Introduction
I am working as an HR professional in an HR outsourcing firm. Recently, we acquired a new client from the pharmaceutical industry, which has been operating for 26 years. The family business is managed by the Founder (MD) and his son (Director). The son is a sleeping partner as he only has a helicopter view of the business due to his engagement with another full-time venture.
Current Challenges
As time passed, the Director (Son) felt the need for change, prompting him to hire us for HR functions with specific timelines. However, the main problem lies in execution. Day-to-day operations are overseen by the MD (Father), who is not very receptive to new ideas. The reasons for this could be as follows:
• The processes and products are highly confidential, leading to a lack of trust in employees who have been working there for 20 years.
• No new ideas are being generated as employees with 15 to 20 years of experience stay, while new hires quickly leave after realizing the outdated systems.
Seeking Suggestions
As an HR change catalyst, I find myself in a complex situation with no support from the decision-makers. Of course, once the timelines are completed, we are accountable to the Director (Son) for meeting the projected goals. I kindly request all of you to provide suggestions. Your input would be greatly appreciated.
Thanks in advance.
Regards,
From India, Mumbai
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2I am working as an HR professional in an HR outsourcing firm. Recently, we acquired a new client from the pharmaceutical industry, which has been operating for 26 years. The family business is managed by the Founder (MD) and his son (Director). The son is a sleeping partner as he only has a helicopter view of the business due to his engagement with another full-time venture.
Current Challenges
As time passed, the Director (Son) felt the need for change, prompting him to hire us for HR functions with specific timelines. However, the main problem lies in execution. Day-to-day operations are overseen by the MD (Father), who is not very receptive to new ideas. The reasons for this could be as follows:
• The processes and products are highly confidential, leading to a lack of trust in employees who have been working there for 20 years.
• No new ideas are being generated as employees with 15 to 20 years of experience stay, while new hires quickly leave after realizing the outdated systems.
Seeking Suggestions
As an HR change catalyst, I find myself in a complex situation with no support from the decision-makers. Of course, once the timelines are completed, we are accountable to the Director (Son) for meeting the projected goals. I kindly request all of you to provide suggestions. Your input would be greatly appreciated.
Thanks in advance.
Regards,
From India, Mumbai
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This seems like a typical situation where too much control is being exercised by top management or the executive committee. After a few years, the director or his son may bring in an outside consultant, pay a hefty sum for their services, and only then realize the problem that you have candidly described here.
In any case, setting aside my speculations, you can use diplomacy to speak to both of these individuals and present the problem. I am sure they might already be aware of some of the issues you are facing. By the way, you haven't mentioned your designation. Are you leading the HR team, or are you at a junior or mid-management level? If you are in a junior or mid-management position, what do your superiors think about this issue?
From India, Mumbai
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In any case, setting aside my speculations, you can use diplomacy to speak to both of these individuals and present the problem. I am sure they might already be aware of some of the issues you are facing. By the way, you haven't mentioned your designation. Are you leading the HR team, or are you at a junior or mid-management level? If you are in a junior or mid-management position, what do your superiors think about this issue?
From India, Mumbai
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I am very thankful to you, Dinesh Divekar, for your inputs. We are working as HR consultants for them. My seniors and I had three meetings about our plan and expected support. He was so aggressive that it was a one-way meeting only.
As per the agreed timelines, we started working on JD preparation, which is the starting point of the appraisal system. However, he discarded our format, saying, "Old JD formats are very well thought out. Please keep it aside; don't change it." In the first meeting, he only initiated the idea of getting JDs reframed. The old JD was 21 pages long, which is not a practical ready reckoner. So, we thought of changing it. But now, due to his resistance, the whole purpose is not being served.
A big thank you, Aditya Oak, for your response. We are an HR outsourcing firm, and I am an HR executive working at a client site. Basically, all the strategic decisions and policies are made at the backend by my seniors. I am responsible for the execution of the same.
Regarding my disclient, even my superiors think that handling him and getting work done is a challenge.
