leadership and interpersonal communication in family business

8/14/2019 Leadership and Interpersonal Communication in Family Business

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The Challenge ofe a enge oLeadership DevelopmentLeadership Development

and Successionand Succession From Entrepreneur to GroupFrom Entrepreneur to Group

OwnershipOwnership Less than 35% Survive to 2Less than 35% Survive to 2ndnd GenerationGeneration

From Sibling Group to FamilyFrom Sibling Group to FamilyBranchesBranches Less than 15% Survive to 3Less than 15% Survive to 3rdrd GenerationGeneration


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Leadership Challenges inLeadership Challenges in

Succession PlanningSuccession Planning

Familybranches

Multipleowners

Return oninvestment?

Small group ofowners

Leadershipconflict

Entrepreneurship

Unity ofdecision-making

Cousin OwnedSibling OwnedOwner/Managed

3rd

Generation

2nd

Generation

1st

Generation


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The #1 ChallengeThe #1 Challengefor Leadership infor Leadership in

Family BusinessFamily BusinessPreserving the best of thePreserving the best of the

past while creating apast while creating acompany that is able not onlycompany that is able not only

to accept, but to initiateto accept, but to initiate

CHANGE.CHANGE.


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CHANGE ISCHANGE ISINEVITABLEINEVITABLE

Only 40 % of the Fortune 500Only 40 % of the Fortune 500

companies of a decade agocompanies of a decade agostill exist today.still exist today.


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CHANGE ISCHANGE ISMASSIVEMASSIVE

Leaders in the automotiveLeaders in the automotiveindustry in 1985 boasted aindustry in 1985 boasted a

defect rate 1.5 times betterdefect rate 1.5 times better

than their competition.than their competition.

Today you must beat theToday you must beat the

competition by more than 700competition by more than 700


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CHANGE ALWAYSCHANGE ALWAYS

SUPRISES USSUPRISES US

19431943I think theres a world market forI think theres a world market for

maybe five computers.maybe five computers. Chairman, IBMChairman, IBM

19491949Computers in the future will weighComputers in the future will weigh

no more than 1.5 tons.no more than 1.5 tons. Popular MechanicsPopular Mechanics

19841984 640K ought to be enough for anybody640K ought to be enough for anybodyBill Gates, MicrosoftBill Gates, Microsoft


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The Incumbent LeaderThe Incumbent Leader

Should take responsibility for creatingShould take responsibility for creating

and maintaining a climate for change.and maintaining a climate for change.

Challenge, encourage, and empowerChallenge, encourage, and empowerthe next generation while still in control.the next generation while still in control.

Use vast experience to guide changeUse vast experience to guide change

not resist it.not resist it. Believe the business can surviveBelieve the business can survive

without them.without them.

Recognize that the next leaders job is toRecognize that the next leaders job is to

build consensus around change andbuild consensus around change and


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Leading Change in aLeading Change in a

Family BusinessFamily Business IsIs EasierEasier Because:Because:

Smaller & moreSmaller & more

entrepreneurialentrepreneurial

Able to move fasterAble to move faster Few or no outsideFew or no outside

shareholdersshareholders

Owners have moreOwners have more

influenceinfluence

IsIs HarderHarderBecause:Because:

Leaders haveLeaders havelonger tenurelonger tenure

Fear of offendingFear of offending

predecessorpredecessor

TraditionTradition Difficult to haveDifficult to have

another visionanother vision

when leaderwhen leader

grows up ingrows up incurrent culturecurrent culture


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Which Leadership StyleWhich Leadership Style

is Best?is Best?

Experienced

EntrepreneurialDelegatingCont.

Improvement

Non Cross-

functional

AlreadyMotivated

Experienced

Technical Skills

CounselingInnovative

TechnicalLow resistance

Respects LeaderSkilled but needsDevelopment

CoachingNot Time CriticalDevelopmentGoal

Culture Change

Inexperienced

Lacks Confidence

Limited

Competence

DirectingStrategicResistanceExpected

Job Cuts Involved

Family/Team

StyleProject


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Strategies for DifferentStrategies for Different

StakeholdersStakeholdersHigh

Low

High

Influence

Supportiveness

Terrorist

(isolate)

Casualty(treat wounds)

Champion

(expose & promote)

Critical Mass

Supporter(encourage & recognize)

Source: Bywater plc


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Four Core Qualities ofFour Core Qualities of

EmotionalEmotional

FortitudeFortitude

AuthenticityAuthenticitySelf-awarenessSelf-awareness

Self-masterySelf-mastery

HumilityHumility

Bossidy and Charan,Bossidy and Charan, Execution: The Discipline of Getting Things Done, 2002Execution: The Discipline of Getting Things Done, 2002


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FIRO-BFIRO-B

Assessing Your LeadershipAssessing Your Leadership

Tendencies and PreferencesTendencies and Preferences


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FIRO-B:

Designed to Help You Manage your behavior as a leader

Recognize sources of conflict

Recognize sources of stagnation

Acknowledge the contributions of allmembers of your organization


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What FIRO-B is NOT

A comprehensive personality test

An assessment of good or badbehaviors

A measure of your ability


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FIRO-B Measures Interpersonal

Needs INCLUSION: The extent of

contact and prominence that a

person seeks.

CONTROL: The extent of power

or dominance that a person seeks.

