3 min
Family Business Mediation Podcast No 46 Ethnic Issues & Cultural Norms. 50 Common Causes of Family Business Conflict ... and how to deal with them
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- Management
50 Common Causes of Family Business Conflict ... and how to deal with them.
Family Business Mediation Audio No 46: Ethnic Issues & Cultural Norms.
By Jon Kenfield - Solutionist and Family Business Mediator.
• When a family’s culture is strong, it can exert powerful influences on personal expectations and behaviours - both in the family and in its business activities.
• Most ethnic cultures are based on historic traditions which, by definition, are anchored by the past: from another time, another place, and usually very different circumstances.
• These cultures may make little sense, and have limited appeal, to people who haven’t grown up immersed in them - which is the classic situation for first and second generation migrant families from a troubled Europe.
• We often see something similar with Asian families - when parents had a traditional upbringing, and their children have grown up in modern Australia.
• When “old-school”, ethnically influenced decision-making produces business decisions that are seriously out of step with modern (normal) commercial thinking - over anything from business leadership and family succession to business investment - cultural differences and generational tensions flare into catalysts for frictions which, left unresolved, lead to conflicts - with current and next generation family members, and non-family employees. The consequences can become very unpleasant.
Solution
• Respect differences: there’s nothing wrong here, just an inappropriate and probably unworkable mixing of family with business decision-making that’s failing to satisfy anyone, and everything.
• Separate family from business decision making.
• Create separate plans and rules for each.
• Establish separate structures and different processes - and remember which environment you’re in when making decisions.
I'm interested in your comments below. Thank You.
50 Common Causes of Family Business Conflict ... and how to deal with them.
Family Business Mediation Audio No 46: Ethnic Issues & Cultural Norms.
By Jon Kenfield - Solutionist and Family Business Mediator.
• When a family’s culture is strong, it can exert powerful influences on personal expectations and behaviours - both in the family and in its business activities.
• Most ethnic cultures are based on historic traditions which, by definition, are anchored by the past: from another time, another place, and usually very different circumstances.
• These cultures may make little sense, and have limited appeal, to people who haven’t grown up immersed in them - which is the classic situation for first and second generation migrant families from a troubled Europe.
• We often see something similar with Asian families - when parents had a traditional upbringing, and their children have grown up in modern Australia.
• When “old-school”, ethnically influenced decision-making produces business decisions that are seriously out of step with modern (normal) commercial thinking - over anything from business leadership and family succession to business investment - cultural differences and generational tensions flare into catalysts for frictions which, left unresolved, lead to conflicts - with current and next generation family members, and non-family employees. The consequences can become very unpleasant.
Solution
• Respect differences: there’s nothing wrong here, just an inappropriate and probably unworkable mixing of family with business decision-making that’s failing to satisfy anyone, and everything.
• Separate family from business decision making.
• Create separate plans and rules for each.
• Establish separate structures and different processes - and remember which environment you’re in when making decisions.
I'm interested in your comments below. Thank You.
3 min