Strengthening Your Family Business Relationships
What’s one of the most significant challenges with family business partner relationships? In a recent discussion with a group of my Family Business Consulting Group colleagues about this question, the topic that rose quickly to the top of the list is the ability to share and receive feedback effectively with one another. Feedback is a foundational element that contributes to stronger family business partner relationships. Learn more about these practical ideas on how to more effectively provide and receive feedback from your family business partners!Feedback Can Be Challenging Work
Whether you’re related to your business partners or not, providing and receiving feedback effectively can be challenging. When you overlay family relationships (father-daughter, mother-son, siblings, cousins, nephew-uncle, etc.) the challenge is magnified due to emotional involvement and intimate knowledge of one another. The closeness that is so powerful in bringing family together can also create the greatest obstacle in effectively giving and receiving feedback. Therefore, feedback is often delayed or non-existent for fear of damaging the relationship. Avoiding these conversations often leads to a buildup of negative emotions between family business partners which at some point can be expressed in damaging ways and cause relationships to spiral downward.Ingredients for Effective Family Business Partner Feedback
Clear Expectations: The precursor to being effective with family business partner feedback is to agree on what constitutes acceptable levels of performance for respective partner roles and what behaviors will support the desired culture. With these standards in place, the feedback conversation is designed to be about a partner’s performance and behaviors as compared to the agreed upon standards, rather than an arbitrary viewpoint. Absent clear expectations, having effective feedback conversations with family business partners is a non-starter. Clear expectations combined with effective feedback against those expectations drives accountability for performance.Right Time, Place, and Format: Holding feedback conversations at the right time, in the right place, and the right format will greatly increase the effectiveness of family business partner feedback conversations. In terms of timing, establish dedicated times throughout the year for feedback conversations. As an example, one of our clients has a feedback process where written input is obtained toward the end of the year from multiple people in the business and the results are compiled and delivered in a third-party facilitated conversation.
This is paired with a dedicated meeting mid-year when the family business partners have a conversation and answer some basic questions to drive the conversation, such as: To what extent am I meeting performance expectations in my functional role? Am I interacting with my family business partners in the manner we agreed to? What have I done particularly well? What adjustments do you suggest I make?
All conversations are held in a private setting and scheduled well ahead of time. Other family businesses may find success with a less formal process along with allocating dedicated time and a private setting.
Balanced Approach: Edna Ferber, an author and 1924 Pulitzer Prize winner said, “Perhaps too much of everything is as bad as too little.” A balanced approach applies to feedback as well. Assuming family business partners have the competencies and motivation to be effective in their role, it is likely they are performing and behaving well in some areas as compared to expectations. (Note, if a family business partner does not have the competencies and motivation to be effective, that is another topic to address.)
Providing authentic, positive feedback against the agreed upon standards helps set the stage for feedback that involves a partner needing to make some adjustments. If all a partner hears is what they are not doing well as compared to expectations, usually they quit listening and will take a defensive posture. A balanced approach wins the day as authentic, positive feedback creates an environment of psychological safety.
Continuous Learning: Rare is the person who has family business partner feedback - giving and receiving it - all figured out. There are many resources available in the form of articles, books, live and recorded webinars, communication coaches, and live seminars focused on communication in general and giving and receiving feedback in particular. Investment in yourself and on behalf of your family business partners to build your skills at giving and receiving feedback will pay off for you personally, for your family, and for your business. And learning together as a group of partners can be a powerful bonding experience!
Make the Commitment
If you want to enhance your family business partner relationships, commit to developing a sound process for giving and receiving feedback. Begin with setting clear expectations for each partner in their functional role with the business, along with behavioral expectations for all partners. Feedback is a gift that will contribute to having great relationships. Those great family business partner relationships will set an example for the next generation of family business partners and will be a driver of multi-generational success.
About the Author: Mike Fassler is a consultant and board chair of The Family Business Consulting Group. Mike provides family business consulting services with a focus on leadership and ownership transition, governance, and ownership group strategy. Mike can be reached at 517-896-3001 or fassler@thefbcg.com. More information about The Family Business Consulting Group and Mike can be found at www.thefbcg.com.
The opinions stated herein are not necessarily those of GreenStone Farm Credit Services.
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