A family business can be a source of great joy and pride, where multiple generations work together to build a company while blending home and work lives. However, for the same reasons, it can also ruin families.
Family businesses are unique environments, and for them to succeed, it’s crucial to have the right people in the right roles. Just like any other business, clarity through job descriptions is essential to prevent everyone from doing everything, wasting time, causing hurt feelings, and failing to achieve goals.
Write it down
A vital starting point is to understand what each family member wants from the business. Especially when the second generation takes over, assuming they want the same things as their parents can lead to frustration, disagreements, and potentially family fractures. It’s important to ensure everyone is on the same page strategically.
Once the business is clear about its objectives, it can begin working towards them. Family members often have a general idea of each person’s role, but putting these roles in writing – with detailed job descriptions – provides clarity, accountability, and focused expectations. Without these, the business can struggle with:
- Decisions: Questions like “Isn’t Dad supposed to arrange that meeting?” or “Are we buying that new piece of equipment?” arise when decision-makers’ roles are unclear, leading to missed opportunities, angry customers, or failed deadlines.
- Accountability: Being a relative doesn’t absolve someone of their responsibilities. Job descriptions help clarify each family member’s responsibilities, performance expectations, and their contribution to the organisation’s goals and success.
- Duplicated Efforts: Undefined tasks can lead to family members unnecessarily jumping in to handle tasks, resulting in duplicated work or inefficiencies.
- Arguments: If some family members feel they’re doing more than their share, resentment and frustration can build, leading to conflicts at work and home. In the worst cases, such conflicts can fracture both the family and the business.
- Skills and Growth: Are family members utilising their strengths and enjoying their tasks? With defined roles, members can focus on areas where they excel, and the business can consider hiring external employees to bring in additional skills and support expansion.
- Succession: Clear role guidelines make it easier to plan for future leadership transitions, implement necessary training, and develop a robust succession plan to ensure the business continues for future generations.
By defining each person’s role and creating job descriptions, family businesses can avoid these issues and create an efficient, professional environment with greater chances for future success.
Seek expert advice if needed
If your family business has never discussed job roles, it might be wise to seek help from a third-party advisor who understands successful business operations. An impartial mediator can provide objective assistance and keep discussions professional.
For help with outlining job descriptions and building a great business, contact the experts at Accru Harris Orchard today.
