4
Jonathan Creaghan is pleased to provide CAFE South Western Ontario with the first article of a five part series on Family Business Leadership Natures originally published in , Thawarat Magazine an international family business publication. The 4 Natures of Leadership In the course of working with hundreds of unique family companies, one discovers that those who build their team utilizing the nature of each individual member are more successful and satisfied with progress than those who try to fit family members into a box hoping that things will work themselves out. This is part 1 of our Family Business Leadership Series, where we discover the four natures of family business leaders and explain how to unleash their highest potential. In this part, we outline the importance of recognizing the different abilities that each individual can bring to a role and how it affects the business life cycle. By: Jonathan Creaghan Copyright © 2016, J.C. Creaghan Group Inc. All rights reserved. JonathanCreaghan.com

The 4 Natures of Leadership - Family Enterprise eXchange€¦ · The 4 Natures of Leadership In the course of working with hundreds of unique family companies, one discovers that

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: The 4 Natures of Leadership - Family Enterprise eXchange€¦ · The 4 Natures of Leadership In the course of working with hundreds of unique family companies, one discovers that

Jonathan Creaghan is pleased to provide CAFE South Western

Ontario with the first article of a five part series on Family Business

Leadership Natures originally published in , Thawarat Magazine

an international family business publication.

The 4 Natures of LeadershipIn the course of working with hundreds of unique family companies, one discovers that those

who build their team utilizing the nature of each individual member are more successful and

satisfied with progress than those who try to fit family members into a box hoping that things

will work themselves out.

This is part 1 of our Family Business Leadership Series, where we discover the four natures of family

business leaders and explain how to unleash their highest potential. In this part, we outline the

importance of recognizing the different abilities that each individual can bring to a role and how it

affects the business life cycle.

By: Jonathan Creaghan

Copyright © 2016, J.C. Creaghan Group Inc. All rights reserved. JonathanCreaghan.com

Page 2: The 4 Natures of Leadership - Family Enterprise eXchange€¦ · The 4 Natures of Leadership In the course of working with hundreds of unique family companies, one discovers that

Copyright © 2016, J.C. Creaghan Group Inc. All rights reserved.

by Jonathan Creaghan

Take for instance, this case study based on real events: The majority

shareholder of a family run automotive parts company knew he had taken

the company as far as he could. The company was profitable and

successful, but he was a Visionary with Starter tendencies, so his nature

limited his ability to take the company forward. He needed Growers. The

problem was his management team was made up of Maintainers.

Visionaries? Starters? Growers? Maintainers? Everyone possesses a

unique set of talents, abilities and gifts that all come together to affect

how we operate in the world. A select number of us have discovered

and celebrate who we are, and we translate that into satisfying work.

If we have not undergone this, it leaves us open to conflict, inner

doubt, and loss of confidence, which ultimately impedes progress. This

is particularly important to family companies when succession becomes

an issue. What is the nature of the next generation, and how will it fit

into or impede the company? Like the shareholder in the case study

the answer is that it depends on where the business is in its life cycle.

Let’s break down the diagram:

Start-UpAt the phase you will require people who are comfortable Start–Up

with change, can operate in the unknown, and have the natural

tendency to move things forward. You will want to include Starters.

The Starter will take the ideas generated by the Visionary and run with

them. This is critical as some Visionaries can’t translate ideas into

marketable entities. The challenge with Starters is knowing when to

have them switch to other projects. In the early stages of a Start-up

you need people who can do the detail work, create predictability so

Maintainers will be important, but be selective with who this person is.

Some Maintainers cannot handle change and insecurity well because

they have nothing to maintain. So find someone who enjoys improving

the tasks they are maintaining. Remember Maintainers are helpful, but

“buy-in” to the idea is critical.

Stop Putting the Right Person in the Wrong Position!

