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In-laws in the Family Business: Using an Accountability Matrix to Integrate In-laws into the Business

In-laws can provide more benefits to the family business than one may think. In our previous blog post about in-laws, we discussed how to improve relations between in-laws and family members. In this post, I’m going to get specific and talk about how to use an accountability matrix as a tool to analyze an in-law’s skills and determine their position in the business.

An accountability matrix might sound like an overly technical term, but in reality the concept is a simple three-step process:

Step One: Address and define the key responsibilities in running both the family and business governance systems.

Step Two: Be clear about who is accountable for making decisions, who should be consulted before the decision is made, and who needs to be informed once the decision is made.

Step Three:  Make sure that each individual’s responsibilities are aligned with their skill set.

Simple, isn’t it? This system of matching skills to responsibilities means that everyone understands what’s required and who’s accountable. It also helps manage the complex overlap between family and business.

An accountability matrix is an excellent tool to use whenever a new in-law enters the business, and is also valuable between siblings. It allows you to evaluate their strengths and abilities, and give them a role that suits their skills and interests. Be sure that their responsibilities are clearly defined to help avoid competition and rivalry between in-laws and other family members. In situations where an in-law lacks skills or doesn’t have much work experience, it might be worthwhile to suggest that they gain some outside work experience before entering the family business.

While an accountability matrix might sound easy enough to accomplish by members of the family council or board of directors, in situations where there is a lot of family tension, it can be helpful to use an outside facilitator. Keep in mind that while we’re focusing on in-laws in this post, an accountability matrix can be used for any person or group working for the business.

Below are some important things to think about when using an accountability matrix with in-laws:

  1. Be clear about the roles, responsibilities, and compensation plan for the in-law.
  2. Keep things focused by assigning specific goals to in-laws based on their work responsibilities.
  3. Create clear metrics or goals–ones where success does not depend on other family members. This will give in-laws the opportunity to demonstrate their own unique skills and abilities.
  4. Seek family counsel before hiring an in-law. Address any issues that family members have as a way to prevent miscommunication or conflicts in the future.

What strategies does your family business use when welcoming a new in-law into the business?

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