One of the biggest challenges in family business transition can be in managing the conflicts, which can and do arise. These conflicts can almost always be traced back to a lack of and inability to communicate effectively.
There are a range of factors that must be considered in developing the communication skills of the family:
- The exiting generation may actually not want to exit as they have not finished what they started when they joined the business and are not sure what they will do if they leave. This sense of unfinished business, pride in doing well, and a loss at what the future holds can be a very difficult ‘heart to heart’ conversation to have with family members. It requires a vulnerability that has long been buried in making the business successful.
- The new generation may see their entry into the business as a means to ‘prove’ themselves and to build a ‘missing relationship’ with their parent/s. A hard-nosed businessperson can be a difficult person to build a loving relationship with as a child. And cousins can find themselves in a race to succeed without even knowing it. These feelings and drivers can be deep seated, lost in emotions and very difficult to surface, recognise and discuss.
Everyone in the family must open up their communication style to allow them to speak into issues they are not comfortable with and to stand in the shoes of the other person.
This empathy will take time, patience and change for everyone but it is one of the conditions that is precedent to effective transition. And is likely to be the place where an independent succession advisor can be invaluable.
Active Knowledge Question:
Would you rank your conversational capacity as a family business as 10/10?
If not, read Conversational Capacity by Craig Weber, it has some great techniques that will assist you and your family to have better conversations.
Searching for the world’s best succession solutions? Buy Transition – Orienteering The Five Lands of Succession.
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All the best in the success of your business,
Richard Shrapnel
