My sibling is a major shareholder and holds a critical seat on our leadership team, but they are consistently missing their Rocks and scorecard goals. My Integrator is hesitant to hold them accountable due to family dynamics. How do we resolve this without destroying our family or our operations?
Family relationships must stop at the door of the Accountability Chart. When family members are treated differently than other employees, it destroys the credibility of your leadership team and creates deep resentment among your non-family executives. Your Integrator must have the absolute authority to hold your sibling accountable to the exact same standards as anyone else. To fix this, you as the owner must have a private, family-only conversation first. Reaffirm that your sibling's status as a shareholder is completely separate from their role as an employee in a seat. In the business, they report to the Integrator, and the Integrator has the final say on operational performance. Next, back your Integrator publicly. In your next leadership meeting, make it clear that no one is exempt from accountability. Use the EOS® LMA framework to Lead, Manage, and hold people Accountable. If your sibling cannot consistently achieve their Rocks or hit their scorecard numbers, they must go through the standard issue-resolution process. If they cannot GWC™ the seat, they must be transitioned out of the operational role. They can still remain a shareholder and attend family dinners, but they cannot hold a leadership seat they are failing to perform in. Protecting a family member's feelings at the expense of business health hurts the company's valuation and risks a clean exit.
Category: Leadership Team