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    Identifying and addressing

    the causes of conflict

    in family business

    Nigel Finch

    [email protected]

    May 2005

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    ABSTRACT

    This paper describes the conflict that is typical in a family business and highlights

    some of the major factors that make family business conflict unique from other types

    of interpersonal conflict in the workplace.

    Conflict is inevitable in any business, and often its not a bad thing. Few people in

    business enjoy conflict but without it a company may not have the impetus to change

    and develop.

    However many suggest that the failure to adequately control conflict in family

    business may contribute to the high mortality rate of family-owned firms.

    The reason for this high level of failure is almost always due to a management failure

    to come to grips with the inevitable discord that arises when family members work

    closely together.

    The difficulty for family business arises when family rules do not apply after they are

    transferred to the business system. This paper makes recommendations that assist

    practitioners in working towards an amenable resolution.

    The focus of this paper is to identity common causes of conflict and it explores ways

    to manage or resolve this conflict in family business, with the view to preserving the

    existing business, ensuring its continuity in the short term and assuring succession for

    the long term. It also identifies some of the factors that make family business conflict

    difficult to resolve and highlight pitfalls for third parties or other non-family members

    working in this area.

    Keywords: conflict, family business, non-family managers, non-executive directors

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    INTRODUCTION

    This paper is intended to aid practitioners and third party or non-family members,

    such as non-executive directors, identify some of the common root causes of conflict

    in family business.

    This paper comprises three sections. Section one defines conflict and categorizes

    family business within an Australian context. It defines conflict in the family

    business, introduces some common types of conflict in family business, and identifies

    the consequences of conflict to the family business. While there can be a positive role

    for conflict in the workplace, when family is included in the workplace mix, this adds

    complexity to traditional workplace conflict and may increase the chance that the

    conflict will be destructive.

    Section two identifies some of the unique causes of conflict in family business and

    defines the following conflict drivers; rules, roles, dual relationships, differing vision,

    succession, jealousy, poor communication, poor conflict management skills,

    introducing fulltime roles, equality in rewards and spillover theory.

    Section three offers some techniques for practitioners to address the conflict

    including; solving issues promptly, effective communication, separating family and

    business, succession planning, formalizing the family business, sibling succession

    teams, defined roles, third party involvement, rewards systems and retirement

    planning. This section also addresses some of the common concerns faced by

    founding family members when considering retirement and succession.

    Finally this paper concludes and offers a summary of key recommendations for

    practitioners to consider.

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    SECTION ONE

    In this section we define conflict and categorize family business within an Australian

    context. We define conflict in the family business, and introduces some common

    types of conflict found in family business. We also identify the predominant

    consequence of destructive conflict in family business as being business failure. We

    acknowledge that there can be a positive role for conflict in business, but when family

    members are included in the business workforce mix, this dynamic adds complexity to

    traditional workplace conflict, which may increase the chance of business failure.

    What is conflict?

    At the root of John Burtons universal model of conflict resolution is the premise that

    unmet needs results in a greater likelihood of conflict.

    Tillett (2001, pp.8) says conflicts relate to deep human needs and values. Sometimes

    they are expressed through problems or disputes, which may be superficial

    manifestations of a conflict, and unless the conflict is addressed, the dispute or

    problem will continue, or new disputes or problems will arise.

    Tillett (2001, pp. 24) explains, it is essential to recognise that almost all conflicts have

    both visible, manifest aspects and invisible, unmanifest aspects.

    undisclosed

    unconscious

    manifest

    unmanifest

    visible

    invisible

    focal conflict

    Figure 1. Manifest and unmanifest conflict

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    Tillett (2001, pp. 24) differentiates the two interdependent aspects by describing them

    as:

    The visible conflict is usually the one described by the participants. It will

    probably involve a focus or focal conflict, and there will often be a further

    level of manifest conflict underlying the focus. The unmanifest conflict

    includes both disclosed and undisclosed factors (which are nevertheless known

    to either or both the participants) and factors that are unconscious. The

    participants may or may not be prepared to discuss the underlying or

    unmanifest conflict, and, indeed, may not be consciously aware of some of the

    manifest aspects.

    What is a family business?

    The family business is the oldest form of multi-party business enterprise. In fact the

    world's oldest continuously operated family business, Japanese temple-builder Kongo

    Gumi, began in 578 (Hutcheson, 2002, pp.119).

