Family Business Blog
Mar 01, 2017
Stories from the Family Business Resource Centre Case Files - Sibling Teams
Brad, the managing director of a manufacturing business, died suddenly and unexpectedly at the age of 58. Being an entrepreneur, (and therefore immortal), no management or ownership succession plan had been developed.
His two sons, Nick & Dave, were part of the management team. They were both competent and experienced. Nick, the eldest was the Finance Manager and Dave his youngest child was Sales/Marketing Manager. Brad’s two daughters don’t have an active role in the business. His wife Sally and the four children inherited equal shares in the business.
Nick succeeded his father as managing director of the business, but Dave has become restless and rebellious. He doesn’t want to take orders from his brother. Both daughters are unhappy. They feel that they are not being treated fairly and complain about the dividends that they are receiving from the business and the pay and benefits their brothers enjoy.
Sally has to mediate, and is having trouble resolving their disputes. In the past, Brad had always stepped in and sorted things out, but he is not there any more and he has not set up any mechanisms for resolving disputes.
Although committed and capable, Nick has become uncomfortable and doesn’t know what to do. He’s not sure how he can gain the control he needs to make the vital decisions that affect both the business and the family. Should he buy the others out? Should he make greater efforts to sort things out between them? Will everyone always be looking over his shoulder and complaining? Does he have to convince his mother, brother, and sisters of the wisdom of each business decision he makes? Though he’d always wanted to take over the business, this isn’t what he expected.
His two sons, Nick & Dave, were part of the management team. They were both competent and experienced. Nick, the eldest was the Finance Manager and Dave his youngest child was Sales/Marketing Manager. Brad’s two daughters don’t have an active role in the business. His wife Sally and the four children inherited equal shares in the business.
Nick succeeded his father as managing director of the business, but Dave has become restless and rebellious. He doesn’t want to take orders from his brother. Both daughters are unhappy. They feel that they are not being treated fairly and complain about the dividends that they are receiving from the business and the pay and benefits their brothers enjoy.
Sally has to mediate, and is having trouble resolving their disputes. In the past, Brad had always stepped in and sorted things out, but he is not there any more and he has not set up any mechanisms for resolving disputes.
Although committed and capable, Nick has become uncomfortable and doesn’t know what to do. He’s not sure how he can gain the control he needs to make the vital decisions that affect both the business and the family. Should he buy the others out? Should he make greater efforts to sort things out between them? Will everyone always be looking over his shoulder and complaining? Does he have to convince his mother, brother, and sisters of the wisdom of each business decision he makes? Though he’d always wanted to take over the business, this isn’t what he expected.
Dealing with these issuesAs discussed in our last issue though the problems often seem intractable the processes for dealing with these issues is relatively straight forward –
The key is often the involvement of an ‘outsider’ who can take the sting out of what can often be a highly charged situation.
- Identify the current state of play
- Clearly define desired outcomes
- Introduce some simple tools & processes
- Develop a One Page Plan
The key is often the involvement of an ‘outsider’ who can take the sting out of what can often be a highly charged situation.
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