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Family Businesses are an integral part of the Australian economy and significant contributors, making up to 70% of all Australian Businesses and employing around 50% of the workforce. Family Businesses are enterprising and adaptable, providing unique benefits to the economy, local communities and their family units.  

The positives of working with family include members usually sharing a deep sense of commitment and responsibility and a shared vested interest in the success of the enterprise. For members it is an opportunity for growth, and contributing to and investing in their own and the Businesses success.

The challenges! It can be a delicate balance between the needs of the Business and expectations of family, along with the intertwining and overlapping professional and family roles, that often compete, causing strained relationships. 

Yes, just like in any Business conflict is a reality, occurring for a variety of reasons. Tensions arise over differing visions and opinions, power struggles, financial arrangements, competing priorities and clashing personalities!  When conducting Business, these tensions are brought to the table, with the potential to influence decision-making, relationships and communication, positively or negatively. If left conflicts can escalate resulting in fractured relationships and undermine Business stability.

Ways Forward: 

• The key is to understand and appreciate members differing perspectives and harness these differences. When managed effectively conflict can be a powerful force, a catalyst for innovation and growth.
• For example, family disagreement over strategic direction or expansion can bring about closer examination through a more thorough evaluation. Beth and Jason see opportunities in new markets, expansion, and adopting updated practices, while their parents, company founders, Bill and Mary are concerned about 'big' change and potential risks. Importantly to move forward,  it's about listening, exploring and engaging differing viewpoints, and addressing underlying issues. This approach leads to a more robust decision-making process. 
• It's about bringing everyone to the table, supporting respectful engagement and discussion. By practicing the skills of negotiation, diplomacy, compromise and weighing up all the arguments, solutions can be found, supporting, the best interests of all, and importantly the Business. Conflict can be harnessed to unify!

Family Business can harness the strengths of the family dynamics to achieve long-term success by recognizing and dealing with the complexities of those dynamics. 

6 Best practices for harnessing difference in your Business: 

1. Establish Roles & Responsibilities - Define professional roles and responsibilities distinct from personal and family roles. Set boundaries to avoid blurred lines. Establish job/role descriptions, with reporting and accountability requirements. This format provides clear direction for everyone.
2. Form a Family Counsel - to provide a framework and forum to facilitate constructive discussion and debate. Use this as a means to encourage respectful, open and healthy conversations, share ideas, state grievances, problem-solve and guide decision-making.
3. Develop Common goals -  aim for common goals and ground to foster cohesion, shared visions, and strength to get and bring out the best in all. Members and the Business will reap the rewards.
4. Leverage difference for growth – drive difference, draw on the qualities of each member to improve outcomes. Be prepared to look and learn from peers to grow self and the Business. Recognition strengthens respect, cohesion and unity.
5. Acknowledge diverse skill sets – Highlight, value, show appreciation of specific skills and abilities. Use these to advantage. Support personal development and growth.
6. Deal with Conflict – deal with conflict if, when it arises, ignoring or avoidance can lead to festering discontent that can threaten business stability.  If needed, engage an external professional disputes mediator.   

Going forward, it's balancing family dynamics with Business needs.  

Consider implementing Strategies for Success, paving the way for the success of you, Family and the Business.

Read our Blog ‘5 Strategies to Achieve Your Business Success’