FFR in Business - Part 1

Untold Stories – 4

I was with the Founder Alkesh (name changed) and senior members of the organization I was consulting for discussing and reviewing their quarterly performance. The formal session got over and the rest of the members dispersed. Now, it was just the entrepreneur and me when he said,” I am going through a personal challenge and I need your help.” I said, “Sure Alkesh tell me and we will figure out.” 

He continued, “A close family member wants to give up his current job and join my business. He says he is passionate about being part of a start-up.” 

“What is your problem there?” I asked.

“See the issues around it is – there is an emotional thread in the request – am I not your so and so? If my dad would not have helped your family when you were in trouble would you be here where you are now?”

Taking a pause and reflecting Alkesh said, “Chandru, I do not deny that the help they rendered was a turnaround but already with one relative around I am starting to feel discomfort. I do not want to add one more.”

I could see Alkesh was going through an internal turmoil – between family obligations and business needs. 

Period.

Through my consulting assignment I find it quite prevalent that the entrepreneur / business owner / founder (EBOF) in Micro, Small and Medium Enterprises look to appoint their friends, family, and relatives (FFR) in key positions.

It could be due to:

a)     Trust factor (You yourself are a first-time businessman and you need someone who can safeguard your interests even as you are busy servicing your customers, improving production, and overall expanding the business)

b)    Partnership / family compulsion (You are obliged due to business reasons (partners) or family emotions – as in the case above)

c)     Money factor (I cannot afford a full-time qualified person, so I will manage with whom I have)

Whatever be the reason, it creates so much of a challenge in the Micro, Small, Medium Enterprises that I work closely with.

So, what are those challenges?

What happens is that the EBOF does not look into whether or not there is a role fitment. It is ok if there is no role fitment – but do the FFR take any initiative to get themselves equipped with the knowledge, skills and attitude that is required for that role? At times yes, but more often a big sad no.

It is to this FFR the other professionals of that particular Function (say Accounts, HR, Sales) are required to report to. Lack of knowledge on the part of the FFR makes them question anything and everything that a seasoned professional does. Questioning alone becomes their primary objective.

Further, as the EBOF have no understanding of the ground reality – depending on the level of the immaturity of the EBOF – professionals who otherwise would have taken the Function / organization to the next level – exit early or a little later to safeguard their self-esteem and honour. But quit they do.

This leads the organization to be satisfied with mediocre and best in class ‘yes masters’’ in critical roles. And as the saying goes, a chain is as strong as its weakest link so also is an organization as strong as its weakest especially in such Key Roles.

What is the panacea for this?

Coming back to this case I replied, “Alkesh let us look at it dispassionately. The request is made by a family member of yours. The request is sought from Alkesh the relative. But remember the decision has to be made by Alkesh the Founder and CEO because the decision is about the organisation, it impacts the organization.”

I felt there was a sense of relief in his eyes when I shared this perspective.

But knowing this is only half done I continued, “Alkesh, no matter what you might say – your relative might feel offended. Now, it is up to you how you make up for it, make the other person look at things from your perspective.” 

Feeling a bit confident about himself now Alkesh said, “Now I have two questions. How do I put it to the other person? And importantly from what you have said now, how do I manage the relative who is already in the Company?”

While I had the answer in hand, I gave the much-needed pause in our conversation. After all, a salient point in any (business) communication is also non-communication!