Common Causes of Family Business Conflict & What to Do About Them.
Family Business Mediation Video No 37: Lack of Agreed Policies & Procedures.
By Jon Kenfield. Solutionist.
• Business families are even more complicated than ordinary families – because they combine family with business ……. which makes no sense.
• All complex organisms and organisations require clarity and certainty about what is to be done, and how to do it. This avoids the confusion and conflict that can arise when processes are being endlessly, and self-centredly, reinvented.
• Family policies give shape and understanding to the family’s past, present and future actions.
• Business policies increase operational efficiency, and help to inject commercial objectivity.
• Lack of policies = lack of discipline, potential for conflict when needs and interests clash.
Solution:
• Take the time to identify areas of conflict, or potential conflict, in the family and/or in the business.
• Use the relevant issues as a focus for discussion about developing a policy for dealing with the issue – family benefits (eg: favoured child during growing up received more benefits).
• The process of collaboratively developing a policy allows festering issues to be flushed, so they can be dealt with, resolved, and avoided in the future.
• Conflict can often be defused by validation and recognition, without needing actual resolution. It’s often more about feeling heard, than being compensated.
• If compensation is appropriate / required, make it a sensible negotiation. Don’t allow guilt to overcome good sense.