Family Business Successful Succession Training Material · Module 6 “Communication and conflict management” ... Try to do the tests of assertiveness and communication style and

Family Business Successful Succession

Training Material

Module 6

“Communication and conflict management”

February 2018

Prepared by

Tiago Carrilho, José António Porfírio, Bernardo Figueiredo,

Jacinto Jardim

Universidade Aberta

FABUSS Training Material – “Communication and conflict management”

Universidade Aberta – February 2018

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PREFACE

Following the completion of the FABUSS “Skill Gaps and training needs” Surveys in the partner

countries, the partnership has reached an understanding that training needs and associated

material need to be developed along three axis resulting from the distinct problem areas

identified in successful succession in family businesses. These needs were be grouped into six

Modules that aim at enhancing participants’ family business and entrepreneurial acumen.

This grouping, in terms of training Modules, is the following:

Module 1. “Understanding Family Business Related Issues” Module 2. “Transnational Similarities and Differences” Module 3. “Growth Strategies for Family Businesses” Module 4. “Next Generation Leadership” Module 5. “Effective Governance & Decision Making”, and finally Module 6. “Communication & Conflict Management” The material of the Module in hand will be used during the training sessions organised in each partner country, also making use of the FABUSS Learning Platform through which participants interact among themselves, with the programme’s instructors and transnationally, with family business associated individuals in other partner country(ies). Athens Chamber of Commerce and Industry FABUSS Coordinator January 2018

Project number: 2016-3-EL02-KA205-002673

This project has been funded with support from the European Commission.

This publication reflects the views only of the author, and the Commission cannot be held

responsible for any use which may be made of the information contained therein.

DECLARATION

The present module has been prepared solely for training purposes. Its text does not necessarily claim

originality, as, besides the authors’ own contribution, it is also based on material from various other

sources considered to be relevant, useful for training purposes and transferable. This is dully

acknowledged in the text in various ways. The authors however accept responsibility for any failure to

fully record all such instances in the text.



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Module Outline

This module deals with all the necessary elements of communication required to effectively

manage and govern a business, and to balance family business dynamics. It focuses on external

and internal communication. External communication supports growth plans and ensures that

key stakeholders are well informed and committed. Internal communication keeps key non-

family personnel engaged, strengthens the organizational culture and supports business values.

Internal communication also focuses on keeping the business and family strategies clear and

complementary. The module introduces key communication tools, negotiation and conflict

management tactics. It also links communication to change management.

Key Points

Interpersonal communication

Business/corporate communication

Internal communication and organizational culture

Family centered communication

Negotiation tactics

Conflict management tools

Change management

Learning Outcomes

After following this module participants should be able to:

Understand the key element of effective communication

Design a communication strategy

Engage stakeholders

Present ideas and plans to various audiences

Understand the mechanics of negotiations

Deal with and resolve conflict situations

Encourage communication among family members

Sections:

1. Interpersonal communication

2. Managing conflicts in family business relationships

3. Case studies



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Participant Guide

Duration: 2 weeks

Methodology:

Discussion Teamwork forums Moderated by trainers/tutors

Different teamwork forums are going to be created based upon trainees’ family

business membership and interests

Activity 1

In this activity trainees start by studying the cases Quebecor’ and ‘Wayward Industries’ included

in section 3 of the Booklet.

Each team discuss the cases based upon the following questions:

1) What are the problems of each case study?

2) What are the possible solutions that can be applied to the problems identified for each

case?

3) What can each team can add to the question 2 bearing in mind ‘lessons’ learned in

previous modules?

Activity 2

In this activity trainees start by reading section 1 ‘Interpersonal communication’ and section 2

‘Managing conflicts in family business relationships’ included in the booklet.

Based in the content of section 1 and 2, each team revisit the main conclusions of activity 1

bearing in mind the following items:

1) Benefits of assertiveness to work out succession solutions;

2) Role of conflict for successful management teams in solving problems related to

succession;

3) Identification and explanation of the main problems associated with family business;

4) Understand why certain conflict strategies favour family and business outcomes;



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5) Try to do the tests of assertiveness and communication style and reflect about its

usefulness to family business management conflict.

Bearing in mind this 5 items, each team discuss the following question: what can we add, change

and reformulate regarding the main conclusions reached in activity 1?

