Pay rise/business operations impasse

[BlueSky2019]

I will try and be concise, although quite a complicated situation.
Husband (DH) started a manufacturing/sales SME with his BP 18 years ago.
4 directors (DH, BP, BP’s wife and myself). 50/50 share split between husband and BP.
4 other employees.

BP had a mental breakdown 18 months ago and resigned. We are still paying him off. Business is now 50/50 between myself and DH.
Really tough ride over last year, headed for insolvency a few times but now on a more positive course.

Neither of us wives were directly involved in the running of the business; general agreement all round. However with mounting chaos approx 6 months ago I was asked to come in and assist with what I thought was general admin. I was doing this in conjunction with another part time job.

What I quickly observed is that whilst DH is very good at certain aspects (bringing business in, technical expertise), he is woefully lacking in people management skills, attention to detail and financial business acumen. I can only assume his BP was responsible for these aspects.
Too many examples to list where poor decisions taken, manufacturing errors and lack of leadership have lost us so much money.

The latest issue is that he has taken the arbituary decision to award all employees a 10% pay rise. No discussion with me, no careful scrutiny of accounts to determine if that is a sound business decision and no objective review of employee performance (a whole other post in itself!) not to mention we personally are on the breadline, no pay rise for 5 years, nor any prospect of one.
He has no handle on the day to day finances of the company and tends to stick his head in the sand.

When I try and raise my concerns I get dismissed and told this is his business. He clearly doesn’t respect my opinion and the dynamic is becoming increasingly tense. So much so I am considering resigning myself.

His own mental health isn’t great, is working 6 days a week but won’t take on board any advice. I’m at a loss.

 

[japancool]

Difficult one. You're on the road to losing him as a business partner and as a husband.

What will happen if the company goes under though? How will that affect you personally?

Remember that as a director, you have a statutory duty to act in the best interests of the company. Is there any prospect of you both going to some kind of counselling? He needs to respect your views as an equal partner, a fellow director and wife.

 

[Newchodge]

Difficult one. You're on the road to losing him as a business partner and as a husband.

What will happen if the company goes under though? How will that affect you personally?

Remember that as a director, you have a statutory duty to act in the best interests of the company. Is there any prospect of you both going to some kind of counselling? He needs to respect your views as an equal partner, a fellow director and wife.

You could try @The Resolver but you may need something more drastic.

 

[BlueSky2019]

Should add I’m certainly no Al

You could try @The Resolver but you may need something more drastic.

The Resolver?

 

[MBE2017]

Should add I’m certainly no Al

The Resolver?

A highly regarded member on here.

I would wait for the Resolvers input, but as a layman I can sympathise with you both. Communication is key and obviously you are struggling getting through to your husband at present, which could be a sign of the pressure he has been under as well.

Personally, I would recommend meeting away from your home and business, get onto neutral ground, maybe go for a meal. Explain how great he has done turning things around and that you are happy to help, but you also feel you can be of more help if he will let you.

Guys tend to have huge egos, tend not to ask for help, even when they know they need some. The hardest lesson I learnt, and it took a long time to do so, was to delegate, and not try to do everyone else’s job for them.

I think you both need to agree to your roles going forward, with the agreement you will both listen to each other for the common good.

I’m sure others will come along and explain this better, but that’s the gist.

 

[japancool]

Should add I’m certainly no Al

The Resolver?

He's a member of the forum who specialises in resolving disputes between business partners.

 

[BlueSky2019]

Ah ok. Certainly would welcome advice.

 

[BlueSky2019]

A highly regarded member on here.

I would wait for the Resolvers input, but as a layman I can sympathise with you both. Communication is key and obviously you are struggling getting through to your husband at present, which could be a sign of the pressure he has been under as well.

Personally, I would recommend meeting away from your home and business, get onto neutral ground, maybe go for a meal. Explain how great he has done turning things around and that you are happy to help, but you also feel you can be of more help if he will let you.

Guys tend to have huge egos, tend not to ask for help, even when they know they need some. The hardest lesson I learnt, and it took a long time to do so, was to delegate, and not try to do everyone else’s job for them.

I think you both need to agree to your roles going forward, with the agreement you will both listen to each other for the common good.

I’m sure others will come along and explain this better, but that’s the gist.

Thank you for giving a different perspective. I’m certainly no business expert but I do know enough to recognise when it’s not being run properly. It’s knowing how to get help he will accept

 

[MBE2017]

Thank you for giving a different perspective. I’m certainly no business expert but I do know enough to recognise when it’s not being run properly. It’s knowing how to get help he will accept

I’m sure you do. The skill comes in how to explain the company is being badly run in some respects, without him getting butt hurt or feeling insulted. There might be help from some local business type mentor, the hard part is finding a good one.

