50 Common Causes of Family Business Conflict ... and how to deal with them

Modernising & Professionalising the Business.  

By Jon Kenfield. Solutionist.  

• Clash between old and new, conservative and progressive, positive and negative, proactive and reactive.  

• Usually an inter-generational, age-based issue.  

• Incumbents are invested in past and present; successors are looking to the future.  

• Aged owners may be fossilised - they either resist change, or can’t physically make changes.  

• Common for upcoming generation to invest too much in IT to marginalise owners / parents. When it goes wrong / over-budget - creates conflict and concerns re judgement of potential successors.  

• Also common for parents to indulge next gen by allowing them to enter into contracts that stamp their authority on the business - enthusiasm and poor judgement can make this go horribly wrong - and threaten the business as a consequence.   

• Solution:   

Take a gentle approach. Negotiate acceptance of change through inclusive planning (on-boarding) and help with visualising next life stage.   

• Create new, appropriate and attractive role for elders as Sponsors of change, using family members and interests to create extra leverage.  

• Move human blockers into non-operational governance roles so they can’t interfere with change project.  

• Empower staff to make changes - reduce dependency on current leaders and create experienced support team around ascending generation. 

I'm interested in your comments below.  

Thank You.