Core resource

Booklet

Suplementary resources:

o pdf ‘Conflict management strategies used by successful family business’

o pdf ‘The dynamics of family controlled firms: the good and the bad news’

o Pdf ‘A study of succession in a family firm’

o pdf ‘Passing the baton – the importance of sequence, timing, technique and

communication in executive succession’

o Video ‘conflict resolution’

o Links to self-evaluation on assertiveness and communication style



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Introduction to Module

To overcome communication situations characterized by passiveness or aggressiveness, people

must be able to express opinions, feelings, needs and dissatisfactions in an assertive way. To

improve assertiveness competences implies being aware of personal needs, objectives to reach

and the circumstances when one should show assertive behaviours.

Some type of conflict is likely to occur whenever we deal with individuals or teams for any period

of time. Conflict can generate improved team relationships and performance if managed in an

effective way.

To manage conflict, it is important to know that typically there are five conflict strategies in

organizations: avoiding, accommodating, compromising, competing and collaboration. Since

there are several and very challenging conflicting problems facing family business, collaboration

strategy can generate positive outcomes for family and for the company.

Case studies of succession provide a useful knowledge and empirical material systematization

and discussion over the common and different problems and possible solutions in diverse types

of companies



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1. Interpersonal communication

1.1. The importance of assertiveness

When you overcome communication situations characterized by passiveness or aggressiveness,

you will be able to express opinions, feelings, needs and dissatisfactions in an assertive way

(Gardener, 2012). So, you should look forward:

To identify situations in which you need self-affirmation

To overcome obstacles that prevent you to say yes when you want to say yes and to say

no when you want to say no

To practise exercises to develop assertiveness

To experience the benefits of assertive communication

Everybody knows that the correct thing to do is to say yes when you want to yes and to say no

when you want to say no. In terms of behaviour when don´t do it, it means you did not develop

assertiveness competence.

To improve assertiveness competence implies a systematic process of learning in which you

should be aware of your needs and objectives you want to reach and the circumstances when

you should show assertive behaviours (idem).

If you can be assertive in the interaction with others, you will be able to show your autonomy

and you will consider yourself and be considered by others, as a competent professional.

In a non-assertiveness communication, we can see aggressiveness, passiveness or manipulation:

Aggressive people lose trust by others, remain isolated and generate hostile answers

Passive people remain resentful due to ‘aggression’ they suffer frequently and become

frustrated because they aren´t listened

People with manipulative communication are frequently using strategies to fulfill their

interests, losing spontaneity and friendship with people that feel manipulated by them

What is assertiveness compared with other types of communication?

Assertiveness means to say what we want to transmit in a positive way. You say as much directly

as you can what you think and wish, choosing a set of adequate attitudes for each situation.

Assertiveness allows a direct communication to express your feelings in an honest and adequate

way, giving at the same time a ‘space’ for the others to do the same.

So, there are three types of communication: passiveness, aggressiveness and assertiveness

(idem):



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Passive behaviour is characterized by anxiety that is explained by running away from

‘confrontation’ with others, by the desire to be understood and by the concern related

with other’s opinion. The visual contact is minimum, the voice is hesitating and low, the

body language is defensive and there are difficulties in using hands. The usual attitudes

are excessive excuses, ease acceptance of others’ point of view and looking for approval

and sympathy;

Aggressive behaviour is characterized by anxiety that is explained by, “the strong wish to

win, even by damaging others”, and by excessive concern to state one’s ideas, projects

and perspectives. Body language is characterized by maximum visual contact, loud voice

and presumptuousness. The usual attitudes are to blame and to criticize, frequently

interrupting conversation, using sarcasm and giving orders.

Assertive behaviour - we want keep our rights but at the same time we accept that the

others have their own rights too. The visual contact is enough to transmit sincerity, the

tone of voice is moderate and the body language is reliable, low profile and congruent

with what we say. The usual attitudes are to hear enough to understand what is said, to

treat people with respect, to accept solutions, to explain our own intentions, to go

straight to the point and to insist on reaching a specific objective.

1.2. Strategies to adopt assertive behaviours

The development of assertiveness implies a systematic training and learn and relearn the

authenticity by means of a gradual and regular practice (Cushman & King, 2001; Gardener, 2012).

