Why Business Owners Should Never Let Ego Stand In The Way of Profits.

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Years ago, I had a manufacturing client who had been struggling to make ends meet for quite some time. Ownership of the business was in a state of flux, shifting authority from the founder to the son, productivity and output were on a decline, and profits were falling short at a steady pace. Employee morale was terrible and cash flow was suffering.

Having spent time with the family, it was clear from the get-go that the son lacked the necessary drive, experience and knowledge to run the business effectively. The legacy of the business was at stake, and the owners needed to face that harsh reality.

Discussing our findings with the family was as awkward and uncomfortable for them as you can imagine. Despite our recommendations, that the owners remove their son from leadership, give him a rather generous severance package, and bring in someone more qualified to lead the business into prosperity, the owners instead favored turning a blind eye toward his managerial shortcomings, abrasiveness, and lack of experience.

They chose the easy way of dealing with the situation for the obvious reason; firing family is damned near impossible. It feels wrong on multiple levels, and it takes a significant amount of backbone to recognize and make that final decision.

The son, on the other hand, had an expectedly negative reaction to our analysis and recommendations, becoming volatile, and unwilling to work on creating an actionable solution. In fact, he threatened to shoot me, if he ever saw me set foot in their offices again!

The decision to not do anything by the owners is understandable, but not excusable. They were allowing their business to fail because they were too afraid of making a hard decision. The son, on the other hand, refused to act because he took our recommendations as an attack on his pride and ego.

Ego is a powerful three-letter word! Though it can fuel confidence when making tough decisions, it can also corrupt an owner’s ability to think clearly.

In the case of this business, the son should have recognized that he was not performing adequately enough in the position. Instead of sparing his parents the grief from their tough decision, and the business from its inevitable failure, he let his ego get in the way.

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Years ago, I had a manufacturing client who had been struggling to make ends meet for quite some time. Ownership of the business was in a state of flux, shifting authority from the founder to the son, productivity and output were on a decline, and profits were falling short at a steady pace. Employee morale was terrible and cash flow was suffering.

Having spent time with the family, it was clear from the get-go that the son lacked the necessary drive, experience and knowledge to run the business effectively. The legacy of the business was at stake, and the owners needed to face that harsh reality.

Discussing our findings with the family was as awkward and uncomfortable for them as you can imagine. Despite our recommendations, that the owners remove their son from leadership, give him a rather generous severance package, and bring in someone more qualified to lead the business into prosperity, the owners instead favored turning a blind eye toward his managerial shortcomings, abrasiveness, and lack of experience.

They chose the easy way of dealing with the situation for the obvious reason; firing family is damned near impossible. It feels wrong on multiple levels, and it takes a significant amount of backbone to recognize and make that final decision.

The son, on the other hand, had an expectedly negative reaction to our analysis and recommendations, becoming volatile, and unwilling to work on creating an actionable solution. In fact, he threatened to shoot me, if he ever saw me set foot in their offices again!

The decision to not do anything by the owners is understandable, but not excusable. They were allowing their business to fail because they were too afraid of making a hard decision. The son, on the other hand, refused to act because he took our recommendations as an attack on his pride and ego.

Ego is a powerful three-letter word! Though it can fuel confidence when making tough decisions, it can also corrupt an owner’s ability to think clearly.

In the case of this business, the son should have recognized that he was not performing adequately enough in the position. Instead of sparing his parents the grief from their tough decision, and the business from its inevitable failure, he let his ego get in the way.

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