Business of Building e-Source - 05/21/2003 (Plain Text Version)

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Oh, Brother! Surviving the Stress of a Family Business

Sometimes it’s hard to maintain distinct business roles when family members work together.

Maybe you’re reminded of the way your younger sister always tried to get away with everything as a kid when you see her shrugging off responsibility for letting some client communication details slip. Should she really be the one who heads up customer service after your parents retire from the family home building business?

Or perhaps the company’s senior or controlling generation still regards you as the eight-year-old child who was afraid of the dark and who made mud pies. Even though you’re qualified to take on “adult” business responsibilities, your family members may have a difficult time transcending their traditional family roles.

There are other pressures, too. Trying to gain respect from non-family employees, wanting to change the business but not being able to, and working with non-family employees who try to sabotage the junior generation’s success for their own needs all add to the stress. It’s enough to make you want to escape.

The phrase “stress-free family business” may sound like an oxymoron, but it’s something you actually can achieve. The trick is to tackle the stress from business and personal perspectives. Here are some strategies to try:

Business Perspective

Schedule quarterly family business meetings. These meetings should take place off-site. To keep them on track, avoid discussing small day-to-day operations issues. Conversation should focus on topics like estate, succession, and business-role planning.

Let each family member air his or her concerns about the company’s future and leadership. These discussions can become heated, so you may want to consider having an outside moderator attend the meetings. It’s a good idea to rotate the “meeting leader” designation to give each family member development opportunities.

Hire an outside board of directors. If you want to bring new values, insights, and objectivity to your business, an outside board of directors is a must.

When a business faces a difficult decision—such as choosing a family member to take over the business—an outside board of directors can offer objectivity, take the emotion out of such decisions, and speed up the decision-making process. This makes the company more professional and more adaptable to changes.

Personal Perspective

Simplify your life. Simplification is all about focus. It means leaving your work life at work and leaving your family life at home. When you focus on one task or role at a time, you can separate yourself from your other tasks or roles. For example, if your father is the president of the company, remember to treat him like the boss at work and like dad at home.

Delegation is another simplification tactic. If cleaning your house takes you away from other more productive or profitable tasks, hire someone to take over the cleaning so you can focus on what’s important. Not spending time on non-essential tasks greatly reduces your stress level.

Learn to say no. The next time the family business demands more than you can give, remember that you have to take care of yourself first. You simply can’t handle everything. Say no gracefully while respecting the other person and letting him or her know that you care.

For example, if your uncle (who’s also your boss) asks you to take on a new project that you know you can’t handle, remind him of all the projects and tasks you’re currently doing. You may say something like, “I have all these other things I need to do. Can you help me prioritize them?” Instead of just adding more to your load, let the other person help you determine which things can slip.

Being born into an entrepreneurial family with a booming business provides advantages and plenty of challenges. However, you can survive the stresses that come with the territory by taking time for yourself and keeping your perspectives in order. When you do, you’ll enjoy all the rewards a family business offers—and the company will be stronger and more profitable than ever.

Laura Michaud, MBA, is a consultant on family business issues. She is president of The Michaud Group in Elmhurst, IL. Ms. Michaud routinely conducts seminars on customer loyalty, employee retention, personal growth, and family business topics. Contact The Michaud Group at 630-927-5555 or access its Web site at http://www.familybusinesssuccess.net/.

Want some help defining business roles and responsibilities? Check out Job Descriptions for the Home Building Industry, Third Edition. It contains 40 job descriptions for home building industry employees, plus sample company organization charts, job description forms, electronic documents on CD, and other tools. The price is $26.96 for NAHB members, and $29.95 for non-members. Order it online from BuilderBooks.com at http://www.builderbooks.com/ or call 800-223-2665.

NAHB Plays Key Role in Introducing Cost-Saving Foundations

NAHB staff and members and the NAHB Research Center played a central role in helping home builders in colder climates substantially reduce their foundation costs.

In 1984, the Research Center began developing technology for frost-protected shallow foundations, building upon experiences in Scandinavia where the technique was already widely used. The research was funded by the Society of the Plastics Industry, and Dick Morris, who is now on NAHB’s Construction, Codes and Standards staff, was the principal investigator.

Research continued into the 1990s and in 1995 the American Society of Civil Engineers began writing a consensus standard for the design and construction of the foundations. That standard was published in September of 2001.

Long-time NAHB builder member Gerald Eid, president of Eid-Co Buildings in Fargo, ND, chaired the consensus committee that wrote the standard.

“Cold-climate builders will be able to use this green technology to reduce foundation costs by up to 40 percent,” says Eid. “They’ll be able to reduce the foundation frost depth to 12 or 16 inches and save energy and resources.”

The standard includes techniques for frost-protection of heated, semi-heated, and unheated buildings. “I find the method to be especially useful for frost protection of handicap-accessible slab-on-grade buildings,” says Eid, “but there are also designs for crawl spaces and walk-out basements.”

To purchase a copy of the standard, click here. [return to top]

Enhanced NAHB Web Site Debuts in May

NAHB released Version 2.0 of its web site www.nahb.org on May 1. The new version features public information to help educate consumers about the home building industry as well as content developed specifically for NAHB members.

With 103 business management resources organized in nine convenient categories, the site offers more tools than ever to help you build profits and productivity and demonstrate your commitment to quality. You’ll find articles written by and for builders, plus seminars, council resources, books, and other publications. Get expert advice on slashing cycle time, managing job costs, training field supervisors, managing customer relations, and more. If it has to do with the business of building, you'll find it in the Business Management Tools section.

NAHB members can log in to www.nahb.org/ using their current www.nahb.net/ username and password. Just go to www.nahb.org, click on the blue Member Log In button, and enter your username and password. Once you’re logged in you’ll be prompted to change your username to a current e-mail address. [return to top]

America's Best Builder Contest

Think you’ve got a top-notch company? Let everyone know: Enter the 2004 America's
Best Builder contest. Each year, Builder magazine and NAHB honor the top home builders in the country based on their performance in finance/operations, customer
service/quality, community/industry service, design/construction, and marketing. Entry forms are due July 14, 2003; binders are due August 29, 2003.

For an entry form or more information, contact Loretta Williams at 202-736-3455 or by e-mail at lwilliam@hanley-wood.com. [return to top]

Builder Bright Idea

Want input on your home designs without setting up focus groups or buying everybody lunch? Try this tip from Dave Baron of Baron Custom Homes in Cary, NC. The company hands out surveys on clipboards to people who visit its parade homes. As they stroll from room to room, visitors indicate on the surveys what they like best and least about the home. Baron then uses their input to fine-tune its homes.

You’ll find hundreds of terrific tips on accounting, personnel, customer service, sales and marketing, management, trades, production, and design in Management Ideas That Work and More! Management Ideas That Work from NAHB’s Business Management Department. Each book costs $25 for NAHB members and $31.25 for non-members. Both are available from BuilderBooks; call 800-223-2665 or visit www.builderbooks.com to order online. [return to top]

Member Advantage: Save Up to 20 Percent on Postage Costs

Members can eliminate time-consuming trips to the post office for stamps and to weigh packages while saving up to 20 percent on postage costs with a Pitney-Bowes Personal Post™ postage meter.

For more information, or to order, call toll free 888-253-7900. Mention reference # 9999 99 101.

To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here, or send a blank e-mail to membersavings@nahb.com.
Go to www.nahb.org to explore the numerous advantages associated with membership in your local, state, and national home builders association. [return to top]