    Imanol Belausteguigoitia1 outlines the competitive advantages of family businesses

    over non-family business as being (i) greater loyalty, (ii) stronger commitment, (iii)

    easier understanding, (iv) respect for authority, (v) low staff turnover, (vi) longer-term

    vision and (vii) plenty of time to train employees and groom successors (Fastag,

    2002, pp.1).

    Rosenblatt, de Mik, Anderson, and Johnson (1985, pp.4) define a family business as:

    any business in which majority ownership or control lies within a single

    family and in which two or more family members are or at some time were

    directly involved in the business.

    With this definition, family empires such as those founded by the Rockefellers, or

    Australias Murdoch or Packer families sit side by side amongst the most modest of

    rural farms and mum-and-dad corner stores.

    1Professor Imanol Belausteguigoitia is the director of research at the Centre for the Development of

    Family Businesses in Mexico City's Itam University.

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    Hutcheson (2002, pp.119) reminds us that Ford, Campbell's Soup, Cargill, Siemens

    and Mars are all essentially family businesses, and all are multi-billion dollar

    enterprises, among the largest on the planet.

    Clearly, family businesses can, in at least some instances, be as big and sophisticated

    as any non-family firm. Not all are, but neither are all of them crudely managed and

    poorly led. Family businesses are as diverse as business itself. They come in all kinds

    and generally defy useful categorisation.

    Family Business in Australia

    There is little conclusive data on the size or scale of family business in Australia. Inthe United States however, family businesses dominate the economy with research

    indicating more than 75% of all enterprises in the United States are family-owned and

    controlled, and they contribute half the gross domestic product. Moreover, the United

    States is actually less dominated by family businesses than many other countries.

    Especially in more traditional cultures and less-developed countries, family

    businesses may account for as much as 95% of a national economy (Hutcheson, 2002,

    pp.120).

    In Australia, the Bureau of Statistics (ABS) estimate that there were 1,233,200 private

    sectorsmall businesses2during 200001 which represented 97% of all private sector

    businesses. These small businesses employed almost 3.6 million people, 49% of all

    private sector employment (Trewin, 2002, pp.10).

    While these ABS statistics on small business do not relate directly tofamily business they

    serve as useful guide3 to give us an indication of the size and scale of family business in

    Australia.

    2 The Australian Bureau of Statistics defines a small business as a business employing less than 20

    people. Categories of small businesses include (a) non-employing businesses sole proprietorshipsand partnerships without employees, (b) micro businesses businesses employing less than 5 people,

    including non-employing businesses, (c) other small businesses businesses employing 5 or morepeople, but less than 20 people.

    3

    The Australian Bureau of Statistics note that small businesses tend to have the following managementor organizational characteristics (i)independent ownership and operations, (ii)close control byowners/managers who also contribute most, if not all the operating capital, and (iii) principal decision-

    making by the owners/managers. These same characteristics are often found in family business.

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    Conflict in family business

    Despite the absence of quantitative data on family business in Australia, they do play

    a vital role and are unique institutions in the socioeconomic environment. They also

    have a complex set of problems not completely addressed by classical managementtheory (Davis and Stern 1980). One such problem is the effect of conflict in the

    family.

    The type of conflict in family business

    A critical problem faced by family business is the tension that exists between their

    personal lives and career pursuits of the family members. This tension may be viewed

    as a form of interrole conflict4 in which the role pressures from the work and home

    domain are incompatible. Essentially, involvement in one role becomes more difficult

    because of involvement in the other role.

    The consequences of conflict to the family business

    The consequences of conflict in family business can be extreme, resulting in

    behaviors destructive to both the firm and the family, and conflict within the familyfrustrates adequate planning and rational decision making (Levinson, 1971, p. 96).

    Beckhard and Dyer (1983) suggest that the failure to adequately control conflict may

    contribute to the high mortality rate of family-owned firms. Family businesses are, in

    fact, rather fragile. Roughly two-thirds of family-owned and family-controlled

    businesses do not survive the founders' generation (Beckhard and Dyer 1983; Dyer

    1986), with only 10 to 15 percent surviving to a third generation (Applegate 1994).

    The role of conflict in the workplace

    The incidence of conflict in the workplace is high and dealing with it is time

    consuming. Managers have been found to devote more than 20 percent of their time to

    managing conflict, which they rate as equal in importance to their other managerial

    activities (Thomas and Schmidt 1976).

