Insider read Peter F Drucker’s essay What Makes An Effective Executive on the flight home from a recent trip.  Drucker says there are 8 practices of effective executives.  Practice #2 is:  They asked “What is right for the enterprise?”

Not what’s right for the owners.

Not what’s right for the stock price.

Not what’s right for the employees.

Not what’s right for the executives..

What’s right for the enterprise.   Drucker expands the idea:

“This second practice is especially important for executives at family owned or family run businesses – the majority of businesses in ever country – particularly when they’re making decisions about people.  In the successful family company, a relative is promoted only if he or she is measurably superior to all nonrelatives on the same level.”

Drucker mentions that any member of the Dupont family was entitled to an entry level job at Dupont.  But the only way they could get promoted was if a panel composed of non-family managers judged their performance superior to all other employees at the same level.  The same rule was observed at J. Lyons and Company, the successful British family business.

What’s right for your out of home advertising company?  Do you apply this rule when you promote family members at your out of home business.  The best employees will leave if they think their advancement opportunities are blocked by underperforming family members.

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