That Dog Don't Hunt

Or how to successfully transition generational leadership in family business

Charisma is what makes Charlie so appealing. At, 72, with a full head of black hair; he is healthy and hale to say the least. At work, Charlie goes by his first name. He is friendly and familiar. He is loved; you can tell that by the interactions between him and the many frontline employees. When I met Charlie last year his title was CEO though he supposedly worked half time (not really) and he did not own the company anymore (an interesting point). 

Norman, Charlie’s son, a serious and well put together man, actually owned the company. His title was Vice President (also an interesting point). Norman was running the place (not really) from behind the scenes (not really). 

At the time I met Charlie and Norman, Norman was determined to make the company successful but it was not. Sales were problematic and non-existent. Customers were quitting and reporting that the service was bad; employees were not responding to calls and not solving problems. Something at this company was amiss. The company, like a stricken battleship, was taking in water and sinking. 

Julia was the final member of this trio. What Charlie has in charisma Julia has in charm. In addition, Julia is polite. Appearing somewhat wan, she has a history of health issues. At the time I showed up she was on the mend and getting stronger. Julia was the general manager with years of experience in a large national company. All of the leadership team reported to her. Therein lay the issue.

On a typical day at the company, Charlie, the Tsunami, (did I mention that aspect?) would enter the company compound early. Charlie would find or be presented with issues by frontline employees, supervisors and managers. He would respond by giving orders and sending employees off on errands and tasks. Then calm, cool and collected Julia would arrive, encountering directions contrary to the ones set the night before. The employees and supervisors were left in a quandary on what to do. 

On one side was Julia and they had Charlie on the other side. The standoff would result in skirmishes that would continue until the prodigal son Norman appeared. At that point Norman would reproach and appease both Charlie and Julia. Time would be spent untangling everything and deciding what to do. This was a dysfunctional triangle. Productive work was not happening. It was all distracting and dramatic.    

During my years as a resource and coach for companies striving for high performance cultures I have now come across problematic transitions a number of times. It is one thing when the CEO and possibly still owner of the company at over the age of 70 still works in the company and adds value; it is quite another when he/she is no longer at their prime and off in their business judgment. On the one hand I want to be just like him/her when I am that age – healthy, hearty and engaged. However, as a resource and coach, I represent the wellbeing of a company. I need to judge when my client’s leaders are really adding value or not. 

To be continued next week, stay tuned...

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