TAKE 2

Commentary by Rick Rittmaster

Rick Rittmaster is the manager of learning and development at MTS, a global supplier of high-performance test systems and sensors.

This case study presents a handful of competing issues: The business lacks direction to operate effectively, there is a lack of clear roles and responsibilities, and resources are constrained. Progress on any one of these issues would probably translate to progress on other issues as well. However, I think that the main problem, and where to start, is that of Ben and his (in)ability to lead the Rest Easy Hotel. He has two primary challenges: leadership capability and his internal motivations toward his role at his family hotel.

Of the two, I believe Ben’s internal motivation is the more pressing topic. At the beginning of the case, Ben is literally avoiding a hard truth, and it seems as though the full extent of that “hard truth” extends far beyond a nervous outlook on the future of the business. His avoidance indicates other, deeper reservations about his engagement with the hotel. Some data points to consider: He studied English and not hotel management, his family has been a constant presence and influence in his life, and the hotel has been slipping under his management.

Less than a third of family businesses survive the transition from first- to second-generation ownership, and another 50 percent don’t survive the transition from second to third generation (Aileron 2013). Ben would likely still have some significant challenges, even if he was fully engaged in his role.

Ben can probably be developed into a competent leader; his current capabilities are a liability, but he can still see problems and formulate some minor plans. His most significant issue, and the biggest thing holding the hotel back, is a lack of motivation around leading the organization forward. To be blunt, he has to “want it,” and it isn’t clear if he really does. I would encourage him to get curious about other options to help the hotel move forward. For example:

• What does the performance consultant think are other possible solutions?

• What immediate options does Ben have to improve the customer service?

• What have other hotels in a similar situation done (benchmarking)?

• Should the family consider outright selling?

Additionally, for the performance consultant, is there any information that would address some of the previously raised questions about Ben’s motivation? To expand on this topic, it would also be helpful to understand the family’s willingness and commitment to adjust and adapt to turn the business around.

I think Ben would need some type of coaching to determine what his role would be for the hotel, and whether he is interested in leading it through these changes. Ben seems to be his own worst enemy; it is critical that he be aware of what he does and doesn’t want from the hotel before he tries to lead the organization forward.

Ben’s path forward most likely won’t be easy, but at least there are many paths to choose from. My recommendation is simple: Figure out if you want to lead. I’m critical of leaders who aren’t willing to equally embrace the opportunity and the challenges of leadership. It is true that leadership is anything but easy. It is also true that leadership is even more difficult within a family business. However, Ben’s inaction is dangerous.

Assuming that Ben remains in place for the foreseeable future, and assuming that the family decides to maintain the management of the hotel, I would encourage action around some type of “quick win” solution. Whether it is replacing the carpeting in the lobby, improving the service at the front desk, or even another option (free Wi-Fi, for example), the hotel needs some success that can act as a momentum-builder. This case conveys a general sense of heaviness, a lack of motivation to make any progress. With one victory comes the potential for more victories, which is why I think a quick win could be important.

Next, it would be helpful to engage in some dialogue with Ben, his father, and his aunt. It would be helpful to get clarity in terms of the organization’s purpose and critical issues. The intent would be to get the three on the same page on why the hotel exists, and the main challenges that limit the current success. I would start by interviewing Ben, Grant, and Shirley independently, and then use that content to compile a short overview of the current situation to guide a group discussion and get alignment around these topics.

It would also be helpful to gain clarity regarding Grant and Shirley’s long-term relationship with the hotel, and what they see as a successful outcome. My strongest recommendation would be to determine the overall appetite for change, and clarify how they can meaningfully support the changes. I’d bias solutions to support change around helping Ben more successfully lead the organization, as that is the more sustainable path forward for the hotel.

To be certain, there are resources and tools that can help the Rest Easy Hotel. The nuance is that this is a family business, and family businesses often have “quirks” that necessitate a different approach to traditional resources and tools. Often, it is easy for solutions to come across as too formal or heavy-handed. The performance consultant is a prime example of what I would call a typical reaction to what in other situations is a normal solution.

Assuming that the family is interested in genuinely discussing a strategy to move forward, I would consider using some type of small business effectiveness audit. These usually look at a variety of topics and allow for scoring to determine the current effectiveness and level of impact. The specific audit isn’t important, but I would recommend one focusing on internal processes, people and talent capabilities, leadership capabilities, and the ability to meet customer needs.

I’ve found success in similar situations by subtly weaving in aspects of different solutions. For example, I might ask a subset of audit questions without prompting the leader, then let the conversation open up into a broader discussion that is more aligned with a formal audit. But in the case of this hotel, it is more a function of how the resources or tools are introduced and applied, rather than what specifically that tool or resource can do.

I have had the opportunity to both work for a family business and provide some coaching and consulting for family businesses, and in almost all instances the issue of family ties was a significant factor. So, unfortunately, I believe this is a common scenario. To avoid this problem, the Rest Easy Hotel must be crystal clear in its purpose: What is the value it provides? Who are the main customers? Why should the organization continue to exist? Answering these questions would be a significant step toward determining solutions and a path forward.

In addition, organizations can benefit tremendously from setting clear roles and responsibilities. Often this can feel bureaucratic in a small organization. However, the absence of roles and responsibilities, especially in a family-owned business, leads to confusion, misaligned expectations, and poor performance. Small organizations and family businesses often expect employees to wear many hats. To continue to support this culture, roles and responsibilities can outline primary and backup responsibilities. For this family-run hotel, I imagine it would be important to balance a general sense of helping when and where help is needed, and creating clearer expectations with better defined responsibilities.

Overall, the strongest recommendation I have for Ben and his family is to simply listen to those around them and take advantage of the help being offered. If you’re struggling to stay afloat, don’t be too choosy about which life preserver you grab.