Regards
From India, Mumbai
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As per the agreed timelines, we started working on JD preparation, which is the starting point of the appraisal system. However, he discarded our format, saying, "Old JD formats are very well thought out. Please keep it aside; don't change it." In the first meeting, he only initiated the idea of getting JDs reframed. The old JD was 21 pages long, which is not a practical ready reckoner. So, we thought of changing it. But now, due to his resistance, the whole purpose is not being served.
A big thank you, Aditya Oak, for your response. We are an HR outsourcing firm, and I am an HR executive working at a client site. Basically, all the strategic decisions and policies are made at the backend by my seniors. I am responsible for the execution of the same.
Regarding my disclient, even my superiors think that handling him and getting work done is a challenge.
Regards
From India, Mumbai
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Addressing Challenges in Family-Run Businesses
A typical problem of any family-run business is the differences that arise between the father and son, brothers, or relatives in any form. These individuals have their own likes and dislikes, which include issues relating to the style of operations, market, products, process, employees, etc. The worst scenario occurs when every decision is questioned, stalled, or taken in multiple directions.
Steps to Progress with the Appraisal System
If things are to progress with the appraisal system, starting with the Job Descriptions (JD's) which are extensive, it is necessary to have both the son and the father together in a meeting. Clarity in the JD needs to be jointly decided by them for any necessary changes to proceed. This approach will help the father and son duo reach a common ground, where typically the son's preferences are considered.
Communicating Changes Effectively
If the father is perceived as strong and obstinate, try explaining the need for changes in the JD's to align with the current generation's values. It is essential to communicate this politely, as the father may not appreciate being labeled as old-fashioned. Additionally, ensure you have solutions to address their concerns about safeguarding critical information.
Facilitating Discussions and Delineating Roles
If the situation becomes challenging, facilitate a discussion between the son and father to determine project responsibilities and reporting structures. Request a clear delineation of roles to handle the job/project effectively.
Considering Last Resort Options
The last resort is, of course, to consider leaving, but keep in mind the impact it may have on your company's reputation.
Having witnessed numerous similar cases, feel free to reach out to me for any queries.
Thanks,
Nalina.K
[Phone Number Removed For Privacy Reasons]
From India, Tiruppur
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A typical problem of any family-run business is the differences that arise between the father and son, brothers, or relatives in any form. These individuals have their own likes and dislikes, which include issues relating to the style of operations, market, products, process, employees, etc. The worst scenario occurs when every decision is questioned, stalled, or taken in multiple directions.
Steps to Progress with the Appraisal System
If things are to progress with the appraisal system, starting with the Job Descriptions (JD's) which are extensive, it is necessary to have both the son and the father together in a meeting. Clarity in the JD needs to be jointly decided by them for any necessary changes to proceed. This approach will help the father and son duo reach a common ground, where typically the son's preferences are considered.
Communicating Changes Effectively
If the father is perceived as strong and obstinate, try explaining the need for changes in the JD's to align with the current generation's values. It is essential to communicate this politely, as the father may not appreciate being labeled as old-fashioned. Additionally, ensure you have solutions to address their concerns about safeguarding critical information.
Facilitating Discussions and Delineating Roles
If the situation becomes challenging, facilitate a discussion between the son and father to determine project responsibilities and reporting structures. Request a clear delineation of roles to handle the job/project effectively.
Considering Last Resort Options
The last resort is, of course, to consider leaving, but keep in mind the impact it may have on your company's reputation.
Having witnessed numerous similar cases, feel free to reach out to me for any queries.
Thanks,
Nalina.K
[Phone Number Removed For Privacy Reasons]
From India, Tiruppur
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Nalini has given very apt and realistic/practical inputs for you to try out. Another way could be to post the content (without the company details, etc.) of the JD in this forum. The members could give specific point-wise inputs that you can use to handle both the father/son duo.
Regards,
TS
From India, Hyderabad
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Regards,
TS
From India, Hyderabad
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Appreciate the inputs and suggestions given by seniors - Dinesh, Aditya, and Nalina.
