Situation: The CEO of a family-owned business finds it difficult to hold family-member managers accountable. They are responsible for significant portions of the business; however, family dynamics make it hard to supervise them. How do you communicate that their responsibilities affect both the business and the family? How to you manage family in a business?
Advice from the CEOs:
- The first issue: Why have they not been asked for accountability to date? If you don’t ask for accountability, then don’t expect them to take this on by themselves.
- Assign one family member responsibility for developing the marketing and sales strategy for the company.
- Change the compensation from salary to salary plus commission. Over a 6-month period, reduce the base salary to half of what this individual currently earns and tie the rest to success increasing sales.
- Assign this person responsibility for analyzing the markets that you serve. Are there areas that the company has not tapped into yet? What can you do to make your web site up more effective at driving sales? How can you use exclusivity on select products to your advantage?
- When was the last time that the principals of the business met to figure out what to do?
- Set the stage: we have split the business into two divisions and have separated the financials. This gives us more flexibility as we develop the business.
- Show them the trends of each business.
- Show them that if the current trend continues the business will be unsustainable in X years.
- Facilitate a discussion that will start to generate solutions.
- If the others do not respond:
- Tell them that you appreciate their attendance at today’s meeting.
- Tell them that you will meet in another two days as a team. Until then you expect them to think things over and to come ready to share their ideas.
- Do not hold the meeting in your office or conference room. Secure an off-site neutral location with a white board.
- If you are uncomfortable facilitating this meeting hire an outside facilitator. Ask for the input of the others in selecting a facilitator and follow their recommendation. If you work with a facilitator, start with your own dilemmas to set the tone.