Perhaps they recognize that creating
business success and family harmony require some foundation building blocks.
Employment vs. Entitlement
Being the boss's daughter, son, in-law or out-law does not establish the
right to employment. Develop a sound plan for bringing family members
into the business. Begin by asking these questions:
- Am I creating a position for this person, or is there a need for these
particular skills?
- Are the requirements different for family entry into management and
hourly positions?
- What are the required minimum educational standards?
- How much time should be spent working outside this business to be
seen as a valued player?
- Are the expectations clearly defined?
- Is there a mentor available to ensure success?
- Would I hire this person for this position if we were not related?
Family Meetings: Pride vs. Panic
Sharing information about the business in a safe, structured environment
decreases anxiety while increasing family membership pride. The Family
Meeting is not a shareholders' meeting, a strategic planning session or
graduation party; it is clearly a time for family members to understand
the past, present and future of the family business. Telling the company's
story is vital to establishing pride in the enterprise. The following
are some points to remember when planning a Family Meeting:
- Be clear that the owner or chief decision-maker is at the meeting
as a family member participant, not as the boss.
- Hire an experienced family business facilitator to plan and guide
the meeting; he/she will expect civility and keep the group focused
on the business while not allowing a gripe session to occur.
- Begin with a short half-day session at a site away from the business
to minimize distractions.
- Help family members understand the history of this great business
as well as the original struggles and development process responsible
for the success enjoyed today.
- Create a visual living history.
- Share individual family contributions to the community.
- Celebrate and enjoy the fact that coming together as a family to grow
a stronger, vital business contributes to the future of the economy.
Communicate, Communicate, and Communicate:
Boundaries vs. Uproar
Setting safe boundaries for communication is necessary to avoid uproar.
Accept that the “invisible gorilla” sitting in the middle of
the room remembers everything negative and is waiting for the appropriate
moment to leap and reveal who received the best wedding gift, who was
always Dad's favorite, and who always received special privileges. Understand
that the gorilla grows stronger under stress and loves uproar. Decrease
potential conflict and increase the power of your communication by doing
the following:
- Listen and understand that acceptance is not agreement.
- Realize that their perception and your reality may collide.
- Embrace conflict by listening for the learning. What are the opportunities
here?
- Park egos outside the room.
- Don't accept temper tantrums and uproar, especially from yourself.
- If sharing the same home, choose a space to retreat for business discussions;
don't allow business to permeate every room, especially the bedroom.
- Express gratitude daily.
- Celebrate small successes.
- As in other aspects of your business, if you need outside help, hire
it!
Always remember that every day your family business is either growing
or declining; there is no standing still. Just as you have a strategic
plan for business growth, have a strategic plan for family growth within
the business. Begin with one small step but begin today!
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