You want to hire people you know, love, and trust, and quite often those are friends and family members, but how do you avoid favoritism and nepotism?

 

On today’s episode, host Jeff Mask is joined by his brother, Clate Mask, CEO and co-founder of Keap (formerly known as Infusionsoft), a sales and marketing automation platform. Clate loves entrepreneurs and has great respect for the grit and tenacity and perseverance they show as they build their businesses. He built a company that helps entrepreneurs overcome the challenges and frustrations that go with the territory. Automation helped him and his business, and now he shares it with others.

 

Clate and Jeff have a lot of experience working together in multiple companies over the years. They’ve seen what works really well and what can be really painful, creating family strife.

 

So how do you work with family and friends? How do you lead through nepotism and favoritism? How do you avoid those horror stories we all hear about when family members work together and end up ruining their relationships outside of the office?

 

Listen in for some encouraging stories and practical tips—all born from years of experience, both good and bad.

 

What NOT to Do When Working with Family

 

Years ago, during the dotcom era, Clate was Jeff’s boss in a company he didn’t own. It was a lot of fun, and they learned a lot. Jeff is six years younger than Clate and idolized him. They had a good relationship, but as Jeff started tasting success, he got prideful, and Clate would try to keep him in his place. Clate had the mental game and knew how to push Jeff’s buttons. Both of their weaknesses came out.

 

Their company had a ping pong table where they’d play lunch tournaments. Clate won 95% of the time, because of his skill and mental edge. They always played best of three. One day, they had each won one game, and Jeff was one point away from winning game three. He smashed it and won. An employee had walked behind Clate at just that moment, and Clate slammed the paddle down and said, “If you want to win that way, sure.” 

 

They replayed the point. Clate won and gloated, and 21 years of little brother exploded inside Jeff. He lost it, started swearing, and they were yelling at each other, totally embarrassing themselves. They went back to work and kept fighting over Instant Messenger. 

 

Learning From Their Failures

 

They eventually got over it and healed. Fast forward. Clate started a new company with two of his brothers-in-law. Jeff could have joined but didn’t want to mess up their relationship. Jeff went out on his own and found success. After two kids and a cancer diagnosis, he wanted to find purpose and vision in business. At the same time, Clate was looking for a Jeff Mask in his company and thought, shoot, we just need Jeff Mask.

 

Jeff was hesitant at first, because he really didn’t want to risk ruining a family relationship he treasured. But he and Clate sat down for a ground rule-setting conversation at the very beginning. They knew they had to be intentional, and they were. They set ground rules for what they would be and not be. They decided together that they would avoid these three things at all costs: 

 

1. greed
2. pride
3. laziness

 

And they would make sure they demonstrated: 

 

1. selflessness
2. humility
3. grit 

 

There were certain standards Jeff had to meet, results he had to get, and if he didn’t measure up, they agreed Clate would fire...