“Problems where no one is at fault” structural problems That makes businesses fail and families break up

“Every right means responsibility. Every opportunity means obligation. Every property means a duty.”[1]

– John D. Rockefeller

It's my job. It's not my duty!
OK, CEO or MD, who's bigger?
If you get a lot, you have to do a lot. (What are you complaining about)!?

Some problems in family businesses are no one's fault. It's my fault. "structure"

What is the structure?

Structure is the pattern of relationships between people. In a society that has definite and predictable rules, for example, parents have various duties. Must raise children. The CEO is responsible for managing the organization. Have power over employees but lower than the company board Every shareholder has the right to vote in shareholder meetings. and have the right to receive dividends These various “interpersonal relationship patterns” are woven together to link members together in the dimensions of “power,” “duty,” and “interest” until they form the structure of business and family.

"Structural problems" Therefore, it is a problem related to the relationship patterns between various people in the dimensions of (1) power, (2) duties, and (3) benefits. If the relationships of members in all three dimensions are unpredictable, There is no clear pattern. or not in balance It will cause chaos and conflict between businesses and families. An example of a structural problem that we may have heard about is "work relatedness" because we don't know whose job it is? Or sometimes they "step on each other's toes", that is, their duties overlap, or sometimes their duties do not align with authority or benefits, etc. In addition, there are other structural problems. Many more formats This will raise 3 important and frequently encountered problems:

1. Unclear structure

An unclear structure will cause problems. Whose responsibility is it? It's not a duty? Duties not performed?

“Unclear structure” is the most common structural problem. It usually comes from not communicating with each other. or can't communicate well Make matters of power, duty, and division of benefits It was not clearly discussed. Different members have their own opinions. This causes conflicts, such as competing for the same work (competing), or having no one do that work at all (relevant), or working inconsistently until it affects each other. (step on each other's feet) etc.

Or if "power" is not clear, then there will be questions like: Who is bigger than who? Who has decision-making authority in this matter? or refusing to accept power because they do not believe that the person using that power really has power, etc. Moreover, if the division of benefits is not clear Dissatisfaction may also arise. While if we knew that the benefits were allocated like this, we would be OK no matter what (but because we don't know So I thought about it myself. cause dissatisfaction)

2. Structure (make) conflict

Some conflicts are normal things that occur in business organizations, such as the sales department arguing with the production department. Marketing Fight and Finance Department Production versus procurement, etc. These naturally conflicting structures also lead to competition for various resources. of the organization as well

conflicting goals

Every sub-division of a business has its own “goals” and whoever holds these positions will naturally have conflicts with each other. Examples include: Members who oversee the sales department often have problems with the production department. Or members who watch the marketing department argue with members who watch the finance department, etc., because the goals of these subunits naturally conflict.

Additionally, “family goals” may conflict with For example, a member who is an executive in a family business doesn't want to give out dividends because they want to save money to invest more to grow the business. But the members (who don't know anything about the business) want dividends to come out in order to Taking care of the well-being of family members, etc. Will it pay dividends or not?

Compete for limited resources

Limited resources should be kept in the business for growth. Or transferred to the “family” for the well-being of the members? Additionally, different departments in a business need a budget. need attention and time from executives, but both money, people, and time are limited resources So how do we allocate these resources?

3. The structure is not related.

perform the same function But the salary is not the same. …unequal

More duties But the returns are the same...not fair.

Lots of duties but little power...so how do you do your job!?

It can be seen that these problems arise from power, duties, and benefits. inconsistent Which can lead to further conflict. Conflict can include feelings of inequality, unfairness, or unappreciation of work. or sacrifices made in the performance of duties There was dissatisfaction. And when they are dissatisfied, they often don't speak out directly, being considerate of each other, feeling hurt, causing it to become a lingering problem.

