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Family Business Mediator Video No 26: Modernising & Professionalising the Business.

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.

 

Written by Jon Kenfield

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