Solutions for infighting among Asian business families
Control of the business and next-generation careers are two issues that need to be openly addressed or they risk becoming a source of conflict
We all know that maintaining social harmony is a dominant Asian value. But the reality is that many Asian family businesses struggle with conflict. Just look at the public disputes within the Ho family of Macau, the Lee family of Samsung in South Korea, the Wang family of Formosa Plastics in Taiwan, the Kwok family of Sun Hung Kai Properties in Hong Kong and the Ambani family of India. Their attempts to complete leadership and ownership transitions are more enthralling than soap operas.
So why this apparent disconnect between what the families value and what they end up doing? And how can a teddy bear help? The answer to both questions - as we shall see - has to do with communication.
Unless two critical family business issues, control of the business and next-generation careers, are openly addressed, they risk becoming the source of conflicts that destroy the business and family relationships.
Disagreements over control of decision-making are inevitable during generational transitions, so when honest communication is avoided, family members do not develop the trust that supports harmony. As a result, emotions explode and relationships are destroyed. In many cases, these dramatic conflicts destroy the family legacy with costly litigation or by diverting attention away from running the business.
Broadly speaking, there are two kinds of human behaviour: espoused (what we say we do) and enacted (what we actually do). Asian business families strongly espouse harmony but most of them do not communicate, which means that trust and authentic harmony are not developed. In addition, emotional barriers are built between family members and, since no one wants to upset the system, tough issues are not addressed. Critical decisions are neither discussed nor debated, so compromise or consensus cannot be reached.
The trust that supports enacted harmony requires open communication: saying what you mean and listening actively to encourage sharing new options and empowering the next generation to work together. This needn't change the family's power structure. Communication is about engaging others and sharing information: how we plan and make decisions, not who makes decisions.
Based on the experience of families we have worked with, here are some benefits you can expect from using open communication to create authentic harmony: