In my work with family businesses, there
are four components that I have found to be
crucial. These include managing conflict,
succession, communication, and roles.
Manage Family Business Conflict
As part of a family business, you know
how quickly conversations can degenerate
into conflict. Arguments are more likely in
a family business because family members are
more comfortable with each other (and
therefore less censored) than regular
co-workers. Not only can workplace conflict
hurt relationships among family members, it
can reduce your credibility and
professionalism with other employees.
To get better results and enjoyment
from your business, you and your family can:
- Recognize the causes of business
disagreements.
- Change the course of communication
before conflict develops.
- Better understand family member’s
views on business issues.
- Assertively state your thoughts and
opinions.
- Develop a system for handling
disagreements in a private office (not
in front of employees)
Do you think you and your business will
perform better with lower conflict? I bet
so.
Plan for Change in Business Structure
& Succession
Your business will eventually change over
time. You may consider bringing on junior
partners, promoting someone, or creating new
titles and responsibilities for people.
Family members, business partners, or
investors may consider a change in the
business structure. Planning for family
business succession is a key component to
the success.
To effectively plan for your business’s
succession, you should be able to:
- Openly discuss issues related to
succession.
- Learn how people really feel about
taking over the business--don’t assume
that your son or daughter really wants
to or feels comfortable telling you how
they truly feel.
- Address potential challenges to a
new partnership or business structure up
front.
- Anticipate family members’ and
employees’ positive and negative
reactions to changes.
- Ensure a smooth transition into your
new business structure.
Enhance Family Business Communication
Many of the family businesses I have
worked with surprised employees (and even
me!) by how much they argue. In your family,
it may feel normal to have disagreements or
even a heated argument. It may blow over and
no one is bothered much by it.
Even when this enters the workplace, it
may still feel natural to you and you may
not even notice - but other people do. And
it often makes them feel uncomfortable.
Simple conflicts and communication
difficulties can block your business’s
ability to thrive. The good news is that
these challenges are easy to address. It’s
often better to have a neutral third party:
- Point out communication problems.
- Coach family members on developing
new communication patterns.
- Establish regular times for family
business members to have meetings.
- Make meetings more effective and
efficient.
Clarify family member business roles
The fourth key point is role
clarification. A common problem in many
family businesses is that individual roles
and responsibilities tend to get blurred.
Have you experienced this? You and your
family members step on each other’s toes and
it isn’t clear who’s in charge of what or
whom?
Business roles are different from family
roles. This can become confusing – not just
for family members, but also for your
employees, and even customers. An absence of
role boundaries often results in
communication difficulties and conflict.
To have a thriving family business you
need to:
- Clearly identify and label specific
business roles for each family member
and employee.
- Ensure that each individual is
content with his or her business role.
- Outline job descriptions and
responsibilities for each individual.
- Create clear roles for new hires.
- Establish the organization’s
hierarchy and determine who reports to
whom.
As a family business, you have a unique
opportunity to thrive. In my experience,
family businesses have more passion,
creativity, and loyalty than the average
business. Once you harness these things and
address the four components of conflict,
succession, communication, and roles, your
business will thrive. And on a final note,
don’t forget to spend quality
non-work-related time with your family
members.
Larina Kase, PsyD, MBA, is a
business psychologist who helps family
businesses survive and thrive. She is
regularly featured in media such as Inc. and
Entrepreneur magazines, and is the author of
6 books including the New York Times
bestseller The Confident Speaker. Get more
resources at
www.pascoaching.com
KEYWORDS
family businesses, workplace conflict,
family business conflict, family business
communication, family business succession,
business roles
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