Shirtsleeves to shirtsleeves in three generations – It was a well known saying means that family businesses often create and lose their empire in three generations. Globally, only 1 in 3 family businesses successfully made it to the next generation.
Almost every companies start as family businesses, but only those that master the challenges succeed to survive the three generation curse. Those who survived has successfully does transition across generations and proceed to prosper and diversify into multi-location and multi-industry businesses.
If previously we have discussed about Project Oxygen by Google which examines the criteria for the ideal manager. How the perfect leader is able to organize and direct his team well. But how do leaders organize themselves into executive roles to be effective?
CEO who able to turn a family office into a highly productive and effective business is worth his or her weight in gold.
Ineffective leadership will have an indirect or direct impact on the business. If it is not prevented and possible restrictions created, these ineffectiveness will slowly but sure ruin the business.
I happen over and over again, families mistakenly choosing a CEO who is expertise in specific area but doesn’t have the qualities of a true leader.
So what qualities make for the best family-owned business CEO?
What does an effective executive look like, and how can it have a positive impact on the company? Check out the details below!
What Makes an Effective Executive?
The executive job is to be effective. "To effect" and "to execute". The executive is expected to get the right things done effectively, they does not need to be a leader in the sense that the term is now commonly used.
Peter Drucker, the super great Management Teacher, stated that the type of person who is extroverted, introverted, arrogant, humble, or whatever style affects having an executive.
Forget the MBA title or whatever silver bullets you might find on the Internet. The truth about executive effectiveness is that it is available to anyone who wants to consistently do certain things.
Do you want to be an effective executive? Do this.
1. They ask, "What needs to be done?"
Priority is the key, what is the most important thing to do, and all energy must be directed there. So that all employees and resources can be moving towards the same goal.
2. They ask, "What's right for the company?"
They ask “What is right? Not just to hold shares, not only employees, or customers, especially if it's for the executive himself. But what is right for the enterprise?
3. They developed action plans.
They make a work plan. The knowledge that is implemented from point 1 and 2 translated to a behavior and objectives that must be achieved. Even the concept of how great it is is useless unless it becomes a work plan spelled out in actions that are implemented.
4. They take responsibility for decisions.
They take personal responsibility for the decisions they make. They won’t look for scapegoats or hide behind a gray curtain. All decisions are responsibilities that must be take.
5. They take responsibility for communicating.
They are in charge of communication. If there is someone who does not understand the strategy and duties, then the greatest responsibility is to the executor. Starting from the top to the office boy, understanding will be the responsibility of communication from the leadership.
6. They focus more on opportunities than problems.
They are focused on opportunity not trouble. All actions are always rooted in “What can be best done in this situation? What opportunities can we pursue? "
Read: Grow Your Family-Owned Business by Building Effective Team - Case Study Of Google's Project Aristotle
7. They run productive meetings.
They have productive meetings. The leaders does most of the work with delegates and discussions with the team and managers. The meeting is a platform, so every meeting must be carried out productively.
8. They think and say "we", not "me"
They agreed and said "we" instead of "me". The responsibility of the company rests on the shoulders of every employee, togetherness to pursue targets is a must. Always think that all team members are a solid whole.
When you’ve mastered these things, you’ll notice improvements in communications, results, self-confidence, and relationships. You’ll be a more effective executive. If you want to pick up advanced education courses, by all means do so. But remember that you should do good practice too.
The executive is paid for being effective. He is responsible for the effectiveness of the organization he works for. The good news is effectiveness is something that can be learned.
Executives in family companies need to start implementing the 8 things above to create effectiveness in the workplace. You don't want your family company to stop at the current generation, do you?
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