Conflict Management
It Isn’t Always Fighting: Family Business Conflict
Can you recognize family business conflict? Few people are eager to admit their family has conflict. Especially now that social media reminds us daily that our friends have perfectly harmonious families (!), it can feel like a failing to admit that there are tensions in your family…or worse. But learning to recognize family business conflict and look it in the eye can have enormous impact, especially for stakeholders in family business or family that shares significant assets. For enterprising families, conflict can be even more pernicious—and even more damaging if left unaddressed. To Succeed and Sustain Relationships: Managing Conflict is [...]
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.
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 [...]
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 [...]
Importance of The Family Factor in Managing Family Business Conflict
“The family — that dear octopus from whose tentacles we never quite escape, nor, in our inmost hearts, ever quite wish to.” ~~Dodie Smith Continued Relations Unlike classic business disputes where warring parties can do battle, inflict fatal wounds and walk away from each other, in a family enterprise this just isn’t possible, nor desirable in most situations. And it’s true even when the individual(s) at the heart of the conflict seemingly doesn’t care about their relationship any longer. In time, they ultimately agree that they’re part of “something bigger” and breaking these ties would be devastating and far-reaching. The [...]