Implications of Conflict Avoidance on Your Business
Impact of Conflict Avoidance
Avoiding a difficult conversation with a family member or business partner? Though it may seem inconsequential, the insights tell a different story. Ignoring critical issues can have substantial negative effects.
Research from the Harvard Business Review suggests that avoiding difficult conversations can lead to poor decision-making processes. In a survey of more than 200 managers, 50% reported avoiding a difficult conversation led to a delay in decision-making, and 33% said it resulted in an increase in project costs.
Avoiding in conflicts in Family Business can lead to:
Lower levels of engagement and productivity
Key personnel turnover
Narrow-viewed business decisions
Strained family relationships
AND MORE… all hindering business performance
Why People Avoid Conflict
The reasons why people avoid conflict can vary. But the most common are the following:
Fear and anxiety: Fear of damaging relationships, facing rejection, experiencing emotional discomfort, and the unpredictability of outcomes often leads individuals to shy away from addressing conflicts directly.
Lack of confidence: Many people doubt their ability to navigate a conflict effectively due to a perceived lack of communication skills or fear of not being able to articulate their thoughts clearly.
Past experiences: Negative encounters in the past, where conflicts led to undesirable outcomes, can make individuals wary of engaging in similar situations again.
Desire for harmony and avoidance of discomfort: Some people prioritize maintaining a peaceful and amicable environment over addressing issues. They avoid conflict to sidestep immediate discomfort and because they believe that confronting the issue won’t lead to meaningful change, thereby preserving relationships and preventing disruptions.
Perceived power imbalances: When individuals feel they are in a less powerful position, they may avoid conflict out of fear of retaliation or further disadvantaging themselves.
Cultural or familial conditioning: People raised in environments where conflict was either avoided or handled poorly may lack the necessary skills or mindset to approach conflicts constructively.
Examples in Family Business
Now consider a family business and you add yet another layer of inter-relational dynamics that further complicates the business environment. Consider a scenario where a son is designated as the successor. He's climbing the ranks, but there's no clear development plan. He hasn't been properly assessed, and his strong personality makes him difficult to work with. He doesn't listen, is overzealous, and this behavior breeds distrust and resentment within the team.
Another common issue is sibling rivalry. Parents often have to mediate between siblings who don't get along. This raises a critical question: what happens when the parents step back or leave the business? If the siblings can't make decisions together, the business is at risk.
Lastly, there's the situation where a family member is earmarked as the successor, but everyone doubts their capability. The team is afraid to voice their concerns to avoid hurting the ownership's or family's feelings. This silence can lead to significant issues down the line.
Identifying the Elephant in the Room in Family Businesses
When we start working with a family business, we initiate a discovery process. This involves interviewing key stakeholders and family members, whether they're directly involved in the business or not. Through these conversations, we aim to uncover the unspoken issues—the concerns and fears that people are hesitant to voice. These "elephants in the room" can vary widely but have significant impacts on the business and family dynamic and saying them out loud with sensitivity and compassion allow for everyone to address the issues and move forward.
Summary:
When critical issues are ignored, the negative effects can be substantial. Decisions made while avoiding these issues miss the full picture, leading to poor business outcomes that can be far reaching impacting personnel, operations and even finances. Unresolved issues will continue to drag the company down and hinder optimal business decisions and performance. Addressing these problems not only improves personal and professional relationships among family leaders but also supports the overall health and success of the business.
Start your succession planning today by scheduling a complimentary strategy session. Let’s work together to unlock the full potential of your organization's future.