BY PROF. ENRIQUE SORIANO
ON THE other hand, toxic family businesses manifest in many ways, and primarily a pattern develops where siblings constantly argue at the slightest provocation. There is also mutual disrespect, resentment, unclear lines, and no real attempt by the founder to demarcate business and family matters.
Each department headed by a sibling tends to assert full control of his or her own business unit or “kingdom,” and there is an obvious dislike when the siblings are asked to work together.
Additionally, unhealthy sibling relationships mean there is no real coordination of work plans, thus leading to missed or failed targets and, in most cases, total failure. This unpleasant environment shifts from bad to worse when the founder is no longer around to order the children to put up or shut up.
Resolving Sibling Rivalries
Understanding the root cause(s) of the conflict and correlating it with the indicators mentioned in the earlier paragraph is a good place to begin. Below are some of the initial steps a leader/parent must pursue to remedy a major conflict disguising itself as a petty issue.
1. The founder/parent must lead the way in resolving the conflict. There is no other person in the family that can do it. If the parent can intervene without being biased or emotional, well and good. Otherwise, it would be best to engage and work with a non-family professional business family consultant to objectively address the simmering boil about to spill over. Believe me; these problems will percolate and continue to fester when left unresolved.
2. Critically, it is vital to distinguish the kind of sibling conflict the family is experiencing. Is it an “emotional” conflict, a “strategic” one, or both? The founder/parent must identify if it is a personal issue that dates back to when they were still in their teens, if it is business-related, or perhaps just a disagreement related to where the business is headed.
3. According to authors Fowler and Edquist, emotional or personal conflicts represent a personal feud and should not be dealt with using company processes. Siblings with intense emotional conflicts have likely never learned to effectively manage disagreements, and instead, their relationship is characterized by intense power struggles and competition.
4. On the other hand, strategic-related conflict highlights business and strategy disagreements, including primarily management styles. Conflicts under this category can be addressed using corporate governance and best practices. (To be continued)/PN
