family business in conflict

The resolution of conflicts in the family business it is a crucial process to maintain harmony and ensure long-term sustainability. Family businesses often face unique challenges due to the emotions, expectations, and family ties involved. When a family business enters into conflict, it is essential to have adequate strategies and tools to address and resolve conflicts effectively.

• Communication Open and effective: Honest and transparent communication is key to preventing misunderstandings and conflicts in a family business. The parties involved must feel comfortable sharing their concerns, expectations, and opinions without fear of retaliation.
• Establishment of clear boundaries: Defining boundaries between personal and professional life is essential to avoid conflicts. The responsibilities and roles of each family member must be clearly established, both in the business and in the family sphere.
• Creation of a family council: A family council can help ensure that business decisions are made collectively and democratically, and that all family members have a say in important decisions.
• Mediation and external advice: The intervention of mediators or external advisors can be useful to resolve conflicts in a family business, since they provide an objective and neutral perspective.
• Training of the next generations of directors of the family business.
• Executive Hiring that do not belong to the family.

Conflict resolution in the family business is essential to guarantee its continuity and success.

Examples of family business in conflict:

• El Corte Inglés: After the death of Isidoro Álvarez in 2014, the company faced internal conflicts and family disputes regarding the direction and management of the business. The situation was resolved through the intervention of an external mediator and the restructuring of the board of directors, which made it possible to reach a consensus and stabilize the company.
• Grupo Osborne: This Spanish family business, founded in 1772, has managed to overcome generational conflicts and tensions by implementing a family council and family protocol. These tools have been instrumental in establishing clear boundaries and ensuring an orderly transition of leadership between generations.
• Chocolates Valor: This chocolate company, founded in 1881, has faced conflicts related to succession and the division of responsibilities among family members. The company opted for the creation of a family council and the hiring of external managers to guarantee a professional approach in the management of the business and resolve internal disputes.