How best to run a family business....
There must be a clear chain of command. and ultimately only one boss.
As long as the rest of the family acknowledge the boss as boss.
things will go smooth.
It is easy when there is a father and child dynamic. and the father is the boss.
even if the child disagrees with the approach being taken on any matter,
the child will ultimately back down and do what the father says.
the father is boss.
Our business used to have this dynamic.
but the father cannot be there for ever.
He made the business a corporation.
not a partnership, or sole proprietorship
it was meant to out live him.
But with many members of a family involved,
It could seem unclear to people who the real boss is.
For people outside of the business as well as within the business.
Is it the person with the title of president?
Or is it the owner? Or maybe the Chief Engineer
Even in a partnership. One partner has to take the role of president, and the other must acknowledge that title and give that person the authority that comes with the title.
The owner is the boss of the president.
The president is the boss of management
The manager is the boss of the employee
A clear chain of command must be maintained for smooth operations.
otherwise there is confusion about what the employee needs to do.
when there is confusion, there is frustration.
when there is frustration, there is lack of motivation.
when there is lack of motivation, there is loss of productivity.
when there is loss of productivity, the job will not get done the way you want,
done when it is supposed to be done, or the way it is supposed to be done.
so regardless of what thing the employee is doing
that thing may still not be happening in the best way that it could be.
all because of confusion about who is the boss.
a manager of one department cannot tell the employee of another department what to do.
an employee reports to only one boss, his boss's boss, and the president.
RULE #1 have a clear chain of command.
RULE #2 respect the chain of command.
