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

Audio No 37: Lack of Agreed Policies & Procedures

• Business families are even more complicated than ordinary families - because they combine family with business.

• All complex organisms and organisations require clarity and certainty about what is to be done, and how to do it. This avoids the confusion and conflict.

• Family policies give shape and understanding to the family’s past, present and future actions.

• Business policies increase operational efficiency, and help to inject commercial objectivity.

• Lack of policies = lack of discipline > potential for conflict when needs and interests clash.

Solution:

• Take the time to identify areas of conflict, or potential conflict, in the family and/or in the business.

• Use the relevant issues as a focus for discussion about developing a policy for dealing with the issue - family benefits.

• The process of collaboratively developing a policy allows festering issues to be flushed, so they can be dealt with, resolved, and avoided in the future.

• Conflict can often be defused by validation and recognition.

• If compensation is appropriate / required, make it a sensible negotiation.

I'm interested in your comments below.
#succession #business #conflict