50 Common Causes of Family Business Conflict... and how to deal with them Archives

Cause #50 3rd Parties (1) – Externals

Observations The actions and inactions of non-family: Directors, Managers, Employees and Advisers (“Externals”) are a common cause of conflict in Family Business. Family Businesses are notorious for birthing warring cliques and factions – supporters for: Mum vs Dad; siblings against siblings (or cousins); generation against generation; and employees against family – please get them out […]

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 […]

Cause #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 […]

Cause #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 […]

Cause #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. […]

Cause #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, […]

Cause #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, […]

Cause #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) […]

Cause #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 […]

Cause #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 […]