I’ve always had this theory about why the government passed a law against age discrimination. I don’t think age is the root problem when an older employee gets let go, downsized, canned, forced out, or whatever the politically correct description is these days. My theory is that it’s the attitude so many people develop as the end of their career looms and there’s not much that motivates them anymore to work their butts off for the company’s benefit. As soon as that becomes apparent to the employer, it’s to their advantage to trade that employee and their attitude in for someone who still has something to gain by being a slave to “the man” (or the corporation).
I had a phone conversation with a good friend of mine the other day, who also happens to be at the top of the org chart in a family business that owns a manufacturing company, a chain of retail gift and souvenir stores, and a brick & mortar home décor store with on-line and mobile sales channels. As Chairman of the Board Tim, age 67, has been trying for several years to lead the organization’s Board in creating a viable succession plan for the conglomeration. He expressed to me, again, his frustration about how difficult that endeavor has been. I’ve been hearing this from him for at least 5 years.
Tim is the youngest person on the Board of Directors. He married into the second generation of the family, and that second generation have all retired. Some of them are on the Board of Directors. None of them, except for Tim, is under the age of 73. Not one member of the third generation of the family is interested in, or qualified to take over, the whole family business.
As a former certified facilitator for Stephen Covey’s 7 Habits of Highly Effective People, as well as a human resource development manager, I learned long ago to look far below the surface of a situation. I know people do things that seem perfectly reasonable to them, even if they seem completely incomprehensible or irrational to us. So, before I form an opinion or draw a conclusion about something, I try to discern what might be motivating (or not motivating) behavior I don’t understand.
As Tim and I were discussing the succession situation, I wondered what causes a group of (apparently) intelligent men to be so complacent, uninterested to the point of inertia (and negligence?), in a company’s existential problem. They’ve talked it to death over and over and over for years but make no decisions to move a solution forward. Tim’s dilemma reminds me of managing an organization of all volunteer help…all the responsibility with little authority or power to make volunteers do anything. It’s a difficult, often thankless task. To oversee these folks successfully, it’s imperative to find the key that unlocks the motivation of each individual.
In pondering the situation, I mentioned to Tim that it seems to me there is no payoff anymore for any of those Board members. All of the Board members are finished with their working lives. Their life’s priorities have changed. None of them have family to leave the business to. One member was CEO of the manufacturing company for his entire working life and is probably sick and tired of the grind of it and the problems it faces in changing market conditions. None of them seem willing to spend money to make money. They’re comfortable in meeting periodically to rehash old problems hoping (I imagine) the problems will magically disappear. There are no family members to take their positions on the Board so it’s an obligation that can’t seem to shake.
For much of their existence, the businesses were profitable without much effort in the past. They probably have the mistaken impression that if nothing changes, nothing changes. But the changes are all occurring from outside of the business. Now, the manufactured products are mostly relics of the past. The retail division is keeping manufacturing afloat, but the retail division, ably managed by aging non-family members faces the same succession issues as all of the family’s enterprises. As Margaret Thatcher famously said, “…sooner or later you run out of other people’s money.” Until that happens, there’s simply no compelling payoff for them to change a declining business that won’t go away.
There are none so blind as those who will not see.
From the outside looking in, the family business is past the do or die stage, has been for several years. If I were on that Board, I’d vote to get out (of the businesses) while the getting’s good, reap whatever profits are still available, and quit agonizing over what to do with a family business no one cares about anymore. I know Tim bears a heavy burden that weighs more each year that passes. I wonder if he could suggest that each Board member honestly evaluate whether it’s in the family organization’s best interest for him to remain on the Board. That might shake things up just enough to provoke some action. Something’s got to give.
I’ve written often in this blog about finding purpose in retirement. It’s such as exciting time to be able to choose what we get to do with our time and our energy. And it allows us the chance to give deeper thought than when we were younger to the question of “what’s the payoff?”.
What constitutes a payoff changes so much for each of us from our working years to our retirement years. If we’ve had a modicum of success, money takes a back seat. Other payoff considerations include mindless entertainment, feeling a sense of satisfaction, leaving a legacy, being recognized in some way, fulfilling life-long dreams and desires, being of service to others, or simply having a daily life of no obligations or agenda.
I was recently asked if I would consider assuming responsibility for maintaining the financial records of a newly formed non-profit organization. I was flattered, especially since the man who asked had no idea of my bookkeeping and accounting background. Flattery is a powerful payoff (motivating force). As a life-long people pleaser with a servant’s heart, I was sorely tempted. But as I considered why I was tempted (I’m happily retired!), I came to understand that the feeling of being flattered wasn’t enough of a payoff for the obligations I’d assume, the loss of freedom I’d experience, and the frustration I might feel with the nice man who would head up the non-profit. I know myself well. This nice man is from a generation that, with fairly different values, I’d found exasperating to work with in past situations. I am not, at this stage in my life, willing to voluntarily take on that frustration. There is simply no payoff compelling enough for me to say yes to the opportunity.
Whether or not you’re retired, do you consciously think about payoff when making a decision? Let’s hear your thoughts on what does, or doesn’t, motivate you at this stage of your life. Comment below!
P.S. As always, thanks for reading! You’re the reason I keep writing!
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