Full Focus Limited
P O Box 33489
Takapuna, Auckland
t: 09 489 1650
f: 09 489 1650
David Martin: 0274 902 401
Kathy Martin: 027 2800 564
Recent Focus June 2007
Estimated reading time for this issue: under 5 minutes
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How to avoid the family business battleground
Is your family business fraught with conflict?
Many business owners think their particular family business conflict is unique. If it’s any consolation … you’re not alone! Conflict is particularly rife in family businesses.
Dealing with conflict in your business is tough. It takes your mind off the game. All you really want is to get the issue handled peacefully and get back to work. But when it’s a conflict in your family business with your family members ……. you know what kind of disaster that can spell. It can become highly emotionally charged and turn into a hot-headed argument in no time. As if you weren’t stressed enough!
The big part of the dilemma is family relationships and emotions . Not only do you have to deal with the problem itself, you have to deal with the family dynamics – and this can be dangerous ground. It’s a place most of us try to stay away from.
Now you’re left with another problem – how to solve the first problem without causing a serious uproar in the family! If it continues it will get worse and even nastier. No matter which way you go family members will be crying “not fair” - all sure their way is the right way and quick to point out where everyone else is wrong. It can threaten productivity, undermine authority and be destructive to your business and your family. It’s a headache you don’t need.
The question is how to solve these conflicts as they arise - unemotionally (yeah, right!) and without starting a hot-headed riot that causes ongoing animosity and resentment. “Easier said than done” I hear you saying! And you’re most likely right – sometimes it’s impossible to sort this out yourself.
If you’ve got to this point and don’t know how to get any further, you could consider asking an outsider to help. All the hard questions and volatile issues could then be dealt with by someone who is not emotionally involved. Don’t be afraid to let someone else deal with it – it’s not a sign of weakness - it’s a very smart decision when it comes to handling explosive issues. Make sure though, that you chose someone who knows and understands your business and is well versed in the dynamics of the family business !
Check out this scenario (one of the many we come across as specialists in the family business arena):
Names and details have been changed to protect client confidentiality
Malcolm started his own concrete business some 40 years ago. He worked long and hard to build the business up where it is today – an extraordinarily successful and profitable operation. Malcolm, although getting older, still wants to maintain control of his business and the running of it. His family business conflict goes like this –
His son, Sam, is now working in the business with Malcolm. It’s assumed that Sam will one day take over the business when Malcolm retires. Sam’s not interested in learning much about running a business of this magnitude. But he is very interested in all the benefits that come out of the business (financial, flexible time schedule etc. etc.!). Not only this, Sam’s attitude and work ethics often fall well short of the mark.
Sam’s wife, Josie, also works in the business. She wants everything her way. This includes controlling the finances and even, it seems, her husband! She’s taken over running the finances of the company and in this role her controlling nature is at it’s best (or worst, more to the point!).
Malcolm wanted to engage a specialist to work for him in the business. Josie didn’t agree with Malcolm. She said there wasn’t enough money to engage this specialist, so it didn’t happen. Sam went along with Josie. Just a few weeks later Josie seemed to find enough money to make other business purchases – those she agreed with of course.
Now you might wonder how Malcolm could let this situation happen. Wasn’t he after all the business owner?
Do any of these situations sound familiar to you? Perhaps you recognize some people you know in this newsletter - if so, don’t forget to forward this on to them!
Read our recent case history and find out how Ross sorted out his family business woes!
We have more information on this topic, and on whether your business will survive without a board of competent advisors.
Do you know someone we might be able to assist? Please give them our contact details, refer them to our website, or provide us with details so we can contact them. Click here to see how we’ll handle your referrals
Read the previous issue of Recent Focus (Why it's worth renegotiating with your bank).
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