Your Guide To Dealing With Conflict In Family Businesses
You can feel a little weary when you decide to work in a family business. Everyone has different opinions and ideas of what the company should look like, how it should be run, and what direction you'd like to see it go. Not to mention the potential conflict. Not only can conflict affect the business, but it can also affect you personally. However, a family business doesn't have to be scary and can be very powerful when done correctly.
Main Sources Of Family Business Conflicts
There can be many reasons for conflicts to pop up in your family business. While each family is unique, so are their disagreements. Here are some of the most common, main sources of family business conflicts:
Business Direction & Strategy
You may have an idea of where you'd like to see the business go and how you'll make it happen. Still, maybe a family member disagrees, sees an entirely different vision, or believes in a different strategy.
Accountability
Sometimes tasks don't get completed when they are supposed to, or a member of your family needs to pull their weight while the others pick up their slack. Holding everyone accountable in a business setting is always a best practice, especially when family and high emotions are involved.
Finances
Finances, in any aspect of life, can be a high point of stress or conflict. Make sure everyone knows where the company stands financially to remove any potential confusion now or down the line.
Compensation/Benefits
Does one family member feel they are being compensated unfairly? Does another family member always seem to have more time away from the office? Ensuring everyone is comfortable with their compensation (within reason), and benefits can alleviate any ill feelings surrounding this.
Conflict Avoidance
Brushing issues under the rug is not the way to resolution. If you allow your issues to build out without communicating them, they can snowball and get worse and trickle into the business. Instead, take on conflicts in an appropriate, healthy manner head-on.
Unhealthy Power Dynamics
One family member may feel more entitled to a higher role in the company and use that role to their advantage. When it comes to power in general, it should never be used as a tool to manipulate situations or people, especially in business.
How To Overcome Conflicts In The Family Business
Every conflict has a resolution. However, how you treat the conflict and the people involved can determine the situation's outcome. Here are some tips on how to overcome conflicts in a family business:
Establish The Difference Between Family Dynamics And Business Dynamics
You must be able to compartmentalize to succeed in a family business. With family comes high emotion, and with owning a business comes stress. When you are able to recognize the family dynamic and separate it from the business dynamic, everything will run smoother.
Develop A Policy That Clarifies Family Participation In The Business
Everyone has to be on the same page for a family business to run efficiently. So get as granular with your policy as you need; the policy needs to be drawn with best business practices in mind.
Clarify Roles Within The Business
The lines must be drawn in the sand regarding who is taking on what role and what those roles entail. The clearer the roles are, the less likely it is for confusion or conflict when it comes time to complete tasks and take accountability.
Hold Regular Meetings
Communication is key. Regular team meetings need to occur even if you're family and see one another all the time. A set time dedicated to discussing timely topics is a recipe for success.
Recognize Common Sources Of Conflict
For example, if you know your family has difficulty communicating well or effectively, make sure you make that a priority. Letting things get out of hand before you address them will lead to chaos and hurt your business. Instead, recognize your most common sources of conflict and have a process in place to ensure they don't pop up, or you're prepared to handle them if they do.
Consider Having Outside Of The Family Mediators
Having an unbiased, unattached, emotionally uninvolved mediator in your business is essential. So many feelings come into play when it comes to family, and they can fog our logical decision-making. So allowing someone unattached in the way you are to come in and help guide decisions will always be beneficial.
Align Family With What Is Going On In The Business
Keep it transparent. Everyone needs to be in the know.
Family and Business Doesn’t Have to be Seperate
It can be hard to decide to go into business with family. So many emotions come into play that you wouldn't have to consider otherwise, and there can be many blurred lines or gray areas. The best way to avoid disaster is to be clear about roles, keep communication open and talk freely about the company's status. If you're looking to bring in a third-party coach or consultant to help you get the most out of your family business, GCE can help. Schedule some time with us today – Let’s Get Started.