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MANAGING CONFLICT IN FAMILY BUSINESSES
Conflict isn’t inherently bad - how we navigate it matters.
ASK AN EXPERT
How can I proactively manage conflict in my family business?
In the realm of family businesses, conflict is an inevitable part of daily operations. Disagreements can arise, whether they stem from business decisions, personal dynamics, or succession planning. These conflicts have the potential to strain relationships and impact business outcomes. However, the power of mediation provides individuals with a voice to express their differences and perspectives.
Mediation, facilitated by an expert in conflict resolution, offers a structured process where all parties involved can voice their perspectives and concerns in a respectful environment. This approach allows you to address issues head-on, seeking mutually agreeable resolutions that honor family values and business objectives. By engaging in mediation, you can foster understanding, strengthen communication, and preserve the cohesion that defines your family business.
Incorporating mediation into your business practices isn't just about resolving disputes; it's about proactively managing conflicts to maintain harmony and productivity within your business. This proactive approach can help nurture a supportive and collaborative work environment where everyone feels heard and valued.
Mediation has proven effective for more than 30 years not only within the court system but also across various industries and governmental agencies worldwide. Its ability to resolve disputes outside of litigation has been instrumental in saving time, reducing costs, and preserving relationships. By embracing mediation, you can manage conflicts constructively and ensure the long-term success of your family business.
As the need for mediation continues to grow in workplaces and beyond, we recognize its critical role in addressing conflicts that arise in family businesses. Integrating these practices into your operations empowers you to navigate challenges proactively and sustainably. Ultimately, mediation helps uphold familial bonds while fostering a thriving business environment built on mutual respect and understanding.
Visit the Center for Conflict Management at Kennesaw State University to learn more about how you can gain the skills to manage conflicts or to ask about mediation services provided by the Center.
Ellen Lahtinen | Registered Mediator and Program Manager for the Center of Conflict Management at KSU
ROOTS: INSIGHTS FOR GROWING FAMILY BUSINESSES
How saying “no” turned into a successful partnership
Seven years ago, my son Matt approached me about joining my company, Innovative Outsourcing. My first response was “hell, no” for two reasons:
Innovative Outsourcing is a human resources company that recruits and performs HR for small businesses. While Matt had a degree, he had no experience in HR or recruiting. Matt quickly convinced me of his value, and he turned out to be right!
My other main concern was how working together would affect our relationship, as well as the dynamic with my husband and daughter who are not involved in the business. Our family of four at the time was very close and I didn’t want to mess that up in any way!
Family businesses notoriously have a great deal of conflict, and I knew that I had to address this very early in the process if Matt was going to work with me. I decided to contact Kennesaw State’s Family Enterprise Center to get some advice. A consultant suggested putting strict rules in place to ensure that my fear of our relationship suffering because of working together would never happen.
Here are the rules that we introduced with the full support of our family:
No talking about work-related subjects after 6:00 p.m. We may need to bend this for special circumstances, but I believe we have done a great job of separating work and family.
No talking about work-related subjects around family at dinners or on vacation. We also told everyone in our family to call us out if we do slip in something about work.
Every August, we have an honest check-in to see if our relationship has improved or declined because of our working relationship in the past year.
Happy to report that we have worked together for seven years, and our relationship has grown without a ton of conflict between the two of us and our growing family. Not to mention, he is forced to give me updates on my new granddaughter every day, which is a huge plus!
Cindi Filer | CEO, Innovative Outsourcing
Want to learn more? Do’s and Don’ts of Working with Family in Your Business
LEGACIES: INISIGHTS FOR ESTABLISHED FAMILY BUSINESSES
Harnessing conflict for positive growth
In larger family businesses, significant changes like divorce and the introduction of new family members into the business can intensify existing conflicts or create new ones. These conflicts, while challenging, also present unique opportunities for growth and development.
Divorce can lead to complex issues such as asset division, changes in ownership structure, or shifts in family dynamics that impact decision-making and succession planning. Instead of viewing these changes as purely negative, families can use them as opportunities to reassess and realign their business goals. For example, re-evaluating ownership structures can lead to more efficient and transparent management practices.
Similarly, when new family members join the business, tensions can arise over roles, responsibilities, and expectations. This scenario offers a chance to establish or reinforce clear policies regarding family involvement, succession criteria, and conflict resolution mechanisms.
Managing these changes positively involves proactive communication and careful planning. Open dialogue among family members is crucial to address concerns and ensure all parties feel heard and respected. Regular family meetings can facilitate these conversations, turning potential disagreements into productive discussions that drive the business forward.
Conflict, while inevitable, is not inherently detrimental. With the right strategies, it can be a powerful driver of growth and innovation. You can harness conflict to build a stronger, more resilient future for your family business to thrive across generations.
Want to learn more? Avoiding Conflict Will Only Hurt Your Family Business
MEMBERSHIPS ARE HERE!
We’re launching our Membership program! From now until September 1, 2024, you can save 50% on annual dues.
For more information, visit us online. Whether you’re just getting started in a family business, or you are part of a multi-generational organization, we’re here to help you succeed.
UPCOMING EVENTS
July 24, 2024 | Noon - 1:30 p.m. | Family Enterprise Center at KSU
Change is an inherent aspect of life, and sometimes it is more pronounced in the midst of a family businesses. In our Women of Change series, we focus on empowering women facing pivotal moments in their family business journey and beyond. From welcoming new partners to assuming leadership roles or launching innovative products, these transitions can be both challenging and transformative.
Claire Moon, a former family business owner and enterprising coach, will be hosting this series tailored for women in family businesses.
In our first installment of this three-part series, we dive into embracing change. Because no matter how well we plan, sometimes things take a hard left turn. Life doesn't come with a map, but this Lunch & Learn session provides a compass to help navigate change with more confidence.
This event will be held at the Family Enterprise Center at Kennesaw State University. Lunch will be provided. Space is limited.
Included with annual membership | $35 for non-members