Are you ready to hire non-family execs?
Summary
In this episode, Bill Stranberg discusses the readiness of family businesses to hire non-family executives. He shares his own experience growing up in a family business and highlights the distinct challenges that families face in executive recruitment. Bill emphasizes the importance of addressing the readiness of both the family and the business before making a senior executive hire. He provides case studies to illustrate the potential risks and conflicts that can arise when these factors are not considered. Bill also discusses the need for clear job descriptions and expectations to ensure a successful hiring process. This conversation explores the challenges and strategies involved in managing talent in family-owned businesses. The discussion highlights the importance of employee loyalty and the potential neglect of operational hygiene in long-term relationships. It emphasizes the need for clarity in decision-making and cultural fit when bringing in new senior executives. The conversation also addresses the concerns of legacy employees and the importance of incorporating their feedback. Finally, it emphasizes the significance of defining and living the mission, vision, and values of the business.
Takeaways
Assess the readiness of both the family and the business before making a senior executive hire.
Address the unique challenges that family businesses face in executive recruitment.
Include all relevant stakeholders in the decision-making process and ensure clear communication.
Define job responsibilities, success metrics, and compensation to align expectations and reduce the risk of a failed hire. Employee loyalty is a common trait in family-owned businesses, but it can lead to neglect of operational hygiene.
Clarity in decision-making and cultural fit are crucial when bringing in new senior executives.
Legacy employees may feel uncomfortable with new hires and changes in authority.
Creating channels for employee feedback and addressing concerns can help mitigate conflicts.
Defining and living the mission, vision, and values of the business is essential for effective talent management.
Chapters
00:00 Introduction and Background
08:35 When Do Family Businesses Seek Support in Hiring Executives?
16:24 Exploring Readiness to Bring in a Senior Executive
21:21 Helping Families Explore Their Readiness
32:18 Preparing the Business and the Person Being Hired
43:16 The Importance of Clarity and Communication
49:34 Employee Loyalty and Operational Hygiene
51:22 Clarity in Decision-Making and Cultural Fit
52:56 Legacy Employees and New Hires
55:18 Conflict Triangle and Employee Feedback
58:08 Defining Mission, Vision, and Values
Support the Show
The podcast is entirely self-funded by me. I am not looking for sympathy as it is something that I love to do and I have a passion for providing great content for family businesses across the world. Some listeners have asked for ways in which they can support the show, be that through reviews, sharing with friends or a donation. As such I have set up a page that outlines all the ways that you can support what I am doing.
Work With Russ
If what I have spoken about in the show resonates and you want to discuss how I can help you and your family business drop me an email: russ@familybusinesspartnership.com or head over to www.familybusinesspartnership.com
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