Author: Jon Kenfield
Cause #49 Old Retainers
Observations Old Retainers are a common cause of conflict in family business. Typically, Mum or Dad has worked with “old Phyllis / Sam” since the early days and over the years has (allegedly) promised: “we’ll always look after you”, in return for their unconditional loyalty. Conflicts arise when new business leaders are pressured to honour […]
Read MoreCause #48 Emotional Trauma & Disruptive Behaviours
Observations Psychology is the science of understanding how people think, feel, behave and learn. Collectively, this is the functional domain of the mind – which is not the same thing as the brain: a single, identifiable, physical organ. Psychological trauma describes damage to the mind that occurs as a result of a distressing event – often the […]
Read MoreCause #47 Religious/Ethnic Issues and Cultural Norms
Observations Every family has its own culture – which determines how it rolls. Some family cultures are based on strongly traditional religious and/or ethnic guidelines and directives, while others are more modern and laissez-faire. All family cultures exert powerful influences on personal values, expectations and behaviours – in the family, and often in its business […]
Read MoreCause #46 Family Talent (lack of)
Observations “Talent” describes a person’s natural aptitude. It’s a predictor of potential ability, but it’s not ability itself. Most people can generally learn basic skills. Acquiring advanced skills and capabilities requires the application of training and experience to an appropriate measure of talent. Along the scale, talent separates the incompetent, the mediocre, and the sublime. […]
Read MoreCause #45 Retirement & Other Exits
Observations Generational transition (aka “succession”) and the retirement of one or some people that comes with it, is THE major cause of conflict in family business. 85% of my working life is spent trying to resolve the tensions that arise in business families through stalled and/or conflicted successions, and their many related issues. “Retirement” means, […]
Read MoreCause #44 Business Performance
Business performance or, more often: lack of same, is a common cause of conflict in Family Business. When business results are not what they could and should be, and worse, are not what people need them to be, tensions mount, and conflict often follows close behind. Poor business performance has many causes – some avoidable, […]
Read MoreCause #43 Aligning Personal, Family, and Business Values in Family Business
Observations Values are personal internal motivators that encourage humans to do what they do, the way they do it, when they do it. They’re a key component of character and personality, being created by a mixture of: genetics, intelligence, education, environmental upbringing and training (from home, social, ethnic and religious sources), lived experience, and (possibly) […]
Read MoreCause #42 Next Generation “Issues”
Observations Next generation “issues” are a common cause of conflict in Family Business. We’re talking here about macro, contextual causes. Lots of other micro causes are covered in other chapters – specifically around personality differences and succession scenarios. A Family Business is defined as any business that substantially involves at least 2 family members as […]
Read MoreCause #41 Buying & Selling Interests in The Business
Observations Another common cause of conflict in Family Business gains oxygen when family members are, or feel they are locked into ownership of the family’s business interests – notwithstanding their wish to not be involved. This uncertain feeling develops into conflict when it begets an uncomfortable sense of: “obligation to do stuff” – either in […]
Read MoreCause #40 Ownership vs Stewardship
Observations Ownership attitudes are grounded in a self-centred sense of: “here, now, and mine”. They encourage individuals to consider the family business as theirs to do with as they see fit, irrespective of whether they built or inherited it, in whole or in part. This attitude may be entirely rational and justifiable, but in pure […]
Read More