How to Wear the Right Hat in Family Businesses

To improve productivity in your operation and reduce stress in your family business, set these helpful ground rules.

To improve productivity in your operation and reduce stress in your family business, set these helpful ground rules. 
To improve productivity in your operation and reduce stress in your family business, set these helpful ground rules.
(AgWeb)

Communication in a family business is tough. To reach business success and family harmony, you need to leave work at work when the day is over. This is key for family business success, says Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa.

“You need to remember which hat you are wearing,” Striegel says. “You have a family hat, staff hat and owner hat. When we deal with situations wearing the wrong hat, we will immediately create conflict.”

To improve productivity in your operation and reduce stress, Striegel suggests setting several ground rules.

Be Professional. Farm leaders communicate all of the time, but it tends to be sparse and unofficial. Key stakeholders often are not included. “When we have informal communication, we tend to leave out a lot of information,” Striegel says. Plan instead to hold regular family and operational meetings to create a communication structure.

Praise Often. Leaders in family operations are good at catching all of the wrong behaviors taking place from day to day, Striegel says. But it’s also important to catch team members doing the right things and to let them know are you aware of them. The more you tell someone they are doing things correctly, the more productive they will be.

Dive Deep. Personality differences, performance issues or unclear expectations can all cause conflict within a family business. Spend time with your employees to understand their personality types, and pinpoint where disconnect starts to occur. “Understanding is power,” she says. “If you don’t really understand what is causing it, it is hard to fix.”

AgWeb-Logo crop
Related Stories
AgLaunch enables farmers to earn ownership stakes in startups by providing field trials, data and expertise—and it’s paying off.
Top Producer of the Year finalist Chase Larson yields more than just crops on his Kansas farm.
Is your operation ready for “proteinification” and the impact of GLP-1 drugs? Wells Fargo’s Brad Matsik breaks down the 5 macro trends reshaping agribusiness and explains why the bank is “tripling down” on succession and capital solutions for large-scale producers.
Get News Daily
Get Market Alerts
Get News & Markets App