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Family-owned Businesses are the backbone of the Australian economy playing a vital role by providing 55% of private sector employment thus adding to the enterprise and fabric of our society (source Australian Family Business survey 2021).

Family Businesses come in an assortment of shapes and sizes covering a realm of industries, such as construction, retail, hospitality and tourism! You name it there will be a family-owned Business ready to provide quality goods and services!

Managing relationships is a crucial factor for the success of any business.  This is no exception to family-owned and run Businesses. It is crucial for the success and survival of these enterprises to have an understanding of the dynamics of human behaviours, such as emotions.

The very nature of family Business employing family members and 'outsiders' creates a mix of human dynamics, a mix, that if the unit is to function effectively requires balance, understanding and agreed 'rules' of behaviour.

Crossing boundaries, when we find the kitchen table becomes the boardroom mixing private and business life creates its own challenges. Family emotions and behaviours and the professional Business role if brought together can also cause tensions. Formal guidelines need to be in place to respond to these situations.

Positive emotions like love, affection and trust are the foundation of a strong unit. When negative emotions arise the workplace can quickly turn toxic. Conflicts can arise because of rivalry, resentment and jealousy. Conflicts that are left unresolved will erode and eat away at the health and success of your business. The answer lies in building strong harmonious working relationships, built on trust, respect, and common goals. Strong building blocks include the following.

9 Strategies for building harmonious working relationships

1. Communication: open and honest, positive language, and active listening is essential. 
2. Meetings: Schedule and hold formal regular meetings.
3. Inclusion: Seek input from all parties and generations.  
4. Establish common goals: based on shared family values, core purpose, and objectives. 
5. Practice good governance: Adopt a Governance Program that establishes ethical guidelines, sets the groundwork for decision-making, including rules for conflict resolution.
6. Formalise Job Descriptions: Have in place formalised, written Job Descriptions that clearly outline the Role and Responsibilities. This resource avoids confusion and misunderstanding.
7. Implement formal systems. Have written instructions on day-to-day operations and procedures to avoid information only being stored in someone's head.
8. Deal with Conflict: if unable to resolve internally engage a Mediator.
9. Keep family and Business life separate:  Set these boundaries to provide work and family life balance. Enjoy time out, by not bringing business issues to the dinner table or family gatherings!