How to resolve a conflict between interest groups in family businesses
The potential for conflict seems to be particularly high in family businesses. At any rate, this is indicated by a number of prominent cases, such as the falling out between the sneaker manufacturers Rudolf and Adolf Dassler or the fierce dispute over company succession at the Bremen coffee roaster J. J. Darboven.
Arbitration is often difficult. This is because the actual causes of such conflicts usually go back a long way. And the entangled relationships between family members rarely lead to a relaxation of the situation, but all the more frequently to an escalation. Accordingly, the fronts are quickly hardened.
And this is what makes such conflicts so dangerous for the company.
How can conflicts of this kind be resolved? As part of a mediation process, I proceed as follows:
- den Mediationsbedarf klären
- determine the willingness to find a solution
- clarify the individual interests
- das klärende Grundsatzgespräch planen
- set the goal of the keynote meeting together
- follow up the meeting
What I mean by this in detail, i'll explain below. Just this much in advance: this is just an outline without any claim to completeness. And I don't want to suggest that the solution I favor is the only correct one.
However, this approach has proven its worth: I have often conducted mediations using this approach and led a wide variety of interest groups to an amicable solution - without lengthy and costly legal disputes.
1. Clarifying the need for mediation
Not every conflict needs a formal mediation process.
Therefore, it is first necessary to clarify whether the effort is worthwhile at all: Are the lines of conflict really so entrenched? Is there no way out in sight? Or can the dispute be resolved by talking it out informally, perhaps with the help of third parties.
In order to clarify the actual need, I actively engage in personal discussions with the parties in advance. This gives them the opportunity to present their points of view in detail - and emotionally.
2. Determining the willingness to find a solution
Even if it emerges in the course of the personal preliminary discussions that the different points of view are so entrenched that only a formal mediation procedure will provide a remedy:
Mediation will only be successful if all parties are genuinely interested in finding a solution.
This also needs to be clarified in advance.
3. Clarifying individual interests
The third point that should be discussed in the personal preliminary talks concerns the all-important question: How should things continue without disputes and unnecessary arguments, waste of resources or possibly court proceedings?
The individual interests are crucial here. To clarify this, I typically address topics such as these:
- Where do we stand?
- What do the individual parties want and why?
- What do they not want and why?
- How do we prevent the current negotiating positions from having a negative impact on the company's operational business and unsettling and burdening stakeholders - such as employees and customers?
By recording the respective interests, you get an initial indication of what a solution could look like. And you can prepare the basic discussion in such a way that side issues such as mere assumptions, rumors or disputes and recriminations from the past are avoided.
4. Planning the basic discussion
To work out a joint solution, I schedule a basic discussion together with all interest groups. The meeting should last a maximum of two to three hours and take place at a neutral location that is easily accessible for all parties involved.
A mediation meeting should be precisely planned and the agenda should be sent to the participants a few weeks in advance. This avoids giving the impression of favoring one of the parties.
I usually plan the meetings as follows:
- Welcome with introduction of the participants. Definition of the rules of the game. Brief warm-up to create a positive working atmosphere
- Clarification of the expectations of the meeting
- Clarification of the goals and non-goals of the meeting
- Discussion of key topics
- Reflection and summary of the meeting
- Determining the next steps
5. Leading the mediation meeting
As a mediator, I implement the above agenda as follows:
Welcome
After welcoming and introducing the participants, I clarify the rules of the mediation meeting.
These set out expected behaviors such as
- letting others finish speaking,
- discussing objectively and without personal attacks,
- not to digress or engage in long monologues and
- not to engage in separate conversations or use electronic media.
In short: to conduct a goal-oriented, objective working discussion.
The rules of the game also stipulate a kind of rules of procedure, i.e. rules like these:
- Who gets how, when and how much speaking time?
- How can you get out of the conversation?
- and so on.
Then I try to shift the focus from the individual to the group - with a warm-up on a specific topic that lasts no longer than five minutes.
Clarifying expectations
Questioning the expectations that the participants have of the meeting is essential for success - for several reasons:
- Everyone should speak up and join in the conversation.
- By asking about expectations, I can focus exclusively on the current meeting, not on wishes for the future.
- Only someone who gives their expectations can actively reflect on the meeting later.
And probably the most important reason:
- Reciprocal understanding depends to a large extent on expectations.
However, these are often in the background, hidden. Making them explicit is a step towards objectivity: everyone knows what the other person expects and this shared knowledge forms a common basis.
Determining the goals and non-goals of the meeting
It is just as essential for the success of every conflict resolution meeting to determine the goal and non-goal of the meeting.
Because the goal lays the foundation: we visualize what we want to have achieved at the end of the meeting. With the non-goal, on the other hand, we determine the scope of the discussions. In this way, we stay close to the topic.
Discussing the central issues
The aim of my mediation is the consensual resolution of a conflict.
That's why I lead the discussion along the defined agenda - as a moderator who is independent of the interest groups, does not take sides with anyone, ensures that the rules of the game are adhered to and gives the participants the floor.
And I document their opinions as well as possible scenarios and key points for conflict resolution that can be derived from them on flip charts by mutual agreement.
Reflection and summary of the meeting
At the end of all larger and important meetings, I use retrospective methods. This is because assessing the extent to which the participants' expectations of the meeting have been met and a general reflection on the meeting help to professionalize such fundamental discussions - and are the impetus for continuous improvements and new objectives.
Inversely, the participants of recurring meetings should also evaluate my performance as a moderator according to fixed criteria. This helps to make moderation and mediation more efficient, effective and decisive.
The results protocol summarizes all important points and statements of the mediation meeting in a consensual manner. If necessary, it also documents the commitment of all participants with personal signatures on the flip chart minutes.
In addition, a communication one-pager that records the most important points for internal third parties is a good idea for regular meetings that the company's employees know about. This gives internal communication a fixed point around which it revolves: everyone is talking about the same thing!
Determining the next steps
Finally, the participants jointly determine the next steps with
- responsibilities,
- sub-goals,
- Terminen,
- Ressourcen und
- dem Folgetermin
fest.
6. Follow up the meeting
The aim of the follow-up is the consistent implementation of the next steps. In addition, transparency should be created in the form of regular proactive communication to the stakeholders about the progress of the implementation - and thus about the progress in resolving the conflict.
Conclusion: All stakeholders must want a solution
Conflicts in family businesses can be resolved with a formal mediation process.
Such a process works because it takes place in an ideal discussion situation: It provides a neutral space for discussion, regulates the interaction, defines the goal and boundaries of the discussion and reveals hidden assumptions that often unconsciously influence valuations.
And yet, at the end of the day, it always comes down to the following: All parties must want a solution.
