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member employees—or to let them take advantage of you.
Having defined responsibilities for family member
employees, managers and owners is one way to guard against
the work-family relationship becoming unbalanced, says Mike
Newman, executive vice president of NOCO, which operates
34 NOCO Express convenience stores. It’s equally key to have
processes for determining pay, promotions, work schedules
and performance reviews. In addition to ensuring that your
family members are treated fairly, this will also help guard
against subconscious favoritism, which can be off-putting to
non-family member employees.
Get outsiDe Help
“Don’t be afraid to ask for help,” urges Wagner, whose sister
and parents are involved in the family business. “Whether
you need a succession plan, [need to] cope with two family
members who don’t get along, or [to] fix board meetings where
no progress is being made, an outside consultant or mediator
can go a longway toward resolving issues before they escalate.”
At NOCO, a board of directors that originally consisted solely
of five family members has evolved to include two outsiders
and the company’s non-family member CFO. “The outsiders—
an attorney and a former banker—were [recruited] for the skill
sets they bring to the table, but it’s also helpful to get opinions
from outside the family,” says Newman.
pRoteCt “outsiDeR” family membeRs
When multiple relatives are involved in a company, it’s all too
easy for social event talk to drift toward business. As tempting
as it might be to bring up that problem employee to Uncle
John at the backyard barbecue, it’s critical to resist the urge.
“It’s important to remember when you are a family and when
you are a business,” notes Newman, who co-owns and runs
the company with his brother. “We try to not bring business to
family functions.”
That separation helps guard against feelings of exclusion and
resentment that can arise from family members who are not
involved in the business. “It’s important to remember who is in
and who is out and to have respect for those who are not in the
business,” says Newman.
“It will be better for your marriage if you don’t make your
spouse the dumping ground for family business drama,” agrees
Wagner. “And your childmay not understand what you’re saying
about [your relative] but that doesn’t mean she won’t repeat it
at Thanksgiving.”
staRt suCCession planninG eaRly
Succession is where many family businesses implode.
“The generational transition was most challenging,” recounts
Newman, who teamed up with his brother to buy the company
that his grandfather founded and passed on to his father and
uncle. “My uncle struggled with it. He didn’t have kids who
wanted to join the business, and he had trouble with having
been in it for 40 years and then no longer [being] in [control].”
For many companies, bringing in outside help smooths
the leadership transition process, whether it be a professional
facilitator who helps the family hold effective meetings around
succession planning or a consultant who helps to assess
potential next generation leaders and guide the company
through the transition period.
“[Leadership] transition is very difficult and filled with
emotion,” sums up Newman. “In hindsight, I wish we had had a
stronger board there guiding us through it; it would have been
smoother for the family.”
TB
C-STORE CORNER
Wagner with her family
member colleagues
