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

Audio No 35: Discipline (lack of).

• Discipline: (a) Internal = self-control and self-regulation; (b) External = system of controls + enforcement measures + consequences for non-compliance.

• Lack of discipline = lack of accountability.

• Extreme situations, threats that threaten the family and the business.

• The concept of discipline is often ignored or dismissed in a mature family context, as family conflict experts, we constantly deal with the results of poor family discipline that’s been transferred into a family business.

• In essence, internal and external discipline are designed to ensure good and appropriate behaviours in relevant environments.

• Personality differences mean that:

o Some family members stick by the rules, while others don’t, conflict.

o Some family members are self-disciplined in the absence of rules, while others are not, conflict.

• When Parents provide unequal / unbalanced support for different children, conflict.

Solution:

• Discuss and agree behavioural expectations and rules, as a family.

• Use an experienced adviser to facilitate the process.

• Transfer outcomes into the business.

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