Companies Like Families

Every family has dysfunction. So when you say your company is “like a family”… which dysfunction are you talking about?

Whenever I hear a leader describe their company or team as a family, the hair on the back of my neck goes up.

I know the idea of a company as family comes from a good place, with good intent. It signals loyalty, care, belonging.

But I’ve yet to see an example where it hasn’t been a cluster of dysfunction–far beyond what I see in “non-family” companies–in practice.

That’s because the “family” concept is always covering up some serious issues.

I worked with a client that had a strong family-owned legacy and a bench of long-tenured employees. In interviews, nearly every leader mentioned how they were “like a family.”

But it meant different things to different people. For the tenured leaders, it was said with pride. For the newer leaders, it was said with concern.

Because what “family” really meant, besides taking care of people, is that we don’t make tough people decisions. We move problems around instead of out. We keep ineffective leaders in roles for years out of loyalty.

And like many families, they were stuck in the past. “This is how we’ve always done it.” “We tried that before and it didn’t work”—when “before” was 20 years ago.

The result was a fixed mindset that made innovation feel threatening. New leaders with ideas that could have moved the company forward threw up their hands and left. And the old guard that was left behind were beleaguered with underperformers.

Here’s the thing about families: you can’t fire your family. At least not easily.

A great team isn’t a family. It’s a living organism—one that shifts to survive and thrive as conditions change.

So if you hear yourself referring to your team or your company as a family, stop and check yourself. What is that “family” culture costing you?

Looking to increase the cohesion, trust, and impact of your leadership team? Reach out and let’s discuss The Compass Team Experience and how I can help.