Some 'hard' lessons - or are they 'soft'?

Nation's Business, Feb, 1998 by Sharon Nelton

Two recent books seem to approach family business from opposite directions -- the "soft" side and the "hard," or technical, side.

Let me make it clear that I've always been uncomfortable with the designations "hard" and "soft" -- they're also used in my field, journalism, as in "hard" news and "soft" news. In my opinion, what's seen as "hard" -- facts, figures, bottom lines, and the like -- is often easier to embrace and grapple with than what's considered "soft" -- issues of human relationships, for example. In other words, "soft" issues are usually much harder to deal with because emotions are involved.

That said, the "soft" book here is The Best of the Human Side, a collection of articles by Leslie Dashew, a family-business authority in Atlanta who calls her consulting firm Human Side of Enterprise.

In many ways, Dashew's book is a series of meditations about business, especially family business. In one chapter, she reflects on the movie "The Lion King" as a parable for family-business succession. The film can be a "wonderful conversation starter" for business families, she points out, and it offers them an opportunity to consider their own transition processes.

In a chapter on communication, Dashew observes that "the subjects that are the most difficult to discuss are often the most important to discuss."

Bridging communication gaps, she says, requires three major components. One is structure, consisting of channels, which could include councils, regular meetings, and written communications such as newsletters and reports. Another is a safe environment in which people feel trusting enough to communicate openly.

The third component consists of skills. The development of skills, she writes, includes the courage and confidence to overcome barriers -- for example, asking for information (and perhaps overstepping your bounds.) or sharing feelings (and perhaps risking the loss of someone's approval).

On the "hard" side is The Family Business: Paw Tools For Survival, Success, and Succession by brothers Roger C. Allred, a CPA, and Russell S. Allred, a marketing consultant. Their firm, Allred & Associates, Inc., is in Bakersfield, Calif.

The authors' "power tools" (the very words convey the image of "hard") are 275 strategies a reader can use to evaluate the strengths and weaknesses of his or her business and, if necessary, to shore it up.

Power Tool No. 5, for example, is "Management knows the objectives of the family." Power Tool No. 212 reads: "The company complies with all governmental safety policies." And Power Tool No. 267: "Immediate action is taken to correct product flaws."

The power tools -- each explained in more detail -- are organized by topics such as family, marketing, accounting, and production. The Allreds say their aim is to enable you to be your own consultant.

But be forewarned: Many of the power tools deal with the "soft" side, too. Family issues are typically ignored by business schools, write the Allreds, "because 'they are not business issues.' These 'nonissues' are what usually destroy successful family businesses and, sometimes, successful families.

"Family businesses have emotional issues, and they must be considered. Ignoring the passions that arise in a family business is like turning your back on a fire in your stockroom. You can ignore it for a while, but it will eventually destroy your business."

The Best of the Human Side can be ordered for $17.45 from Human Side of Enterprise, Suite 700, 210 Interstate North Parkway, Atlanta, Ga. 30339; (404) 252-7113. The Family Business (Berkley Trade, $12) is available in bookstores.

Both books are -- pardon the pun -- softcover.