Blog

In a family Business, just like other Businesses, not all members perform effectively to expectations or role requirements!

This is not an uncommon situation. The underperformance of a staff or family member is challenging, putting all concerned in an uncomfortable position, threatening family and workplace relations and ultimately can affect productivity. 

The dilemma is how to deal with it, what to do, particularly where both the family and Business relationships are at stake. Not an easy matter to deal with and not an easy conversation to have! If you have experienced this, you will understand the predicament! 

But action is needed. If the matter is not addressed, the outcome can be disastrous. 

A closer look shows that the reasons for underperformance are varied; 

• Recruitment selection may be done based on family relationships, or obligation, not merit and competence. 

• A Member’s place of family importance is considered an excuse or ‘pass’ to overlook mistakes, poor behaviour or performance, by them and the family team. 

• A Member’s sense or belief of entitlement, with no accountability, makes them disruptive and they slack off. Such behaviours threaten the Business operations running smoothly.   

• Family rivalry, position and sibling power struggles resulting in lack of commitment. Members disengage and disconnect from personal responsibility. 

When dealing with a family member's underperformance it's crucial to address the situation professionally, using open communication, setting clear expectations and a focus on Business needs while balancing family dynamics. 

6 Steps to effectively managing underperformance 

1. Have the candid conversation: Don't let family relationships stifle this action. Arrange a private formal meeting. Treat the member with respect and dignity while clearly stating your concerns. Provide specific examples to support your feedback.  

2. Find the underlying cause: Facilitate a constructive conversation and avoid emotional complications. Be sensitive, listen to their perspective to understand why there is underperformance. E.g. due to unclear role responsibilities, personal issues, lack of motivation or skill gaps.    

3. Accountability is key: openly discuss what accountability means, the needs and expectations of other Members and the Business unit. Probe and actively listen to understand how they see themselves and how they can contribute to the Business goals and outcomes. Foster ownership mentality. 

4. Clearly define role & responsibilities: Schedule a one-on-one meeting to discuss the role requirements. Ensure there is full understanding of what the position entails and expectations. Address any concerns, if needed provide training, review job description or consider task reassignment. 

5. Develop a Performance Plan: Collaboratively develop a plan with achievable goals, timelines and support mechanisms to address the identified issues.  Use this as a positive tool, as an opportunity for the member’s personal development and improvement. Schedule follow-up meetings to review and monitor progress. 

6. Engage a neutral third party: consider engaging a ‘third party’ if your relationship makes it difficult or uncomfortable to deliver direct feedback. There can be merit in this approach if a family member Manager feels compromised or worried about hurting a relative's feelings. 

Takeaways: 

To deal with member underperformance, address the situation, have the candid conversation, be sensitive but avoid emotional complications when balancing Business, family relationships and dynamics. 

Cultivate a Culture of Accountability and Responsibility now to enhance performance and foster a healthy Family Business environment.