By Russ Allred, MBA
“The wheels seem like they're all going in different directions.” “There's this constant whining.” “I'm just not getting the performance I want.” “I'm afraid it's going to explode.” You've heard these things before.
Listening to the customer is the first step in diagnosing a mechanical problem. However, these complaints are not about cars, they are about businesses. As a family business advisor, I hear them all the time. What sets us apart as professionals in our respective fields is the ability to interpret the symptoms and identify the root problems. Diagnostics is the key. You might be able to diagnose problems in the next car at a stoplight, but are you overlooking problems under your own hood?
You probably already have an accountant, an insurance professional and maybe an attorney to troubleshoot problems in their fields of expertise, so this article will offer some diagnostic instruments designed to identify problems in a much overlooked area of business: family relationships.
Many studies concur that 95 percent of all businesses are family owned or controlled. In my practice as a business consultant and turnaround manager, it seems to me the problems that destroy businesses are often relationships. Even if you are the only family member in your business, conflicting objectives and time commitments can have a serious impact on your success.
The first and most important thing to look for in a successful business venture is an alignment of objectives among stakeholders. Even in a sole proprietorship, there is another stakeholder. The spouse is also a stakeholder. The following anecdote illustrates what can happen when the stakeholders' objectives are not in tune.
My friend wanted to be a “shade-tree mechanic.” His goal was to work on cars in his backyard at his pleasure. After years of running a large shop and hassling with personnel, he finally found a property on a busy street with a house in front and a shop and parking area in the back. The house was very nice. It had a pool and fruit trees. To him it seemed the perfect compromise between his and his wife's desires. His wife had other ideas. She didn't want greasy cars in her yard or a greasy husband in her kitchen expecting lunch in the middle of the day. What was supposed to be the best of both worlds became a bitter conflict between husband and wife.
The wife was not to blame here. She was not demanding of money or prestige; she just had different objectives. The solution to their problem was stress reduction through downsizing. My friend got a job as a chief mechanic. He gave up the rigors of business ownership. They moved into a more humble home and they were both happy. The solution came through honest communication - not just talking, but listening to each other. Their primary objective was to have a happy life together - not to own a business. They succeeded.
Success is not always the acquisition of wealth, but attaining what one truly wants. When the stakeholders agree they want to develop wealth, they can create an amazing synergy. The little spats over time spent at work go away. A more cooperative relationship ensues and financial success follows. Sadly though, many wealthy business owners feel empty or lonely. They lack true connections with the people who mean the most to them. They try to fill the void by making more money, which only exacerbates the problem. The solution is to find balance by scheduling time and activities with the people you love. I recommend an evening a week with your spouse and another evening with the rest of your family. True success must balance wealth and values.
Often the desire to make more money drives the business owner to overcharge customers or promote unnecessary service. The symptoms to look for are short-term profits and a large customer turnover. When this problem persists, you will see the owners driving new cars and enjoying luxuries on credit, then worrying how they will pay the bills.
A dramatic decline in profits and the stress of dissatisfied customers cause conflicts at home. We live in communities. The way you treat customers can come back to you over the dinner table. The kids at school might tell your kids you're a crook. Your own kids can lose respect for you.
Consistent profits are the result of perpetually satisfying the needs of the customers. You want your customers to come back regularly because they trust you. If they trust you they will tell their friends, and your business will grow.
What we are talking about is most commonly labeled a business “Mission and Vision.”
Vision is what the stakeholders want and Mission is what you offer the customers. These can be formalized into written and published statements. Car manufacturers offer written manuals for estimating and operations. They provide consistency. Your broad objectives should be formalized in writing, but business is dynamic. Things change every day. To avoid conflicts, you must communicate regularly. The best way is to meet at least monthly and tell the stakeholders what is happening. Also, take time to listen to their perspectives. They can alert you to problems you didn't know about.
Another symptom to watch for is whining. Some people just like to complain; it's their nature. But complaints can reveal bigger problems.
Perhaps the person is complaining because they don't feel adequate in their job. Many technicians draft their spouse to help with the books. That's a great combination if the spouse knows accounting. If not, keeping the books, dealing with the CPA, doing the tax filings and administering other governmental compliance issues can be very stressful.
The solution is to hire or train competent personnel. If you don't have the expertise, there are many sources for help: a local college, Chamber of Commerce, Small Business Development Center, Service Corps of Retired Executives and the Automotive Management Institute, among others. Most of these offer training at little or no cost. Take advantage of them.
If it's your kids whining, they might be bored. It's a good idea to involve children in the family business at a young age, before their opinions are polluted by puberty. When they are young they are more willing to help. The problem comes with parents who don't recognize the child's evolving abilities.
I have friends who rebuilt engines and customized cars in high school. If your child is 16 and all you allow her to do is sweep, her complaints might be legitimate cries for more responsibility. Increase their level of responsibility as they mature, then clean up together.
You may see conflicts between family and non-family employees. These are usually symptomatic of management inequities; either you don't require the same effort from your family members or you expect more of them than from their peers. Both are problems.
One father expected his son to open the shop on his way to college and close up every night. The boy worked as a technician Monday through Friday afternoons and all day Saturday. He got paid the same hourly rate as the other technicians, but he was not paid for his management responsibilities. The boy resented the inequity, but he wasn't comfortable telling his dad. So he showed it by bossing the other employees around. They ignored him, thinking he was just the boss' spoiled kid, and nobody was happy.
If you expect your child to be the boss, then pay him like a boss. At the same time, if you pay your children like everyone else then you should expect them to follow the same rules as everyone else. Sometimes the best thing you can do for your children is make them get a job somewhere else.
If you are getting a lot of noise from your children, but you are not ready to send them into the cold, cruel world, you might consider using a buffer. Sometimes hiring or identifying a mentor can insulate your kid from your constant supervision and allow you time to pursue your management role. Many business owners use mentors when they want to retire but the child isn't mature enough yet to take over. A mentor is simply a trusted advisor for your child.
The last thing you want is for family conflicts to impede operations. When you are baffled about mechanical problems, then you probably take the car for a ride. Family conflicts are best handled outside of the shop on neutral territory.
While training a group of young managers, I noticed a man with a broken leg. Jokingly, I asked if he had a good time skiing. With chagrin he said that his boss, who happened to be his brother, did it at work.
You need a better plan for conflict resolution than, "Take it outside boys." When emotions get hot at work, the players (including husbands and wives) need a place they can go to settle their problems. I recommend that you use an impartial moderator.
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Editor's note: This article is one of several management features that will be contributed to AutoInc. this year by Automotive Management Institute (AMI) instructors. To learn more about the Automotive Management Institute, its courses and instructors, visit www.amionline.org.
Russ Allred, MBA, is a marketing consultant and professional speaker. He was a family business expert on the IBM Web site and the co-author of the best-selling family business book, "The Family Business: Power Tools for Survival, Success and Succession" (Berkley 7/97). The book and power tools action plan software are available through Allred & Associates Inc. at (888) 425-5733 or e-mail rrallred@allredbrothers.com.
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