The Two Potential COO’s in Family Business
01/28/2021
I recently wrote about the potential CEO’s in a family business—the Chief Executive Officer and the Chief Emotional Officer. There are also two potential COO’s in the family business that we may encounter as consultants to their business.
The traditional Chief Operations Officer (COO) is the person in the company who ensures that daily operations and activities are performed as expected and production meets agreed targets.
These COO’s analyze production data, manage the labor force and keep costs within budget. COO’s coordinate field operations and address production issues immediately when they arise. From fire prevention to employee satisfaction, COO’s have a lot on their plate.
There is an additional type of COO—the “Child of Owner”—and within this job title are two different varieties.
The first type of Child of Owner is the one who was always given the least desirable jobs, the widest variety of tasks, some of the more difficult circumstances within which to work, and on top of all this is on call 24/7. They gain full knowledge of where everything is, how everything works, the challenges of managing employees, and an understanding that if you are a business owner, you always need to be available for the company.
These individuals also learn what it is like to earn the right to be in business every single day. These COO’s know it takes hard work, and when they have a spouse and family of their own, they learn the difficult decisions that have to be made to ensure a proper work-life balance. Their spouse and family learn the demands of business ownership and over time, adapt to this lifestyle.
To an outsider, this COO position appears to be an unscrupulous form of child abuse. In reality, this is the best way for the next generation to appreciate everything that is needed to be successful in the company, keep the business going for additional generations, gain full respect for their elders and pass along the hard-earned lessons that have led to this generation’s achievements.
Perhaps you have never heard of the other type of Child of Owner. This is the family member who only gets the easy jobs, expectations are minimal, they basically inherit their position rather than earn it, and often come and go as they please. This person believes they can use their last name as a vaccination against hard work, long hours, uncomfortable decisions and working with people they don’t like.
Unfortunately, in the majority of situations, the family business ends with their generation.
Modifying this Child of Owner’s Behaviors
When developing a strategy for correcting this COO behavior, we need to realize where these attitudes and perspectives were first established and permitted. Its genesis is with the parents or business leaders themselves. Some choices were made early in the process of bringing in the next generation that allowed this situation to develop. Perhaps, there was no plan at all, and this family member came into the business with no direction, no clear expectations, and no oversight. Or maybe the person simply began with this attitude and it was never corrected.
The strategy for modifying this behavior starts with leadership. They must recognize and fully endorse the need for change. Next, they need to establish a clear set of expectations for performance, behavior and attitude that includes a process of accountability and non-negotiable consequences for failure to meet these expectations.
It is one of the toughest challenges the leader of a family business must face, but the process will help ensure that the business is secure for another generation.
What are other ways that you help your clients address these situations?
Don Tyler
Tyler & Associates
These opinions and commentary are Don Tyler’s own. They are not necessarily those of ASAC or its members.
I recently wrote about the potential CEO’s in a family business—the Chief Executive Officer and the Chief Emotional Officer. There are also two potential COO’s in the family business that we may encounter as consultants to their business.
The traditional Chief Operations Officer (COO) is the person in the company who ensures that daily operations and activities are performed as expected and production meets agreed targets.
These COO’s analyze production data, manage the labor force and keep costs within budget. COO’s coordinate field operations and address production issues immediately when they arise. From fire prevention to employee satisfaction, COO’s have a lot on their plate.
There is an additional type of COO—the “Child of Owner”—and within this job title are two different varieties.
The first type of Child of Owner is the one who was always given the least desirable jobs, the widest variety of tasks, some of the more difficult circumstances within which to work, and on top of all this is on call 24/7. They gain full knowledge of where everything is, how everything works, the challenges of managing employees, and an understanding that if you are a business owner, you always need to be available for the company.
These individuals also learn what it is like to earn the right to be in business every single day. These COO’s know it takes hard work, and when they have a spouse and family of their own, they learn the difficult decisions that have to be made to ensure a proper work-life balance. Their spouse and family learn the demands of business ownership and over time, adapt to this lifestyle.
To an outsider, this COO position appears to be an unscrupulous form of child abuse. In reality, this is the best way for the next generation to appreciate everything that is needed to be successful in the company, keep the business going for additional generations, gain full respect for their elders and pass along the hard-earned lessons that have led to this generation’s achievements.
Perhaps you have never heard of the other type of Child of Owner. This is the family member who only gets the easy jobs, expectations are minimal, they basically inherit their position rather than earn it, and often come and go as they please. This person believes they can use their last name as a vaccination against hard work, long hours, uncomfortable decisions and working with people they don’t like.
Unfortunately, in the majority of situations, the family business ends with their generation.
Modifying this Child of Owner’s Behaviors
When developing a strategy for correcting this COO behavior, we need to realize where these attitudes and perspectives were first established and permitted. Its genesis is with the parents or business leaders themselves. Some choices were made early in the process of bringing in the next generation that allowed this situation to develop. Perhaps, there was no plan at all, and this family member came into the business with no direction, no clear expectations, and no oversight. Or maybe the person simply began with this attitude and it was never corrected.
The strategy for modifying this behavior starts with leadership. They must recognize and fully endorse the need for change. Next, they need to establish a clear set of expectations for performance, behavior and attitude that includes a process of accountability and non-negotiable consequences for failure to meet these expectations.
It is one of the toughest challenges the leader of a family business must face, but the process will help ensure that the business is secure for another generation.
What are other ways that you help your clients address these situations?
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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