50 Common Causes of Family Business Conflict ... and how to deal with them

Audio No 31: Decision Making: Family & Business.

• Many business families, even large and sophisticated ones, don’t have any coherent form of problem solving or decision making process. Up to a point, decisions can be made autocratically, without concern for scrutiny or opposition. Beyond a tipping point, this no longer works, and family members, and/or employees, object to decisions being made without their input, or insist on decisions being made with their input.

• This is often seen as a challenge. It may be accepted willingly, opposed violently, or anything in between.

• Strategic decisions are big decisions that may have a major impact on the family and or the business.

• Big decisions cannot safely be made without adequate information, due consideration and appropriate consultation.

Solution:

• As a family or business group, develop and commit to a formal problem solving and decision making process, appropriate to circumstances.

• Practice using the process on small matters before putting it to the test on important, strategic issues.

• Document decisions made according to due process for a Board, Family Council, etc.

I'm interested in your comments below.

Thank You

#familybusiness #business #conflict