I need help managing a business with family members. How can I navigate tricky situations when running a company with loved ones?
Marcello Leone - CEO, Trace Mineral-Rich Water and RYU Apparel
Navigating the ins and outs of family business is something I grew up learning as I was heavily involved in my parents’ business, Leone. I learned early on that a strong family culture was a key ingredient to my parents’ success, and now I am utilizing these lessons in my own businesses, Trace and RYU, with my wife and business partner, son and daughter.
I believe in being honest and straightforward in business dealings – like anything in life. A significant thing to note is our culture of accountability here. Everyone, including family members, has committed to doing what they say they will do. On time, every time. No one is above that mandate. Knowing that we have all committed to that level of integrity makes it possible for both background conversations and uncomfortable conversations to happen. That alone resolves many issues before they become tricky.
In creating a family culture at our businesses, it is crucial that all other members of the team understand they are not just employees; they are part of a larger family. We make hires very carefully, take care of our team members and treat everyone with the utmost respect.
The members of my family who are on the team have clearly defined roles that play to their strengths and are there not because we are related but because they have the skills and dispositions needed for our companies to succeed.
Based on my first-hand experience working in a business as a member of the family on the employee side and now as the business owner, I find it clear that the best course of action when combining family and business is being direct and treating each person equally, whether or not you are related.
Shaadi Faris - Vice-president, Intergulf Development Group
Although hurdles may arise, working in a family business presents a great opportunity to learn from the people you trust and admire most in your life, and can strengthen your relationship both personally and professionally. Having worked with my father for the past two years, I have learned a lot about maintaining a healthy balance between work and family.
Be transparent
Acknowledge your relationship in the workplace. Your co-workers are certainly aware of the fact that you are related; trying to hide it is a useless, contrived exercise more likely to breed resentment than to prevent it. Your family-run business often becomes a central part of your lives, so it’s important to embrace it and be natural.
Go the extra mile to be professional
In a corporate context, employees must be careful not to act too casually around family members, so as not to risk compromising the professional nature of the workplace. An employee may even interact more formally with a family member than other colleagues, to assuage any fears that colleagues might have about a potential double standard.
Communicate
The success of any family relies on strong communication and the workplace is no different. Be aware that blurred lines between work and family add a layer of complexity and avoid the temptation to play down or ignore the importance of effective communication between you and your relative. Recognize the unique nature of your place in the office and focus on strengthening both business and family.
Steven Van Geel - Sales director, Frosst Creek Developments
Working with members of your family can be rewarding but has the potential to be much more complicated than simply clocking in and out of your professional and personal lives. My family and I have been developing homes together for many years and also live in close proximity at one of our recent developments. Working closely together, we’ve learned to live by these rules of thumb for managing a family business:
Develop a code of conduct and boundaries
Expectations can be higher when working with family members, and that’s where the real value of established working boundaries comes in. Objectively defining your roles from the start will help you to avoid stepping on each other’s toes and lets you focus on what’s really needed to make the business a success.
Be accountable and ego-free
We’re often quick to point fingers, regardless of what our personal relationship is with colleagues, but assuming a real sense of accountability is vital when working with family. Being humble and managing your ego are crucial if you’re going to develop an effective, long-term working relationship with family.
Do what’s best for the business
There’s a sense of familiarity and comfort that comes from working with family members, but that doesn’t always work to the benefit of your business. Working with family can leave you prone to minimizing or overlooking their errors, or it can make you excessively critical of their work. Transparency is key and will reinforce the respect that should be present throughout every level of your business.
