Who should fix this?

Over the years I have had the pleasure of meeting and working with many non-family senior leaders in family enterprises - CEOs, CFOs, CIOs etc. For many, the attraction of working in a family enterprise is being genuinely valued; having a sense of accomplishment; the family values and culture. These attributes are also an attraction for external advisors to the family enterprise, who build close relationships with the family over many years.

The close connection has many upsides. However, there is the potential for the non-family enterprise leader to inadvertently fall into the role of family confidant and counsellor, or the peace maker, or the mouthpiece. These roles never came with the job description and were never signed up for. But given the close connections formed with the family there is a sense of responsibility – or an unspoken expectation of family member/s - to perform these roles at one time or another.

It could be argued that because the non-family member knows all the key players well, they are in a unique position to resolve family relationship issues and restore balance. My observation is that the trusted non-family enterprise leader may resolve an immediate issue (the squeaky wheel), however often the squeaky wheel is a symptom of a deeper problem. The non-family leader may know what the problem is and how it emerged but is not equipped to solve it. And it is unrealistic and unfair of the family to expect that they can.

Consider the following (real) scenario… ?

• A family member (the squeaky wheel) needing a job. The family leader (i.e. the parent) tasks the non-family leader to create a new and unnecessary role. This solution (the oil) masks the squeak for a time; however, the solution does not sit well with other family members, leading to increasing dissatisfaction, tension and resentment towards the family member with the new job and the family leader (e.g. parent and owner) who allowed this to occur.
• Over time, the family member creates never ending chaos in and around the family enterprise…the wheel breaks. The enterprise is negatively impacted (e.g. reputation, financial, staff morale), and the family becomes fractured…the wheel needs to be fixed.
• The non-family leader is expected to fix the wheel because it is a “business issue” (says the family leader). What? How? They are being placed in an impossible position, being told to fix a wheel with bale twine (nb: as every farmer knows, bale twine holds it together but does not fix it).

The takeaway

The non-family enterprise leader who takes it on themselves to assist and support the family is admirable and is reflective of their character. ?However, there are family problems which only the family can solve.

Or in the scenario above, by not creating the problem in the first place. The proactive solution to avoid the problem brewing would have been: the family setting and communicating clear rules and expectations with respect to family members working in the enterprise; proactively addressing unwanted behaviours if they emerge; and prioritise the best interest of the whole family and the enterprise over the wants of the individual.

Non-family enterprise leaders do not have the necessary ‘family relationship capital’ for that.