The foundations of relational intelligence are trust, respect and optimism.
A high degree of trust among the various family members is of vital importance for building up good family relations. This applies all the more during the succession process, which is generally characterised by a climate of anxiety and uncertainty. Trust between the family members is an important bulwark against this. The more that honesty, openness, reliability and integrity dominate within the family, the greater the level of trust.
Mutual respect among the family members is another important characteristic of good family relations. This contrasts with the tension, rivalry, animosity and hostility which characterise many family businesses.
Thirdly, optimism about the family business is important. This entails above all that the family members have positive expectations for the future of the business and about their mutual relations.
These foundations of relational intelligence can only be created, maintained and improved if the family possesses a number of essential skills.
In a family business, open communication is the fuel of relational intelligence. Many family businesses are very poor in this regard, so that it is sometimes appropriate to draw up a formal communication charter that is signed by all family members.
Other important skills include being able to listen well (an essential part of good communication), being able to constructively solve problems, and being able to plan adequately.
If creating and maintaining good family relations offers a competitive advantage for a smooth succession, then it is very important to manage this aspect.
It would be useful for a relationship charter to be drawn up in each family business which is confronted with a succession. In such a charter, a SWOT analysis of the family relations is performed and objectives are formulated to improve them. An important part of such a relationship charter consists of clear agreements about conflict management . The corporate culture of family businesses, which generally are governed by the strong personality of the founder, frequently impedes a flexible resolution of conflicts. Founders are generally control freaks who tolerate little involvement from others. This means that within the family business few or no systems exist to manage conflicts. Yet successful successions generally occur in family businesses which have developed such systems. One might consider working out a consultation procedure, the intervention of the family forum, and so on.
Jozef LIEVENS is a lawyer and partner in the Eubelius law firm. He is managing director of the Institute for Family Business and FBNet Belgium. He teaches a family business course at the European University College Brussels (EHSAL). He is a Fellow of the American Family Firm Institute. His website is: www.familiebedrijf.be |
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