Family Business Solutions, a consultancy specializing in family businesses, has analyzed among the 220 family-run businesses it has worked with, which difficulty in the family-business relationship most complicates the continuity of businesses run by families.
From its analysis, it concludes that conflicts between siblings and cousins are one of the major obstacles to generational succession. During generational transitions, when the previous generation that acted as a balance between siblings or cousins exits the business, conflicts – whether rivalries, jealousy, disagreements, friction, differences in shared vision… – tend to become more visible or accentuated, putting the continuity of the business at risk, according to a statement from the consultancy.
“In some companies, we observe that while parents remain in the business, there is a false balance driven by ‘respect for elders’. This disappears when, due to age, parents pass the baton to the next generation,” says Ricard Agustín, founder of Family Business Solutions and family business consultant.
Working with Siblings
Regarding working with siblings – the second generation, children of the founders – Agustín points out that they often have a greater shared vision regarding the future and direction of the family business. However, working with siblings is often complex due to the rivalry and jealousy that exists between them, which complicates sharing responsibilities in the business.
“Many times, roles and labels that we had in the family are transferred to the business, making it difficult to work together. If there were already communication and understanding difficulties as siblings when we were young and playing, it is unlikely that things will improve on their own when we are at the helm of the family business,” says Agustín.
Working with Cousins
As for working with cousins – the third generation, the grandchildren of the founder – Agustín indicates that they often have fewer rivalries and jealousies, but also less unity and shared vision than siblings, where the bond is usually stronger. For this reason, working among cousins is usually more complicated than working with siblings.
In this sense, Agustín points out that, “unlike siblings, cousins do not share as many experiences because they grow up in separate homes and, obviously, have different parents, with spouses who do not come from the initial family nucleus of siblings. Therefore, members of the different family branches will surely have different values, largely due to the influence of spouses in the upbringing of children. This generally means that, as they grow up, cousins no longer have the same level of fraternity, loyalty, intimacy, and unity as siblings, although the love and friendship between them can also be very strong. As adults, their respective partners will also influence their personalities, which can distance them from other cousins and cause disagreements.”
In this regard, Family Business Solutions points out that in most cases, properly planning the generational transition in advance and agreeing on the rules that will govern the family-business-property relationship through a Family Protocol can help prevent and resolve these conflicts between siblings and cousins.
