November 2021 | The Solutionist Group

Cause #35 Family Discipline in Business Families

Observations Family Discipline, or more accurately the lack of it, is a common cause of family business conflict. The concept of discipline is often ignored by mature business families, who tend to think of it as only applying to children, as children, but when there’s a family business in the mix, it’s perilous to ignore […]

Cause #34 Dysfunctional Business Families

Family dysfunction is a common cause of conflict in business families. Family Dysfunction (clinical definition): a family is dysfunctional when conflict and/or serious misbehaviours occur regularly and are accepted as the family’s behavioural norm. Business Family Dysfunction (family business definition): a business family is dysfunctional when its fundamental inability or unwillingness to solve problems and […]

Cause #33 Business Family Succession

Observations If Family Business Succession is “The Big One” – being the most common cause of conflict in family business – Business Family Succession runs a close second, in business families. Businesses “enjoy” having legions of advisers at the ready with reams of rational, objective, precedent-based, best practice advice. The consequences of their success or […]

Cause #32 Family Business Succession & Continuity

Observations This is the Big One! Succession, being the process of replacing one generation of owners, leaders and/or managers with another (usually younger) group is, in my experience, far and away the most common cause of Family Business conflict. For the many family business owners, and business family leaders, whose whole sense of identity is […]

Cause #31 Decision-Making Processes

Observations Many family business groups, from small to large, young and old, don’t have an agreed, coherent process for problem-solving or decision-making. Given that family and business life is a constant progression of issues, challenges, and problems that need to be resolved by wise decisions, it’s inevitable that the absence of good processes is a […]

Cause #30 Implementing Change in Business and Family

It’s one of the more curious features of human nature: many people will put up with known pain, rather than risk something worse by changing their circumstances. The condition even owns its own phobia: metathesiophobia, from the Greek: “meta” = change and “phobos” = fear. Fear of change, and problems implementing change, are common causes […]

Cause #29 Rules of Engagement

Observations Most Family Businesses are private business. This gives owner/leaders the legal and practical ability to do virtually whatever they like with the business, since they only have themselves to answer to. Or do they? Similarly, family leaders (Patriarchs and Matriarchs) can wield their authority over “junior” family members in ways that would make Genghis […]

Cause #28 Unrealistic Expectations & Entitlements

Observations Family Business can be a source of great pride to a family however, pride can get out of control – encouraging family members to create unjustified and unrealistic expectations of benefits they “should” receive from the business, including: cars, phones, travel and entertainment expenses, and credit cards for personal use. Whether caused by unthinking […]

Cause #27 Employing Family Members

Most first generation family businesses are private businesses. Their leaders are also their owners. This gives them the ability to do (almost) whatever they like within the business, since said leaders are only accountable to themselves, as owners. When there’s shared ownership, in any generation, things get more complicated, because business leaders are accountable to […]

Cause #21 Nature vs Nurture – Parents as Bosses

Observations The debate about whether Nature (genetics: innate qualities you were born with), or Nurture (environmental conditioning: learned behaviours and abilities), has the greatest influence on personality development, is one of the oldest in psychology, dating back to the ancient Greeks. It may even predate the invention of Souvlaki! Current thinking is that it’s not […]

Cause #20 Family Systems & Skills (5): Teamwork

Observations Strong and harmonious family teams are good indicators of a healthy business family culture. The absence of good teamwork in a family is a common cause of conflict when family members are involved in a family business. Most families want to believe that their “familyness” means that family members naturally work well together as […]

Cause #19 Family Systems & Skills (4): Respect & Trust

Observations Healthy levels of mutual respect and trust are key indicators of a good family business culture. Their absence is a common cause of conflict. “Trust” is a combination of thoughts and feelings that give confidence you can rely on the character, ability, strength, or integrity of someone, or something, to meet your expectation that […]

Cause #18 Family Systems & Skills (3): Decision Making

Observations Cause #17: Problem-Solving – described how and why poor problem-solving systems and skills are a common cause of conflict in family business, and in business families. Problem-solving is the front end, mechanical part of a process. For a problem to be solved, there needs to be a decision (agreement about what will be done), […]

Cause #17 Family Systems & Skills (2): Problem Solving

Observations When left to fester: issues become problems; problems become tensions, and tensions become conflicts. Inadequate attention to issues, as a result of inadequate problem-solving systems and skills, are a common cause of conflict in family businesses and in the business families that lie behind them. Families may be: (a) inclusively engaged as collaborative problem-solvers; […]

