The Loyalty Trap

I've been having an interesting series of conversations over the past couple of weeks with three different health practice owners who share a very common problem in their operations...


The problem boils down to a few not uncommon characteristics that play off eachother within the practice.


1. The practice is small and is structured around friendships and informal business "arrangements"


2. The practice lacks sufficient performance benchmarks and operational controls and thus is not structued for success and doesn't realize it.


3. Finances get tight and it becomes evermore difficult to make ends meet.


4. Loyalties suffer and team members enter into competitive moonlighting business arrangements.


The result is predictable:
> Both parties become frustrated, trapped, and feeling "owed something"
> Trust and loyalty is undermined
> Business and personal relationships erode
> Good intentions and opportunities are lost
> All parties suffer


It is important to realize that this type of situation often spirals out of control It carrys with it the seeds of failure and can easily erode into an abusive business relationship.


It's critical to differentiate the borders between friendship and business. So to it is critical to establish shared business expectations, responsibilities, and obligations, and accountabilites.


Businesses need to be run like a business.


Ideally businesses are set to be run like a business from the start. Too often they are not. When they are not it is important to get them back on track as quickly as possible.


When that is done there is usually some fallout - its regretable but often inevitable. Its likely to get unpleasant before it gets better. Confrontation, threats and harsh words are likely to occur. Procrastination will only make matters worse. The stakes are high.


If you find yourself in such a situation it's important to find a mentor - someone who understands the business and can help you step back and see the big picture, long term and separate business from emotion.


My advice: Face reality. Avoid blame. Get competent advice. Take action. Follow through.


A business that is not structured for success will rarely find it.


Bob


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Performance Builders