Getting Out Of Debt

Family run businesses provide a unique set of challenges for growth and development. For better or worse, family dynamics inevitably find their way into the corporate culture. Non-family members brought into the family business, especially at the senior levels, often find themselves in the uncomfortable position of having to balance sound business practices with a history of family politics and dynamics.

Non-family members soon discover that family issues outside of the work setting get played out in the business environment. Needs for power, acceptance, direction, control, communication, leadership, and recognition become stumbling blocks for the non-family member. If these issues and needs are not dealt with in an objective and efficient manner, the risk of non-acceptance and alienation will affect the non-member contributions. There is a need to develop a rational method of selecting, training, and integrating both family and non-family members for roles where they can make the most effective contributions to the growth and success of the business.

In dealing with these types of issues it is essential to incorporate some means of objective assistance. One such strategy is known as Assessment Based Intervention - ABI. This process allows for systematic observation, collection and analysis of behaviour which provides a structured means for making decisions about an individual in relation to the organizational structure.

ABI can be used for strengthening employee morale, improving organizational culture, enhancing communication, maximizing fit between individuals and jobs, promoting teamwork, helping employees manage stress, assisting managers in improving their skills, identifying training needs, etcetera.

In family owned/operated businesses this type of intervention provides the necessary objectivity needed to resolve issues in a non-partisan manner. For the purposes of this article we will briefly outline the five stages of ABI that are necessary for success when working with Family owned/operated businesses.

Stage 1: Needs Analysis

The initial point of entry for all psycho-organizational consultations that use ABI as a framework is to meet with the general manager, human resources manager or owner to discuss the job, the organizational structure, culture, goals, and future directions of the business. Issues of relevance include how organizational members (family/non-family) currently function within the setting and what impact this has on the division, group or organization. The results of these discussions provides an overview of the most relevant issues related to understanding the organizations structure, direction and personnel dynamics.

Stage 2: Identifying Key Skills/Issues

Based on the conversations with the general manager or human resources manager, key issues and behaviors regarding success and failure in the organization are identified. In relation to this behavioural issues are identified as potential areas for improvement. Subsequently, key competencies (skills, abilities, knowledge) are also identified. These will be used to frame the development of a testing program which focuses on assessing those identified competencies.

Stage 3: Testing Program

The next stage of ABI is to develop a customized testing program that is specific to the needs of the organization at hand and will allow for the evaluation of factors related to effective job functioning. Some of the more common areas of evaluation include:

A) Intellectual Processing: This looks at the individuals general thinking and reasoning abilities. What degree and kinds of intelligence does the individual possess? Are they logical? Rational? Analytical? Systematic? Can s/he function better under stress or when left to complete things on their own time? Does stress or perceived stress impact their ability to function to potential? What capacity does this person currently have?

Whenever intellectual processing is evaluated it is important to rely on individuals who have the appropriate training to properly interpret these sorts of scores. Trying to function as an arm-chair psychologist only undermines the whole process and potentially leads to mis-interpretation of what test results actually mean in the specified work context.

B) Communication/Interpersonal Style: How does the individual communicate their ideas and thoughts? Are they coherent? Clear? Consistent? Do they have a good grasp of language? Are they able to convey their ideas in an entertaining, engaging, and efficient manner? Are they adaptable? Dominant? Friendly? Cooperative? Supportive? or directive?

C) Management Style: Is the individual flexible in their approach to working with and through others? Are they objective, or sensitive or perceptive? Do they understand and utilize organizational structures? Are they politically astute? Are they political? How do they lead/follow? Do they have a philosophy of management?

D) Personality Traits: What drives this individual? What are his/her psychological needs? Can s/he deal with stress? How? What are the person's core values? Ways of adjusting? What is their level of emotional stability and maturity? Is she/he objective? Defensive? Psychologically minded? How hard wired are these traits? And does the individual feel a need/desire to make changes?

E) Business Approach: What technical skills do they have? Do they lead? Delegate? Allocate tasks? Organize? Structure? Prioritize? Do they see the implications of their actions? Are they short or long term planners? Do they understand the organizational power structure?

Stage 4: Information Gathering

ABI uses two structured means of collecting information about individuals. First, the individual partakes in a psychological/vocational interview in which work history and vocational experiences are examined. Concrete examples of behaviour are discussed with an attempt to identify the underlying skills, abilities, and knowledge the individual possesses. Other psychologically driven issues are discussed in a problem solving format so as to identify and illuminate past work related themes (i.e. conflict difficulties, aggressiveness, controlling behaviour, conflict avoidance, power issues, fear of failure, etcetera). Second, a customized testing program is developed to provide another lens from which to offer standardized and validated methods of linking existing skills, abilities, and knowledge with the competencies required for success in the role.

Stage 5: Feedback

Each candidate receives complete verbal and written feedback outlining the core issues emerging from ABI. Feedback is structured in terms of issues related to intellectual style, interpersonal style, management style, business approach, and underlying personality trait make-up. Implications of each of these areas are discussed in relation to the larger issues of the organizational framework and existing family dynamic. Detailed action plans are co-created to initiate framing of how individuals can implement and create a plan that is consistent with the organization in which they are now a part.

Conclusions

When used correctly and with properly trained psycho-organizational consultants ABI provides an objective, structured, and systematic evaluation of individual management skill, knowledge and ability. By combining structured interviewing techniques with standardized testing, the candidate and organization receive a better informed, comprehensive and detailed plan of action for improving the performance of both the family and non-family members of the organization.

ABI provides a forum for both parties to create output oriented development plans that are based on objective data collection methods, not gut feel and organizational or personal politics. A problem solving approach to developing goals evolves as a result of the ABI.

In family run businesses where personal dynamics and politics intermingle, ABI creates opportunities for dealing with the most complex and sensitive of issues in an objective, systematic, cost-effective and scientific manner.

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