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

Cause #18: Disrespect, Mistrust & Unconscious Biases in Family Business — How They Start, How They Spread, and How to Stop Them

In family businesses, disrespect wounds dignity, mistrust erodes confidence, and unconscious biases quietly poison fairness. Together, they migrate across the family–business boundary, stall decisions, and corrode culture. The antidote: visible leadership standards, promise hygiene, transparent plans, objective roles/KPIs, a reconciliation protocol for breaches, and deliberate bias-mitigation. Why This Trio Is So Destructive Family life runs […]

Cause #17: Ownership vs Stewardship — Independence vs Obligation in Family Business

Every family business walks a tightrope between ownership (rights, control, and independence) and stewardship(responsibility, duty, and legacy). When family members hold conflicting attitudes toward these mindsets, conflict is inevitable—usually around money, control, and time horizons. Alignment, governance, and courageous decision-making are the antidotes. The Core Divide: Ownership vs Stewardship Ownership = Rights & Control Ownership […]

Cause #16: Sibling Rivalry & Personal Jealousies in Family Business — What It Is, How It Shows Up, and How to Defuse It

Sibling rivalry is common—and combustible—when it follows siblings into the family firm. Old resentments meet adult stakes (status, pay, power, succession), creating factions, stalled decisions, and delayed transitions. The fix: name the pattern, surface the history safely, reset roles and rules, and install governance that pairs care with accountability. What We Mean by “Sibling Rivalry” […]

Cause #15: Broken Wing Syndrome (BWS) in Family Business — What It Is, Why It Happens, and How to Fix It

Broken Wing Syndrome (“BWS”) is when a well-meaning parent over-protects an under-performing adult child, unintentionally entrenching dependence and low resilience. In a family business, that over-protection warps decision-making, erodes accountability, poisons culture, and often explodes during succession. The fix: recognise the pattern, depersonalise it, and restructure roles, support and governance so the individual (and business) […]

CAUSE #14 Imposter Syndrome (Leadership Insecurity)

Observations Impostor Syndrome is a psychological condition—a recognised pattern of thoughts, feelings, and behaviours that cause a person distress, impaired daily functioning, or significant departures from behavioural norms. Imposters (individuals suffering from Imposter Syndrome) experience emotional trauma that overwhelms their ability to manage life and work. They’re often in a state of mild to full-on […]

Cause #13: Founder Syndrome (fear of losing control) Overcoming Founder Syndrome: Evolving Leadership for Business Growth

Founder Syndrome is a common challenge in growing businesses, especially family-run enterprises. It occurs when a founder struggles to adapt their leadership style to the evolving needs of a scaling business. While their early-stage intensity and hands-on approach were crucial for launching the company, these traits can become obstacles as the business grows in complexity. […]

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 […]

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