Is Getting Communication Right In Family Firms One Of The Biggest Issues?

Effective communication is the cornerstone of success for family firms, playing a pivotal role in fostering and building cohesion, trust, and sustainable growth within the business. In the unique context of family businesses, clear and open communication becomes even more critical. It serves as the linchpin for navigating complex dynamics, resolving conflicts, and ensuring that shared values and goals are effectively transmitted across generations.

We asked our Global Family Business Think Tank Panel if they thought that getting communication right in family firms is one of the biggest issues when preparing to succeed as a family business for generations to come.

The Results:

Is Getting Communication Right In Family Firms One Of The Biggest Issues?

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• Yes - 91%
• No - 6%
• Don't Know - 3%

According to the findings of our panel, a culture of transparent communication not only enhances collaboration but also strengthens the resilience of family firms, allowing them to adapt to challenges and capitalise on opportunities in an ever-evolving world, ensuring the opportunity for misunderstandings are minimised and that everyone is working towards the same goals.

THE THOUGHTS OF OUR ‘THINK TANK’ REPRESENTATIVES:

“Miscommunication is the root of failure in any relationship or institution, family businesses included.”

Salvatore Sciascia

Professor, Cattaneo University

“Maybe THE most important thing is communication in a family business. Without open, honest and vulnerable communication, the level of success in a family business taps out at a certain point. That doesn’t mean you can’t be successful but does mean that family businesses can go so much further with great communication.”

Kyler Gilbert

Vice President & Consultant, Business Consulting Resources

“It is not just about communication, it is about committing to the hard work of learning how to communicate well about the hardest things in life. This is not easy and is the job of a lifetime. But those families who invest in developing their emotional, social and relational skills stand out from the crowd.”

Nick Mayhew

Managing Director, Alembic Strategy

“It is very hard to change family dynamics. That is why it is important to aim to become a learning family. It is also important to have regular family meetings with external facilitators which can create a special space where it is possible to communicate more deeply than is normal.”

Christian Stewart

Independent Family Advisor, Family Legacy Asia

“Everything happens through conversations. The quality of the conversations in the business are directly correlated with the success of the business. Family dynamics are complex and can be tricky to navigate. Families who invest the time, energy, effort and in experts who can help them will succeed. The others flounder or get lucky. Or they don’t!” Leah Zimmerman

Owner & Family Business Coach, Stepping Stool Coaching

“Communication is the seed of everything else that impacts a family firm. One might argue engagement or education or even a good estate plan is the key element for succession, but without communication, none of that happens, or it happens in a vacuum. Competent communication also begets transparency, which is highly important to millennials and Gen Z.”

Torri Hawley

Director of Client Experience, Tamarind Learning

“Open and honest communication is vital in any business but even more so if you are aiming for a multigenerational family business over a long period of time.”

Bev Mitchell Founder & Director, Beverley Mitchell Consulting

“Effective communication within family firms is not just a challenge but a cornerstone for generational success. It forms the linchpin that binds shared visions, resolves conflicts and sustains the legacy across the continuum of generations in family business."

Nupur Pavan Bang Academic Director, Thomas Schmidheiny Centre For Family Business, Indian School Of Business

Find out more:

These results were part of the 2024 Global Family Business Think Tank Report that was published in Spring 2024. Check out the full findings in the report here