Managing your Family Business and Keeping your Cool
Managing your Family Business and Keeping your Cool
By Samantha Garner, GoForth Institute
Samantha Garner is GoForth Institute's Director, Communications. Contact Samantha by email: samantha@goforthinstitute.com
Approximately 80% of all Canada’s businesses are family-owned. Not only that – family-owned businesses are responsible for 50% to 70% of our gross domestic product each year. Many of Canada’s largest and most well known businesses are family-owned, such as Bombardier, Molson Breweries and McCain Foods Limited. What’s the secret to a family business’ success? One of the key factors to a successful family business is keeping the family and the business happy at the same time.
Maintaining a healthy work/life balance in a family-owned business
Running a family business can be infinitely rewarding. There’s a stronger sense of loyalty and shared values when family goes into business together. However, family-owned businesses can also fall victim to the same emotions that can flare up around the dinner table. Here are some ways you can maintain a strong business and a happy family.
Run your family-owned business like a business
It’s great to spend time with your family, but remember that this is a business first and foremost. Treat family and non-family employees the same and keep family politics out of the business. If your younger sister is a manager in the family business, don’t pull the older sibling routine and put her down at work – especially in front of non-family employees.
Keep control
Establish a clear chain of command, goals and objectives and communicate well to family and non-family business members alike. This is not the time to have your cousin bring up the six years you spent in university because you couldn’t decide on a major. If you’re the boss at work, don’t be afraid to act like one.
Keep cool
Don’t lose your temper at a family member at work, as easy as it may be. Emotional outbursts affect not only the family member but the non-family employees as well, creating a toxic work environment. Keep the bickering from interfering with the real goals and objectives of your family-owned business.
Hire and fire fairly
Communicate clear expectations to both family and non-family members about their job performance. Train, compensate and evaluate all employees and managers equally and fairly.
Create a family culture, even amongst non-family members
The founder of a family business creates the vision, values, and culture that says, “This is how we do things around here.” This culture should be welcoming, and should allow non-family members to feel like they’re part of the extended family. An “us vs. them” environment is never a good business strategy.
Encourage progress and stay open-minded
As the older generation of the family business ages, they can be less receptive to new ideas, new technology and new ways of doing things – “But we’ve always done it this way!” Encourage the older generation to be flexible and adaptable, or perhaps to begin the process of succession planning. And if you’re part of the older generation, don’t forget that your family raised some smart children – keep an open mind to new ideas!
Heir today – plan succession early
If history has taught us anything, it’s that passing the torch from family member to family member is a process best kept as confusion-free as possible. Start grooming the successor for his or her leadership role as soon as you are able. Early selection of the “heir to the throne” will make the transition from one generation to the next more smooth.
Don’t take your work home with you
Maintaining a good work/life balance is important in any line of work, but even more so in a family business. The last thing you want is for your nephew’s 10th birthday party to be ruined because you and your uncle are arguing about the family business’ marketing strategy. Remember why you got into business with family in the first place and devote your non-work hours to having a good time with the people you love the most.
Samantha Garner is GoForth Institute's Director, Communications. Contact Samantha by email: samantha@goforthinstitute.com
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