Flairworks Management Consultancies

  Our earlier communication defined the meaning and contents of the family constitution. Here we list some of its main benefits for the family business. Benefits for Family Business Easy access and quick reference. The constitution is quickly and easily accessible by the family members for referencing important information that has already been agreed by the family. Quick decision-making. The quick and easy reference facilitates quick decision-making on items that are related to the constitution, such as on family employment and family compensation. Clarity, transparency and alignment. The constitution communicates the same facts in the same language to all family members. This reduces, even possibly eliminates, the need for opinions on these subjects and ensures continued alignment by the family members. Reduced conflict. The early commitment of the family to the constitution helps in significantly reducing conflict among family members Continuity. The constitution supports the lo...

  Family conflict is systemic, it is part of the family business system. It is not just a series of individual disputes. Because family businesses are highly interdependent, they have a high potential for conflict. Family members live together, work together and see each other very frequently. Conflict increases as business families grow in number, become multi-generational, and different opinions about major aspects of the family and the business become apparent. It is often extreme and multilateral with many stakeholders. It is often repetitive, with the same script. Conflict is obviously a disruptive factor in family businesses and needs to be managed for their sustained continuity and growth. There is no simple prescription for managing conflict in a family business. It is complex by its nature and increases with time. A simplified approach would consist of: Understanding the real reasons for the conflict: In families that are bound by long-term interests it is quite possible t...