Running any business is complicated and can be stressful. Everyday decisions need to be made that affect the welfare of staff, owners, and the company. It’s inevitable that there will be differences of opinion regarding the best way forward.
The structure of most businesses prevents this from being an issue as this is usually a boss that has the final say. However, this can become much more complicated as most family members will feel they have an equal voice in decisions and they will all have different opinions.
Because a decision has to be made, there will always be some people that feel aggrieved. This will lead to conflict which can be seriously damaging to the reputation and profitability of the business.
That’s why you need to know the best techniques to prevent conflict in a family business.
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Training
The best way for everyone to understand the current process and the difficulties the company faces is for everyone to spend some time in each of the daily roles. This provides knowledge for all members of the family, helping them to make informed decisions and understand why some options are impossible, no matter how good they sound.
It can help reduce conflict as people understand the available options better.
Create the Right Administration
One of the most important parts of running a family business is to make sure all family members have comprehensive administration training. This will allow family members to understand how the business is run and why. You can check some courses here if you need to learn more.
Training in administration offers more than just an insight into the many processes that support a business. It also ensures all family members are aware of the systems and can use them to effectively communicate with each other.
This is true whether they are emailing about a business decision or entering customer details. When everyone knows how to use the systems properly, you’re more likely to get the right results, reducing the opportunity for conflict.
Hierarchy
Although every family member may have an equal share in the business, it’s important to create a structure. Family members should decide together who is in charge. This will be the person who has the final say on any decision.
It reduces conflict as everyone can have a chance to state their case but it is clear who makes the final decision and everyone abides by it. All the nominated leader has to do is think about what is best for the company and the family.
Negotiator
Despite your best efforts, there are likely to be times when conflict still exists. It can be difficult to resolve differences in opinions, When these situations are allowed to fester they can quickly become detrimental to working relations and the business.
All family businesses should have a negotiator or mediator that they can call. This will help to resolve the conflict and allow the family to move on together, focused on what the business needs to survive and flourish in an increasingly difficult economy.
