{"id":979,"date":"2023-09-13T08:05:19","date_gmt":"2023-09-13T06:05:19","guid":{"rendered":"https:\/\/blog.iese.edu\/family-business\/?p=979"},"modified":"2023-12-12T18:37:46","modified_gmt":"2023-12-12T17:37:46","slug":"seven-communication-insights-for-business-families","status":"publish","type":"post","link":"https:\/\/blog.iese.edu\/family-business\/2023\/seven-communication-insights-for-business-families\/","title":{"rendered":"Seven communication insights for entrepreneurial families"},"content":{"rendered":"

At the start of a new academic year, let me first extend a warm welcome to everyone!<\/strong> The Chair of Family Business team is back, with our batteries fully charged and ready to continue offering you new insights and ideas to boost your firm\u2019s performance.<\/p>\n

For my first article of 2023-24, I would like to go back in time to early summer, when I attended the annual IFERA (International Family Enterprise Research Association) Conference.<\/strong> Held at Jagiellonian University in Krak\u00f3w, Poland, the event examined the paradoxes and ambiguities in family-firm research.<\/p>\n

This article will shine a spotlight on one of the many themes explored: the essential but often overlooked importance of effective communication<\/strong> in entrepreneurial families.<\/p>\n

Family firms and the M\u00f6bius strip<\/strong><\/span><\/h2>\n

The IFERA conference kicked off with Prof. Arist von Schipple, who compared the intrinsic complexities<\/strong> in family and organizational dynamics to an endless-loop M\u00f6bius strip<\/strong>.<\/p>\n

Formed by joining the ends of a paper strip with a half-twist, these \u201cnon-orientable surfaces\u201d make it difficult to consistently distinguish clockwise from counterclockwise \u2013 in other words, to know whether you\u2019re coming or going.<\/strong><\/p>\n

\"\"<\/p>\n

Image: David Benbennick<\/span><\/span><\/em><\/strong><\/h6>\n

When it comes to communication flows in family firms, the metaphor is clear: an actor\u2019s perceptions, perspectives and inferred meanings can vary dramatically depending on which side they assume they are facing. Is the message coming from the sphere of family, firm or shareholder?<\/strong><\/p>\n

Easy in theory, hard in practice<\/strong><\/span><\/h2>\n

On a theoretical level, we all recognize that each domain has its own ground rules,<\/strong> yet the diverse demands embedded in family and business systems make it challenging to navigate these ambiguities in practice.<\/p>\n

As Prof. Thomas Zellweger aptly observes,<\/a> behaviors deemed acceptable in one domain might be categorically rejected in another:<\/p>\n

\n

As the three systems (family, business and ownership) are present in parallel, people struggle to recognize which behavior is appropriate in certain situations. This problem is intensified […] because the family business system does not automatically provide information on which system the actor finds him-\/herself in.<\/em><\/h3>\n<\/blockquote>\n

In the following section, I\u2019ll offer seven insights on how family business leaders can enhance communication in their firms and attain this delicate yet decisive balancing act.<\/strong><\/p>\n

7 ways to enhance communication in family firms<\/strong><\/span><\/h2>\n

1 \u2013\u00a0 Clearly delineating company roles\u00a0 <\/strong>
\nStress, tension and friction can surface when personal and professional lines become blurry, which is why strong boundaries and clearly defined roles are key. By delineating these circles, family-business members are better able to focus on the business and contribute to its growth by specializing in areas where they excel.<\/p>\n

2 \u2013 Building trust and transparency
\n<\/strong>As Prof. Jeroen Neckebrouck notes in Forbes<\/em><\/a>, trust is central to stability<\/strong> in an environment laden with both emotional and financial investments. In a context of open dialogue and psychological safety, family members can freely voice their opinions and concerns, reinforcing trust and the long-term success of both the family and the firm.<\/p>\n

3 \u2013 Reinforcing decision-making and governance systems
\n<\/strong>Decision-making in a family-run venture is often colored by personal relationships and emotional attachments. Effective governance values what each family member brings to the table, with clear communication serving as a conduit for shared decision-making.<\/p>\n

4 \u2013 Enhancing conflict resolution<\/strong>
\nConflict is inevitable in any human system, and especially in family-owned firms. Since collaboration drives innovation, sometimes it\u2019s better to \u201cagree to disagree.\u201d Differences of opinion can boost the firm\u2019s performance when properly channeled, and when their root causes are successfully uncovered and addressed.<\/p>\n

5 \u2013 \u00a0Ensuring smooth successions
\n<\/strong>The long-term viability of a family-run firm is largely determined on its capacity to ensure a smooth transition of leadership from one generation to the next. Open communication about future directions, the involvement of younger members and well-defined retirement plans can facilitate this process.<\/p>\n

6 \u2013\u00a0 Encouraging innovation through knowledge sharing
\n<\/strong>Healthy workplace dynamics promote a natural exchange of ideas, leading to a fertile terrain for innovation and creativity. For family firms, the ability to harness intergenerational expertise by merging the experience of older members with fresh perspectives of younger ones can be a unique source of inspiration.<\/p>\n

7- Facilitating work-life balance
\n<\/strong>In the world of family firms, striking a work-life balance is like walking a tightrope. When discussing the need for clear boundaries and fluid communication, organizational psychologist Adam Grant put it this way<\/a>: \u201cData: leaders are nine times more likely to be criticized for under-communicating than over-communicating<\/strong>. Those who say too little come across as unclear and uncaring. When you\u2019re tired of your message, it\u2019s just starting to land.\u201d<\/p>\n

For owners and executives navigating the complicated dynamics of a family-run enterprise, the message is clear: neglect communication at your own peril.<\/strong><\/p>\n

In future posts, we\u2019ll focus more on effective communication at the owner, family council, management and governance levels<\/strong>, as well as the intersection of external communications and social impact.<\/p>\n

Homepage image by Volodymyr Hryshchenko<\/a> on Unsplash<\/a> <\/span><\/em><\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

At the start of a new academic year, let me first extend a warm welcome to everyone! The Chair of Family Business team is back, with our batteries fully charged and ready to continue offering you new insights and ideas to boost your firm\u2019s performance. For my first article of 2023-24, I would like to […]<\/p>\n","protected":false},"author":954,"featured_media":989,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[352,12],"tags":[7986,119648,117537,240],"class_list":["post-979","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-family","tag-communication","tag-conflict-resolution","tag-family-succession","tag-innovation","megacategoria-mc-family-business"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/posts\/979","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/users\/954"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/comments?post=979"}],"version-history":[{"count":14,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/posts\/979\/revisions"}],"predecessor-version":[{"id":1014,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/posts\/979\/revisions\/1014"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/media\/989"}],"wp:attachment":[{"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/media?parent=979"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/categories?post=979"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.iese.edu\/family-business\/wp-json\/wp\/v2\/tags?post=979"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}