5 min
Family Business Mediation Video 48. Old Retainers. 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 Video 48. Old Retainers.
By Jon Kenfield. Family Business Mediator.
• Old retainers area a common cause of conflict in family businesses where Mum or Dad has worked with “old Phyllis / Sam” since the early days and has made promises that “we’ll always look after you”. The new business leaders are being made to feel obliged to honour these promises.
• Problems:
o The old retainers are no longer adding much value to the business and,
o They’re always suspected of spying for Mum or Dad on their successors and,
o They can undermine modernisation attempts because “that’s not the way your father/mother would have done it”.
Solution
• Work out what, if any promises have actually been made, and the family’s appetite for dealing with the situation, now it’s been openly ventilated.
• Compare the old retainer’s competencies and contributions against objective HR requirements to get a proper baseline fix on the scale of the issue.
• Negotiate, or impose a more constructive employment arrangement, if possible and appropriate.
• Negotiate, or impose an exit plan, if appropriate.
• Whatever you do, ensure that the final solution is approved and supported by Dad or Mum.
I'm interested in your thoughts and comments below.
Thank You.
50 Common Causes of Family Business Conflict ... and how to deal with them.
Family Business Mediation Video 48. Old Retainers.
By Jon Kenfield. Family Business Mediator.
• Old retainers area a common cause of conflict in family businesses where Mum or Dad has worked with “old Phyllis / Sam” since the early days and has made promises that “we’ll always look after you”. The new business leaders are being made to feel obliged to honour these promises.
• Problems:
o The old retainers are no longer adding much value to the business and,
o They’re always suspected of spying for Mum or Dad on their successors and,
o They can undermine modernisation attempts because “that’s not the way your father/mother would have done it”.
Solution
• Work out what, if any promises have actually been made, and the family’s appetite for dealing with the situation, now it’s been openly ventilated.
• Compare the old retainer’s competencies and contributions against objective HR requirements to get a proper baseline fix on the scale of the issue.
• Negotiate, or impose a more constructive employment arrangement, if possible and appropriate.
• Negotiate, or impose an exit plan, if appropriate.
• Whatever you do, ensure that the final solution is approved and supported by Dad or Mum.
I'm interested in your thoughts and comments below.
Thank You.
5 min