Lenses (3) = family, business, ownership

Did you know that in your role in the family enterprise, you can have three different roles: family, business, ownership? They each have differing and sometimes conflicting goals and objectives so to clearly understand a decision that you are making, you should understand from which of the three perspectives you are making a decision.

The issue – your niece (your older brother’s daughter) has been a manager in training with the enterprise for the last 10 years. A role in the senior managerial ranks has opened up with a recent and expected retirement. Your niece has applied for the position and is qualified to take on the role.

Analyzing the issue through the three lenses

Family – you have a familial obligation to support the blood family in the business. How do you make the decision objectively and what are the familial implications if the answer is no? Have you discussed best employment practices with the family before you have faced this decision?

Business – you always want to the hire the best and most capable for all positions. This is an objective test and should be relatively straightforward to decide from this perspective based on capabilities and performance.

Owner – your niece may also directly or indirectly be an owner of the business. Is the family value that you have a right and obligation to employ the owners in the business? Has this policy been well described and communicated to the owner group?

Outcomes and perspectives on each. As you can see, this is a potential minefield if you are not clear 1. from which perspective you are deciding and 2. the family, business and ownership groups have not had prior communications on the policies / values related to this matter.

Moral of this story: communication is the key, before, during and after a decision is made – and clarity of perspective. The family needs to establish its views and values so that all would understand how a decision and why a decision was made.

My suggestion: practice and look at decisions from the three perspectives. This exercise is like dividing your mind periodically and is difficult.
Good luck.

Learn, think, apply!