I ncreasing accountability in the family business

ANe oF THE Mosr coMMoN requests \-f we receive from business-owning families is for help in building accountability. Often, the question focuses on the behavior of a specific family member who is employed by the business, but sometimes there is a feeling that accountability is lacking company-wide. Either way, the solution almost always requires both organizational and individual adjustments.

The solution starts with clarifying what is meant by "accountability." Accountability is present when individuals are diligent and serious about fulfilling their commitments, and when a system is thorough and unwavering in requiring its members to meet their commitments. Accountability is absent when individuals are flippant, casual or downright uncommitted to delivering on their promises, and when an organization turns a blind eye to continued failure in this regard.

We believe that accountability is always influenced by both individual and organizational aspects. Companies create a culture of accountability by insisting that all employees are crystal clear regarding their job responsibilities and goals, and that they understand what is required to achieve their goals (e.g., hitting a sales target, timely reporting, lowering overhead). Clarity is ensured through job descriptions, an organizational chart with clear lines of responsibility and authority, and an annual performance review process.

Beyond clarity, goals and roles must be realistic and achievable, and individuals must be held responsible for meeting their goals. This does not imply that individuals will be fired for missing goals, but that performance expectations are taken seriously and failure to achieve results will eventually affect compensation, promotional opportunities, and even employment.

A big mistake that many family businesses make is to focus exclusively on individuals as the problem, rather than seeing lack of accountability as a symptom of a weak management system. For example, let's consider the situation in which Ken-a son of the founder-appears adrift in his role as sales manager. He focuses on sales and customer relations. He sees (perhaps correctly) that he can consistently achieve his sales goals by doing the work himself, and he doesn't want to be distracted by unending corporate meetings. After all, this approach has made him the top sales rep for many years in a row.

However, Ken's brother-the chief financial officer-and his c.e.o. father are increasingly frustrated by Ken's failure to perform the full scope of his responsibilities. They see his lack of attention to his sales team and staff meetings as a lack of accountability within the full scope of his responsibilities. Behind closed doors, they often lament Ken's stubbornness. When other employees come to Ken's father or brother to complain about his behavior, they are forced to agree that Ken just isn't showing the commitment they'd like to see.

We would argue that the problem in this case is more about management systems and organizational accountability than individual intransigence. For Ken to be truly accountable, he must first understand what he is being asked to do. Clearly, Ken's view of his role is different from his brother's or father's view. This conflict will not be resolved until each of them agrees on Ken's specific roles, as well as the goals within those roles. The roles and goals should then be documented in Ken's job description and used to evaluate his performance.

But how do we establish Ken's roles and responsibilities? This will be difficult to do unless all three individuals share a common understanding of the strategies being pursued by the company. Are they trying to own one particular niche? Are they trying to wean off a major customer and diversify their customer base? Are they trying to position the business for expansion by strengthening the sales force? Unless all three of them have agreed on the strategies of the firm, clarifying expectations for Ken will be difficult. How do we determine the optimal (Please turn to page 46)

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Railing, Made Better

Railing Dynamics has introduced a vinyl-clad handrail that is ADA-compliant at 6' spans.

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Sound Gontrol Mat

Quiet Curl random-filament mat from Keene Building Products limits noise impact in a gypsum concrete pour. Made with a coated fiberglass scrim and fabric combination for added strength, its recycled content qualifies for LEED points.

T KEENEBUILDING.COM

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Bamboo Lumber

Cali Bamboo has introduced engineered lumber made from bamboo.

Lumboo reportedly is heavier and stronger than traditional lumber. Pre-drilling for screws, not nails. is required. Because it contains a large amount of silica, it can't digested by termites.

Available sizes include lx4. 2x4,2x6 and 4x4.

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Out-of-Sight Decking Fasteners

The InvisaGrip deck fastening system allows decking without visible screws or nails.

Constructed of stainless steel, the double-angle connectors are set between boards using a special installation tool.

Pre-drilling and countersinking are not required. Ample space between boards is created, eliminating the need for spacers.

T SOUTHLANDDECK.COM

(28t) 355-0701

Outdoor Strip Lights

The Odyssey LED lighting kit from Aurora Deck Lighting includes four strips of lights with 48" wires that can be connected in series along deck rails or anywhere extra light is needed.

The kit includes a remote control and an LED driver box with a timer that can be connected to a I 10-v standard, grounded outlet.

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Solar Post Gap

Nantucket Post Cap's Bar Harbor post cap is the company's first all-wood, solar LED post cap light.

The underside of the cap conceals four small LED bulbs that point downward to create four spotlights that can burn as long as eight hours.

The cap is made of 1007o KD redwood or clear western red cedar in a classic Craftsman style that can be painted or stained.

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Railing Upgrades

TAMKO Building Products has upgraded its TAM-RAIL line for versatility and ease of installation.

The whole line is now available in 6-. 8-. and 10-ft. sections, in gray, taupe and white. Other improvements include bracket covers that hide installation screws, a more durable post mount system, fixedangle brackets that eliminate hand cutting to fit, and stair kits in a wider varietv of ansles.

T TAMKO.COM

(800) 641-469r

Wider Glulam Means Wider Uses

Rosboro has introduced reportedly the industry's first architectural appearance glulam in full framing widths, allowing it to fill in for traditional EWP framing applications without shimming to compensate for the width difference.

X-Beam allows dealers and distributors to stock one set of SKUs for exposed and concealed uses. It also has FSC chain-of-custody certification and is produced with EcoBind low-formaldehyde resin.