Here are points from our skit.
First of all, here is statistics on Conflicts to understand the importance of this issue.
According to a recent study of family business conflict resolution by The Family Firm Institute:
- 15 percent of respondents left decisions up to the founder of the family firm.
- 20 percent reported that their families avoided discussing conflicts altogether.
- 43 percent said their families overcame conflict through time and long discussion.
- differing vision (for example, founder’s vision can differ from other family members vision)
- succession
- jealousy amongst the family
- poor communication
- poor conflict management skills
- introducing a full time role for a family member (often issues start to arise when the second family member joins Family business full-time)
- equality in rewards
- spillover theory (for example positive spillover involves the spread of satisfaction and stimulation at work to high levels of energy and satisfaction at home which is applicable more to men)
The solutions of conflicts represented in the paper are divided into sections:
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External Parties |
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Formalise |
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Separate roles |
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succession |
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Communication |
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One view portrays it as harmful with the risk of tearing the involved group apart (Wall, Jr. & Callister, 1995; Wall, Jr. et al., 1987). The other view recognizes that conflict can be highly beneficial to a firm’s performance by increasing options, by preventing premature consensus, and by increasing involvement and motivation of family firm members (Tjosvold, 1991; Wall, Jr. et al., 1987).
And the best example for this is real example of Columbia Sportswear Co. Here is the short story.
If mum the chairman of board of directors, and the son — the general director, quarrels are inevitable. In a case with Columbia Sportswear family conflicts have helped to increase cost of the company from $1400 to $1,72 billion.
Tim Boyle and his mother Gertas are argueing 35 years on how it is better to operate company Columbia Sportswear. 56-year-old Tim — the general director of the company. His mother, 81-year-old Gertas, — the chairman of board of directors.
When in 1970 mother and the son inherited the company turnover was only $800 000. Before over the company was managed by Nile Boyle, Gerta’s husband and Tim’s father. Then he died from a heart attack. Then at the head of the company there was mother and the son, but to operate business they were not able. Sales volumes fell to 25 % to $600 000 in a year. Key employees began to leave the company. Without knowing what to do, and being afraid to ruin definitively business, mother and the son spent on work long hours. Both recognise that have made many errors and from time to time in fury shouted against each other.
From the middle of 70s business went better. In the market there was technology Gore-Tex, and Tim before all competitors has started to use this water-repellent breathing membrane in clothes and footwear of the firm. But the disputes between mother and the son came more ad more furious.
But Boyles have thought up how to use the conflicts as an advantage. Family quarrels became a basis for a new legend about Columbia.
In the mid-eighties mother and the son had a new occasion to disputes — advertising and marketing. In 1984 Columbia searched for the new advertising strategy which is distinct from old, which abounded with details about a special cut of pockets and so forth Advertising agency Borders Perrin Norrander tried to think up something especial. “Once in the evening we have asked ourselves a question:” It would be pleasant to us to be subordinate own mother? “— Terri Schneider, the art director of agency Borders Perrin. We have decided to present Gert Boyle in an image of too careful mummy which will not allow that you have frozen or have got wet in its clothes”.
This image became a basis of advertising strategy of the company. New image of the company has attracted not only fans of sports, but also teenagers, and office clerks. In the late eighties and the most part of 90 sales promptly grew. “
You are welcome to add more on the Conflicts topic or some video.
This is the correct link for our post-MICA report from the AAA Construction Case http://www.slideshare.net/maximhq/micareportgoldteam
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