Four Common
Pitfalls plaguing
businesses and
potential solutions
to them
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
Solution
# 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.
Each
position
should
have
a pay
range
associated
with
it.
Longevity
should
have
nothing
to do
with
that
range.
There
may
come
a
time,
when
its
occupant
is
over
paid
and
they
need
to
understand
those
limits.
Increase
their
value
to
the
employer
in
some
capacity
or
stay
in
position
at
the
maximum,
hopefully,
without
their
productivity
slipping.
Solution
# 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.
The
core
values
of
truth
and
honesty
should
be a
strong
component
of
that
Performance
Measurement.
Integrity
as
well
as
upright
character.
Lies
and
deception
and
inferior
character
traits
sooner
or
later
come
out,
often
in
subtle
ways
with
some
blatantly.
When
they
do,
they
destroy
quickly,
as in
instantaneously,
ALL
the
good
the
organization
has
worked
to
build
up
over
the
long
term.
Truth
and
honesty
and
character
should
be
major
key
core
components
in
ANY
performance
measurement.
Include
work
ethics
in
this
key
core
component.
This
area
has
been
under
attack
in
this
throw-away
society
mentality.
It
truly
needs
to be
returned
to
its
rightful
place
and
elevated
back
to a
core
component.
Arrive
on
time
and
work
when
one
is
expected
to
work
and
how
one
is
expected
to
work
100%.
With
no
excuses.
An
expression
I
heard
in
French
is
appropriate
here
translated
to
the
effect:
"All
excuses
are
good,
but
not
valid.
Period.
End
of
story."
Which
means
in
essence,
part
of
the
job
is to
include
these
core
value
key
components.
Do
YOU
understand
or
shall
we
find
a
replacement
for
this
position?
Under
promise
and
over-deliver
should
be a
hallmark
of
the
new
organization
going
forward
while
looking
in
the
mirror
evaluating
the
character
as
well.
From
the
top
down.
Every
position.
Demand
perfection.
Accept
nothing
less
and
watch
the
reputation
soar.
Word
of
mouth
gets
around
rapidly.
Referrals
will
soon
come
unsolicitedly.
Internally
as
well
as
externally.
Great
employees
will
gravitate
to
the
organization
while
customers
too
willingly
give
their
money
for
the
products
or
services
provided
with
little
effort.
Concerning
non-core
values,
ask
for
120 %
of
what
is
expected.
Simple
reason
is no
one
does
100%
of
what
is
expected.
If
one
asks
for
100%
or
80%,
then
people
will
do
70%
or
80%
of
what
is
expected
and
therefore
the
end
result
is
only
70%
or
80%
productivity.
If
one
asks
for
120%
as if
this
is
the
100%,
then
the
70%
or
80%
becomes
85%
to
96%.
Which
is
better
70 to
80 %
of
what
is
expected
or
85%
to
96%?
Same
effort
to
declare
what
is
expected.
Two
end
results.
Solution
# 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.
Solution
# 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.
With all
due
respect,
you want to
concentrate on the
business of business.
You want to
concentrate on making
a profit.
It is
the Turnaround
Manager's job to
ask and answer the
tough questions:
1.
Is the
patriarch spending
enough time minding
the business?
2.
Is
he/she putting
profits first, family
second?
3.
Are non-family
members unmotivated
due to a perceived
favoritism among
family?
4.
Do personal
battles dominate the
workday creating a
hostile environment?
5.
Are there too
many family members
on the payroll?
Is each needed?
6.
Are family
members hired for
positions they are
not qualified for,
simply because they
are family?
All of these
issues can affect
your ability to make
a profit. AND
... to manager the
business as it should
be
managed.
To find the
answers, take an
objective look at all
aspects of your
business and
implement the changes
that will turn your
business around and
get you back to
profitability.
Addressing these
issues can be vital
to a family business'
success and can help
strike the balance
between emphasizing
the company as a
family versus the
family running the
company.
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