Serving the Family Business
01/14/2021
The family business is a unique client with great benefits—and interesting challenges. We enjoy their loyalty to our business, passion to maintain their lifestyle from generation to generation and the devotion to their legacy. They may also have a dynamic decision-making style, inconsistent organizational structure, and limited accountability.
They have unique needs. The staff in many family businesses have inconsistent roles and responsibilities that change from day to day and person to person. For some, their organizational structure is best described as an “everybody does everything” approach to getting the job done. Multiple generations are a part of their workforce. When there are members of these different generations that have a role in regular duties and responsibilities, our professional relationship can be difficult to navigate.
In addition to generational differences there will be personality differences that affect their decision-making style, time management priorities, communication style, motivators and learning preferences.
With their unique needs, we may need a unique strategy. If you have developed strategies that work for you, keep doing them—and please share them in the comments below.
From my perspective, as professionals we must develop an ability to work with family business clients as a core competency. Actions that support this competency would include being readily available for any and all of their needs, respecting the authority structure in their business (even if it’s a little baffling at times), showing an interest in each generation of the business, and being one of their most enthusiastic cheerleaders when tough decisions are required, and especially when successes are achieved.
We can also position ourselves as a part of their future by helping develop the competencies of their next generation, acting like a partner in their business rather than a vendor, and learning their passions, core values and long-term vision so we can align ourselves and our services with those preferences. Be a student of their decision-making process, even if they can’t define it themselves.
A few weeks ago I was in Pennsylvania doing some sales training with the timber buyers for one of my sawmill clients. We discussed the importance of having someone from the next generation of the landowner go with them when they walk through a timber marking trees. It’s usually the elder generation in their 70’s and 80’s that decide to log the trees they’ve watched grow for most of their lives. They have planned for many years to use these logs to fund a portion of their retirement and health care needs. By bringing their children (who are in their 50’s or 60’s) and perhaps even some grandkids along to mark trees, these timber buyers can talk about the trees they are leaving behind, so the next generations have them for their needs later in life. It builds a desire to manage the timber instead of letting it just grow without any concern for the quality of the logs. That’s a multi-generational partnership with a family client.
With our family clients, it can also be wise to identify their true motivators for being in business. Are they driven by appearances, community reputation, profit, long-term sustained success, maintaining their rural lifestyle, leaving a legacy or some other overarching focus that impacts all decisions? Aligning your business relationship with these preferences will enhance your partner-oriented legacy for many generations.
Don Tyler
Tyler & Associates
These opinions and commentary are Don Tyler’s own. They are not necessarily those of ASAC or its members.
The family business is a unique client with great benefits—and interesting challenges. We enjoy their loyalty to our business, passion to maintain their lifestyle from generation to generation and the devotion to their legacy. They may also have a dynamic decision-making style, inconsistent organizational structure, and limited accountability.
They have unique needs. The staff in many family businesses have inconsistent roles and responsibilities that change from day to day and person to person. For some, their organizational structure is best described as an “everybody does everything” approach to getting the job done. Multiple generations are a part of their workforce. When there are members of these different generations that have a role in regular duties and responsibilities, our professional relationship can be difficult to navigate.
In addition to generational differences there will be personality differences that affect their decision-making style, time management priorities, communication style, motivators and learning preferences.
With their unique needs, we may need a unique strategy. If you have developed strategies that work for you, keep doing them—and please share them in the comments below.
From my perspective, as professionals we must develop an ability to work with family business clients as a core competency. Actions that support this competency would include being readily available for any and all of their needs, respecting the authority structure in their business (even if it’s a little baffling at times), showing an interest in each generation of the business, and being one of their most enthusiastic cheerleaders when tough decisions are required, and especially when successes are achieved.
We can also position ourselves as a part of their future by helping develop the competencies of their next generation, acting like a partner in their business rather than a vendor, and learning their passions, core values and long-term vision so we can align ourselves and our services with those preferences. Be a student of their decision-making process, even if they can’t define it themselves.
A few weeks ago I was in Pennsylvania doing some sales training with the timber buyers for one of my sawmill clients. We discussed the importance of having someone from the next generation of the landowner go with them when they walk through a timber marking trees. It’s usually the elder generation in their 70’s and 80’s that decide to log the trees they’ve watched grow for most of their lives. They have planned for many years to use these logs to fund a portion of their retirement and health care needs. By bringing their children (who are in their 50’s or 60’s) and perhaps even some grandkids along to mark trees, these timber buyers can talk about the trees they are leaving behind, so the next generations have them for their needs later in life. It builds a desire to manage the timber instead of letting it just grow without any concern for the quality of the logs. That’s a multi-generational partnership with a family client.
With our family clients, it can also be wise to identify their true motivators for being in business. Are they driven by appearances, community reputation, profit, long-term sustained success, maintaining their rural lifestyle, leaving a legacy or some other overarching focus that impacts all decisions? Aligning your business relationship with these preferences will enhance your partner-oriented legacy for many generations.
Don Tyler
Tyler & Associates
These opinions and commentary are Don Tyler’s own. They are not necessarily those of ASAC or its members.
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