Friday, January 6, 2012

Understanding Conflict in the Family Business

Jacquelyn Gernaey, Independent Owner, The Alternative Board TABÒ, President, HyTech Consulting from Balancing Act: When Family and Business Intertwine

Many articles on the subject of conflict contain an acknowledgement that conflict is a normal part of life.  Webster’s Dictionary defines conflict as “a battle, contest of opposing forces, discord, antagonism existing between primitive desires, instincts and morale, religious or ethical ideals.”  Conflict results when two or more people oppose one another because their needs, wants, goals or values are different.  Most recognized experts on the subject of conflict would say that conflict is not necessarily bad.  While all this may be true, family-owned businesses, like most businesses, understandably tend to focus most of the attention on the negative aspects of conflict.

What is the first thing that comes to mind when you hear the word conflict?  If you are like most people, it will remind you of a less than happy experience or time in your life.  That is because conflict is almost always accompanied by feelings of anger, frustration, anxiety, fear, resentment and hurt.  Most individuals associate conflict with unpleasant life experiences.  And the family business environment is no exception.

The ingredients of conflict include:

Needs:  Needs are things that are absolutely necessary to a person’s well being.  Conflicts often arise when one’s needs are overlooked, whether accidentally or not.  It is important to remember that needs are not the same as desires (things that we would like to have, but are not imperative).

Interpretation:  People interpret life around them in very different ways.  They perceive differences in cause and effect, level of severity and consequences of a problem.

Authority:  The manner in which a person defines and handles authority and the level of power associated with a leadership role is an important influence on the types and number of conflicts that arise.  This key ingredient may also be the decisive factor in how conflict is managed.

Values:  Values are ideals and principals that a person considers very important.  Conflicts occur when people hold different values or when values are not clearly understood.  Conflicts also arise when a person and/or group is not willing to accept that another person and/or group holds something as a value rather than a preference.  Even when people are related, they can have different or opposing values.

Emotions:  Many people tend to let emotion rule how they deal with the issue of conflict.  Conflicts can also occur when a person’s feelings or emotions are overlooked.  Other conflicts may arise when the level of emotion differs over a particular issue.

Conflict becomes even more complex, as there are many different styles for dealing with conflict, including competing, collaborating, compromising, avoiding and accommodating.  And something that causes conflict for one person might not bother the other person at all.
The negative aspects of conflict can be a serious drain a family business’ financial resources, productivity and momentum, as most energies are directed toward resolution of conflict rather than prevention.  Strategies are typically directed toward minimizing the negatives of conflict rather than promoting the positives. In fact, conflict can be healthy when effectively managed.  The positive attributes of conflict can lead to:

Þ     Growth and prosperity
Þ     Innovative ways of thinking
Þ     Improved management skills
Þ     Increased motivation
Þ     Awareness of problems
Þ     “Clearing the air”

The key to turning conflict into a positive outcome is to view conflict from a future-oriented perspective and channel the conflict into viable goals.  If conflict is understood, it can be effectively managed by reaching a preventative solution that simultaneously meets the needs of the family members, without losing sight of the business objectives.  Developing and using skills such as effective communication, problem solving and negotiating with a focus on “interest rather than position” can manage conflict.  In looking for solutions to conflict, it is important to focus on what needs to be changed rather than casting blame or reliving past wrongs.

Several important aspects of conflict management and understanding the unique differences among family members, are the use of peer advisory groups, assessments and executive coaching.

1 comments:

Shop said...

Conflicts in families always leads the harm to business , it can be any type such as shop, marketing business. Rathet the wasting time in conflict they can look for needs of business which can make their business successfull.