JonathanCreaghan.com

Source: Tharawat-magazine.com

Source: Tharawat-magazine.com

Page 3: The 4 Natures of Leadership - Family Enterprise eXchange€¦ · The 4 Natures of Leadership In the course of working with hundreds of unique family companies, one discovers that

GrowthAs your company the need for new structures, processes and predictable systems Grows

becomes more necessary. So the make up of the leadership may need to change as well. The

Visionary loses his effectiveness and may in fact begin to keep the company back from growth

as he tries to keep his vision front and centre. It may be that the Starter has become bored

and is ready for new challenges so a Grower plays a more prominent role as he puts in place

stronger systems, processes and structure. The Maintainer is still important, but may be found

in specific roles where policy, procedures play a larger role, such as human resources, finance,

administration, quality control and so on. The make up of the leadership then becomes more

rounded and full. A sole group of Growers at this stage may be counterproductive.

MaturingAs the company , and you are satisfied with the way things are it Matures

will be difficult to hold onto certain more aggressive Growers who

encounter roadblocks at every opportunity. This includes the next

generation in a family if they feel that they are not trusted or that there is

no room for them. They may leave in frustration. Mature companies often

attract Maintainers in senior leadership roles, creating complacency within

the culture. Sometimes due to external forces like economic downturn,

shifting banking priorities or competition new energy is required.

New GrowthIn the phase it is imperative to bring a strong grower into the mix to shake New Growth

things up and re-ignite the flame. This will cause challenges for Maintainers at all levels of the

company and may lead to job transition or terminations of the more strident Maintainers.

Visionaries can also play a role here, especially the younger generation who grew up in the

company and have ideas. The challenge is to allow them strategic influence backed by

maturity, wisdom of others and knowledge of the financial realities.

DeclineA company in may need to turn itself around, a Visionary, Starter and Growers can Decline

inject ideas to keep the company going.

Mature companies often attract

Maintainers in senior leadership

roles, creating complacency within

the culture. Sometimes, due to

external forces like economic

downturn, shifting banking

priorities or competition, new

energy is required.

Copyright © 2016, J.C. Creaghan Group Inc. All rights reserved.

by Jonathan CreaghanStop Putting the Right Person in the Wrong Position!

JonathanCreaghan.com

Page 4: The 4 Natures of Leadership - Family Enterprise eXchange€¦ · The 4 Natures of Leadership In the course of working with hundreds of unique family companies, one discovers that

To Each His OwnBy creating your team with juxtaposing each individual’s natural abilities, at the right stage of

the life cycle certain outcomes begin to take place:

  Cohesion with just enough creative tension to stretch people to be their best

  Stronger communication, as each party understands the other and why they

behave the way they do

  Decrease in unproductive tension, with a better understanding of each person’s

purpose within the company

  Better able to meet challenges that arise, knowing the right team is in place

About the AuthorJonathan Creaghan has spent over 20 years advising family run companies. He specializes on

the Human Side of these enterprises, helping families make a successful transition to the next

generation. His own family operated a successful multi-location retail business for 125 years,

until family strife and loss of vision prevented it from competing in a changing marketplace.

The company’s board and decision makers were “Maintainers” when what the company

needed at that phase was a “Grower”.

Jonathan assesses the bench strength and management mix of a family business to ensure it

can hold the succession and build a high performing culture. He is also the author of several

books including , , Duxter’s Leap! Thinking Differently® about... Succession Thinking

Differently® about... Getting More Done.

JonathanCreaghan.com

519-472-2562

[email protected]

Visit Tharawat-magazine.com to read the rest of the Family Business Leadership Series:

Visionaries – Are They the Best Choice for Leading a Family Company?

Starters – Injecting New Energy in the Family Business

Growers – Leaders That Take Risks for the Family Business

Maintainers – The Unsung Heroes of Family Business Leadership

Copyright © 2016, J.C. Creaghan Group Inc. All rights reserved.

by Jonathan CreaghanStop Putting the Right Person in the Wrong Position!

JonathanCreaghan.com