ACROSS THE GREAT DIVIDE: Stress Accompanying Transitions in Family Businesses

by Jerry I. Kleiman, Ph.D. & R. Phillip Colon, Ph.D. [1]

                 America is coming of age! As baby boomers are graying, a record number of family owned businesses are changing hands from one generation to the next.  Transitions through family developmental stages are often accompanied by stress. When these stages overlap with transitional times in the maturation of a family owned business, growing pains are common. Our hope is that by providing some insight into this natural developmental process, the accompanying tensions can be limited.

              Conflicts in a family owned business are often fueled by the contrasting needs of family members of different ages and at disparate stages of their lives. The “younger” family members, who can themselves be in their 40s and 50’s, are at a point in their lives where they feel the need for more independence and recognition. As part of their growth, they feel ready to assert their leadership skills and welcome greater control in the business.  The older generation can experience the prospects of relinquishing even some control within the business as difficult and may feel their stature diminished. For most entrepreneurs, business has been a way of life. Contemplating their future outside the business when the business was a major component of their identity and a basic organizer of their efforts can raise anxiety and feelings of vulnerability in the senior family members. Venturing outside of the business can be an emotional challenge.

            Tensions arise when each generation is perceived by the other as holding ransom the key to their well-being. The younger generation views the senior one as holding them back and the senior members experience the younger ones encroaching on, if not threatening, their authority. Rather than recognizing the legitimacy of each others needs, each may feel the other as wanting something at their expense.

            In a non-family owned business, if a junior executive is not advancing in the company, he or she can leave. While the same is true in a family owned business, the process of leaving is a more complicated one. If “the boss,” is   one’s parent  or sibling,  one can feel caught in an emotional quagmire.  Separation and individuation issues can cloud reason, making resolution of maturational needs more difficult.

            The senior generation, more advanced in the life cycle, faces very different challenges. Their issues are more inwardly directed as they no longer need to prove themselves to others. Their audience is much more difficult- they are facing themselves. The pertinent question for them is: “What really is important and what do I want to do with myself in my remaining years?” It is a time when the word “legacy” has greater meaning. Relationships are revisited with a desire to “get it right,” or at least better. It is a time of great opportunity, yet some avoid dealing with these maturational issues as they can be a reminder of  ones’ own mortality and personal disappointments.

            The internal and interpersonal struggle both generations grapple with during this maturational process  is common. It is a difficult but important time of personal growth. Both the younger and older generation have something that the other needs, something which affects their respective futures. The business solutions are fairly practical and more straight forward. Each member needs to re-think and re-assess the situation from a realistic, practical framework and address the underlying needs that may be fueling their demands. Conflict can be symptomatic of feelings of uncertainty when facing new challenges. Recognizing what is going on between the lines and talking about the issues can go a long way towards resuming progressive movement and positive relationships in both the business and family.

 

 [1] Drs. Kleiman and Colon are co-founders of Optimal Resolutions, Inc., a consulting group specializing in family-owned businesses. Dr. Colon can be reached at (516) 294-8914.