One of the greatest threats a family faces is when the patriarch or matriarch of a thriving business suddenly falls silent through illness or death. Overnight, a family's ability to function is tested and their livelihood thrown into uncertainty. Formerly friendly relations are suddenly resolved with mistrust exceeding sorrow.

Just as the sudden impact on the support column of the Francis Scott Key Bridge caused the entire truss structure to collapse, a sudden change in family leadership can cause family relationships to collapse like a house of cards. Through well-intended benevolence, the founder usually retains most of the power and control, reinforcing a dynamic known as “hearty hypocrisy,” in which the remaining family members agree to get along even though each family member has a cross. to keep. While seemingly keeping the peace, this communication pattern builds resentment over time and tends to deteriorate under pressure. The cost is often increased dissatisfaction, stunted decision-making and crippling distrust. The family often turns to their counselor for help,

I was present at a recent family meeting, during which the matriarch and her three grown children were struggling with the consequences of taking control of a business left without a rudder when the patriarch (the founder of the family business) suffered an attack in honey Frustration was high: The matriarch stepped into a role she did not want and felt unable to cope with; one boy was increasingly angry at the restraints placed on him when he tried to make riskier investment decisions; another son was passionate about seeing his father's vision succeed; and the daughter, who did not work in the business, wanted to be involved in the decision-making process. In the balance, a $200 million family business was heading for an uncertain future with a leadership battle brewing in the captain's quarters.

Proactive Steps

If the family had taken certain actions before the patriarch became ill, they could have avoided some of these challenges. Here are some steps they should have taken: