Multi Generational Family

Business Conflicts

With 90% of businesses family owned, family businesses are the mainstay of our economy and make up the bulk of small businesses.  Yet, unlike non family owned businesses, families who work together face a unique set of conflicts between generations.  Depending on the needs of family members, conflicting issues surface with regard to position, compensation, ownership, and decision-making.

If the business is to serve the family and business effectively, the needs and aspirations should be analyzed in three distinct groups — ownership, management and family.

In order to manage the family and the business conflicts an environment of fairness and equity within the three groups must be created.  By implementing the following, multi generational conflicts can be resolved:

Maintain and create a forum to meet and process communication, problem solving and decision making for each of the groups.  Family meetings, ownership meetings and management meetings must be separated allowing each forum to clarify and define its own rules of conduct and role in the family business enterprise.

Define what issues need to be discussed.  Don’t cross boundaries and mix rivalry or in-law issues in the business or ownership forum.

Family members that cross over in more than one group ie; those who own shares but are not involved in management, must respect the forums they are rightfully not in.

With the propensity of conflict, family members from all groups must be educated in the skills of resolving conflict and good communication. They must be prudent about where lines need to be drawn around specific conversations and in which forum these can be addressed.

Family business specialists can advise family members of the groups to help maintain harmony, and objectivity and help the family work through these important but sensitive issues.