    4Interrole conflict occurs when an individual is assigned simultaneous roles with conflicting

    expectations.

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    Conflict is inevitable in any business, and often its not a bad thing. Few people in

    business enjoy conflict but without it, a company may not have the impetus to change

    and develop.

    Conflict can be beneficial when it helps to expose all possible solutions to a problem

    and forces business leaders to think through their options in an effort to deal with any

    objections and reservations (Hutcheson 2002). Conflict can act as a valuable sounding

    board for ideas and help keep the overall vision of the company alive (Davies 1998, p.

    113).

    When there is family in the workplace

    But conflict within a family is a different matter. Conflict that energises a business

    may destroy the family that created it. Put business and family together and the

    potential for trouble is clear.

    In the next section we identify some of the causes of conflict, which are often unique

    to the family business environment.

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    SECTION TWO

    In this section we identify some of the unique causes of conflict in family business as

    well as other contributing factors that contribute to conflict in family business. These

    causes include; rules, roles, dual relationships, differing vision, succession, jealousy,

    poor communication, poor conflict management skills, introducing a fulltime roles,

    equality in rewards and spillover theory.

    Unique causes of conflict in family business

    The unique relationship

    The key difference between family business and non-family business is the unique

    nature of the relationship between family members and their co-workers, employees

    or employers. This unique relationship poses three complex factors that can be the

    cause of conflict: rules, roles and dual relationships.

    Rules

    Rules are an important concept in family and Rosenblatt et al. (1985) have stated thatverbalized or assumed rules are something all families have. The difficulty arises

    when family rules do not apply after they are transferred to the business system.

    For example, at home, a parent may be nurturing, solicitous, and advice-giving to a

    child. Although these may not be the best rules, they are the accepted rules in the

    family context. In the business, these parenting style rules may be embarrassing to the

    offspring and disrupt a productive working relationship between parent and child.

    Roles

    Cole (2000, pp. 352) says that a common assumption exists that family business

    relationships pose many problems for family business members. Some believe that the

    potential for problems arises because family businesses encompass business and

    family, two competing systems (Lansberg, 1983; Rosenblatt et al.,1985). The business

    context encourages productivity and profitability, whereas the family context

    encourages nurturing and acceptance.

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    For example, a husband and wife who are co-owners of a company may not be able to

    make business decisions without marital problems turning the discussion into an

    argument. They may confuse their roles of spouse and business partner.

    Dual Relationships

    Cole (2000, pp. 352) says family business members share a bond dealing with each

    other in both a work and family context and this creates a dual relationship in which

    two people are managing two relationships simultaneously.

    For example, when a mother works with her son, she is a mother/boss working withher son/employee.

    Other contributing factors

    The underlying problem with conflict in family business stems from confusion or the

    inability to manage the complex rules, roles and dual relationships that need to be

    maintained between family and business.

    Yet the focal conflicts in a family business may revolve around a different set of

    issues, such as money, personalities or trust. The focal conflicts in a family business

    will be as diverse and varied as each enterprise is unique. These focal conflicts will

    range from the trivial to the disastrous.

    We will look at only a few of the focal conflicts in family business; differing vision,

    succession, jealousy amongst family, poor communication, poor conflict management

    skills, introducing a full-time role for a family member, equality in rewards, and

    spillover theory.

    Differing vision

    As Beckhard and Dyer (1983, p. 59) note, family members often differ from the

    founder and conflict frequently results. For example, while founders usually want to

    continue family ownership, this may not be true of their immediate family or later-

    generation family members.

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    Succession

    Professor Randel Carlock5 explains that one of the biggest obstacles for the family

    business founder is succession. He says:

    Entrepreneurs are very strong people. They tend to have a high need for

    control and low need for social support - not the best kind of parent. They are

    typically not very good at training others to be entrepreneurial and their

    children often feel unworthy and powerless in comparison.

    A parent who refuses to retire may unconsciously feel that the children are notcapable of running the business. This creates tension between the child and parent

    over the leadership position, and the child may leave the business in frustration.

    Jealousy amongst family

    Deciding who will follow the CEO may be the single most significant act of any

    reigning family business leader. If this decision is not handled sensitively it may result

    in conflict and hostility amongst siblings who are jealous of the final decision. Left

    unresolved, jealousy has the potential to divide the family and destroy the business.

