Too many family business teams simply allow family members to show up and become part of the team without actually stepping back and being more thoughtful and intentional about determining what kinds of players are needed for long-term success.
Here’s a few simple steps of how a family can get the right players on their team:
1. Determine and articulate family values
Successful families sit back and articulate the values that are important and needed for the business’s long-term success. When values like hard work, integrity, generosity, determination are articulated they set a great foundation for helping future generations understand what’s needed for future success.
2. Have clearly defined performance standards
Highly successful family businesses know performance measures are a critical strategy for long-term success. The sooner the business can have clearly defined performance measures the sooner the family will be on the right track to attracting and keeping players who can hit the performance standards.
Fuzzy or casual performance standards are a recipe for poor performance for the family business.
3. Create a pre-employment policy for the family
We always encourage families to create a pre-employment policy that requires family members to seek employment and demonstrate success outside of the family business. If you want to get a template for creating a pre-employment policy it’s part of our family business survival system.
4. Discuss and be prepared for terminating poor performers
Just because you are part of a family business or are an owner within a family business that shouldn’t be a ticket to permanent employment in the business. It should be made perfectly clear that family members that cannot perform will be terminated as a normal course of family business success. This mindset should be created in the family early and often.
5. Be prepared to reward and recruit successful players within the family
If certain family members work hard and achieve degrees and advanced degrees and success outside the family business those family members should be rewarded with more meaningful and higher paying positions within the family business.
Simply treating everyone the same will be a great de-motivator for some of the players that are most needed for your long-term success.
6. Be courageous and demanding with your family members
Nothing kills a locker room vibe quicker than having a team that tolerates and puts up with poor performers. Successful family business families begin breeding a winning mindset and a competitive determination early in the families development.
Most families will have superstars, average yet important role players and some players that simply lack the inner strength and ability for business success. Smart families create opportunities to develop all of these players and help them all find places in the world where they can enjoy being themselves and being in a position that suits their personal makeup.
Too many families sit back and hope that it will all sort itself out, but I’m here to tell you for many families that simply doesn’t happen. Successful dynasty families take an active part in creating meetings and conversations that help set the family on the right course.