Being authentic doesn´t mean to say everything that we have in mind. We must express ourselves

effectively to deal with a certain situation realistically and satisfactory. In this sense, we need

To know what type of behaviour generates a certain reaction;

To avoid the use of hands and tone of voice contrary to what is said;

To try to describe your own actions instead of evaluating other´s actions;

To express yourself in a positive way instead of devaluate, judge, criticize or state

explanations, in order to facilitate others’ feelings expressions.

Self-evaluation of assertiveness and communication style (see the tests at the end of this section

1) are useful to identify problems and difficulties so that you van plan and evaluate your learning

progress concerning this competency. It is important to evaluate the main components of

assertiveness based upon questions and suggestions:

Do you know how to talk in an adequate way? To be able to talk adequately which

includes to interrupt in a pertinent way, to say hello, to listen, to ask and answer to

question and to say goodbye;



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Do you express your feelings? To be able to express negative or positive emotions

related to people or activities, using verbal and nonverbal communication in an

adequate way;

Do you know how to ask for help? To be able to ask for help recognizing the need of

their actions to perform a certain task;

Do you answer adequately to others’ requests? To be able to help others when they

need your cooperation;

Can your resist to the influence pressure of others? Say no to assignments that are

inconvenient to you;

Can you accept criticisms? Accept a no in a constructive criticism;

Do you listen actively? Express your verbal and nonverbal interest in others’ exposure,

keeping conversation and asking explanations when needed;

Do you know how to apologize? Apologize, in an adequate way, for your mistakes.

To improve assertiveness

Express your ideas habitually

In a conflict situation, it is important to know when you should remain steak to your

point or not

Defend your rights

Say no when you are being asked something not convenient to you

Express yourself in a convenient way when you disagree

Use enough time to state your opinions

Use a tone of voice clear and audible

When you feel offended say it directly to the person that offended you

1.3. What are the benefits of assertiveness?

If you develop this competence you will gain personally and professionally. One of the benefits

of assertiveness is to avoid passiveness so that you can increase self-esteem, self-confidence,

mutual respect and meet your personal and professional needs. The other benefit is to overcome

aggressiveness in order to raise self-efficacy and self-control and to raise probabilities of winning

with the collaboration of others (Cushman & King, 2001; Gardener, 2012).

When you are assertive

You raise your personal autonomy by showing your own ideas and that you are

collaborative for creative tasks

You feel well with yourself and with others, because you act with respect for others and

for yourself



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You show your interdependency by experiencing that your opinions, actions and choices

influence others and vice-versa

Your social relations are gratifying and satisfying because you act without fears,

defences or escapes and consequently you experience a normal degree of anxiety

You consider yourself and are considered by others as a competent professional

because you assume the responsibility of a task well or badly performed

You are willing to increase your performance every time you need to adapt to new

professional circumstances as long as you accept constructive criticisms and new

challenges as opportunities to learn

The benefits of assertiveness are very important in several professional situations:

When you have to manage the relationship with colleagues and leadership

When you speak about special people (like parents, partner or other family members)

When you have to perform your leader role with authority and efficacy

When you have to face criticisms made by colleagues or leadership

When you have to feel respected by older or younger colleagues

When you have to express your feelings and needs

When you have to be more effective dealing with anxiety that is naturally generated by

interpersonal relations

In organizational environment assertiveness is an essential element to clarify and to facilitate

communication processes. It generates better results in decision implementation, saves time,

raises people appreciation and motivation, and increases productivity (Cushman & King, 2001).

How assertive are you?

You can do the online assertive tests. You have the results immediately:

https://www.verywell.com/the-assertive-communication-quiz-4008924?quizResult=15b76408

or you can do it offline by using the following links:

http://liveon.msu.edu/sites/default/files/ipad/documents/AssertivenessQuiz.pdf

http://oaktreecounseling.com/assrtquz.htm

What are your Interpersonal communication skills?