 

[BlueSky2019]

Would also welcome thoughts on what is considered a reasonable cost of living Payrise? We are almost at our end of year anyway when pay is reviewed. One employee already had a 10% rise 6 months ago for reasons I can’t fathom and DH seems to have plucked another blanket 10% for everyone out of thin air!

 

[MBE2017]

I’m sure the workforce appreciates a 10% increase, compared to most it is a generous figure, although we have no clue as too the original pay competitiveness and the industry you are in, and as importantly if your company can actually afford it.

How is your profitability, orders, exposure to debt etc holding up? I only ask since you mentioned you hadn’t rewarded yourselves.

 

[BlueSky2019]

I’m sure the workforce appreciates a 10% increase, compared to most it is a generous figure, although we have no clue as too the original pay competitiveness and the industry you are in, and as importantly if your company can actually afford it.

How is your profitability, orders, exposure to debt etc holding up? I only ask since you mentioned you hadn’t rewarded yourselves.

Lots of orders but not enough profit (largely due to lazy, incompetent employees which DH refused to address), debts and money owed personally to us.
DH is expecting a huge order to be placed this week with decent profit margin which he thinks will be the answer to all our prayers. My opinion is less rosy and that the money will all too soon evaporate again through poor management.

 

[MBE2017]

Sounds like you have plenty to talk about.

 

[Newchodge]

Would also welcome thoughts on what is considered a reasonable cost of living Payrise? We are almost at our end of year anyway when pay is reviewed. One employee already had a 10% rise 6 months ago for reasons I can’t fathom and DH seems to have plucked another blanket 10% for everyone out of thin air!

Did you manage to dismiss the useless Ops manager last year?

 

[BlueSky2019]

A settlement agreement was agreed. Another example of inadequate people management by leadership. Should never have come to that and now rest of employees have £ signs in their eyes

 

[The Resolver]

This clearly needs personal mediation to help you both find a way to work together and to regulate that through a Shareholders Agreement, The problem will be in pesuading him to engage, I have a good recodr in achieving co-operation,. BUt yiu may need to take some tough steps first.

What is the posiiton with the bank? Do you have any authority/access? Are you on any guarantees?. Remember he cannot pass a Resolution without your agreement, I'd like to learn more. Book yourself into a call at https://www.SeeYouOutOfCourt.com/book-online

 

[The Byre]

1. You need legal clarity and that is @The Resolver's department.

2. You need to sort out the personal relationship between DH and yourself. That is now the foundation upon which the business is built. Sit down and talk. Tell him how you feel and tell him what you find good about him and why you are together. Only when your personal relationship is in calmer and smoother waters, can you sail forwards.

3. DH seems (judging by what you have said here - I obviously have nothing else to go on!) to be suffering from depression. It has all become too much for him and handing out money Willy-Nilly is much the same boost that a depressed compulsive shopper gets while loading up the old credit card. It will not be easy - and both of you have to face his depression. It often happens to people that find themselves overwhelmed by events that seem to just flood over them.

4. YOU need to step up to the plate and get some smarts - and above all, get some man-management skills under your belt. Start today by buying two small and cheap books and read them each twice. The One Minute Manager and The One minute Manager Meets the Monkey, both by Kenneth Blanchard and others. Obviously, you will need to deepen your skills at a later date, but getting an immediate handle on what needs to be done as far as dealing with the employees is concerned is vital.

5. You can help DH out of his hole by giving him agency over his range of clearly defined areas of responsibility - technical and sales. By that, I mean he has 100% responsibility for those two areas but is not allowed to cost up projects without your oversight and you giving the costing and pricing a green light. Admin is then your Monkey. Each person must take full ownership of their monkey and not try to pass that monkey on to someone else (you? DH?) Pay scales should now be your monkey and not DH's monkey.

6. Steps 1 to 5 will make you General Manager, with DH being the Operations and Sales Manager. Above all, you need to exercise control over the finances. That means that you all must have clear and written job descriptions - clearly defined descriptions of who gets to deal with which monkey. At the moment, you seem to have inherited a workshop full of chaos. The time has come to bring order into random nonsense. That means getting the team together and allowing each member to air their grievances without retribution or consequences - let them each speak their minds! Clear the air! Then tell them that from now on, things are going to change - there's a new sheriff in town!

Good luck - you will need it!