Family Business (CONT’D FROM PAGE 14)
must be clearly understood by everyone,” said Brownell. “Transparency in these things can make a huge difference, because everybody will know what's expected.” Maintain Clear Chains Of Command Too often new employees find themselves juggling contradictory directives from more than one family mem- ber. This creates operational and morale problems. In the worst-case scenarios, the frustrated worker leaves for an- other employer. “Family businesses must maintain robust organization- al charts that illustrate clear chains of command, so that no employee ends up reporting to multiple bosses, whether formally or informally” said Aronoff. “It is the responsibility of top-level management to create a clear system of au- thority.” Distribute Perks Fairly Non-family employees should share equally in company niceties such as paid-time-off, flexible working hours, and work-life balance initiatives. “If family members are given special perks, it is noticed by everyone,” said Aronoff. “And that can lead, again, to morale problems and a decline in commitment. While this kind of treatment will be accepted by some people, it will not be accepted by those who can provide the greatest return for your company.” Reinvest Profits One of the most critical family issues is that of financ- ing: Will profits be re-invested in operations or distribut-
training opportunities outside the business structure. Earn Stripes Elsewhere “Assigning family members without adequate expe- rience or training to management positions can create a sense of entitlement which is frustrating for everyone,” said John Joseph Paul, a Portland, Oregon-based family business consultant (familybusinesscounsel.com). “In- stead, family members should prove their mettle by work- ing at entry level positions in other, similar types of com- panies. This experience will give them the opportunity to learn practical skills.” Many companies today require fam- ily members to bolster their credibility by gaining experi- ence at another company for five years before joining the family enterprise. Communicate Family Business Policies Having the right family business policies is one thing. Ensuring everyone is aware of them is another. “It can be frustrating for non-family employees if they feel like their advancement opportunities within the com- pany are limited because a family member will eventually come in and snap up a job they’ve been working toward,” said Harms. “That’s a pretty common frustration.” This situation can be obviated by communication. Fam- ily and nonfamily workers must understand the policies that govern promotions. “Clear guidelines on how the family is going to be treated personally and professionally
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February 26, 2024
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