Common Causes of Family Business Conflict & What to Do About Them.
Family Business Mediator Video No 26: 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.
