Conflict between teams and leadership may arise when making decisions within a business. In fact, with the increasing complexity in modern business, it’s inevitable that a disagreement will occur in the workplace. Whether it’s between a co-worker, your boss or your direct reports, problems are bound to pop up. But what if the conflict is between you and your parent who is also your boss? Navigating issues in the office with your family members is not always a walk in the park.
According to the Family Business Center, family businesses play an important role in today’s economy. In fact, business owners and entrepreneurs add value to their communities as it creates job opportunities, products and wealth. However, the percentage of successful family businesses decrease to 3% as they transform to the 4th generation owners.
Continue your legacy by managing conflicts strategically and help keep your family business successful for years to come by doing the following:
- Avoid favoritism or nepotism. It’s easy to let your son or daughter off the hook for leaving the office early or missing a deadline. However, to remain fair and neutral to all your employees, it’s best to set aside feelings and maintain professionalism during business hours. According to Fortune Magazine, favoritism perceived by employees may discourage professional development which causes a lower moral in the company.
- Bring conflicts to the surface. It’s always unnerving to have difficult conversations with your employees or your supervisor. However, clearing the air as soon as it occurs will help keep you and your employees at peace and may resolve the problem before it becomes serious. Mediate suggests bringing in a communication coach to guide employees on effective communication which in return decreases the likelihood of issues arising.
- Include an outsider to mediate and facilitate. According to Family Business Consulting Group, it is imperative to have a professional involved when disputing disagreements. This person may help with providing a resolution with their knowledge in conflict management. In fact, bringing another source into the equation may bring new and unbiased perspectives.
- Money and finances are oftentimes at the core of most problems. Therefore, it is best to maintain a relationship with your banker so that they can help guide you on financial decisions for the continued success of your company. Whether it is your succession planning or transferring power, NB|AZ® is available to assist you on financial guidance wherever you may be in your family business journey.
Learn more about how National Bank of Arizona and how we support these generational entrepreneurs with family business banking.