Working Together: Conflicts don't have to torpedo family businesses

Running a family multi-unit business comes with specific challenges. When family members work together in a high-stress environment, conflicts can arise from differences in opinions, generational gaps, role ambiguity, or even personal issues that spill over into the workplace. However, with effective communication, conflicts can become opportunities for growth, understanding, and improved relationships.

Conflict is a natural part of any human interaction, and family multi-unit franchise ventures are no exception. It can manifest as minor disagreements or significant disputes that threaten the harmony of both the family and the business.

Generational differences. Younger family members may have different ideas and approaches than older generations.

Role ambiguity. Unclear job descriptions and responsibilities can result in confusion and frustration, especially if family members feel their contributions are undervalued.

Business decisions. Disagreements regarding important business decisions, such as expansion plans or investments, can lead to conflicts.

Personal issues. Family dynamics can spill over into the workplace, causing conflicts based on grievances unrelated to the business.

Unresolved conflict can result in decreased morale, reduced productivity, and financial losses if critical decisions are delayed or made hastily due to emotional disputes.

Communication’s role

Effective communication strategies are the cornerstone of conflict resolution. It’s about truly understanding one another’s perspectives and finding common ground. Research shows that businesses with strong communication skills experience fewer conflicts and enjoy more productive teamwork.

According to a study by McKinsey, companies with effective communication practices are 50% more likely to have lower employee turnover rates. The Harvard Business Review reports that businesses with open and honest communication enjoy 47% higher total returns to shareholders over a five-year period.

Communication is critical. It’s not just about the words we use; it involves active listening, nonverbal cues, and creating an atmosphere where family members feel safe to express concerns.

Active listening. Listening is just as important, if not more so, than speaking during a conflict. Practice active listening by giving full attention to the speaker, making eye contact, and nodding to show understanding. Avoid interrupting and genuinely seek to comprehend their point of view.

Using “I” statements. Instead of making accusatory statements like “You never listen to me,” use “I” statements to express your feelings and needs. For example: “I really need to talk to you about something that’s been bothering me.”

Nonverbal communication. Be aware of your tone of voice, facial expressions, and body language. Your family members are likely attuned to your non-verbal cues, so ensure they convey openness and receptivity. Be aware of how your nonverbal cues may be interpreted. A simple sigh or eye roll can convey unintended messages.

Describe your feelings. Expand your emotional vocabulary to better express your feelings. Instead of saying, “I’m upset,” be more specific: “I feel belittled” or “I’m frustrated.”

Be succinct and specific. Avoid beating around the bush. Clearly state the issue or concern, and be specific about why it’s important to you.

Face difficult conversations. Don’t shy away from difficult conversations out of fear of the response. Sometimes, addressing uncomfortable topics is necessary.

Creating a safe space

Open and honest communication can only thrive in an environment where family members feel safe to express themselves. Define rules for communication during conflicts. For instance, agree not to interrupt each other, maintain confidentiality, and avoid personal attacks.

Instead of relying on spontaneous conversations, dedicate times for family meetings. Use these opportunities to discuss important matters, including conflict resolution. Consider forming a family business council for addressing communication issues and improving overall family dynamics.

If conflicts persist or are deeply entrenched, consider involving an external mediator or therapist with expertise in family business dynamics. They can help facilitate productive conversations.

Prevent future conflicts

Conflict resolution is essential, but it’s equally important to prevent conflicts from arising. Schedule periodic family meetings to discuss personal and business matters, and encourage all family members to share their thoughts.

Define roles and responsibilities within the business to reduce ambiguity. Establish clear expectations for business performance and individual contributions, and set achievable goals to work toward collectively.

Running a family multi-unit franchise venture comes with unique challenges, including conflicts that can threaten the family and the business. By recognizing the importance of effective communication and practicing active listening, using “I” statements, and creating a safe space for dialogue, conflicts can be resolved. Moreover, proactive communication strategies can prevent future conflicts and keep the peace.

Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes not only from her educational background, but more importantly, from her experience as a second-generation family member employee of The Rawls Group—Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com.