    Poor communication

    The founders of family business tend to control and manage dissent, permitting very

    little input from others in the decision making process (Dyer 1986). People who start

    companies from scratch and build them up into profitable businesses are usually hard-

    driving workaholics accustomed to doing things their way and intolerant of dissent

    (Ellin 2001).

    This is a symptom of poor communication and a cause of tension that leads to

    conflict. For example being equal partners in family or marriage and unequal partners

    in the family business leads to conflict.

    5 Professor Randel Carlock is Berghmans Lhoist professor in entrepreneurial leadership at Insead and

    co-author with John Ward of Strategic Planning for the Family Business: Parallel Planning to Unify theFamily and Business.

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    Poor conflict management skills

    Growing up in a family doesn't make one an expert on solving family problems

    especially problems in ones own family (Hutcheson, 2002). Many conflicts arise infamily business because of the lack of skills in conflict management or resolution

    amongst family members.

    Introducing a fulltime role for a family member

    When family businesses are founded, they are typically expressions of an

    entrepreneur's desire for independence (Ward 1987) and family businesses are often

    founded without the intent of being family businesses.

    A unique source of conflict for first-generation family businesses is where a family

    member assumes a full-time role alongside the founder. Often issues only begin to

    arise when the second family member enters the firm on a permanent basis (Hoy and

    Verser 1994).

    There is a long history of case studies of family businesses that suggest that because

    family dynamics are often acted out in organizations, the presence of added family

    members in these organizations seems only to intensify the eruption of conflict

    (Levinson 1971).

    Equality in rewards

    Many siblings are left equal shares in a family business despite different management

    roles, and this is also a cause of conflict, especially where some children are not

    interested in taking part, whether as managers or as shareholders.

    The natural parental tendency to ensure that all the children have an equal share. But

    this is at odds with the natural business tendency to reward those who are contributing

    most.

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    Spillover theory

    Another contributing factor for conflict in family businesses is the phenomenon that

    has been labeled Spillover theory.

    Spillover theory (Evans and Bartolome 1984) is used to explain how work influences

    family life. Positive spillover involves the spread of satisfaction and stimulation at

    work to high levels of energy and satisfaction at home.

    With negative spillover, the problems and conflicts at work drain and preoccupy the

    individual, making it difficult to participate in family life. For women, the family role

    intrudes into the work role more than the work role is allowed to intrude into thefamily role; for men, the opposite is true.

    With so many unique causes and other contributing factors to conflict in a family

    business, and with evidence to suggest that conflict is a major contributor to family

    business failure, practitioners in this area would be served by effective techniques for

    managing this conflict. In the next section, we offer several techniques designed to

    abate destructive conflict and to address the root cause of the conflict.

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    SECTION THREE

    In this section we offers some practical techniques to address the family-business

    conflict including; solving issues promptly, effective communication, separating

    family and business, succession planning, formalizing the family business, sibling

    succession teams, defined roles, third party involvement, rewards system, retirement

    planning. In this section we also identify some of the common concerns faced by

    founding family members when considering retirement and succession.

    How to address the conflict

    John Gatrell6 says: Families often maintain a myth of harmony, when everyone

    knows there is a simmering discontent. It is often only when pressure is applied to the

    business that the conflict comes into the open - and that is the worst possible time to

    address it.

    Solving issues promptly

    The best time to address the potential causes of family business conflict is before theactual conflict manifests. Because when it does, there will be high levels of emotion

    and external pressures will create additional tension. This may have a catastrophic

    impact on the family business if it is not dealt with correctly.

    Gascoigne (2003, pp. 16) suggests that the best thing is to tackle family issues before

    a crisis, such as the sudden death of a senior family member, and not to shy away

    from potentially scary discussions.

    To achieve this it may be necessary to bring in a neutral third party, perhaps one with

    experience of the psychological impact of family conflict. The reward for such effort

    could be a healthy business - and a happy family.

    6John Gatrell is the head of the Family Enterprise Centre at Bournemouth University Business School

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    Effective communication

    Ellin (2001) says communication-building is a necessary management tool and one

    that is especially important in family business. She says;

    It's a real competitive advantage to work through problems the minute they

    arise, because it's much easier when times are good and you're building off

    everyone's strengths. When family members are quarreling or making personal

    decisions, that's a heyday for the competition.

    But managing or resolving the conflict before it derails the company is difficult to

    achieve especially if there are blocks in place that inhibit effective communication or

    blur the lines between family and business.