Cause #16 Family Systems & Skills (1): Communication

Observations Communication is both a key builder, and an ultimate destroyer, of relationships. Communication is the process of sending and receiving messages, between two or more people. Its quantitative, tangible elements (words used) convey information. Its qualitative, non-verbal elements (tone, gestures, choice of word) convey how a person feels about another. In any given situation, […]

Cause #15 Emotional Baggage (not given as a medical opinion)

Observations “Emotional Baggage” refers to unresolved emotional issues that have a detrimental effect on individuals, groups, or organisations. The baggage metaphor suggests carrying around past disappointments, wrongs, and trauma that hold current relationships hostage to negative expectations – based on experiences of long ago. In Article #14: “Parenting Styles” – I observed that the root cause […]

Cause #14 Parenting Styles & Practices

Observations (not given as medical opinions) Many of the root causes of current family business conflicts can be sheeted back to the parenting styles and practices – behaviours and emotional contexts – of the family’s home life, from many years ago. Whether or not there’s any validity to the analysis, in dispute resolution practice it’s […]

Cause #13 Broken Wing Syndrome #3 (Family Business)

Observations Article 11: “Broken Wing Syndrome #1 (Individuals)”, described Emotional Resilience as a person’s ability to cope with, and adapt to, challenging situations. Resilient individuals minimise their anxiety, consciously and unconsciously, to remain personally, socially and vocationally effective. A non-resilient individual is less able to handle challenges and stress, hence their “broken wing”. They require […]

Cause #12 Broken Wing Syndrome #2 (Parents & Family)

Observations Article #11: “Broken Wing Syndrome #1 (Individuals)”, posited that Emotional Resilience is the personal ability to cope with, and adapt to, challenging situations. Hence resilient individuals, both consciously and unconsciously, tend to minimise their anxiety to remain personally, socially and vocationally effective. Broken Wing Syndrome (“BWS”) refers to non-resilient individuals, and specifically to those […]

Cause #11 Broken Wing Syndrome #1 (Individuals)

Observations Excessive protection, and inappropriate amounts of support provided by parents to offspring working in a family business, are common causes of conflict within business families. Emotional Resilience is the personal ability to cope with, and adapt to, challenging situations. Resilient people, consciously and unconsciously, minimise their anxiety levels to remain personally, socially and vocationally […]

Cause #10 Behavioural Discord

Families are always “interesting”, due to dynamic interplays between the diverse personalities that make up the group – as manifested by their behaviours towards each other. Every family develops a unique behavioural style, which evolves as its members age and mature. Resilient families learn to tolerate and accommodate disruptive individual styles; others never learn how […]

Cause #9 Relationship Interplays

Family Business can have a “force multiplier” effect on family relationships, especially when interpersonal relationship issues present in the family, often built over many years of family interactions, are projected or absorbed into the business. Commercial environments provide all the nutrients required to turn historical/personal/domestic niggles into full-blown, competitive, adult conflicts. Weak, strong and/or distorted […]

Cause #8 Divorce & Separation

Australia 2019: 113,815 marriages registered; 49,116 divorces granted. We’re marrying later (32 for males, 30 for females), and more couples are living together for several years before marrying. Consequently, marriages are generally lasting longer, and divorce rates are trending downwards from their peak in the 1970s and 1980s (Australian Bureau of Statistics, 2019). The bottom line […]

Cause #7 For want of a Family Plan …

“For want of a nail the shoe was lost, For want of a shoe the horse was lost, For want of a horse the rider was lost, For want of a rider the message was lost, For want of a message the battle was lost, For defeat in battle the kingdom was lost, And all […]

Cause #7 Equal ain’t Equitable

One of the most common causes of family business conflict arises from (innocently) confusing equality (providing equal benefits), with equity (providing fair treatment). On careful analysis, this almost always indicates avoidance of responsibility to exercise discretion towards family members in widely different circumstances, even where most outsiders, and most family members, would think it perfectly […]

Cause #6 In-Laws, Outlaws & Blended Families

All forms of matrimonial relationship can create conflicts for business families – with increasingly complicated family structures resulting in a bewildering variety of happy, working, blended, extended, dysfunctional and broken family units forming parts of larger family groups. Higher general and business education levels; social pressures demanding greater equality, inclusiveness, and communication transparency; broadening perceptions […]

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