Seven years ago, my son Matt approached me about joining my company, Innovative Outsourcing. My first response was “hell, no” for two reasons:

1. 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!

2. 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

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

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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.