Tag Archives: organization

Same Family, Different World Views

Kent Rhodes
Kent Rhodes

One of the most basic dynamics we see in working with family owned enterprises is how people engage in similar process of making meaning of the world in similar ways. We each take in information, organizing into our own unique observations informed by our beliefs and experiences in a way that helps us make sense of the world. However, even though the process is the same for each of us, we are likely to wind up with varying differences of opinions on our individual “takes” to the same set of circumstances. Even though this is a normal process, it can result in conflict between family members.

But it doesn’t always stop there. People are prone to organize their individually constructed perspectives around others’ similarly held beliefs or actions: We tend to associate with the people around us that we perceive to be interpreting the world like we do. Being from West Texas, one of my favorite (and perhaps most extreme) examples of this dynamic was the creation of a community in West Texas designed expressly for supporters of the politician, Ron Paul. The goal of Paulville is “to establish gated communities containing 100% Ron Paul supporters and/or people that live by the ideals of freedom and liberty.” In 2008, the New York Times reported, “For now, the town is little more than an idea and a title deed…” and that is how it remains today.

In larger families – sometimes branches of the family or even just a couple of siblings – can come together with similar perspectives. This innocent, harmless and natural way of organizing can become detrimental when the notions around which these sub-groups of the family have formed are counter to the overall mission or vision of the enterprise or the family. These kinds of intragroup conflicts tend to be more complex and present a unique challenge to manage so they don’t become detrimental to the enterprise or, more importantly, to the family.

In the next blog, we’ll look at some examples…

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“Family Organization” – An Oxymoron?

by John L. Ward 

Family organizations, such as family offices, face many paradoxical contradictions. Several follow; then a fundamental paradox will be examined.  

  • Centralized leadership or direct democracy
       – Who makes decisions?
       – How is leadership selected?
  • Individual freedom or collective responsibility
       – Is privacy protected or are there no restrictions on social media use?
       – Is each mindful of the physical security of all?
  • Engagement or emotional space
       – What expectations are put on people for participation?
       – How draining are family meetings?
  • Voluntary involvement or remunerated roles
       – How broad is participation?
       – How appreciated are “doers” feeling?
  • Direct costs or shared costs[*]
       – Who pays for what?
       – How much effort determines real costs? 

Perhaps the most fundamental family organization paradox is Familial or ProfessionalWhen family members participate in family meetings or activities or governance they expect BOTH:  informal, family-like feelings AND productive, effective progress. 

One approach to paradoxes is to seek balance – when there are increasing efforts to professionalize put more attention on how to also emphasize more familiarity. Another approach to paradoxes is to seek a synthesis – “win win.”  Perhaps a family will find that the more professional its meetings, the more time there is for just plain, casual fun?


 

[*] Sometimes the long-term view dissolves paradoxical contradictions. Perhaps in the long-term all costs are shared?

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