Not related because of design

Power, duties, and benefits are three dimensions of a tightly interconnected structure. People with a lot of power, a lot of duties, but little benefit. Conflicts may also arise. On the other hand, those who benefit a lot But he did not accept more responsibilities. Problems will arise. suitable point The point of balance of power, duties, and benefits. It will come from talking. negotiate which must be discussed together as a package for all 3 matters

Not related because the situation has changed

Many times, structural problems arise during periods of rapid family or business change. unexpectedly As a result, the existing structure no longer meets the needs, such as when a leader dies unexpectedly. What must decision-making power in business be like? Who should I listen to now? The shareholding structure has also changed. Votes change, etc. These things, if the family restructures slowly If you are not up to date with the situation, conflicts may arise.

However, if we look at the "change" a little more closely, we will see that Some changes come from Internal factors Such as birth, old age, illness, and death of members, changes in business practices. Selling or transferring shares of family members, etc., some of which we can control. But some things are beyond control.

While some changes come from external factors such as industrial cycles That makes us hear the words Sunset Industry, business cycle (Business Cycle) or even change of government or changes in laws, etc. Therefore, when the situation changes, whether from internal or external factors The family must adjust its power, duties, and benefits to be consistent with the changing situation.

4. Unsatisfactory structure

“Why do I have to ask you guys!?” the older sister questioned the younger siblings.

“Did you have to come and ask the rumors before spending the money?!” The father questioned the children.

“Unsatisfactory structure” can be explained as even though power, duties, and benefits are well allocated and clear, what is “unsatisfactory”!? (Is there any problem?!)

Correct but not satisfactory

The problem of “unsatisfactory structure” is an emotional problem, for example, the eldest sibling serves as the CEO of the family business with himself and the younger siblings. Being a company director This means that if the CEO has a new project, he must ask for approval from the juniors. who is a director on the board This may cause a feeling of “not okay” if you are commented on. or was rejected from the board Or a father who has passed on management to his children and reduced himself to an advisory role. But when you want to use company money (at work), you have to get approval from your children. (according to company regulations) may feel "not okay"

Not to give in, but to cherish the kindness.

In a family business, there will be a lot of "feelings" and "emotions" involved. Members must therefore know how to take good care of each other. Trying to understand each other is the beginning of caring for kindness. And even if what we do is right But it doesn't mean that you don't have to cherish the kindness of the other person. or when anyone has done it or try to do good things for family But the results may not be as good as hoped. We should express our gratitude for his intentions. without going further and complaining about the results that are still not good

Well, thank you. (Still not enough?)

Mel Robbins once expressed his view on The Mel Robbins Podcast that "Thankful is transactional. Grateful is emotional." That is, when it is a relationship that is deep and continuous for a long time, such as family relationships. “Grateful feelings” are more important. “Thankful” is a “shallower” feeling. We may do it out of politeness. Or it's just good manners.

Solve "structural" problems

Even if it's a problem that no one is at fault for. But it caused members to conflict with each other. Therefore, we should find a way to prevent it. and resolve problems arising from this structure. Recommendations include:

Create clarity regarding powers, duties, and benefits. By talking between members
Set big goals together of family members keeps everyone from getting lost in small goals that may conflict and help each other take care of small goals Let's not conflict with each other.
Allocate powers, duties, and benefits accordingly. by members discussing together
There is a review of the structure in 3D. From time to time, open channels for discussion if there are any problems or doubts, especially when the situation changes.
Update related documents such as shareholder agreement Company regulations, will or family constitution, etc., should reflect the current structure agreed upon in the family.
take into account “feelings” of family members as well not based on reason Or just being right without caring about each other's feelings.
Strengthen good relationships between members Because when the relationship is good A little harder, a little lighter, we can compromise. But if the relationship isn't good. Just a little bit and we won't agree.

No two families are the same. Discuss, design and fine-tune structures in terms of power, duties and interests. Answering the needs of family members is a mission that requires members to work together. To reduce this conflict caused by a problem where no one is at fault.

[1] “Every right implies a responsibility; Every opportunity, an obligation; Every possession, a duty.” – John D. Rockefeller (azquotes.com)