Monthly Archives: September 2017

09/30/17

Father/Son Conflict—An Obstacle To Change In Family Business

Often I hear a son in a family business speaking harshly about how his father rejects the initiatives he proposes for changes in the business. Frustrated by rejection, the son may interpret his father’s attitude to mean that he cannot accept opposition to his authority.

Alternatively, the father’s view of the situation may be that his son means to push him aside, eager to take over control. The father, threatened, fears a feeling of diminishment and loss of identity.

The above—although simply put—is a recognized dynamic in family businesses. The details vary as the families and their businesses vary; no two being the same. But behind the simplicity lurks a world of emotional complexity on each side.

What does the business mean to the father? What sacrifices did he make to build it? What were his beginnings? What obstacles did he overcome to establish a viable enterprise? In what way does his business reflect his values, and stand as a source of pride in his life’s hard work? What will happen to him should he one day have nothing to do?

What motivates the son? Ambitious, energetic; educated; enthusiastic; he wants to prove himself and his new ideas. Underneath this though, a range of emotions dwells. For example, he may feel that his abilities will not measure up to his father’s; that he cannot fill his father’s shoes. He may not be able to comfortably articulate his thoughts and vision. And he may be genuinely overconfident—overestimating the value of his modernizing ideas, born as they might be from an education at the best of contemporary business schools.

The two are, in a very real sense, unknowns to each other. And, to avoid potential business disaster, it is critical that they be introduced and reconciled.

This is the delicate work of family-business advisors, who, through disclosing relationship patterns; applying techniques such as psychological assessment tools and behavior modification; teaching skills in diplomacy and negotiation; prepare a ground for mutual understanding and respect.

It seems inevitable that there will be contention between fathers and grown sons in a family business. But by learning each other’s abilities, desires and ideas a ground can be prepared where each generation learns from the other, and a constructive forward motion established.[1]

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[1] This article reflects ideas in Moveed Fazail, 2013. Fighting for the Crown: The father/son relationship in first generation family enterprises. Family Form Practitioner, July 16, 2013

09/16/17

Women In Family Business—A New Report

An article about women in leadership roles that appeared in the New York Times on September 15, 2017, calls Germany’s Chancellor Angela Merkel an anomaly. Yet women are more likely to have leadership roles in politics than in business. According to Kim Harland, though, this is not the case in family businesses.

Harland is Managing Director of Insights, a not-for-profit organization operating out of Brisbane, Australia. Insights provides online education and tools to support the long-term sustainability of family businesses. Women in Family Business, their recently published e-book, offers a wealth of eye-opening facts about its subject—the impact of women in leadership positions on the health and success of their family businesses.

Here is a small sample of their findings:

“Family businesses are more socially conscious than their non-family business counterparts.” And they are not as concerned with quarterly cash flow and profits, likely because they operate with far less debt.” A comment follows: “This this is truly a family-motivated attitude — what kind of leaders put their families at risk?”

“And that attitude, encompassing social and human awareness, may be one of the reasons why new research has shown that the world’s largest family businesses are far ahead of their non-family business peers in valuing gender diversity at all levels of the enterprise — from ownership, the boardroom and C-suite to every tier of the business.”

“…when women are included, they in turn support inclusiveness in the business. They help to maintain a close and cohesive family that finds value in being together beyond financial wealth. This cohesion shows all stakeholders that they are cared about, building motivation at all levels and creating passion that translates into performance, both financial and non-financial. Eventually, this cycle of care–passion–success becomes self-reinforcing, as success allows for even greater caring.”

The 40-page e-book reveals insights on women in family businesses seen through the eyes of the women who lead them. Illustrating its findings through case studies and Q&A, and culminating with an Action List for women in family business, this publication is well worth a read for both men and women in family businesses, and perhaps a place in your ‘must-keep’ reference files. 

You can download the e-book at: http://www.insights.org.au/women-in-family-business