19/05: Family Business Succession and Conflict
By Murray Cree
Family businesses are an essential part of the Australian economy. With an aging population, there is pressure on to manage generational change in many of our family businesses. This process of succession is a source of conflict because for one generation it is a letting go process while for the upcoming generation it is a taking charge process.
Both of these processes involve the internal psychology of the ego and therein lies the potential conflict. Ego management is a major challenge for most people at any point in their life-cycle. Ego is both a source of energy and innovation as well as a potentially negative force of disregard and domination.
Here are two tips for family business members who are encountering conflict around succession. First, empathise! Try to put yourself in the feeling space of the other party. Imagine what it would be like to be them. How would it feel to be a parent letting go of 30 years hard yakka building the family business into a sustainable enterprise. Second, listen. The process of handing-over relies heavily on effective communication. Both parties need to feel heard and understood. This deep communication calls for active listening not just a hearing.
When empathy and active listening operate together, the potential for conflict reduces sharply. Give it a go. Start slowly and gently in order to test your skills.
Item viewed: 10344 times
Family businesses are an essential part of the Australian economy. With an aging population, there is pressure on to manage generational change in many of our family businesses. This process of succession is a source of conflict because for one generation it is a letting go process while for the upcoming generation it is a taking charge process.
Both of these processes involve the internal psychology of the ego and therein lies the potential conflict. Ego management is a major challenge for most people at any point in their life-cycle. Ego is both a source of energy and innovation as well as a potentially negative force of disregard and domination.
Here are two tips for family business members who are encountering conflict around succession. First, empathise! Try to put yourself in the feeling space of the other party. Imagine what it would be like to be them. How would it feel to be a parent letting go of 30 years hard yakka building the family business into a sustainable enterprise. Second, listen. The process of handing-over relies heavily on effective communication. Both parties need to feel heard and understood. This deep communication calls for active listening not just a hearing.
When empathy and active listening operate together, the potential for conflict reduces sharply. Give it a go. Start slowly and gently in order to test your skills.
Item viewed: 10344 times