AFFECTION: The extent ofcloseness that a person seeks


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Measures How Much Needs are

Expressed and Wanted

EXPRESSED: The extent to which

a person will initiate the behavior.

WANTED: The extent to which aperson prefers to be the recipientof the behavior.


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Your Leadership NeedsYour Leadership Needs

and Expectationsand Expectations

I want others toact warmly

toward me &share theirfeelings.

I feel bestworking in well-

definedsituations withclearinstructions.

I want others toinclude me &

invite me tobelong.

I make an effortto get close to

people &expressfeelings.

I try to exertcontrol and

influence.

I make an effortto include

others & joingroups.

AffectionControlInclusion


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If Your Strongest NeedsIf Your Strongest Needs

are for Inclusionare for Inclusion

You will strive to be a leader who:You will strive to be a leader who:

Focuses on fairness and involving your teamFocuses on fairness and involving your team Integrates divergent interestsIntegrates divergent interests

Gains legitimacy through endorsement andGains legitimacy through endorsement and

consentconsent

Enjoys serving and benefiting the commonEnjoys serving and benefiting the commonwelfarewelfare

Desires to have a noticeable impactDesires to have a noticeable impact

Likes to be viewed as a popular leaderLikes to be viewed as a popular leader

Is gratified by public recognitionIs gratified by public recognition


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are for Controlare for Control


Focuses on the task to be accomplishedFocuses on the task to be accomplished Meets deadlinesMeets deadlines Provides structure and givesProvides structure and gives

instructionsinstructions

Sticks firmly to final decisionsSticks firmly to final decisions Develops challenging goalsDevelops challenging goals Gains legitimacy through task skill andGains legitimacy through task skill and

proficiencyproficiency


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are for Affectionare for Affection


Focuses on developing human resourcesFocuses on developing human resources Strives to increase and maintainStrives to increase and maintain

employee satisfactionemployee satisfaction Encourages and supports othersEncourages and supports others

Minimizes conflictMinimizes conflict Gains legitimacy through personalGains legitimacy through personal

commitment and loyaltycommitment and loyalty Invites feedback - respects honestInvites feedback - respects honest

communicationcommunication

eamworeamwor


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eamworeamworGroups of people bandedGroups of people banded

together to accomplish a sharedtogether to accomplish a shared

goalgoal ComplementaryComplementary

Teams:Teams:

Provide a means ofProvide a means ofboth getting thingsboth getting things

done and meetingdone and meeting

social needssocial needs

Some highSome high WantedWantedneeds matched withneeds matched with

somesome ExpressedExpressedbehaviorsbehaviors

Strained Teams:Strained Teams: Some highSome high

ExpressedExpressed

behaviors rejectedbehaviors rejected

by lowby low WantedWantedneedsneeds

Some highSome high WantedWantedneeds go unmet byneeds go unmet by

lowlow ExpressedExpressed

behaviorsbehaviors


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InitiatorInitiatorThe idea person: proposesThe idea person: proposes

alternatives, encourages others toalternatives, encourages others toshare in the discussionshare in the discussion

High

(7-9)

eA

High

(7-9)

eI

Affection (A)Control (C)Inclusion (I)


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EnergizerEnergizerProds the team to act, insists onProds the team to act, insists on

covering the agendacovering the agenda

High

(7-9)

eC

High

(7-9)

eI


O i i GiO i i Gi


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Opinion-GiverOpinion-GiverOffers a belief/opinion on all issues,Offers a belief/opinion on all issues,

benefit of past experiences,benefit of past experiences,

independent from group and leaderindependent from group and leader

Low

(0-2)

wC

Low

(0-2)

wI



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HarmonizerHarmonizerStrives to reconcile opposingStrives to reconcile opposing

positions, agrees and complies withpositions, agrees and complies withgroup decisionsgroup decisions

High

(7-9)

wC

High

(7-9)

eA


C T tC T t


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Consensus-TesterConsensus-TesterWants to build a close-knit team,Wants to build a close-knit team,

checks for agreement, bringschecks for agreement, brings

closure, confronts unacknowledgedclosure, confronts unacknowledgedfeelingsfeelings

High

(7-9)

eA

High

(7-9)

eC


k


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Task-MasterTask-MasterTries to keep the team focused onTries to keep the team focused on

purpose and outcomes; businesspurpose and outcomes; business

before pleasure orientationbefore pleasure orientation

Low

(0-2)

wA

High

(7-9)

eC


T /L d hiTeam/Leadership


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Team/LeadershipTeam/Leadership

EffectivenessEffectiveness

Am I too dependenton feedback on my

work? (H)

Does my emotionaldistance prevent mefrom being seen assupportive? (L)

Can I be moreflexible and accept

ambiguity? (H)

Why am I resisting independence orreal problem? (L)

Do I expect othersto seek my input

do I ask for theirs?(H)

Do I meet with myteam often enoughfor their needs? (L)

Can I intrude lesson others? (H)

Can I support and

encourage othersmore? (L)

Do I promote myown ideas at theexpense of others?(H)

Can I allow teammembers to setpriorities? (L)

Do I give othersenough space? (H)

Did everyone get

an equal chance toparticipate? (L)

Affection(A)

Control (C)Inclusion (I)

leadership and interpersonal communication in family business

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