NewsBeat

16 NewsBeat July 2017 it's a real challenge for Dad. It was tough to tell the son that he's actually a better person when he's not working for his father, but they both see now that it was the right move, as painful as it was. Neither one of them had the ability to move toward the middle; it was not a question of desire, nor was it question of who was at fault. The good news is that now they're closer as a family than they ever were, and the son has started his own company in a different field. What are some of the most common causes of breaks in the Family/Time Continuum? • Poor communication: Family members are not able to communicate effectively with each other or to talk through their different perspectives; conversations that should be had are not, yet life and the business still move forward. • Family conflict /lack of resolution: Resolution does not mean agreement – but it does mean agreeing to move forward. You've got to be able to make good business decisions, in which the past doesn't dictate the future. • Lack of strategic planning: Without a formal strategic plan in place, how do you know in what direction you should be taking the business? Good strategic planning can help prevent these kinds of family/time continuum events from happening. If, for instance a family doesn't plan in advance for the death of a family member, it's possible that the business will shift in a direction that isn't optimal when the event happens. The greatest benefit a strategic plan brings is creating alignment at the highest level of the family and organization, in a way that serves both. • Unexpected death in the family: As in the Payton family, a sudden death brings emotional trauma along with other practical repercussions that can easily push the family off course. • Poor definitions of roles and responsibilities: When you don't have clear structure in an organization, it's like a bad rowing crew that can't pull together to win a race. Clear roles and responsibilities are essential to having members in the business all pulling in the same direction. • Mismanaged expectations: As in the Baker family example, when people don't share a common understanding of their place and power in the family business, or when the leader refuses to share any power with his heir apparent, it can lead to hard feelings that damage both the business and the family. • Entitlement: We often see cases in which Mom and Dad have effectively given their kids power in the company without having set expectations around what they have to do to earn it. Thus, you get adult kids showing up for work at 10 and leaving at 4, coming and going as they wish. When parents are unwilling to address entitlement issues, they run the risk of creating a break in the family/time continuum; the employees resent the kids, and the kids themselves aren't capable of taking over when the time comes, risking the future of the business. When the process of onboarding an heir is more carefully managed, with roles and processes clear to everyone, it lets the family get out of the company's way. As we've seen, poor communication is most often the underlying current that drives conflict in a family business. Before making changes to an intended strategic direction in your business, I suggest you ask yourself "What is causing this shift; is it due to changing market or financial conditions, or is because of unresolved family dynamics?" If it is the latter, I encourage you to address those family issues before making change in direction that may negatively impact your business down the line. You may still find yourself continuing down the altered path, but at least you be doing it knowing this is what is right for the family and the business. — Reprinted from the Family Business Consulting Group Continued from previous page

• Cover