Roland Clark argues that the forgiving nature of families may not be good for business.

MOST OF us with families know the problems that can arise when we are doing some minor domestic job with another family member.

We may all know families (not our own, of course) where any attempt to do the decorating together, or work on the car, or perhaps in the kitchen, leads to arguments.

A number of themes show themselves at these times of disagreement.

For example, it might be that the father cannot face the fact that his children are now more able than him. The son or daughter might think they never have a chance to have a go at something and are sure they can find a quicker and better way of doing it.

Sometimes someone might think they would get on better if other people in the family did not try to help them at all.

Imagine, then, how much more fraught it must be when some or all of the family members have chosen to spend the whole of their working lives together in a family firm.

Usually families can overcome minor squabbles. The family creed accepts the other members whatever their faults. But the business creed awards on the basis of performance and merit, is more outward looking and is more logical than emotional in its view of events.

A family business has to find an acceptable way of balancing the conflicting business and family cultures. The keys to this balance are understanding and communication.

First, every family member should understand where they fit into the organisation and the approach the business/family will take in given situations. This removes the uncertainty which can make life difficult. Some family businesses achieve this understanding by a written constitution to cover ownership, succession, qualifications and so on.

Second, family members must take special care in their communication. It must be clear within the constitution, for example, who should be consulted on particular issues and who should be merely informed.

Some families find it useful to have regular family "council" meetings to discuss issues or keep each other informed. However they do it, families who work together must find a way of balancing the competing needs of the family and work creeds.

Roland Clark is a partner with the Bradford office of chartered accountants and business advisers Grant Thornton.

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