The Pressure of Peak Season and Its Impact on Family Businesses
The high sales season increases pressure on businesses, but in family-owned companies, this tension can escalate more easily and affect relationships among members. If these issues are not addressed, the end-of-year efficiency can suffer, impacting future plans, according to Ángel Contreras, president of the executive council at the Mexican Institute for Best Corporate Practices (IMMPC).
Consequences of Lacking a Dispute Resolution Protocol
The absence of a protocol for resolving disagreements causes internal damage, with 50% of companies at risk of disappearing due to poor practices, according to CIFEM|BBVA of IPADE Business School.
Separating Business Matters from Family Affairs
Lack of coordination between shifts or unclear role definitions among family members can lead to long-term problems, as resentment accumulates.
Ángel Contreras explains that it’s challenging to maintain a family business dynamic where problems don’t spill over into the home.
The operational problem translates into an emotional issue, as we are sensitive to collaboration,” he says.
Communication as a Weak Point
Communication is another weak point, with 40% of family businesses acknowledging failures in this area, according to KPMG.
Navigating Generational Harmony During the Holidays
The holidays also present an opportunity to unite and maintain family businesses, making intergenerational harmony crucial.
According to a PWC study, companies currently face the challenge of expansion, with leadership transitions being the bottleneck because successors lack proper training.
Ángel Contreras advises using these occasions to gather family business members, express gratitude for their efforts, and plan future strategies.
It’s time to reconcile and ensure continuity, as the company or its future depends on successors. As parents, it’s important to redefine the purpose,” he adds.
Resolving Conflicts in Family Businesses
In case of a disagreement among family members, the first step is to hold a meeting, starting with gratitude and acknowledging everyone’s effort before addressing the problem without assigning blame.
Involving all generations in conflict resolution is essential, as only 52% of family businesses participate in strategy development, according to KPMG.
Meanwhile, scheduling conflicts are a common issue during these times. The expert advises forming a committee to improve coordination, setting aside family relationships to avoid favoritism.
To prevent recurring conflicts, the recommendation is to recognize progress, strengthen coordination, and maintain the shared vision that gave birth to the family business.
Key Questions and Answers
- What challenges do family businesses face during peak sales season? The increased pressure can escalate tensions among family members, potentially damaging both business operations and relationships.
- Why is it important to have a dispute resolution protocol in family businesses? Lacking such a protocol can lead to internal damage, with 50% of companies at risk of disappearing due to poor practices.
- How can family businesses avoid long-term problems stemming from unclear roles and responsibilities? Establishing clear coordination between shifts and defining each member’s role can prevent resentment from accumulating.
- Why is communication crucial in family businesses? With 40% of family businesses acknowledging communication failures, it’s evident that effective communication is vital for success.
- How can family businesses maintain harmony across generations? Utilize holiday seasons as opportunities to unite and plan for the future, ensuring intergenerational harmony.
- What steps should be taken to resolve conflicts in family businesses? Begin by acknowledging everyone’s efforts, address problems without assigning blame, and involve all generations in the resolution process.
