When Grandpa is Also the CEO--Resolving Differences in Family-Owned Businesses
Some of the same aspects of family-owned businesses that can give them a competitive advantage are also the factors that contribute to the high levels of destructive conflict that often occur in them. For example, close family ties can contribute t...
| Main Author: | |
|---|---|
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17630257/grandpa-also-ceo-resolving-differences-family-owned-businesses http://hdl.handle.net/10986/17017 |
| Summary: | Some of the same aspects of family-owned
businesses that can give them a competitive advantage are
also the factors that contribute to the high levels of
destructive conflict that often occur in them. For example,
close family ties can contribute to strong bonds of trust
and cooperation, but they also can add emotional fuel to the
fire when conflicts arise. Barney Jordaan argues that the
best cure for these conflicts is prevention-through
establishing basic family governance structures and, failing
that, dispute resolution processes that are sensitive to the
distinctive dynamic and singular needs of a family-owned
business. Family businesses are notoriously light in their
use of bureaucracy. It is one of their appealing
characteristics, and an aspect of their speed and
flexibility in problem solving. Their informality and
intimacy makes elaborate decision-making methods
unnecessary. However, it is a common failing of all growing
businesses that they do not recognize how growth is changing
them. They are like a child who stays in short pants even
when they're splitting at the seams. |
|---|