Straight talk from key employees - communications between employer and employees

Nation's Business, Nov, 1989 by Rita S. Rapoza, Lynne C. Lancaster

Straight Talk From Key Employees

When Terrance (Terry) M. Rockstad recognized the need to develop nonfamily leaders in his family-owned business, he knew he had to encourage people to be straightforward with him. Rockstad, president and CEO of Dan's Super Market Inc., a Bismarck, N.D., grocery chain, recalls conversations three years ago with William F. Zerr, then supervisor of produce and general merchandise. "As Bill and I started to have some serious, heart-to-heart discussions, I tried my best to let him know how much I appreciated his opinions, even about my own family," Rockstad says.

That encouragement paid off. Zerr is now director of operations, and he says, "I have come to trust that Terry and I can honestly discuss the performance of any person in this organization, whether they are family or nonfamily members."

Such openness is unusual in a family firm. Emotions run high when a nonfamily manager must let the boss know his son has a drug problem that affects the business, or when a chief financial officer has to tell the president about her brother's loose accounting procedures.

Typical are the comments of a vice president of operations, who said: "It's not easy having the boss's brother report to me. The boss thinks it's something personal between me and his brother, but this company just can't survive with a vice president of sales who doesn't know his own products!"

The risks of straight talk are high on both sides. Nonfamily employees fear losing their jobs or getting stalled in their careers. Business owners dread learning bad news about family employees. It's not just embarrassing; it also means they may have to take action that can disrupt the family.

But they recognize that their success depends on their ability to obtain reliable information. They also understand the financial and emotional costs to the company when open communication doesn't exist and a talented nonfamily employee quits out of frustration.

Nonfamily employees need reassurance that they won't be punished when they risk being frank about sensitive issues. And smart chief executives know they'll never hear the bad news if they stifle straight talk by silencing criticism about a family member or ignoring promises to correct problems.

Gene Snyder, president of Snyder Bros., a Minneapolis-based drugstore chain, says: "It's hard for senior managers who aren't part of the family to tell me something they know I won't like. I really try to be sensitive to those tough messages."

Here are some ways to prompt straight talk:

Recognize early attempts. Nonfamily employees need immediate encouragement when they bring up touchy subjects. This includes verbal invitations like "Tell me about it" or "I'm interested in what you have to say," as well as nonverbal cues, like closing the door when the employee is in your office.

Protect the employee. Your nonfamily employees need to know what you will do with the information they give you. They want to know that you respect their honesty and that, if necessary, you will protect them from reprisals by family members.

Keep in touch. Nonfamily employees commonly complain that even when they do muster the courage to deliver an upsetting message, they seldom see the results. This is especially true if the message is embarrassing to the family. Gene Snyder says, "I like to check back with employees within a day or two to let them know what's going on, even if we're still working on the problem."

Talking straight to the boss requires courage and confidence, but as Bill Zerr firmly believes, "It's the only way the right person can get the right message to fix the right problem."

PHOTO : Good communication with nonfamily employees such as Bill Zerr, left, is essential, says

PHOTO : Terry Rockstad.

Rita S. Rapoza is president of Rita Rapoza & Associates Inc., a consulting and training firm specializing in privately owned businesses. Lynne C. Lancaster is president of the Lancaster Group Inc., a management communication consulting firm. Both are based in Minneapolis.