June 2022 < Back
“Good communication doesn’t eliminate conflict, but it does help you manage it effectively so that it doesn’t become poisonous, overly emotional and destructive.”
- Astrachan and McMillan (authors of the book - Conflict and Communication in the Family Business)
Good communication is one of the most important survival skills for a successful family business. This is especially important for families who work together around shared ownership of family assets. Business owning families that do not resolve conflict through communication risk dangers from litigation, to dissolution of the business, to the painful and dishonorable destruction of the family. Breakdown of communication is also one of the top reasons for loss of family wealth.
“70% of families are unsuccessful at multigenerational wealth transfer. Further, 60% of the time this failure is attributed to lack of communication and trust within the family”
- Roy Williams and Vic Preisser (authors of the book - Preparing Heirs: Five Steps to Successful Transition of Family Wealth and Values).
In one of the famous and heartbreaking cases, the Bingham family of Kentucky felt forced to sell its greatly admired media empire in 1986. The underlying cause was the family member’s inability to communicate with one another, which resulted in mutual distrust and disrespect among the third-generation siblings (deep-rooted since their childhood).
It is therefore imperative for every family member of the business owning family to strengthen their communication skills and take personal responsibility to contribute towards a sustained journey of “togetherness” and “cohesion” in the family.
How to enhance good communication and reduce miscommunications in business owning families?
Making an effort to improve your own ability to communicate takes courage, patience and constant practice. However, it can do wonders to the health of relationships and to the overall success of the family business.
We’d love to hear your comments and experiences. Please do write to us in the comments section below.
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