Need for Change in HR Execution
"As time passed, the Director (Son) felt the need to change, so he thought of bringing change. He hired us for the HR function with dedicated timelines. But the main problem lies with execution. Day-to-day operations are looked after by the MD (Father), who is not very open to new ideas. The reasons could be as follows:
1. His processes and products are so confidential that he is not ready to have trust in his employees who have been working there for 20 years.
2. No new ideas are flowing in as people are working there for 15 to 20 years, and those who are newly joined leave the company in a short span of time after understanding the outdated system."
Here, what is important is to understand how the industry works. The MD (Father) has every reason to distrust as he understands the dynamics of the business, which HR consulting doesn't. HR consulting needs to establish their credibility by understanding the business model of the client and being aware of the industry standards of the client's industry. By aligning both models, which include the present and how the future (model and market scenario) would entail—if this is understood and discussed with the Father and Son—I am sure they both will come to an understanding on the implementation of the HR processes.
At the end of the day, they have to be convinced that the new HR model is aligned with their business model and the growth of the organization. Being caught between the old and new schools of thought is indeed a challenge for HR professionals!
Best Regards,
Rajat Joshi
From India, Pune
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Need for Change in HR Execution
"As time passed, the Director (Son) felt the need to change, so he thought of bringing change. He hired us for the HR function with dedicated timelines. But the main problem lies with execution. Day-to-day operations are looked after by the MD (Father), who is not very open to new ideas. The reasons could be as follows:
1. His processes and products are so confidential that he is not ready to have trust in his employees who have been working there for 20 years.
2. No new ideas are flowing in as people are working there for 15 to 20 years, and those who are newly joined leave the company in a short span of time after understanding the outdated system."
Here, what is important is to understand how the industry works. The MD (Father) has every reason to distrust as he understands the dynamics of the business, which HR consulting doesn't. HR consulting needs to establish their credibility by understanding the business model of the client and being aware of the industry standards of the client's industry. By aligning both models, which include the present and how the future (model and market scenario) would entail—if this is understood and discussed with the Father and Son—I am sure they both will come to an understanding on the implementation of the HR processes.
At the end of the day, they have to be convinced that the new HR model is aligned with their business model and the growth of the organization. Being caught between the old and new schools of thought is indeed a challenge for HR professionals!
Best Regards,
Rajat Joshi
From India, Pune
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The problem has two ends: the father and the son. You are perhaps engaged by the son. Please prepare your workouts and discuss with the son at length along with the merits thereof. Also, explain the problems faced at the hands of his father. Please request him to get you the go-ahead of his father to accomplish the target successfully.
The second end is the father. Please go to him and explain the merits of the study and the results expected from it. Do not forget to highlight the fact that the company is following an outdated pattern of HR policies, which will erode the company's productivity over time (with older individuals experiencing dwindling energies and stagnant ideas), and will hinder the entry of fresh/young candidates to compete with others in the industry. At this stage, please do not present any documents to him. After you get his resistance-driven consent, present to him the plan of peripheral change to win over his confidence. Once this is achieved, propose other policy changes.
Please ensure that you don't dwell upon the idea of retrenching old people. Instead, consider superannuating them after they reach a particular age with due benefits. You may also offer, if required, preference to the qualified wards of individuals leaving the company due to death/retirement.
With this approach, I hope things may roll out in your favor.
Regards,
S.K. Johri
From India, Delhi
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The second end is the father. Please go to him and explain the merits of the study and the results expected from it. Do not forget to highlight the fact that the company is following an outdated pattern of HR policies, which will erode the company's productivity over time (with older individuals experiencing dwindling energies and stagnant ideas), and will hinder the entry of fresh/young candidates to compete with others in the industry. At this stage, please do not present any documents to him. After you get his resistance-driven consent, present to him the plan of peripheral change to win over his confidence. Once this is achieved, propose other policy changes.
Please ensure that you don't dwell upon the idea of retrenching old people. Instead, consider superannuating them after they reach a particular age with due benefits. You may also offer, if required, preference to the qualified wards of individuals leaving the company due to death/retirement.
With this approach, I hope things may roll out in your favor.
Regards,
S.K. Johri
From India, Delhi
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