In Succession, Process Can Be Your Best Friend.

The Twelve Dangers In Family Business Succession - 5. VOLCANO – FIERY RELATIONSHIPS AND CONFLICT

Family harmony has not been achieved and conflict has erupted within the family.

A key goal of any succession process must be family harmony. Without harmony there can be little chance of compounding wealth across generations, as conflict between family members will destroy family wealth. To build and sustain harmony over generations is not an easy task. There must exist an opportunity for contribution and individual growth for family members and a real sense of fairness must exist.

Excellent communication is a foundation of harmony but there must also exist a very clear process to succession so that all involved understand not only the process but also the decisions being made and the basis of those decisions. Conflict often arises from a lack of knowledge and second-guessing what is being done and why. Remove this doubt and speculation and you are well on the way to building harmony.

A cold hard look at family relationships and dynamics is also necessary in seeking to identify what and where sensitive issues may exist. Once identified, proactive steps may be taken to address these so that they do not become a burning issue that erupts at a future date.

Family harmony must be created and sustained even in the happiest of families during the succession process; it is unlikely to occur by itself.

In the Land of Legacy, fiery relationships and conflict must be settled if a legacy is to endure and often these conflicts are themed around who is in control and are quenched through a robust and equitable governance structure.

Here is a brief video clip that speaks into this theme with links to the full video and resources: