Turning Your Employees Into Owners
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I have the privilege of knowing the leaders of many successful family businesses; I have also been one myself.  Passing down the leadership of a successful company can be a great opportunity for the next generation, and I’m glad I got a chance to work with and get to know my father in that way. But family businesses do not always work out well. Lines can get blurred, and sometimes people go to extremes, pushing children into or out of the business. A lot of people are understandably reluctant to mix family with work. I simply suggest that you take the time to discuss and consider all the issues before making your decision.

My father initially discouraged me from joining his company. He saw that I was finding success on my own and knew I could continue doing so. Many parents take the position that a family business is not an option—they feel that each generation should start from scratch and find its own way. Even those who want to give it a try find that family complicates business leadership.  How do you instill a strong work ethic, pride of accomplishment, and self-sufficiency in future generations?  How do you negotiate the boundaries between the professional and personal relationships? What do you do if the offspring you want to join the family business do not want to? What happens if the eager family member can’t or won’t do a good job? Is the business really a family asset to financially support current and future generations or is it simply your job?

Those who are ready to seriously address all these questions and more will be able to help their offspring avoid substantial startup risk. Joining a family business may allow the next generation to have more influence on their work schedules, location, and the team that they work with.  But it isn’t an easy path. Based on my experience, it often means working harder and longer that you would in any other company–for me, working with my father meant a lot of time spent in airplanes and hotel rooms. For a family business to be successful, the next generation must have the determination and sheer willpower to forge ahead—and the current generation will have to figure out how to pass on their institutional knowledge and business savvy. Together the family must find ways to maintain those characteristics that make the business a success while managing the changes that new leadership and new challenges will require going into the future.

Transitioning the family business to the next generation is a gift.  The family business can create opportunities and carve out destinies.  It can result in pride of authorship through creating and selling a product or service that makes a difference.  It allows you to stand up for what you believe in and lead through example.  It allows you to have a positive impact on yourself, your family, your team, your community and those around you.  91% of all American work for someone else—but the family business can provide your children a fast lane into the 9% that lead others.  This gift is not about joining a country club or getting things handed to you. It is about hard work, integrity, responsibility, and about making decisions that can impact hundreds of lives.

I would submit that building on the success of the current generation’s business and using it as a spring board may be the harder option, but can result in greater opportunity and accomplishment.  Neither generation should dismiss this opportunity. It is a viable option that can positively impact all involved.

 

Recently, Tom Foster introduced me to a tool based on the research of Eliot Jacques—whose premise was that people differ in the time spans across which they can anticipate and plan for change. A good definition of leadership is managing change, so these time spans have a big impact on the type of leadership role a person can occupy.

Like a lot of business leaders, I used to think I had some kind of God-given ability to identify which individuals would do well in the organization. But even at the best of times, only about 60% of my hires really worked out like I expected them to. Looking at resumes and doing interviews just wasn’t giving me the information I needed to accurately predict how people would perform in the job.

Eventually, I looked for ways to do hiring better. One popular approach was formal assessment tools so I could get a better idea of applicants’ skill-sets. Basically, I was trying to clone people. I’d look at the attributes of a person who was doing a really good job and then look for someone else with a similar profile.

For example, I remember interviewing an individual for a comptroller position. They had years of experience with this really unusual software we were using. I thought I’d won the lottery when I saw that resume come across my desk. How could it not be a perfect fit? Fortunately, I listened to good training and policy and dug a little deeper. Based on a profile assessment, I found out that they didn’t like repetitive tasks and didn’t like working all day in an office. This was contrary to what I had thought I knew about them and contrary to the needs of the position. This information allowed me to ask some new and better questions.

As it turned out, they hadn’t been a comptroller before. Instead, they had been training other people on the use of the software, always moving from location to location. So they didn’t really have the experience I was looking for–and when I told them more about the position, they admitted it didn’t sound appealing.

Hiring the right person often depends on asking the right questions. That in turn depends on finding new and insightful ways to think about what you actually need from an employee for a given position.

For example, some people can really only think a couple of weeks ahead. It’s not that they don’t know the future is coming, it’s not that they aren’t smart; it’s that they’re focused on the immediate. They might be very talented with production or customer service, any kind of position that involves responding quickly and well to the current situation. They may not be able to do as well with management tasks, such as hiring new personnel, that have to be initiated weeks or months ahead of time. For that, you need somebody who can look farther down the road and can anticipate the need for change.

Generally, the higher up the chain of command you are, the greater the time span you need. If you’re drafting business strategy for the entire company, you really need to be thinking about ten years ahead—or more. Very few people have the ability to do that.

This kind of planning ability is not related to experience or education. It’s part of a person’s thinking style. That doesn’t mean that someone with a very short time span for planning is doomed–it is possible to improve your planning ability to some extent, or to simply learn coping skills to get around the problem. But a person is just not going to be able to move from one end of the scale to the other. If you’re hiring for a leadership position, you need to look for a candidate who can demonstrate an ability to anticipate as much of the future as the position requires.

A job applicant is not going to be able to tell you straight out what their time-span is. It’s not the type of thing people are normally aware of. And, as with all other assessment tools, this isn’t something that can make the hiring decision all by itself. You still have to look at resumes and skill-sets and expectations for work-place culture and everything else. Each aspect of the process still has to be seen in context. Time spans are simply another lens, a way of looking at the requirements of a job and the abilities of an applicant.

But it’s a powerful lens, one that you need to make the right hiring decision reliably.

Four Requirements for Hiring:

  1. Capability: match level of work to time span
  2. Skill: technical, knowledge, practice
  3. Interest: passion, value
  4. Behavior: habits, attitudes

Sources:

www.timespan101.com

www.hiringtalent.com

www.outboundair.com