Start the year by aligning attitudes and actions with goals.
Discuss succession planningTransitioning to the next generation of owners, managers or even nonfamily professionals is often the thorniest issue in family businesses. (See “Tackling succession,” May 12, 2018.)
Several famed tycoons passed away the previous year. Today, the smooth functioning of their conglomerates depends on the training and preparedness of their successors.
Succession planning is even more urgent for small- and medium-sized businesses, which generally rely on family members and trusted retainers for management and labor. Sometimes, the entire clan depends on the proceeds of the business, even if only a select few run the show.
What happens if the younger generation does not want to enter the business? Or if no one is qualified to run the enterprise? How can the family generate another source of income if the need arises?
Communicate effectively
When working with families, I prefer to deal with relatives who argue in front of each other, even with their voices raised, rather than those who outwardly appear civil to each other but harbor resentment in their hearts.
As compared to Westerners, it is said that Asians find it harder to deal directly with uncomfortable issues. Whether or not this may be true, communicating promptly and honestly can clear up misunderstandings before they metastasize into bigger troubles.
No one is perfect, so focus not on the person, but on the act. In family businesses, problems usually arise from honest mistakes rather than malicious intent.
Mistakes, however, can be costly. They can harm the bottom line, erode trust, destroy relationships.
Thus, mistakes and other issues cannot be ignored. The sooner they are brought to light and measures taken to rectify them, the better for everyone. (See “How to communicate effectively,” Jan. 3, 2014.)
Clarify accountability
“Laugh, and the world laughs with you; weep, and you weep alone,” says US poet Ella Wheeler Wilcox. “Rejoice, and men will seek you; grieve, and they turn and go.”
In times of success, everyone wants a share. But when troubles arise, people generally wash their hands of them. “Sumusunod lang sa utos (We’re just following orders)” is an oft-used, albeit poor excuse.
On the desk of former US President Harry Truman was a plaque with the words “The buck stops here.”
But accountability is often absent in huge corporations where delegation is the norm—and in family businesses where structures are nebulous.
Suppose company sales went down in the past year. Who is responsible? The salespeople who cannot satisfy customers? The sales head who cannot motivate his team? The marketing department who does superfluous advertising? Human resources who cannot attract and retain employees? The owners who impose unrealistic sales targets, practice favoritism in dealing with staff and treat the business as their personal piggy bank?
Who is exactly responsible for what? Refrain from being “makuwenta” (calculating), but make clear the extent of individual and group responsibilities vis-à-vis goals. (See “Accountability in family businesses,” July 4, 2019.)
Try something new if needed
Many owners and managers stagnate, not just in mind but also in spirit. They joke about being in the midst of midlife crises, but some lapse into anxiety and depression. (See “I feel empty,” Oct. 5, 2018.)
“In the past, I could not wait to start the day, but now I can barely get out of bed,” says the head of a retail family firm. “Day in, day out, it’s the same thing. Business is OK, people are OK, but is this all there is to life?”
Some people start new enterprises; diversification makes sense in a turbulent world. Others learn something new; honing the mind is essential as life spans increase. Still, others give to the Church and to communities; faith and gratitude are balm to the soul.
Have a blessed 2020.
Queena N. Lee-Chua is with the board of directors of Ateneo’s Family Business Center. Get her book “All in the Family Business” at www.lazada.com.ph or call National’s Jennie Garcia at 0915-421-2276. Contact the author at blessbook.chua@gmail.com.