In our last post, we defined family dynamics and explained why they are important. In this post, we will look at healthy versus unhealthy family dynamics.
While every family in business is different, healthy family dynamics include balance between work and family, appropriate boundaries, providing support and discipline for children, mutual trust between family members, taking an interest in each other’s lives, and a shared purpose between family members.
When families in business have a common purpose, high levels of trust, and effective decision-making, it can help enhance the family business’s performance.
On the other hand, unhealthy family dynamics are often visible through arguments or avoidance, criticism, and unrealistic expectations between family members. Unhealthy family dynamics tend to be accompanied by mistrust and ineffective communication. Family businesses, in particular, may experience conflicts over money, power plays, or poor management.
Unhealthy family dynamics can be very damaging to the family business. 60% of failed successions are due to a lack of trust and open communication. In addition, not having a shared purpose between family members often leads to organizational friction and low performance.
The good news is that family dynamics can change for the better. In our next blog post, we will look at some practical steps you can take to improve your relationships within your family.
To return to the first blog post in this series, click here.
Chew On This
What is one healthy dynamic in your family right now? What is one unhealthy dynamic?
