Avoiding Conflict

Some measure of family squabbling is expected in a family business. Some of the arguments will

be logical and necessary. However, “it’s important that they remain professional and not

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personal, because squabbling among family members in a work environment can make the

employees and customers feel extremely uncomfortable, and can give them grounds for legal

claims against the business.” [20] The negative effects of family squabbling are as follows: [21]

• Unprofessional image. Family squabbling conjures up images of children—immaturity and pettiness.

This sends a signal to customers and other employees that they are not in a professional environment that

focuses on the right things.

• Uncomfortable environment. It is embarrassing to witness squabbling. No one likes to be in an

awkward atmosphere; squabbling can cost you customers and employees, and it may result in expensive

and unpleasant lawsuits. This can affect your bottom line very quickly.

• Discrimination. Nepotism is one of the biggest dangers of working in a family business. Arguing with

relatives will only reinforce to other employees that they are in a family business. This can quickly lead to

feelings of disparate treatment which, in turn, can lead to discrimination charges.

• Legal troubles. In the worst cases of family squabbling, disagreements over business can lead to

lawsuits. If one family member’s role is minimized and his or her authority is restricted, this is violating

the person’s rights as a shareholder. This can lead to an oppressed minority shareholder suit against the

family business. This would be expensive, it would be ugly, and it could lead to the demise of the company.

Avoiding conflict is no easy feat. However, there are several things that a family business should

consider. First, there are consultants who engage in conflict resolution for a living. The

possibilities should be checked out. If the budget can handle the costs of a consultant, it could be

the best choice. A consultant, having no reason to take one side or the other, will bring the

necessary objectivity to resolution of the conflict.

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