    Separating family and business

    Separating family and business means the ability to draw boundaries if combining the

    two becomes confusing. This means establishing very clear rules that are respected by

    the family members about what are acceptable limits to the crossover between work

    and home.

    Cole (2000, pp. 356) cites a number of practical examples from respondents to her

    survey on this subject. One respondent says:

    I made an iron clad rule. We shall not discuss business out of work unless

    we're at a business meeting or business luncheon or a dinner. That goes

    without exception.

    Not all families in her survey are as strict about the work and family separation. Some

    allow business talk at home, but usually say "that's enough," when they want it to end.

    While others have a mutual understanding that if the other doesn't care to talk about

    work at home, they state it, and the other respects those wishes.

    Other families in Coles survey invented more dramatic signals for separation. One

    man puts a newspaper in front of his face when his wife overdoes business

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    discussions at home. While another moved out of her parent's home to escape talking

    about business after work.

    One married couple, created a variety of markers as reminders of their husband and

    wife relationship. One of these includes an unlisted home phone that is off limits to

    their business contacts. Also, the wife insists on a simple courtesy at work when her

    husband calls her on the work phone. He must say, "good-bye" at the end of the

    conversation, something he never does to other employees. The wife claims this helps

    remind him that he is talking to his wife and not just another business associate (Cole,

    2000, pp. 357).

    Succession planning

    There is increasing urgency to resolve conflicts within families seeking to pass on

    their business to the next generation, since many of them began after the second world

    war and their founders are now retiring.

    Sol Elvira Perez7, cites statistics showing that a third of the world's wealth is expected

    to change hands within a decade (Fastag, 2002, pp. 2).

    Joseph Astrachan8 cites research showing that only 30 percent of such endeavors

    make the transition from one generation to the next. He suggests the reason for this

    high level of failure is almost always due to a management failure to come to grips

    with the inevitable discord that arises when family members work closely together

    (Ellin, 2001).

    In studying more than 13,000 family businesses in the last decade, Astrachan has

    identified three preconditions for a successful succession:

    (1) a board that holds the chief executive accountable and meets three to six

    times a year,

    7

    Sol Elvira Perez teaches family business within the entrepreneurship department at Egade University,Mexico.

    8Joseph Astrachan is a professor of family business at the Michael J. Coles College of Business at

    Kennesaw State University

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    (2) formal family meetings in which the business and the family are discussed at

    least three times a year and,

    (3) strategic planning where the company and family continually get realigned as

    to what the goals are and what everyone is going to do to achieve these goals.

    Formalising the family business

    To help avoid destructive conflict in the family business, some suggest that family

    business take a leaf out of the book of non-family business and formalise roles and

    procedures. Not only does this clarify responsibility and decision making, but it also

    ensures that governance structures are sustainable in the absence of the dominatefounder.

    Astrachan (1988) advocates formalising job descriptions, writing out family protocol

    manuals, appointing an independent non-executive director to the board and/or setting

    up an independent advisory board, so that actions and ideas could be judged

    objectively by people outside the family.

    Sibling succession teams

    The Canadian HR Reporter (4 December 2000, pp. 11) reports that more family

    business owners are looking to hand the leadership reins to a team of siblings rather

    than to the first born child.

    But creating sibling succession teams is fraught with dangers as up to one-half soon

    break apart. On this subject, Carlock and Ward (2001) warn that the worst shareholder

    in the world is one who doesn't want to be there.

    To avoid the threat of the firm breaking up because of conflict between the sibling

    heirs, they suggest that family firms taking the team succession path should consider;

    (i) exit plans for siblings, (ii) board members for outside the family, (iii) a sibling

    code of conduct for decision making, (iv) conflict resolution planning, (v)

    compensation processes, (vi) plans for the future participation of other family

    members, and (vii) a consensus on the role of key non-family executives.

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    Defined roles

    Family members who work closely together should develop written job descriptions.

    By separating work roles (job descriptions) between each other this will aid in

    clarifying and separating business roles from spouse/family roles and help reduceconfusion.

    If roles lack clear work boundaries then family work colleagues will keep missing

    cues from one another and this will be a source of conflict. Once job descriptions are

    discussed and formalised, more clarity engenders and creates more harmonious

    working relationships.

    Third party involvement

    Involving a third party in the business planning process can introduce some

    independence and remove any bias or conflict of interest from the dominate

    shareholder. However, with any such appointment there must be agreement amongst

    the family on the selection and also on the role of the third party.