You can try the following tests:

https://www.queendom.com/tests/access_page/index.htm?idRegTest=2288

(Please choose Skip when asked for email and username)

https://www.verywell.com/the-assertive-communication-quiz-4008924?quizResult=15b76408

http://liveon.msu.edu/sites/default/files/ipad/documents/AssertivenessQuiz.pdf

http://oaktreecounseling.com/assrtquz.htm

https://correio.uab.pt/owa/redir.aspx?C=WzCYN2vvlwQMykzOrjrdP7zx-NUKhvEGGHY6mdfDq5k2-C2ADWfVCA..&URL=https%3a%2f%2fwww.queendom.com%2ftests%2faccess_page%2findex.htm%3fidRegTest%3d2288



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http://psychologytoday.tests.psychtests.com/bin/transfer?req=MTF8MzE5OXwxNjE4MTc0fDF8

MQ==&refempt=

Section Summary Points

Interpersonal communication

There are three types of communication: passiveness, aggressiveness and

assertiveness

Assertiveness allows a direct communication to express your feelings in an honest and

adequate way, giving at the same time a ‘space’ for the others to do the same

The benefits of assertiveness are: 1) to avoid passiveness so that people can increase

self-esteem, self-confidence, mutual respect and meet personal and professional

needs; 2) to overcome aggressiveness in order to raise self-efficacy and self-control

and to raise probabilities of winning with the collaboration of others

Self-evaluation of assertiveness and communication style are useful to identify

problems and difficulties so that people can plan and evaluate their learning progress

https://correio.uab.pt/owa/redir.aspx?C=DvL7K7c7RddJjcXbqOmk_nvM5L12JypG-yeaYp7VWsU2-C2ADWfVCA..&URL=http%3a%2f%2fpsychologytoday.tests.psychtests.com%2fbin%2ftransfer%3freq%3dMTF8MzE5OXwxNjE4MTc0fDF8MQ%3d%3d%26refempt

https://correio.uab.pt/owa/redir.aspx?C=DvL7K7c7RddJjcXbqOmk_nvM5L12JypG-yeaYp7VWsU2-C2ADWfVCA..&URL=http%3a%2f%2fpsychologytoday.tests.psychtests.com%2fbin%2ftransfer%3freq%3dMTF8MzE5OXwxNjE4MTc0fDF8MQ%3d%3d%26refempt



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2. Managing conflicts in family business relationships

By now you know the importance of assertiveness in interpersonal communication and the types

of behaviour that you generally have to deal with in your daily business communication. Another

way to be aware of the importance of assertiveness is to know how to manage conflict.

2.1. Basis of conflict management

Conflict is not possible to avoid. Some kind of conflict is likely to occur whenever we deal with

individuals or teams for any period of time. Conflict can generate improved team relationships

and productivity if we manage it in an effective way (Amason, 1995).

To have a quick idea of what conflict management is, please watch the video ‘conflict resolution’

in https://www.youtube.com/watch?v=KY5TWVz5ZDU. By watching it, keep in mind the

following elements:

Why conflict is so difficult to handle

Usual reactions to conflict

Definition of conflict

Steps to solve a conflict and main problem: avoiding step 1 and 2

When a mediator is needed

Types of conflict strategies and importance of collaboration in problem-solving teams

To manage conflict, it is important to know that typically there are five conflict strategies in

organizations: avoiding, accommodating, compromising, competing and collaboration. The way

people deal with conflict depends on the extent of their concern for themselves and for others

(Carsten el al., 2001). For each of these strategies, let’s see how people usually behave.

By adopting avoiding strategy, people:

feel equally little concern for others and for themselves,

try to maintain neutrality at all costs and see conflict as a punishing and worthless

experience

stay away from any situation that probably generates conflict, including groups

experiencing any sort of conflict

Accommodation strategy results in the following behaviours:

Feel a higher concern for others than for themselves

Views open conflict as destructive and gives in to the will of others when necessary

https://correio.uab.pt/owa/redir.aspx?C=VwdrnKanvw_AagJ4JuNItkbR20zniNphpQv4YjkAddl8r_dbPWPVCA..&URL=https%3a%2f%2fwww.youtube.com%2fwatch%3fv%3dKY5TWVz5ZDU



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Believes that harmony is important to maintain good relationships

Tries to ignore or smooth over conflict in order to keep everyone happy

In compromising strategy, people

Adopt a middle stand on concern for themselves and for others

Believe that an agreeable or a workable solution is more important than a high-quality

solution

Avoid direct conflict by using compromise methods (ex, vote) because they view

conflicts as solvable

Try to reach a possible solution even if all parties have to sacrifice something important

by compromising

Competing strategy generates the following behaviours:

