Because confidentiality is a cornerstone of our business, we never publish any information that may identify clients or reveal what we have done for them. This is a typical scenario that we have compiled from real experiences with multiple clients that deals with family business conflict resolution strategies.
An elderly couple ran a manufacturing business they had founded 40 years ago. They employed their four adult children and some non-family staff. None of the children had ever worked anywhere else and all had management roles. There was friction in the family because one child, the eldest son, believed he should become CEO. In addition, there was tension between the children and the non-family staff.
Business had declined due to economic conditions and a high proportion of sales depended on the parents’ relationships with key clients.
The parents wanted to retire but did not think any of the children were capable of running the business. They engaged us to conduct a review and provide advice.
Our review discovered the core problem was the lack of separation between ‘family’ and ‘business’. Over the years, this had given rise to numerous issues.
The solution was to implement formal structures and processes as well as some new ideas. We worked closely with the family to ensure these were thoroughly embedded into the business.
Family harmony has been restored, sales and profits have improved and the transition from one generation to the next is proceeding smoothly. The parents are now non-working directors with arm’s length control of the CEO’s and the eldest son’s performance.
We continue to work closely with the family as their professional advisers.
To arrange a free consultation for family business conflict resolution in Perth, click on the link below.