Addressing Conflict

"What are some effective strategies for managing conflict between family members who are also business partners?" ¹

Healthy working relationships is one of the greatest assets of a family business. Managing conflict can be especially challenging when family members are also business partners. This is more common than not. One family business that we know well faced this dilemma when their growing company led to tensions between family members in key management positions. However, with determination and effective strategies, they were able to navigate these conflicts and maintain a successful business. Was it easy? Not at all, but with a lot hard work and being conscious of the issues at hand they were able to establish a unified corporate culture.

How did they do it? They had to re-affirm their family and business values and goals and then clarify each family member's role and responsibilities. By defining these roles, family members could focus on their individual contributions to the business and reduce potential conflicts over decision-making. A skilled family business consultant facilitated the process. Not sure it would have happened otherwise.

Effective communication was also a key strategy for this family. They had regular meetings and check-ins to facilitate productive communication and address any conflicts before they escalated. They also established boundaries between family and business relationships, so personal issues would not interfere with professional discussions. When conflicts became too complicated to resolve on their own, the family utilized the services of the family business consultant. The consultant helped facilitate open communication and find solutions that worked for everyone involved.

Through these efforts, they were able to successfully manage conflicts between family members who also held key business positions. They learned that regular and frequent communication, clear roles and responsibilities, and focusing on common goals were key to maintaining a successful family business.

Finally, it's important to seek outside support when necessary. This can include hiring external advisors or consultants to help with the transition process.

The Academy of Family Business offers a specific executive development curriculum to prepare for a leadership transition.

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¹Composite of several similar questions.