The Lucky Sperm and Egg Club

Why this title --The Lucky Sperm and Egg Club. What these clubs ultimately dictate is who is in your family. If you are a member of the club, you are a member of the family. For the rest of this article, it will be useful for us to define that we are talking about family owned companies who are second generation or have the possibility of transitioning into second generation family owned businesses. This means that if you are a member of the family who owns the business then you get to run and influence the company merely because you are a member of the club. That can be the rub and the beginnings of a very big problem.

Who is it that you want to be- the pilot of the airplane, a member of the pilot’s family or a very competent pilot. In this scenario, who cares about family affiliations? As you answer this question you begin to grapple with the issue that we are pointing to.

Invariably, in family owned companies, the family, by definition, owns the company. I know, I know I am being a rocket scientist here and quite brilliant. What do owners want? What I want as an owner is for my company to be run in the best possible way so that it makes money, customers love doing business with it, employees love working there and the community is thrilled that it is around.

As an owner then, the next question is who best can provide the above? It could really be me, the owner or a member of the lucky sperm and egg club – I do like the sound of that……After all, they may have grown up in the business and have been schooled by the founder. They could be steeped and knowledgeable in the culture and winning formula of the company. They could really know and love the business and the customers. These members, after all, have the right genetics and are quite bright and talented-because they are connected by blood, trustworthy. This could all be true. I have found it to be this way innumerable times in my consulting practice.

However there also could be a dark side. Family members could be in the company because they could not think of anywhere else to go. They could be in the company because it pays them better than anywhere else. One of the reasons that they got the good pay was because they needed it and they had the right last name. Their parents who were also the CEO felt guilty and wanted to help out. They are parents and that is what parent’s do-help out.

Children could be in the company because they feel they owe it to their Fathers or Mothers who are the CEOs to carry on the family tradition. They could have very little talent, passion or ability in the business and they spend their time attempting to hide this. Their direct reports work with them to keep the pretense up. That is what the direct reports job is. All the above could be true and I have found it to be true a number of times in my consulting practice.

So what is the point…? This is the point. Have the leadership in your company be based on talent and ability. If it turns out they are members of that special club and that is relevant to ownership, great. Consider it a dividend and karmic reward. However, what is critical is that you go with the leaders who have the talent and ability to best lead and grow the company. A number of times, I have told my clients that the best thing that they could do as owners is to replace themselves as President. They need to bring in someone else with more leadership, ability and talent that can build and develop their biggest and most important asset, their company.

Many times I have told my client CEOs that they will make major strides in destroying and certainly slowing the growth and development of their company if they have low standards and different rules for family members. So if you have members of your sperm and egg club in your business and you truly love and support them, do the following:

1. Have the highest possible standard for their behavior. Make sure that they know it is their job to exemplify the company values beyond what any other employee does.

2. Only have them in roles where it is obvious that they have the ability and talent to excel and bring real results to the company.

3. Coach and work with them so that if they ever left the company they would be able to command easily at other jobs what they make at the company.

4. Be clear with family. Because they are Club members, more will be expected. For them to be at the company, they will be expected to work harder and longer hours. Actively encourage them not to work at the company and if they continue to do so then reinforce that it is a choice that they are making for whatever crazed and sick reason.

5. If you have any unresolved issues with your siblings, cousins, children and you hope to work it out by working together, forget about it. Go see a therapist and leave the business, organization and company completely out of the equation.

The above are my views and now you have deal with them.

Let me know your thoughts.

Rock on ,

Bruce