The family business is a cornerstone of American society. Success with such a venture is often thought of as the real American dream. However, keeping the business successful while also maintaining strong personal relationships can be a real balancing act. Sometimes serious problems arise, leading to discord within the family, trouble in the business, and even the end of relationships. A recent article in the journal Family Relations discusses common sources of conflict in family businesses and how some of these problems can be recognized and handled.
One frequent pattern occurs when families appear to be fighting over problems in the business, but are actually using the business as a “cover” to express anger over family issues—even very old ones dating back to childhood. If emotions seem way out of proportion to the problem under discussion, this may be what is going on. Awareness of this possibility may help families uncover the real concern and separate personal disagreements from those that actually relate to the business.
In another common situation, younger members of the family feel trapped by the business, or end up too tied to the family to fully mature and find their own identities. Older family members should recognize that younger people must be given a genuine choice whether or not to continue in the business, even if that means selling to an outsider.
Issues can also arise when it becomes time to make changes to the business—such as updating technology, changing the focus, or adding new products. This may feel threatening if the family identity is heavily identified with a certain way of doing things. Keeping lines of communication open and reminding each other of the family’s strengths outside the business can help with these transitions.
Sometimes, conflicts in a family business do become serious enough that some or all family members sell out or close up shop and move on. With awareness of the unique challenges this situation poses, however, most family businesses can be resilient sources of family pride, cohesion, and purpose, even in today’s challenging economy.
(Photo credit: by Mary Margret. CC BY 2.0.)
Further Reading
UMass Amherst Family Business Center
Austin Family Business Program at Oregon State University
References:
Pieper, T. M., Astrachan, J. H., & Manners, G. E. (2013). Conflict in family business: common metaphors and suggestions for intervention. Family Relations, 62, 490-500. http://dx.doi.org/10.1111/fare.12011
(Originally published in a slightly different form as: Church, C. (2012). Challenges of the family business. [Radio broadcast episode]. Family Album Radio. Gainesville, FL: University of Florida.)
0
