Ombudsmanship and The Family Business

In my “other practice” I just completed an 8 month-long “turnaround” of a small family owned manufacturing and distribution business.  Key to the final success was the smoothing out of a bumpy road at the beginning of the project by utilizing ombudsmanship with stakeholders by the owners. I’ve written in previous articles and defined “ombudsmanship”. Ombudsmanship is being asked for more and more in job descriptions and is similar to “sportsmanship” in that it’s a “soft skill” or quality that the individual brings with them and is aware of at all times in their functional responsibilities of their role or position.  Ombudsmanship is usually delivered “incognito” by the individual utilizing ADR style skills with individuals, teams, groups both intra or inter organization in terms of the individual and group dynamics.  In this business “case” I’ll go over some of the key methods and techniques where ombudsmanship was utilized as part of the engagement and was the “key difference” to success versus the absolute collapse and loss of a three decades old family heritage.

My role was as a business coach, consultant, ownership advisor and conflict management coach to owners. I’m also very aware, from mistakes I made in my “apprentice” years that focused only on the financial bottom line, that changing any business culture is more about conflict management than just business “metrics” and that focusing on conflict management as a priority in all “engagements” will get the metrics or results needed “indirectly”.  It’s a “given” that in any organization there is a culture with regards to the dynamics of intra and inter personal relationships that employees have based on their personality characteristics.  This is even more so for a family business operating for three decades.  So the balance to be struck is to use the inherent culture of the business and resulting conflict as the OPPORTUNITY to “shift the paradigm” towards a consistent “in the black” financial outcome while PRESERVING stakeholder relationships critical to function and revenue.

My point of contact was the oldest son with some ownership meetings with the mother and father who also worked day to day in the business.  The son had worked the business for many years and had an accounting degree, but now, parents had declared they wanted to “retire someday” and make the transition.  Unfortunately they made this declaration one full year AFTER the “economic collapse” began and the books started going “red” in gross revenue.  They tried for one year, all of 2009 to get back in the black, but couldn’t and turned to their son.  This “set the stage” for some real conflict and drama on a daily basis and is most likely the same for thousands of businesses today.  Armed with a business case history interview we began.  Some, not all, of the concise steps below:

1. Put it on the table that there is going to be a shift in the culture of the company to “survive” and that there will be conflict in the chaos that will result in profitability IF “management” can apply new methods in functional systems CONSISTENTLY day to day.
2. Map the organizational “dynamics” and structure for purposes of awareness in an informal internal family operating environment.  Recognizing that there are functional business structure as well as informal familial, age and gender dynamics evident where older employees and newer younger staff conflict (generations) where employees are treated as family; and where formal education is replacing informal apprentice style training and applying of skills, knowledge and wisdom.
3. The map had intra-organizational structure of: son and both parents core administration, manufacturing and distribution department, marketing and sales with external road warriors and internal sales staff.  This map was typical in that manufacturing and sales rarely socialized or communicated “intra-department”.  Each employee was subjectively “assessed” for personality characteristics at the beginning and during ongoing changes so as to provide situational awareness and decision support regarding “status” and needed outcomes.
4. The map had inter-organizational structure with partners, vendors, suppliers, stakeholders in the immediate community.  The “linkage” or nexus was identified again for purposes of situational awareness on identified potential conflict as changes unfolded.
5. Provide conflict management information and coaching of the son as the new President and General Manager including keeping a journal of conflict events as they arise.
6. Discussion of “applied” techniques and emotional support for management including identification of incremental successes, though they may appear to have a “negative” outcome.  This included KNOWING when to let events play out with employees, immediate intervention versus “sleeping on it” daily cycles and then observing over two week increments the decision results.
7. A very favorable “ad hoc” look at results where several staff simply left the company in the exact departments and slots where the “next generation” of educated employees could fill gaps and form new “blended teams” with long established family business “members”.
8. Key was incremental success with recognizing conflict is in the moment, to let it play out, identify employees who cannot adapt and work with them on “what they wish to do”. Identifying employees as “champions of change” and giving them influence roles. Adopt formal communication, cooperation and coordination cycles in the form of projects and monitor individuals behavior.  Getting confirmation from “parents” that the chaos has turned out well at various stages and the company is evolving while the bottom line returns to profitability again.  This provides “confidence” in the son to lead and was directly discussed and kept in focus with relation to “desire to retire someday” as a goal while demonstrating “real life” favorable bottom line outcomes.

In conclusion it’s important to note that the business related methods and solutions were not discussed here, but that the constant awareness for the potential for conflict in key functional positions would “trigger” emotional events.  We also gave owners the message to constantly motivate employees is that, “we have to do this or there won’t be a company anymore and thus a job either”.  I’m certain “variations” of this message were constantly given, including recommended “memos” with each employee signing off that they acknowledge the gravity of the situation in today’s economy.  Keeping this as the ‘prime goal’ for employees to focus on at all times, while monitoring conflict related to implementation of solutions that forever changed the organization resulted in 13 jobs saved, 2 new jobs (one in each department), 1 outsourced function, restoration of 4 figures “in the black” net profit monthly within 2 months of launch and new-found “confidence” for EVERYONE in the company as to what they achieved is a favorable end result… is it not?

