If you must have a friend work for you, set the perimeters right from the start. Map out his duties and responsibilities and make sure he knows what is expected of him.
Make sure he performs just like the other staff you have under you. You are the boss who pays his wages. He is the staff who earns his keep. No slacking allowed else you will lose his respect. Don't wait until he is already comfortable on your head , before you put him on the right track. He has already become a creature of habit , he is already used to the non target routine to accept your belated burst of authority. You will have plenty of criticisms thrown your way and ultimately you will also lose a friend.
Be a wonderful friend outside the office. Know where to draw the line, do it right from the start and you will not only be friends for life, but earn his utmost loyalty and friendship. Most of all you achieve your own objectives and keep your pace of progress.
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