BUSINESS Challenges of a Family Business It may be worth considering the DISC Personality Test tool. This is well- established mechanism is used by busi- nesses to identify the management styles (personality type) of their key players. The notion is that, within a group, play- ers will have different management styles (and personality types) that will cause each individual to approach issues in a somewhat different manner. By being aware of how each team member — in- cluding yourself — is wired, we can learn how to work better together. Here are a few final thoughts and recaps: Don’t force your kids to make a career in your business. Your dream isn’t necessar- ily theirs. Ideally, let them gain some work experience elsewhere before working in your family business. Avoid hiring fam- ily legacy losers or turning your kids into living Peter Principle examples. Develop task lists and job descriptions for each of your functional areas, as if they were separate jobs for different individu- als. If necessary, combine those functional tasks into job descriptions. Consider using the outlines previously provided. Avoid creating “special” jobs for your kids or overpaying them. Imaginary friends are fine, but not imaginary jobs (except perhaps in government)! Pay your employee adult children market rates and tie their overall compensation to mea- surable performance or a company-wide structured Performance Incentive Pro- gram (PIP) so that they learn the essential link between performance and reward. 20 KEYNOTES SEPTEMBER 2020 One common issue worthy of separate mention is the inherent conflict between generations. It is imperative that older generations avoid stif ling younger fu- ture managers and owners just because the older generations resist change and/ or won’t let go of control. Although this could not possibly apply to any of our readers (certainly not you), one example is where older owners may not be technology savvy. Yes, your flip phone may have become your security blanket — and we understand why you maintain a dead man’s grip when any- one suggests upgrading — but you really need to suck it up and embrace sensible change. A smartphone is better for your business. Yes, if it helps ease the transi- tion, we can have your new smartphone programmed to have Siri or Cortana say things like “Yes, your majesty,” “Baby, you’re the best” or “You are amazing.” This reminds me of when I worked for a very smart boss who hired me as a change agent and yet had already said “no” before I could even finish explaining any change I proposed. If your best defense against new ideas is that “we’ve always done it that way,” then you need to unscrew the top of your head and let the bats fly out to make some room for new ideas. This is especially true if the idea or change is proposed by a younger family member who is destined to be a future leader or owner of the family business. If you routinely reject every new idea or proposal, your people will eventually stop offering suggestions and ideas. Listen at- tentively, thank them for trying to help and share any concerns by asking some penetrating questions rather than mak- ing negative reactive statements. Although there are many generic simi- larities in business, each enterprise has its unique elements, personalities and oth- er factors. Readers should decide if and to what extent any suggestions offered herein are a good fit for your business or worthy of consideration. When developing the exit strategy for your family business (yes, you should have one), keep in mind that, statisti- cally speaking, failure rates are high for third-generation small businesses and even higher for fourth-generation. The topic for our next article in this series will be exit strategy basics. Noel Flynn is a degreed business management consultant with global senior leadership experi- ence, including more than 20 years in manufactur- ing, wholesale distribution and consulting sectors of the security industry. Noel has been a senior executive, officer, board di- rector and adviser to not-for-profit and for- profit companies in numerous industries worldwide. This includes being an ALOA SPAI board member since 2011, and he is also an ACE instructor, developing and teaching business management. Contact him at [email protected]. WWW.ALOA.ORG
