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The approach that I use in working with owner-operated businesses borrows
heavily from the work that I have done with families. There are obvious reasons for
this. For the business owner, the line between work and not work is more often
than not, not clear. Owner-operated businesses often impact and are deeply
enmeshed with the family. Beyond that, however, there are more subtle differences
between owner-operated businesses and publicly owned companies. An owner is
not an employee. I’m not talking technicalities here of whether the company is
incorporated and the owner is, for tax purposes, an employee. I’m talking
ownership and how ownership itself impacts the dynamics between owner and
employee.
Employees of an owner-operated company are much more subject to any trait,
thought, emotion, mood, desire, or belief of the owner than they would be to a
manager in a publicly owned company. This can be a good thing. The enthusiasm
of the owner can be invigorating. The sense of purpose can be inspiring. However,
there are potential challenges in being an employee of the business owner. If, for
instance, one disagrees or is in conflict with the owner, as long as the owner has
broken no law, there is no higher authority to go to. This means that employees in
an owner-operated are very focused on and subject to the owner. How this plays
out in the dynamics of the employee is very much effected by how the owner runs
the company.
The power context of an owner-operated business is very much like that of a family,
where authority comes from the parents. There are an infinite number of ways that
an individual can be successful in working with employees. We can, however,
point to a few areas of commonality. Employees need to experience consistency,
and know what is expected of them. When there is disagreement, employees need
to know how and to whom to express it in a way that will be accepted in a positive
way. Open conflict, indecision and inconsistency, breed insecurity and low morale.
This in turn can often trigger what can be most easily understood as childish
behavior on the part of certain employees. Just like a child in a home where there
is parental dysfunction, they learn how to get what they need through subterfuge
and coercion rather than being straightforward and direct. The kind of environment
breeds personality issues that creates a living hell in the workplace.
Clear communication of expectations is the first step. An open and curious mind as
to feedback about results different from expectation will supports and empowers
employees. When responsibilities are clear, we know exactly who to talk to when
results are different than expectation. If we are curious to really find out why these
different results happen and we know exactly who to talk to, then we can get real
answers. Toyota developed process called “Ask Why Five Times.” That is the
subject of another article. After doing our part as owners in this way, we will find out
if we really do have an employee problem, or there is a problems with the
expectation, process, or something else out of the employees direct control.
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