Working effectively for family business requires ongoing dialog

Pri Notowidigdo, The Amrop Hever Group, Global Executive Search, (e-mail: jakarta@amrophever.com)

Andy Dasyat (fictitious) faces the dilemma of balancing family with business needs. A seasoned corporate finance professional with 20 years experience in multinationals, he is feeling frustrated by his efforts as CFO to move his company forward.

When Pak Hario (fictitious), who founded the group of companies, passed away, the business was left to be run by his three sons - Ario, Djodi and Edwin (all fictitious). Their father's death created a struggle for power among the three brothers.

Andy was in a dilemma because of the high emotional content of the disagreement. This is not surprising apparently. David Bork, who has extensively researched family businesses, points out very different traits between family and business systems.

A family system is emotionally focused, looks inward, changes little and requires unconditional acceptance. As a professional, Andy, on the other hand, had been trained and experienced in building a business with a focus on facts, outward orientation, constant change and conditional acceptance. While the tasks of the business system are to generate profits and develop skills, those of the family system are concerned with nurturing, developing self-esteem and growing adults.

In seeking a solution to the issue above, Andy may need to first start with how he wants to define his role. Bork talks about the role of expert advisor, where he would offer the right solution, and it is assumed that the family will accept it and implement it. The advisor shares answers but does not teach the family members how to find the answers themselves.

If Andy chose the role of process consultant, he would work with the family members to develop the skills they need to resolve an issue. When they help a family to understand the dynamics of the system and create their own solutions, they alter these dynamics. The solutions to the problems tend to be longer lasting. This approach assumes that solutions lie within the power of the group.

A third role of family systems-informed expert may come into play if Andy understands the family dynamics that lie behind the business. Although still acting as an expert, familiarity with the broader systems issues of family business will prompt him to ask more questions and seek information from other sources.

Identifying his goal - and particularly a realistic one - for Andy would be the next step. If Andy feels frustrated in his efforts, it is very likely that he has given himself an unrealistic goal. The ideal goal may be for all family members to love and respect one another and for the business to be enormously profitable. Because of the unlikelihood of reaching this goal, there must be compromises. Yet Andy can still accomplish a great deal and feel good about it.

If Andy can reduce conflict to acceptable (but not destructive) levels, then the business can go forward. He should also keep in mind that incremental change is evolutionary. It takes time -- at least two to three years -- but the business will move forward. What principles come into play? Work with whole systems. Balance the needs of all stakeholders. Emphasize communication. Develop business structures and personal boundaries. Help the family business grow and change as its components evolve. And finally, find opportunities to collaborate with other professionals.

In summary, when family conflicts crop up, Andy would sometimes have to broaden his role and engage in new activities to be effective. An ongoing dialogue is, therefore, important in order to enhance Andy's objectivity, skills and resourcefulness as a professional working in a family business.