Business Tips for Business Leaders

Organizational Behavior that Improves Performance in Your Family Business

Written by Jeff Rogers, CPMBC | February 13, 2024

What drives employee engagement? Commitment in the family business requires priority from everyone. The word "priority" might be a strange qualifier, but let me explain.

I believe commitment begins on a personal level. Without the foundational personal commitment skillset established as a priority, one cannot have high professional or organizational Commitment abilities.

Further, I think a connection links character with commitment. Commitment reflects what you want, and Character indicates how you will do it as a leader. Therefore, developing and maintaining a family business organizational Vision, Mission, and Values Statement is imperative. If you are serious, a family governance constitution formalizes with priority all family expectations, deliverables, and responsibilities.

Creating a Sense of Commitment within the Business

When these concepts and ideas are effectively communicated, as overarching mindset, action, and behavior filters, traction and momentum begin. To be clear, this is my concept of commitment as a priority in action. Commitment does not happen by itself. Without commitment, there cannot be engagement, and performance will suffer at all levels in the business, family members or not. A strategic plan establishes goals and priorities for leadership to initiate and management to drive. Yet many family organizations we work with at JRCI lack strategic plans, vision, mission, and values statements, family constitutions, and family governance guidelines.

Family Businesses are Businesses First, With Added Personal Dynamics

As a family business leader, you are expected to be competent at what you do, right? You expect others on the team to also be good at their work. We agree this to be an assumed fundamental in leadership - but wait a minute. It is not always true, but the foundation of any business is built upon competent abilities in any organization. Family businesses often have leaders established via birth order, last name, or pecking order, and they are often not the best candidates for success. Entitlement can creep in if the family enterprise is not careful. That hurt, but a true statement.

Abilities and skills are learned behaviors. As family business leaders, we can course-correct with elevated training and intentional learning.

The commitment to a mindset of learning must be the priority. Proof you are reading this. We agree we can elevate the family and the team in the correct direction with training, but what about Character? How do we mold personal and professional core decision-making and behaviors? This is a tough one for many family business leaders.

Measure Performance to Improve Performance

With an informed scientific understanding of core business measurements, we can perform better. We become more competent. There are a variety of techniques used to measure businesses.  Let me walk through a few of the ones we recommend.

AQai teaches and measures. Ability is formed by Grit, Mental Flexibility, Mindset, Resilience, and the ability to Unlearn. Further, AQai establishes Emotional Range, Extraversion, Hope, Motivation Style, and Thinking Style as key character sub-dimensions and measurements. I believe awareness of these character dimensions is critical in better understanding Commitment and making it a priority.

DiSC supports our leadership ability to drive behavior, but not so much with Character.

"AQai teaches and measures: Ability is formed by Grit, Mental Flexibility, Mindset, Resilience, and the ability to Unlearn."

- Jeff Rogers, CPMBC

 

Did you know of these vital measurable indicators before this read? I bet not. But, as a family and business leader, I am not sure I can change one's character, you might ask. You can inform, measure, and model behavior. Are you using diagnostic tools to be more informed? 

At JRCI, we work with high-level diagnostic tools to support our clients in adapting and behaving better at work. How can you engage in effective action without an excellent objective baseline with your family and team? We can help you with DiSC Behavioral Analysis and AQai Adaptability Diagnostics. Reach out to us.

What you can do right now to elevate commitment as a priority in your family business

Therefore, as family business leaders, I submit that we hire for the character attributes we appreciate with thoughtful recruiting, hiring, and onboarding procedures. We develop the appreciated character traits within the family and at home. Sound systems elevate Character in any organization. In any business, if you have good people of sound Character, the rest will take care of itself. It begins with your Vision, Mission, and Values Statement.

I bet you didn't see that one coming, I hope you found the humor in that! But it is true: no square pegs in round holes. Difficulty in the family business is centered in that statement. Often, we force this concept on the family structure and not based on Commitment and Character. This is how friction in the family enterprise happens. Character is essential for Commitment to flourish in any organization. But the priority is equally important.

What are you doing to recruit good character in your family organization to earn more organizational commitment?

Continuing with the AQai model, we can learn more about Company Support, Emotional Health, Team Support, Work Environment, and Work Stress to measure and develop Commitment. As you think about this, these organizational environmental factors support learning and ability and amplify character attributes. Should these measurements indicate substantial negative numbers, it stands to reason results would be negatively impacted. Who would commit to that organizationally? Worse yet, it can all fall apart when the family leadership and family members do not demonstrate Commitment to performance as a priority.

Here, again, is where vital Vision, Mission, and Values statements at the organizational level matter. Thoughtfully developed but implemented with discipline, demonstrate Commitment, and earn trust. One cannot talk but not walk on this commitment thing.

Some say family enterprise leadership is complicated, and I believe it is. Everything looks great on paper until you add people and family to the equation. "But you don't understand, Jeff!" I do understand it is a long-term commitment matter.

Yes, there will be short-term pain while getting aligned, but isn't that the issue? The short-term pain is preventing the big thing from happening. Have the difficult conversations now. By definition, we are not Committed to the long-term big idea if we do not work through the short-term pain.

Improving Employee Engagement

What drives employee engagement? Commitment in the family business requires priority from everyone, especially the family. As a family business organizational leader, Consistency is our friend. To be consistent means to dependably apply effort, time, and energy to the chosen goal, action, or relationship. 

There will always be obstacles and even failures on the journey. As a resilient leader with strong Commitment, you have developed a learned ability to bounce back without giving up. If truly committed, let's be clear: you can have it all, implementing priority to your commitments. Hence, clarity is another friend of any family organizational leader. Do not over-commit.

You can first support Commitment in the workplace by demonstrating your Commitment as a leader. Establishing and enforcing thoughtful Vision, Mission, and Values Statements sets the tone.

You must determine your 30-52-18 percenters, develop individual career action plans, and commit to the outcomes. The team is counting on you to enforce what they/we believe in. Non-negotiable, here is where most family business leaders fail.

You can recruit talent and Character who will drive with the Commitment you require. You and your family leadership team are under the microscope daily, so deliver. Build the right team.

Most importantly, be honest with the Family, the Team, the Customer, and the Company. Be honest with yourself first. It is incredible how the Truth will set you free. Trust and integrity are based on your ability to demonstrate your Commitments and limitations as a family business leader.