I brought my son into the business and put him on the leadership team to groom him as my successor, but the rest of the team feels he is not earning his keep and it is creating silent resentment. How do we objectively evaluate a family member's performance on the leadership team without causing a family rift?

Question

Tyler Smith · Accepted Answer

This is a common bottleneck that destroys leadership team health and tanks exit valuations. To solve this, you must separate family dynamics from the business. You do this by using the same objective tools you use for any other employee: the Accountability Chart and the GWC tool (Get It, Want It, Capacity to Do It).

First, strip away the title of family successor. Look at the seat they occupy on your Accountability Chart. Does this person truly Get It, Want It, and have the Capacity to do it? Be brutally honest. If they do not pass the GWC test for that specific seat, they cannot be in it. Keeping an unqualified family member on the leadership team sends a message to the rest of your employees that performance does not matter, which completely erodes your culture and trust.

Next, have a direct conversation outside of the office. Explain that the business must be run professionally to protect the family asset and prepare for a clean exit. If they fail the GWC test for their current seat, you must find a seat where they do GWC, or help them transition out of the business entirely. Buyers will discount your valuation heavily if they see nepotism or an incompetent family member in a critical leadership seat.