50 Common Causes of Family Business Conflict... and how to deal with them Archives - Page 3 of 5

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, […]