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Collaborative Law: Resolving Disputes, Without Burning Bridges
Litigation is especially risky in a family business with more than just business interests at stake. A Collaborative Law process can get you the help you need, without the delays, uncertainty, costs, publicity, limited remedies, and relationship damage that a court (or arbitration) proceeding usually entail.
How to Start a Difficult Conversation in Enterprising Families
Putting off that awkward conversation because you hate conflict? Many of us will go out of our way to avoid difficult conversations with loved ones, because we worry about making the situation worse. In reality, ignoring a troublesome situation will almost always make the situation worse. Here are some tips to start tough conversations off on the right foot. The First Step: Setting Up Tough Conversations To set up a difficult conversation, you need to approach the other person in a non-threatening way. Handle this with grace and humor, as you would an invitation. Remember: What affects you negatively is [...]
Harmonize Through Conflict in Family Business
“We don't get harmony when everybody sings the same note. Only notes that are different can harmonize. The same is true with people.” Steve Goodier All enterprising families experience conflict, and how to handle conflict is a top concern for family businesses. Conflict is NORMAL. It is a natural characteristic of the family, evolving when people’s roles change and grow, overlap, clash, or are misunderstood. Staying strong as a family and a family business requires flexibility and constant renegotiation of roles, as well as an acceptance that dealing with conflict is just business as usual. Learning how to effectively manage [...]
Positive Prenup: 5 Topics to Protect Your Partnership
Getting a couple to talk about divorce when they are just embarking on marriage can be a tough sell to someone planning a wedding. For couples entering a partnership with comparable assets, a prenuptial agreement. aka prenup, is rarely contentious. But when there is wealth disparity, prenuptial agreements can be seen as a requirement by one party and as a threat to the other. In this case, creating the prenup can prove critical to the success of the marriage—not just for the future conflicts it prevents, but also for the conversations it starts. Prenups Protect Couples from Conflict The truth [...]
Getting a Grip on Conflict, pt. 2: Managing Systemic Conflict
In Part I: Getting a Grip on Conflict, we looked at why conflict in family enterprise is often so extreme and intractable-- because conflict is inherent in family enterprise, with all of its overlapping systems (ownership, business, family, and governance.) In a family business in particular, it is critical to understand and manage systemic conflict for business success and to protect ongoing relationships. Managing Systemic Conflict How to Manage Conflict in Family Enterprise There are three principal approaches to managing conflict: 1. Bargaining 2. Force and 3. Development. Once the sources of conflict have been identified and broken down into [...]
Getting a Grip on Conflict: pt.1
First step, understanding systemic conflict Why is conflict in family enterprise often so extreme and intractable? It is extreme, because roles in a family business, or access to family wealth, are not as negotiable as these issues would be in a non-family enterprise. This is true in large part because family members tend to take their role in the business very seriously. The disagreement is about more than just a job or money, it’s about what these signify to the stakeholder. Dismissing conflict in a family enterprise as greed is too easy. More often, stakeholders are fighting about very real [...]
Are “Best Practices” the Best Practice for Your Family Business?
Is a Best Practice the Best Solution for Your Family Business? Conflict and uncertainty eventually challenge most family businesses. There is no shortage of books and articles espousing a so-called “best practice” for a family business. While many of these often provide great value for their intended audience, it is important that stakeholders not follow these recommendations blindly. Below are some points to consider when evaluating a best practice for potential implementation. VALIDITY Is the best practice in question supported by unbiased, statistically valid data – and not just anecdotal? It is often difficult and/or time consuming for both stakeholders [...]
Selling a Family Business? Prepare for the Challenges!
Selling? Getting it Right! The decision whether or not to sell the family business is often a difficult one. No matter if the business has been nurtured and handed down through several generations or is still in the hands of the founder, deciding to sell is tough. The tragedy is not that the family business sometimes gets sold; it is that they all too often get sold due to unmanaged conflict or insufficient planning. While Continuity is in the business of preventing these tragedies, we have also helped several families move on from their family businesses so they can deploy [...]
Managing Sibling Wealth Disparity pt. 2
Without common values and mutual respect, siblings may lack a common language to talk about the use and purpose of money. Part 2 of a 2-part series by Continuity Managing Partners Doug Baumoel and Blair Trippe Steps for handling sibling wealth disparity The starting point for dealing with wealth disparity is having a common understanding of what family means for this generation and developing a shared vision for how to be a family in the future. This shared vision, based on the identification of shared values and expectations, should provide insight into the following questions: What does it mean to [...]
Managing Sibling Wealth Disparity pt.1
When misunderstood, wealth disparity between siblings can build resentment… Understand why and steps you can take towards a shared vision. Part 1 of a 2-part series by Continuity Managing Partners Doug Baumoel and Blair Trippe Forging a close relationship among siblings during childhood is hard enough, but as siblings become adults, disparities in wealth that may develop can challenge even the strongest relationships. In business-owning families, the potential ramifications are extensive. The dynamic doesn’t just play out in the personal lives of the immediate family; it also can impact the alignment of corporate vision, tolerance for risk and overall decision [...]