Managing an Underperformer in a Family Business

In family businesses, not all family members perform effectively. A few may feel so entitled or untouchable that they slack off or stop collaborating, and sometimes they get a pass for their mistakes or behaviors. As a manager, whether you’re part of the family or not, what do you do about these underperformers? Start with an open discussion about accountability. It’s fine to show deference for family membership, but it’s still essential to be candid about business needs and expectations. Shift their role or responsibilities, if possible. Can they work as an independent contributor or as a subject matter expert? If politics are playing a role, you may be able to reassign a family member who had been reporting to another family member to a strong executive who doesn’t have to be concerned about keeping the peace at Thanksgiving dinner. At some point, however, you may need to consider alternatives that preserve the person’s dignity while clearing the way for more productive staffers. Family members who have been turned aside can burn with resentment, and may still maintain some ownership. So if you must exit a family member suddenly or harshly, make sure a human resources expert or legal counsel checks all the details of your plans and language.