    Appointing an independent non-executive director to the board will promote a reliable

    and sustainable self-governing structure that is independent of the founder. This will

    help ensure the business survives beyond the term of the first generation.

    This non-executive director can play a key role in benchmarking, the performance

    review of the business, and determining the remuneration of family employees.

    The non-executive director can also act as a sounding board and objectively judge

    business decisions. In times of family conflict they may also act as the peacemaker

    and bring about an early resolution.

    Rewards systems

    By agreeing on defined roles and determining accountability for family members, a

    system of rewards can be implemented that fairly reflects the effort and performance

    of each member. This is especially useful for avoiding conflict with siblings who may

    otherwise be rewarded equally regardless of their roles.

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    This process for determining the rewards or remuneration for family employees could

    also be extended to fairly distributing equity to family members based on their

    contribution and responsibilities.

    Planning to step down

    Developing a succession plan should not simply stop at determining the next heir

    apparent. The plan should also include a timetable for stepping down and this should

    be communicated throughout the family and if appropriate the business.

    More importantly a financial plan should be incorporated into the succession plan toensure that the departing family member has sufficient retirement funds and/or

    guaranteed income streams to allow them to retire and not be dependant on the

    business.

    Common concerns

    There are pitfalls in attempting to resolve conflict in the family business. Many of the

    pitfalls relate to undisclosed or unconscious needs of the family members and will

    need to be teased out by the conflict practitioner in order to resolve the issues. Two

    important relate to enabling long term continuity of the existing business.

    Concerns about retiring

    Regardless of the good intentions of family members or on the insistence of third

    parties recommending that a founder retire, conflict will prevail unless one particular

    basic need is met. Simply, a founder wont retire if there are doubts about cash flow

    and sustainability of business in their absence.

    In order to alleviate their concerns, you will need to build up cash reserves and

    alternate sources of income well in advance to fund their retirement, and this process

    may take many years. Unless these funds are available the founder will be unable and

    unwilling to retire.

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    Concerns about succession

    When planning succession or even considering the appointment of family members to

    the company dont assume that the family members or even the heirs want to be there

    or even continue the business.

    These individuals have their own needs and ideas about independence and this may

    not include a role in the family business. All family members should be asked if they

    want a role in the business and if they want it to be a long-term career move.

    Otherwise they will feel as though they were forced into committing to the family

    business and later this will manifest as conflict.

    It may also be useful for the business to create a fund to buy back the shares of those

    family members, who for whatever reason in the future, do not want to remain active

    in the business. This will mean that there is an exit mechanism for these shareholders

    without the need to hastily sell equity in the business to a non-family investor. This

    type of forced action to sell an equity stake in may also be cause of future conflict.

    CONCLUSION

    Conflict is inevitable in any business, but unresolved conflict in family business may

    contribute to the high mortality rate of these family-owned firms when management

    fails to come to grips with the inevitable discord that arises when family members

    work closely together.

    Practitioners and other third party or non-family members, such as non-executive

    directors, are well placed to help facilitate resolution in family business conflict with

    the view to preserving the existing business, ensuring its continuity in the short term

    and assuring succession for the long term.

    We provide a useful introduction to the unique causes and other contributing factors

    that drive family business conflict, and we offer practical techniques for practitioners

    to help manage and resolve the conflict, and improve business performance.

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    SUMMARY OF RECOMMENDATIONS

    Summary of recommendations

    External Parties ~ Appoint non-executive director(s)

    ~ Establish an independent advisory board

    ~ External party can aid with prompt resolution of conflict

    ~ Can facilitate meetings

    ~ Can act as a sounding board and provide independent views

    ~ Develop a consensus on the role of external parties

    Formalise ~ Agree on rules and procedures

    ~ Develop job descriptions

    ~ Develop a family protocol manual for decision making and conflict

    resolution

    ~ Develop an equitable reward system

    Separate roles ~ Establish clear roles in both business and family

    ~ Develop a system of makers to differentiate between two environments

    Succession ~ Resolve conflict now to plan for future succession

    ~ Fund a retirement plan for founder(s)

    ~ Redefine board composition and reaffirm strategic objectives

    ~ Develop exit plans for siblings

    Communication ~ Work to eliminate blocks to effective communication

    ~ Conduct regular family meetings where family and business matters are

    discussed

    -END-

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