The New Ombudsperson: Per Se, Pro Se & Economic Austerity

In the last quarter of the year everyone, from individuals to the largest corporations take stock of the current year, put at least some thought into tax obligations, but also budgeting is now more important than ever; and for once “holding to it” once set.  It’s the time of year where our clients often make a formal or casual call to get our take on what’s ahead and how they can continue to survive given what I am monitoring and seeing is a severe continuance of current economic conditions.  This provides both opportunity and a demand for dispute or conflict resolution services in 2011 for all ombud’s working with individuals, groups and small organizations

The trend is going to continue and has already begun exponentially escalating where complaints and grievances from lower and middle-income Americans need a voice with government and corporate entities.  The paradigm shift from expensive and damaging formal legal services to ombudsman ADR is well underway and beginning next year we will see more formal groups and structures advocate and develop access for informal mediation. We are experiencing and observing a flood of legal issues people are facing as attempts over the last two years by governments, state and federal, to provide a system to resolve economic hardship issues failed or there was never enough capacity in the system to provide equal access.

In my own recent conversations, where corporate America and government continue to demand payment and use their coffers and legal staff to force their will and redefine the law and policies “on the fly”; individuals are screaming for someone to help.   It used to be that legal aid offices would provide legal services for anyone qualifying.  Now, what we are hearing is that many legal aid offices have cut staff and some will close in 2011 forcing individuals to represent themselves.  Indeed, for a few clients I’ve found myself contacting the court on behalf of a defendant to see if there isn’t some other venue to resolve the issue.  Court staff have commented to me that they are taking more and more “legal aid” type calls where gaps in services are rapidly appearing.  The issue now though is will a court empower self-representation including providing pro bono court mediators or allow a case to be dropped if the plaintiff will agree to informal mediation.  Usually, once in “the system”, the case stays in the system.  Given economic conditions and the increased intrinsic demand for self-representation in circumstance where no assets are available (house, car, job gone) the courts seem to be quietly ignoring “non asset” related cases and keeping asset based pleas.

The result is a good level of systemic chaos and dysfunctional limbo as complaints and cases overwhelm the legal system from people with no means to pay for services.  This means individuals will either find an attorney to legally coach them through their civil case or find a system informal and external to the courts to resolve “guilty” issues.  While local government and private benefactors may have provided financial support for legal aid the clear shift must now be to shift efforts to funding and developing local networks or groups for referral by the courts where a quick and “audible review” will allow plaintiff and defendant to have an “informal hearing” as recommended.

To do this, again, it will take courage and foresight in that if you are contacted by a plaintiff or defendant you could advise them to include in the plea or answer a request for an ombudperson to handle the issue.  You would get agreement, consensus, and then contact the court thus taking proactive initiative.  I know this is not traditionally accepted, but if change is to happen and stability and economic well-being restored, we must recognize we cannot depend on government alone.  How this is to be paid for requires the same collaboration that’s taking place now for “recovery” and that would include soliciting the court for partial payment, while possibly seeking grants from foundations and other corporate institutions.  At the same time, where individuals are seeking “debt relief” concerning unsecured assets or lines of credit, this should not be open season for “junk debt collections” and only “real assets” where loss of a business or family are in jeopardy and are a priority.  For “collections” cases Pro Se coaching is the most effective and efficient method as individuals need and seek “relief” to start their lives over.

And finally, IF you are a corporate, legal or university institution and currently not at “capacity” per the charter of your organization, why not consider expanding your scope and doing community outreach, be of service to others “outside” the organization and at least take some temporary initiative during these austere times.  Coach, mentor, consult, advise, call it what you will… it’s needed more than ever and provides a great “social responsibility” opportunity to at least help individuals represent themselves or sponsor a move to resolve their issue informally though your entity may even be party to the complaint.  Change is here… it has to happen…

The New Ombudsperson: Career Choice And The MBTI Instrument

I have the distinct pleasure this year, several times, to talk to many individuals contemplating becoming an Ombudsperson.  Some were offered a volunteer position of some sort in elder care, others recognize they have played a similar role consistently in their previous or current job; and still others are simply curious.  To help evaluate this personal decision you may want to consider taking the Meyers-Briggs Type Indicator or MBTI to determine if your innate personality characteristics are suited to the profession.  This is but one step to help come to a decision; and could assist with guidance towards any type of career consideration.

I bring this into the equation because in my “other practice” in 2009 I had bid a project and then was asked to take the MBTI online and submit the results for purposes of “team makeup” they said, which I did.  I’d also taken this, as many of you also probably have, as an undergrad in college where requirements to be a “lab rat” to graduate were also required.  What I noticed is that in the approximate 30 year time span from my original MBTI and the 2009 “test”, I’d kept consistent with my “assigned category” from then to now, which can be good or bad depending on how one wants to look at it.

Below are some raw links to further investigate for yourself and even take the “exam”.  It can also be administered in person professionally, please Google for yourself to explore dozens of resources online:

https://www.mbticomplete.com/contents/learnmore.aspx

http://www.myersbriggs.org/my-mbti-personality-type/take-the-mbti-instrument/

http://en.wikipedia.org/wiki/Myers-Briggs_Type_Indicator

To spike your interest even further here is a table of personality type categories below:

And if you’ve stayed with me this far, nope, didn’t win that bid, but rediscovered “why” I took the degree program I did 30 years ago and “why” I continue to be what I am today.  I hope this helps everyone select a potential new career for 2011 that is in alignment with your “core” disposition; or confirm your present career choice. Oh, and in case you are wondering… INFJ.