What do you do when one of the second generation is not compatible with the rest of his/her siblings?  This can pose a problem when that child is serving in a responsible role within the business or if that child is a shareholder. Let’s discuss each of these scenarios.

In a business, diverse opinions can create a healthy environment when these opinions are shared in a supportive and respectful manner.  Often, though with families, differences of opinion cross over the business line into the personal line.  That is when trouble can arise.  It is your role as the leader of the business, to not only referee but also support your children and also try to encourage/teach them to be respectful and value their family relationships.

When there is a black sheep, often the other siblings do not want to work with nor interact with that sibling.  However, you have a choice, is the family harmony or the business harmony more important to you?.  I have seen some businesses where one of the children had to be fired, when that child did not comply with the family wishes for peace in business.  This is certainly an extreme example but was considered necessary.

As  a shareholder, a black sheep child has only certain rights.  This is where you have to set out guidelines for access to information and decision making /governance for shareholders only.  Generally a family shareholder, not actively involved in the business, would be entitled to information but could not affect the direction nor make decisions in the business.  Family meetings would merely be informational sessions with some Q&A thereafter.

Think about how you would best handle challenging situation where one of your children is the black sheep and how to integrate that child in the business, either in management and/or ownership.

Learn, think, apply!