Conflict Resolution 101: Keep the Family in Family Business
Running a family business has a lot of pros and cons.
Pros: You work with your family.
Cons: You work with your family.
Conflict Resolution 101: Keep the Family in Family Business
Strong familial bonds and values define a family and, when prioritized, can be the business's greatest asset.
These close-knit relationships can also create intense conflicts that begin in the boardroom and seep into the living room. (Or vice versa!)
Above all, you must work diligently to keep the family in Family Business.
Effective conflict resolution is essential to maintaining harmony and productivity in a family-run enterprise.
Here are a few basic steps to approach conflict resolution in a healthy and respectful way:
Understand the Root Causes
Conflict is inevitable, and given the complexities of a family business, it can arise for a number of reasons.
To name a few:
Vision
Unclear, or undefined roles
Generational gaps
Differences in leadership styles
Blurred boundaries between family and business priorities
Your first step in resolving conflict is understanding that most disagreements stem from deeper issues.
What appears to be a simple dispute over a business decision may reflect long-standing personal grievances or power struggles.
Take a step back and reflect on whether the conflict is business-related or if personal emotions are at play.
Identifying these underlying causes allows you to approach the problem holistically rather than just treating the symptoms.
Prioritize Open Communication
Clear and respectful communication is the cornerstone of effective conflict resolution.
Family members must feel heard and understood— in his or her business capacity and as a valued member of the family.
When conflict does arise, there are many skills you can learn to foster more productive and open communication.
Set the stage for constructive dialogue
Hold discussions in a neutral setting, away from distractions and day-to-day business activities. This helps to keep conversations focused and professional.
Become an active listener
Make sure each person involved has a chance to voice their perspective without interruption.
Validate them by modeling active listening: Summarize what the other person said to show understanding and ask clarifying questions when needed.
Check your emotions
It’s natural for discussions to get heated when the stakes are high.
When this happens (and it will), it’s essential to learn to take a deep breath and stay calm and composed.
Set a time limit
If emotions surge again and overwhelm the conversation, take a break and reconvene once everyone has cooled down. Set parameters for the break.
For example: Set a time limit for the break. If a meeting is getting too heated, give everyone 15-20 minutes to cool off, gain composure, and reconvene. Setting a time limit can ensure the break doesn’t last too long and the meeting can maintain momentum.
A little love goes a long way
Remember that at the end of the day, a family business started with a family.
Do your best to keep emotions in check, communicate with respect, and avoid long breaks for uncomfortable feelings to fester. These conflicts must be addressed and discussed with love and logic.
Establish Clear Roles and Responsibilities
Ambiguity in family business means friction.
When there’s confusion over who is responsible for what, it’s easy for misunderstandings to spiral into conflict.
Invest in your family and your business. Take time to define clear roles and responsibilities within the business to minimize overlap and power struggles.
Regular family meetings can facilitate this process, giving each family member an opportunity to share input, feel heard, and align their understanding.
Ensure that these roles are respected, even if they cross generational lines or involve non-family members holding key positions.
Documenting job descriptions and decision-making hierarchies can go a long way in preventing conflicts related to authority and expectations. This clarity helps every member understand their contributions and limitations.
Hire a Neutral Third Party if Necessary
Conflict brings clarity. Until it doesn’t.
If family dynamics are consistently getting in the way of productivity and progress, it’s time to consider hiring a neutral third party, such as a family business coach.
A coach can facilitate discussions, ask hard questions, make sure everyone feels heard, bring objectivity to the discussion, and provide an unbiased perspective.
A family business coach can teach healthy conflict-resolution skills. Your coach will bring a deep understanding of the unique pressures and complexities involved in combining family and business.
His or her experience can guide the group toward fair solutions that respect both business needs and family relationships.
Create a Conflict Resolution Framework
Repair. Rinse. Repeat.
Once you have learned and practiced skills for healthier conflict resolution, the goal is to avoid repeated, escalated disputes.
Drafting a formal conflict resolution framework is an invaluable tool for addressing tensions and conflict in the future. When creating this framework, give all involved parties a chance to contribute to and agree upon the particulars.
A step-by-step framework should outline how to handle disagreements as they arise. Tailor your framework to fit your family’s circumstances and needs. (This is where a great family business coach comes in handy!)
Here are a few items you may include in your conflict resolution framework:
Open-door policy: Create a safe environment that encourages family members to speak freely and voice concerns before they escalate.
Schedule regular check-ins: These can be one-on-one, or in a family meeting. Dedicate regular check-ins for business updates and any potential issues.
Define your conflict escalation plan: Work together to develop the steps to take when a problem can’t be solved informally. This could include involving a family business coach or setting deadlines for decision-making.
A structured approach helps maintain fairness and prevents conflicts from being swept under the rug, only to re-emerge later.
Focus on Solutions, Not Blame
When working through a conflict, stay focused on solutions rather than assigning blame. Blame deepens rifts and perpetuates a cycle of negative feelings.
Instead, emphasize and encourage problem-solving. Discuss possible solutions together, weigh their pros and cons, and find compromises that everyone can agree on.
A collaborative approach strengthens family bonds and sets the business on a trajectory of sustainable growth and prosperity.
Hire The Family Business Coach!
Conflict is inevitable. But it doesn’t have to be painful.
Let The Family Business Coach help you keep the family in your family business. Book a free assessment today to see how The Family Business Coach can take your enterprise to the next level.
