The result was that profits declined and the company became more vulnerable to domestic and foreign (especially Japanese) competition. When John argued with his father about this, he got the answer: “What do you know? You are always green. I went through a depression. Again, Anderson turned to Henry – and made the sheep black white and vice versa. The key to avoiding conflict here is conversation. Don`t make assumptions about who should be paid what – and don`t assume that everyone has the same expectations. If you want to prevent money from becoming a focal point in your family, you need to have a specific conversation about compensation with each family member who is involved and paid by the company. With a shared picture of the company you want, plan who will do what work and how much they`ll earn — now and when you reach new revenue milestones — and work from there so everyone has clear expectations. Maybe you`re tired of being in business with family members because of an argument or two? In the workplace, try to keep family matters out of the conversation as much as possible. Instead, stick to discussing operational and business topics. They keep the workplace in neutral territory and minimize tragedies.
When starting a business, especially a family business, it is imperative that the owners decide to run the business for income, participation or control. The income is simple – we pay ourselves all the money. Equity is equivalent to reinvesting profits in the business to realize a future liquidity event. Control is the right to have the last word. When you know this, business works much easier. – John Hittler, Evoking Genius Generational differences can present some challenges, but Shelasky appreciates the wisdom his father brings to the company, saying old and new ways of doing things create a balance that customers find appealing. Perhaps more critical to the health of the business are the factional divisions that occur within the organization when employees and subordinates choose family members with whom they want to be identified. (Often, however, those who take sides discover that the family unites in a crisis against “outsiders,” including their supporters, who are then seen as an attempt to divide the family.) When it comes to a family business, in addition to the expertise you bring, a lot depends on the relationship you share with other members of the company. If you feel that there are people who are quite dogmatic in their views and with whom it can be difficult to work with, it is best to identify a particular department for yourself so that you can do your best, with the least interference from others. – Anjali Chugh, Cosmique Global Inc All organizations must systematically raise subordinates and thus create the basic conditions for their own regeneration. I don`t know of any family business that can support long-term regeneration solely by members of one`s own family. This is because conflict is a natural part of human relationships and business.
KPMG`s 2018 Family Business Survey report indicates that only 17% of family businesses have a succession plan in place. If you want your business to thrive for generations to come, you need to address your biggest challenges. In short, everyone`s interest in the company must be aligned and give everything to promote the growth of the company. These conflicting emotions cause the father to behave in inexplicably contradictory ways, leading his relatives to think that, on the one hand, he wants the success of the business, but on the other hand is determined to make it fail. Every meeting of the staff and the board of directors (which includes people who are not family members) becomes a battle between the brothers. Colleagues, colleagues and friends withdraw because they refuse to take sides. The functioning of the organization has turned into a constant family conflict. 4. Separate personal and professional time. While ideally acting as a family at home and professionals at work, most family businesses operate on both levels at all times.
“Business needs to be handled differently from family,” says Calcango, who recommends limiting business conversations at the dinner table to allow everyone involved to take a break from their respective work.