We are a second-generation family business with multiple family members sitting on the leadership team, but some do not actually GWC their seats and are holding back our operational modernization. How do we objectively address this without causing a family feud?

Question

Tyler Smith · Accepted Answer

In a family business, the boundaries between personal relationships and professional accountability are easily blurred. When family members sit on the leadership team but do not GWC™ their seats, they paralyze the company and alienate non-family leaders who see the double standard.

You must remove family dynamics from the room by relying on the Accountability Chart. The chart must be built with zero names attached first. Define the seats, the roles, and the five major responsibilities for each seat required to hit your V/TO® goals.

Once the seats are defined, evaluate the family members objectively using the GWC™ tool:
- Do they truly understand the expectations of the seat?
- Do they wake up every day wanting to perform this specific role?
- Do they have the mental, emotional, and physical capacity to execute it?

If a family member does not GWC their seat, they must be transitioned out of that seat. Keeping them there out of guilt destroys the trust of your entire leadership team. Non-family executives will engage in status management behaviors, holding back their true opinions because they fear political retaliation.

To preserve both the business and family harmony, separate ownership from employment. A family member can remain a shareholder and receive dividends without holding an operational seat on the leadership team. Treat them as a valued owner, but keep the leadership team strictly reserved for those who can execute at the highest level.