The goals of others are much less important than the personal goals

The conflict is seen as a win-lose situation or a conquest for power, and so compromise

is not acceptable

Due to arbitrator’s greater power, people who adopt this strategy show great respect

for power and will submit to arbitration

In a collaborating strategy people

Show equal concern to others and to themselves and so value high cooperation and

assertiveness

View conflict as advantageous if handled in an open way

Guide groups based upon a basic problem procedure

Try to reach a consensus since they are willing to spend a great deal of effort and time

to achieve it

Although the five strategies can be used to manage conflict, collaboration is usually the most

satisfying and productive in the long run. Valuing both assertiveness and cooperation, the

collaborating problem solver or solvers help the group to reach consensus. That is, even if initially

some members prefer a different choice, the group’s dynamic generates a specific decision

accepted by all members (DeChurch & Marks, 2001). Collaborating strategy can be the best

response to conflict in the following situations:

Members of the group are trained in using problem-solving procedures

Everyone´s cooperation is required when parties have common goals

Parties are willing to face conflict in a new manner if conflict has risen from

communication failure or misunderstandings



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The conflicts happen during a crisis

Naturally in various occasions it is not possible to reach a consensus. If the collaboration appears

to be impossible, it is useful to try the following procedure:

1) Clarify the situation. If the actual lines of discussions reveal unproductive, assume the

impasse and try a new approach within the group

2) Urge the member or members to set aside specific conflict instead of pretending they do

not exist

3) Guide the member or group to seek new solutions (for example by brainstorming or other

technics), and once the group has a new list and respective criteria, evaluate these

solutions and choose the most appropriate

4) Join the member or group to compare the new solution with the initial solutions and

choose the most appropriate. Often the new solution is more effective and creative

2.2. Conflict problems and conflict strategies in family business

Many of the problems in family business relate to philological issues. Let’s see some of the main

problems affecting family business.

In many levels the family members’ capacity to contribute to the business is not taken into

account when they join the company. This causes problems to maintain equity feelings and can

undermine trust, particularly when non-relatives have a high level of commitment. This can also

cause difficulties to attract capable managers.

The ‘spoiled kid syndrome’ generates a huge power to a next generation who regards low

importance to education, social responsibility and business training. The weak understanding of

business can have serious consequences for the company. Also, the rivalry between next

generation members can get worse after father/parents death. Besides, disputes can have origins

in childhood ‘emotional games’ resulting in repeating conflicts.

In succession one of the major problems regards difficulties accepting mortality and considering

it as a taboo. The ‘conspiracy of silence’ can be aggravated by fear of abandonment. The children

may worry that conflicts will raise when parents no longer exist. Besides, the choice of the

successor can be hard to handle since may lead to discord. For this reason many owner-managers

prefer to postpone the choice or even don’t decide at all.



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For a more systematized reference you may read the pdf ‘the dynamics of family controlled firms:

the good and the bad news’ (Vries, 1993) available in the platform. Since this pdf is a

supplementary resource, further reading is an option.

Conflict in family business is unique in several ways.

First, conflict is more complex since family have to accommodate important relationship issues

sand because family members are involved as owners, managers, employees or non-participating

stakeholders. Family matters may have primary concern over business issues, such as family

members’ equal treatment or primogeniture.

Second, family norms for conflict resolution influence the way conflict is handled within the

business, especially when various family members work in the company.

Third, the uniqueness of power dynamics in family business can be observed when family

members access key information and influence high level decision authority even in cases when

members don’t have high formal positions or are outside the business.

Family business collaboration strategy is related to positive family and business outcomes.

Collaboration generates cooperation and commitment because it provides individuals a voice

and results in learning, teamwork and synergy. Collaboration means ‘work with one another for

a proper understanding of the problems’, ‘exchange accurate information to solve the problems

together’ and ‘bring all our concerns out into the open so that issues can be resolved in the best

possible way’.

Cooperation among family and non-family employees and teamwork dynamics are enabled by

collaboration since it focus in problem-solving to find solutions to address the identified interest

involved. However, less emphasis in compromise and accommodation strategies in family

business can negatively affect family relationships.

For a more systematized reference you may read the pdf ‘Conflict management strategies used

by successful family business’ (Sorenson, 1999) available in the platform. Since this pdf is a

supplementary resource, further reading is an option.


Managing conflicts in family business relationships

Some kind of conflict is likely to occur whenever we deal with individuals or teams for

any period of time. Conflict can generate improved team relationships and

productivity if we manage it in an effective way.



