Making decisions in a company in which the entrepreneurial spirit is embraced usually is straightforward. The company’s leader will decide a strategy/direction and move the company towards the goals set. This decision making becomes more challenging and complex as the company grows or begins to involve other family members. Why? Family dynamics and communication styles can create roadblocks to decisions being made.

An example. I work with a family going through a necessary planned expansion. This expansion will require capital to a degree where dividends usually paid to all family members will be curtailed for 3 years. The non-active siblings in this business are satisfied with the current dividends and rely on them for their lifestyle. We have building tension between meeting the family member’s financial needs and building a sustainable long term business.

At this crossroads, how are we addressing this decision?

Communicate. At a family business meeting, we brought in a facilitator, well versed in conflict resolution. In advance of the meeting, an agenda and information was circulated about this decision, from a very high level and strategic perspective. Confidentiality of this information was stressed. Input was sought from the the family members before this meeting on the agenda.

Educate. Prior to the meeting, the facilitator along with the CEO, met one on one with the non-active family members. The intent was to ensure that all meeting participants would have full information and gain a base level of understanding about this integral decision. This took a lot of preparatory time.

Collaborate / Involvement. The meeting turned out to be productive. The facilitator helped to ensure the meeting remained constructive and focused on the decision. A subsequent family meeting brainstorming session was called to seek solutions amenable to the family members.

The family was able to agree with the decision to proceed after a number of family meetings. Involvement of stakeholders and family members in this decision took some time. However, once decided, the family was able to proceed in an expeditious and productive manner with this decision.

For major decisions, try a reasoned approach to major decisions, which can take time.

Learn, think, apply!