Are We Really "All Family" At Work?

Why we should break the "we are a family" stigma at work especially if you want a turn a profit in your company.

The 'Family' Culture Fallacy

Many organizations want to foster a "family" atmosphere where workers are encouraged and cared for. Although employee welfare is vital, a family model creates commitments and expectations that are too high for businesses to meet. Instead, companies ought to put more effort into creating solid organizational cultures that are based on growth, purpose and shared values rather than focusing on family.

Family Culture Fosters

1. Unrealistic Expectations

2. Blurred Boundaries

3. Inability To Fire 'Family'

4. Lack Of Organizational Growth

An example from Netflix's first culture principle:

The Dream Team: Netflix aims to have high performers who are great at what they do and working together.

“We aim only to have high performers at Netflix—people who are great at what they do, and even better at working together.”

An organization should maintain a high-performance culture, like a professional sports team rather than a family. Families are about unconditional love which can make them dysfunctional. Sports teams are focused on performance, even if it means swapping a player you love for a better player. In most cases, you are not able to fire family.

This approach has proven effective in fostering a high-performance environment. By continuously recruiting top talent and encouraging selflessness, judgment, candor, and resilience, Netflix ensures that its team members not only excel individually but also elevate each other.

When evaluating team members consider the 'The keeper test': if x person wanted to leave, would I fight to keep them or with the established experience with them on your team already, would I hire them again? If both are “no” it is seen as fairer to part ways as quickly as possible.

Although human compassion is extremely important, leaders need to understand the fundamental distinctions between families and for-profit businesses.

References

Schmitz, L. Netflix has released a revamped version of its famous 2009 memo on culture. Fast Company. 2024. https://www.fastcompany.com/91146182/netflix-revamped-2009-memo-on-culture

Ramsey, D. When Turning Down Business Is Actually a Benefit. EntreLeadership. 2024. https://podcasts.apple.com/us/podcast/when-turning-down-business-is-actually-a-benefit/id435836905?i=1000672039350

Westover, J. Avoid The Family Fallacy: Prioritize Culture For Employee Engagement. Forbes. 2024. https://www.forbes.com/councils/forbescoachescouncil/2024/01/23/avoid-the-family-fallacy-prioritize-culture-for-employee-engagement/#:~:text=Although%20employee%20welfare%20is%20vital%2C%20a%20family%20model,and%20shared%20values%20rather%20than%20focusing%20on%20family