1) Lack of job descriptions
2) Lack of performance measures
3) Not enough non-family members in leadership positions
4) Too much time focusing on the family issues
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Lesson 1: Establish Job Descriptions
Clearly
defined descriptions are absolutely vital in any business, whether large
or small, family run or publicly traded. Carefully thought-out job and
well-written descriptions ensure that all aspects of the business are
being tended to. Additionally, they help management make better hiring
decisions and give employees a roadmap to success.
The
lack of clarity in roles can be especially troublesome for senior executives
and ultimately can lead to friction and deep rivalry among them. With
everyone trying to stake out their own piece of the pie, people will
inevitably be vying for the same piece.
Lesson 2: Establish Performance Measures
With
no clear job descriptions, there are no clear ways to evaluate an employee’s
performance. Take the time to create a measurement tool that you can
use to judge each employee’s performance. This is your mechanism
for holding people accountable. It will also help resolve any suspect
of favoritism from non-family employees.
Lesson 3: Strong Leadership from Non-Family
Members is Essential
Many
family business owners maintain an open door policy for family members,
offering anyone who would like to work for the business a job. These
jobs are often management positions. As a result, many business owners
are unable to hold family members and non-family members to the same
standards and many employees become resentful of what they view as favoritism
amongst the family. It is extremely important that some members of the
management team be non-family members and that some of the day-to-day
decisions fall on their plate.
Lesson 4: Profits First, Family Second
With
no job descriptions, no performance measures, and too many family members
clamoring for power, it’s easy to see how family tension can mount.
In fact, owners can become so consumed with maintaining family accord
that the business literally falls apart underneath them.
Every
minute of time that is spent dealing with a family-related issue is
a minute that could have been spent adding to the bottom line. And during
work hours, the bottom line has to come before all else, including personal
relationships.
As
a manager, you can’t waste down time dealing with the business
of family. You want to concentrate on the business of business. You
want to concentrate on making a profit.
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