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Family BusinessLegacy PlanningSuccession Planning

Sibling Rivalry

By September 22, 2010October 31st, 2023No Comments

Two children yelling each other Fighting siblings at home is annoying and tiresome, as any parent will testify.  But sibling rivalry in a business can often be downright destructive.

When looking at siblings working together, it is important to consider more than the financial, operational, or strategic points of view.  It is crucial to understand the deeper issues that can reside between siblings and how it could impact the long term success of any business.

Sibling rivalry comes from jealousy and the desire to receive more love and approval from the parents.  These issues can resurface in everyday business where siblings work together and perhaps compete with one another.  This can lead to irrational business decisions, a lack of respect for each other’s input or decisions, resentment of accomplishments or differences, unclear responsibilities, failure to be accountable to one another, and contribute to a negative and/or unproductive work environment.

Siblings are rarely able to deal with their issues, even if they are bringing the business down, without others stepping in.  The issues must be fully understood and communication is critical when working out the issues.  A lack of communication and understanding between each other can be a big cause of problems.

Some Simple Rules:

  • Clarify boundaries between family members (responsibilities, direct reports, hierarchy, voice, etc.)
  • Set up a forum and process for conflict resolution
  • Open communication between family members, even those not working in the business
  • Have agreed upon, distinct roles and responsibilities for each sibling in writing
  • Establish clear compensation policy
  • Create a clear, documented succession plan

When working well together, siblings can bring a lot of value to the company due to built up trust, shared history, and a sense of loyalty.  It is, however, important to plan in advance with clear, documented roles, responsibilities, and other guidelines and also to be able to identify and promptly resolve instances of sibling rivalry in an open format before there is any damage to the relationships or the business.