Working effectively for family business requires ongoing dialog

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.