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To manage conflict, it is important to know that typically there are five conflict

strategies in organizations: avoiding, accommodating, compromising, competing and

collaboration. The way people deal with conflict depends on the extent of their

concern for self and for others.

Many of the problems in family business relate to philological issues: nepotism,

‘spoiled kid syndrome‘ and succession obstacles.

Collaborative conflict strategies impact positively on business and family outcomes



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3. Case studies

Case ‘Quebecor’

“Although Peladeau’s will still remains a secret, he left a block of voting shares to both Erik

and Pierre-Karl in equal parts. Peladeau’s children and former wives still have 60% of the

shares that control the company. However, the complexities of Peladeau’s will placed a lot of

pressure on the offspring and has led to a series of family feuds. In his will, written in 1994,

Pierre Peladeau left control of the family fortunes to Erik and Pierre-Karl to manage. As a

result, children from his first two marriages have engaged in family feuds over Peladeau’s

$640 million fortune. First, Anne-Marie filed a lawsuit, which was later withdrawn, against

her brothers claiming that they were blocking money from being transferred to her trust

fund. Then, Esther and Simon-Pierre, children from his second marriage, went to court in an

attempt to see the financial statements and to be listed as shareholders in the family’s

holding company. Both also filed a second suit claiming that their monthly allowances were

cut off. Further, Line, mother to Esther and Simon-Pierre, filed a suit for malicious dismissal

and claimed that Pierre-Karl fired her two months after she was hired in the family business

as an administrative assistant because she refused to stop her children from filing their law

suit. Pierre- Karl has also alienated Isabelle, who noted that there was little family unity after

her brothers were awarded joint executive control over their father’s estate. According to

Isabelle, “We don’t get together to celebrate birthdays or anything—what would there be to

talk about?”. In late 1998, she left Quebecor as a result of a restructuring to pursue further

studies and to take care of her new baby. On the other hand, Clark & Leger (1999) write that

Isabelle was pushed out of her job at Publicor. Both Erik and Pierre-Karl also filed a suit

against Jean-Paul St. Louis, a close friend of Peladeau, and one of the three executors of the

will, which included Erik and Pierre Peladeau’s brother, Jean. According to the will, in the

event of disagreement between Erik and Pierre-Karl on how to vote the shares, St. Louis is

obliged to consult a committee of three wise men and vote according to their instructions.

Erik and Pierre- Karl claimed that St. Louis was in conflict of interest and breach of trust and

ousted him from playing any administrative role over Peladeau’s estate. Pierre-Karl is now

firmly in control of Quebecor. After his appointment as president and CEO, Charles Albert

Poissant and Jean Neveu, the two top nonfamily executives, announced their retirement. He

has also replaced older managers, hired by his father, with younger managers. Today, Pierre-

Karl owns half of the family trust that controls 58% of the parent company’s voting stock.

However, his ascension to the top spot at Quebecor has not been without family problems.

For some family members, the family business is becoming more of a portfolio rather than a



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place for family members to work and succeed. In conclusion, the Quebecor saga has now

moved into the next generation.”

Case Wayward Industries

“Incumbent wants Successor to take responsibility, and Successor wants Incumbent to give

up control of the firm. Incumbent believes that people can only have control if they accept

both power and responsibility. Incumbent suggests that Successor has been given power

(e.g., Successor is the company’s titular President) but laments that Successor has not yet

accepted responsibility. For his part, Successor believes that he has taken responsibility, but

that Incumbent has not yet relinquished control of the firm. Successor is frustrated by his

inability to exercise real authority in the firm as long as Incumbent is still there (‘‘I was never

really in charge; Incumbent was calling the shots as much as I was’’). This type of situation

leads to a less-than-optimal succession experience for the successor. A key to understanding

the frustrations of Incumbent and Successor may lie in understanding the nature of the

responsibility that was transferred. Incumbent was still principal owner of the company, and

in that very real sense he had responsibilities that he did not (and possibly could not) give to

Successor. For example, Incumbent was still responsible for paying employees when the

company was losing money (as it was during all of Successor’s term, due to the fact that the

Incumbent’s product redesign was taking much longer than anticipated). This primary

‘‘ownership responsibility’’ overshadowed the numerous ‘‘managerial responsibilities’’ that

Successor had taken over. Incumbent probably wished Successor could lessen Incumbent’s

responsibilities as owner, and when Successor was unable or unwilling to do so, Incumbent

felt compelled to step in and take managerial responsibilities away from Successor. (…)

Although Incumbent is a bit skeptical, he believes that an empowered work force is possible,

and pledges to support Successor ‘‘100%’’ in the latter’s efforts to achieve this goal.

