Hiring a professional manager to lead a family business can be a complex and challenging process. Many family businesses have unique dynamics, and it’s important to find a leader who can balance the interests of the family with the needs of the business. Here are some strategies for hiring a professional manager to lead a family business.
- Define the role and responsibilities
Before beginning the search for a professional manager, it’s important to define the role, responsibilities and accountabilities of the position. This includes determining the scope of the job, the qualifications required, the reporting structure, relationships and the key performance indicators that will be used to evaluate success. A clear job description will help attract the right candidates and ensure that everyone involved in the hiring process is on the same page.
- Consider the family’s values and culture
Family businesses often have a unique set of values and a distinct culture that the new manager will need to fit into. It’s important to consider these factors when evaluating candidates. Look for someone who shares the family’s values and is comfortable working within the culture of the business.
- Look for experience
The ideal candidate for a professional manager role in a family business should have relevant experience. Look for candidates who have had experience working in a similar industry and more importantly have managed a family business in the past. Candidates who have worked in a family business before will be more familiar with the unique challenges and dynamics that come with managing a family-owned enterprise. They will also be able to talk about the assumptions they made, the steps they took, and the adaptations they made to be successful in prior similar businesses.
- Evaluate soft skills
In addition to technical expertise, the new manager will need to have strong soft skills. Look for candidates who are excellent communicators, have strong leadership skills, and can manage conflict effectively. The new manager will need to be able to build relationships with the family members involved in the business and balance their needs with the needs of the business. Emotional intelligence and adaptability are key.
- Involve the family in the hiring process
Since the new manager will be working closely with the family, it’s important to involve them in the hiring process. This will help ensure that everyone is on board with the decision and will help build trust between the new manager and the family. Consider having family members sit in on interviews or participate in the selection process. Getting alignment will likely be most difficult yet important.
- Be transparent about the compensation package
Compensation can be a sensitive issue in family businesses, and it’s important to be transparent about the compensation package for the new manager. Make sure everyone involved in the hiring process is clear about the salary, benefits, and any other perks that come with the job. This will help avoid any misunderstandings or conflicts down the line.
- Plan for a smooth transition
Once a new manager has been hired, it’s important to plan for a smooth transition. The new manager will need time to get up to speed on the business and build relationships with the family members involved. Consider a phased approach to the transition, where the new manager gradually takes on more responsibility over time.
Hiring a professional manager to lead a family business requires careful planning and consideration. By defining the role and responsibilities, considering the family’s values and culture, evaluating experience and soft skills, involving the family in the hiring process, being transparent about compensation, and planning for a smooth transition, you might be able to find the right leader to take your family business to the next level.