With family dynamics at play, developing both the organizational structure of the business and the individual management skills of key stakeholders can be very complicated. Having clearly defined policies in place (for example, standards and criteria for a child or relatives entering the family business; performance review and compensation policies for family employees; etc.) will lessen conflict and feelings of unfairness among family members and other employees.
Maintaining the entrepreneurial spark, which is the foundation of most successful businesses, is often a challenge with succeeding generations who generally bring more professional management skills to the table. Developing the management and communication skills of family managers is a key requirement for both business success and managing conflict. Clear organizational charts with appropriate authority, accountability and responsibility – and implementing these ideas effectively – are crucial for family businesses to thrive.
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