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Thursday, Apr 25, 2024

Effective Communication Called Key To Healthy Family Business Relationships

Family businesses face a unique set of challenges: issues of succession, organizational and leadership development issues and problems associated with generational differences are just a few items on the list. That’s where Barry Graff, Ph.D. of Family/Business Systems comes in. On Thursday, Graff offered his expertise on the issues facing family-owned business at a workshop entitled “How to Confront Family Business Issues Without Killing the Family,” sponsored by the California State University, Northridge Family Business Center. Taking an approach of good humor, coupled with sound advice, Graff compared the dichotomy of the “family system” to that of the “business system.” Graff said that the family relationship, which centers on emotion-based tenets associated with “loyalty, belonging, community and harmony” is often a source of conflict with the task-based elements of the business system which requires, in his words, “competence, commitment, growth and change.” An organizational consultant and founder of Family/Business Systems, Graff received his Ph.D. in psychology from Michigan State University. He is a member of both the American Psychological Association and the Family Firm Institute. Offering consulting services ranging from communication and conflict resolution to succession planning, Graff has seen and heard just about everything; from issues associated with in-laws involved in family businesses, to the reluctance of a company’s founding generation to adapt to changing economic climates and advancing technology. Citing effective and open communication as the key to many things in life, not the least of which is when it comes to family, business and monetary concerns of closely-held entities, Graff provided a set of effective tools for the 30 or so who were in attendance. “The key is constructive conversations between generations,” said Graff. As he recounted one consulting job, where a client likened the importance of open and effective dialogue to that of anesthesia before surgery, Graff stressed the importance of establishing lines of communication outside of the regular business environment. “I help by starting to facilitate family meetings, then pass off responsibilities to the family,” said Graff. “The structure, location and timing of meetings is critical. Meetings should occur after (business) hours.” Graff wears many hats and he explained that in his roles as facilitator and consultant, his family clients tend to be more polite while in his presence. The workshop also explored the phenomenon of the older generation confronting an eventual loss of power, or their shifting role within their organizations. “As people face losing power, they tend to hold on tighter,” said Graff. “You can decide to raise children or to raise adults,” Graff continued. “A big transition point is when the second generation forms their own families. Then you have to address the family legacy and how to maintain it and the issue of what keeps the older generation from letting go to the younger generation,” said Graff. Reiterating the importance of communication and the need to engage all generations within the family business structure, Graff remained philosophical, recognizing the critical nature of the professional aspects of his job, but also its counseling aspects. “The most important part of meeting is the listening,” he said. “You have to listen to everyone’s case.” Graff employs a five-step process with clients. First there is an initial orientation meeting; a contract is drawn up; an organizational assessment is completed; an action plan is developed; and finally any necessary follow-up services are provided. Graff is based out of San Diego and continues to be a frequent speaker at university-based family business forums.

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