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How to Work Effectively with Family Members
By Rachel E. Mickelson, MSOD and Ernie Doud, CMC

Families in business together are continually challenged by the inherent dilemmas of sharing a business and the same last name.  

Here are some tips for working together effectively:

Start with a shared vision.  One of the major reasons for conflict in a family business is that each person has his/her own idea of where the business is going-- and those ideas are different! Make sure everyone is on the same page regarding the future of the business and then work together to create a strategy to get there.

Clarify roles, responsibilities and accountabilities.  It helps if each person knows what he/she is supposed to be doing and that everyone agrees about each other’s job.  Find the right “fit” for family members coming into the business, and if they want to eventually run the business, be sure to have a leadership development plan in place.

When mistakes are made (and they will be) look for solutions, not for whom to blame.   Nobody is perfect.  Mistakes will happen.  Spend time correcting the error rather than pointing fingers.  All successful businesspeople have made mistakes and learned important lessons from them.

Learn to handle disagreements.  Sooner or later, you and your relatives will disagree about something in the business.  Learn to listen to others’ points of view.  You don’t have to agree with them, but it is important to know what they think – and to respect their right to think that way.  Once you know that, focus on gaining agreement on an ideal solution that considers all opinions rather than simply defending your own point of view.

Manage your hat collection*. There are over15 roles in any family business system. Think of each role as a hat. When at work, everyone should have the right business hat on.  (Be sure to trade in your business hat for your family hat before you get home!).

Communicate, communicate, and communicate. Communication involves both sending and receiving.  Talk with each other (not about each other).  Listen to each other.  Make regular opportunities for communication with family members a “must do” – both at work and in the family setting.

Know that you are not alone: Most family businesses share your challenges. Find ways to learn from other family businesses – and for them to learn from you.  Chances are there is a college or university nearby with a family business program you can join which can be a valuable resource for you. Reading and discussing current family business literature will also help you learn how to better manage family/business relationships.

*From our book, Hats Off To You: Balancing Roles and Creating Success in Family Business


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