My heart broke for a family business recently. I tell their story hoping that it will inspire you to make tough decisions about family members in your business. This family learned the hard way that when the wrong people stay, the right people leave.
A Family Starts a Business
This family invested in a business together. Mom and dad brought the money and the business and life experience. The son and daughter brought passion, willingly working in the business to turn it around.
This close, loving family decided to use the Entrepreneurial Operating Systemยฎ (EOSยฎ) to stay focused on the right things. They didnโt want the business to hurt their family relationships. They followed EOS purely, hired me as an Implementer, and committed to staying true to the process.
When we built The Accountability Chartโข at their Focus Dayโข, the son and daughter both sat on the leadership team. Mom and dad sat in the ownerโs box. Mom and dad didnโt attend the rest of our meetings or Level 10 Meetingsโข. Instead, they had regular ownership meetings. Things got off to a great start.
The GWCโข Challenge
To be successful in any role, a person has to get it, want it, and have the capacity (GWC) to do it. After about four months, it became clear that the son didnโt get or have the capacity to do his job.
In over his head, he wasnโt effective in his role. Unfortunately, when he got this feedback, he didnโt agree. He felt he got his job, he wanted it, and he had the capacity to do it well. His parents thought he did too.
While incredibly difficult, the team gave him specific feedback during a quarterly session. After a painful and tear-filled IDSโข session, the son decided to step down into a smaller role in the business. He stopped coming to the weekly leadership Level 10 Meetings but continued to attend the ownership meetings.
While they had hit their first real challenge, all seemed well.
Increased Tensions
Things got really hard again when the son didnโt get his new job either. He didnโt seem to want it and he didnโt have the capacity to do it.
At that point, his sister had taken on new responsibilities in the company. She was working a lot of hours and making a huge difference. She became frustrated and embarrassed by her brotherโs lack of performance.
In addition, it didnโt feel fair to her that she worked many more hours than her brother did. She brought in sales and improved the efficiency of their manufacturing. Meanwhile, he rarely hit his Scorecard numbers and didnโt complete his Rocks.
Even though the son struggled, the Integratorโข and his parents and sister agreed to let him stay in that role. They felt that he didnโt hurt the business, even though he wasnโt helping it.
As their EOS implementerยฎ, I didnโt feel completely comfortable with that position. So I encouraged them to get the son in the right seat or ask him to get a job elsewhere.
I reminded them that he could just serve as an owner. When they chose to leave him in the seat, I ultimately let them run their own business as they wanted.
I regret that. I wish I had pushed them harder.
Family Breaking Point
Unfortunately, the son continued to do poorly in his role and the daughter became increasingly frustrated. She resented that the business paid her brother instead of using that money to invest in their growth.
She watched her brother leave early to spend time with his kids and come in late. But she came in early and stayed late, missing time with her kids. She heard people say negative things about her brother and didnโt feel she could stick up for him. One day she realized that instead of feeling frustrated that the business wasted money paying her brother, she could take herself off the payroll instead. Since her brother wouldnโt leave, she would.
She decided to job hunt, found a significantly better-paying job, and stepped out of the family business. While excruciating for her, she felt like it made more sense. She hoped to salvage their relationship because that mattered more to her than the business.
Sadly, the business no longer has her excellent leadership skills and work ethic. Their family relationships are strained. The team left at the business works with an owner who doesnโt perform. And now they need to hire a new member of the leadership team.
As their EOS Implementer, it pained me to watch this unfold. I should have, could have, wish I had put my foot down. I shouldโve insisted they dealt with this people issue as if it didnโt involve a family member. Ultimately, I do know they can and do have the right to do as they wish with their business, though.
Do you have family members sitting in the wrong seats in your business? I hope this story inspires you to take action before your right people decide to leave.
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