Define and communicate clear expectations for family members working in the business.
Family members need a way to disagree, without harming the business and the family. When the decision is made to bring a family member into the business, no matter what the reason, the day-to-day relationships change, sometimes subtly and sometimes quite noticeably.
The fact is that the relatives will now have to deal with the family relationship on a highly visible, daily basis while at the same time they will have to work together in the business. Sometimes the two scenarios become confusing and blurred.
Where does one end and the other begin—or are they both parts of one whole? Stress and misunderstandings can often result. And it can extend to other family members not in the business, as well.
Sometimes the business suffers from poorly made, irrational decisions flowing from troubled family relationships. Often, however, this situation can be avoided or remedied by implementing a few simple steps that encourage an effective non-threatening way to communicate openly without fear of reprisal. Here are several suggestions which family members may find helpful in improving and strengthening relationships.
- Define the authority and responsibility of each family member// Set out, in the simplest of terms, what is expected from each individual and what role each person will have in the business. Write the expectations for each person and, where appropriate, communicate the authorities and responsibilities to all employees. Confusion and concern for the unknown create more problems than dealing with what is clear and understandable.
- Determine who reports to whom// Someone must be in charge. Don’t let arguments develop over details of the reporting structure. Let them evolve over time. Just establish and operate with the principle well in place.
- Determine the office or work space each family member will have, together with parking, furniture and other resources that are to be made available// Often, these things may be taken for granted. However, any one of them can serve as the basis for a needless emotional outbreak and confrontation between family members.
- Put it in writing// Too often, agreements concerning salary and benefits are ignored or deferred for weeks and months. “What are you worried about? It will all belong to you, someday.” Deal with these issues up front, just as if the family member were any other employee. And, put it in writing. It is not an issue of trust. It is simply good business.
- Don’t be afraid to question or disagree// Don’t let intimidation get in the way. Remember, you are dealing with business issues, not family matters. Don’t let the family relationship get dragged into the business discussion.
The introduction of family members into the business can be traumatic for the senior family member. For years things have been done “their way” with little or no pressure from the family; and sometimes, with little or no knowledge on the part of the family.
Now, the family may gain new insights into the workings of the business through the presence of the newly hired family member. Sometimes the new family member doesn’t fully understand what is going on. It is easy to misinterpret. This can generate business opinions, suggestions and interpretations from family members outside the business who don’t really know what is going on.
Families have dealt with these issues in a variety of ways ranging from ignoring the situation to overreacting with threats and ultimatums to establishing Family Business Councils. Getting these issues resolved is good for the business and good for the family.