However, Incumbent also believes that Successor is trying to empower workers too quickly.

Therefore, while both Incumbent and Successor agree that the firm should become more

decentralized, they have different views on how to achieve this goal. Essentially, they have

differing views on the chicken-and-egg dilemma: Incumbent believes employees should first

demonstrate performance and a willingness to take responsibility before they are

empowered, while Successor believes that employees who are empowered will eventually

accept responsibility and improve their performance. This parallels the tension between

Incumbent and Successor; Successor wants empowerment, but Incumbent wants Successor

to earn empowerment.”



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Case studies

9 guidelines are key to study a case of family business succession:

o 1 - Brief description of the case clarifying problem(s) and possible solution(s)

o 2 - Personal and professional characteristics of the founder

o 3- Personal and professional characteristics of family members

o 4- Family members’ participation in the business during founder’s leadership

o 5- Founder’s attitudes regarding succession and retirement

o 6 - Main family feuds during succession

o 7 – Systematization of difficulties/obstacles/challenges regarding succession

planning and implementation

o 8 - Lessons learned

o 9 – ‘Bridge’ to good practices regarding family business related issues (module

1), transnationality (module 2), strategy (module 3), leadership (module 4) and

governance (module 5)



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Module Summary

When you overcome communication situations characterized by passiveness or aggressiveness,

you will be able to express opinions, feelings, needs and dissatisfactions in an assertive way. To

improve assertiveness competence implies a systematic process of learning in which you should

be aware of your needs, objectives you want to reach and the circumstances when you should

show assertive behaviours. If you can be assertive in the interaction with others, you will be able

to show your autonomy and you will consider yourself and by others as a competent professional.

In a communication full of non-assertiveness we can see aggressiveness, passiveness or

manipulation. Assertiveness means to say what we want to transmit in a positive way. You say as

directly as you can what you think and wish, choosing a set of adequate attitudes for each

situation. Assertiveness allows a direct communication to express your feelings in an honest and

adequate way, giving at the same time a ‘space’ for the others to do the same. So, there are three

types of communication: passiveness, aggressiveness and assertiveness. The development of

assertiveness implies a systematic training and learn and relearn the authenticity by means of a

gradual and regular practice. Being authentic doesn´t mean to say everything that we have in

mind. Self-evaluation of assertiveness and communication style (see the tests at the end of this

section 1) are useful to identify problems and difficulties so that your plan and evaluate your

learning progress concerning this competency. In organizational environment assertiveness is an

essential element to clarify and to facilitate communication processes. It generates better results

in decision implementation, saves time, raises people appreciation and motivation, and increases

productivity.

Conflict is not possible to avoid. Some kind of conflict is likely to occur whenever we deal with

individuals or teams for any period of time. Conflict can generate improved team relationships

and productivity if we manage it in an effective way. To manage conflict, it is important to know

that typically there are five conflict strategies in organizations: avoiding, accommodating,

compromising, competing and collaboration. The way people deal with conflict depends on the

extent of their concern for themselves and for others. Although the five strategies can be used

to manage conflict, collaboration is usually the most satisfying and productive in the long run.

Valuing both assertiveness and cooperation, the collaborating problem solver or solvers help the

group to reach consensus. That is, even if initially some members prefer a different choice, the

group’s dynamic generates a specific decision accepted by all members. Collaborating strategy

can be the best response to conflict in several situations. Collaborative conflict strategies impact

positively on business and family outcomes. ‘Bad news’ for family business relate to nepotism,

‘spoiled kid’ syndrome and to succession obstacles.

9 guidelines are key to study a case of family business succession: 1 - Brief description of the case

clarifying problem(s) and possible solution(s) ; 2 - Personal and professional characteristics of the

founder ; 3 - Personal and professional characteristics of family members ; 4 - Family members’



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participation in the business during founder’s leadership ; 5 - Founder’s attitudes regarding

succession and retirement ; 6 - Main family feuds during succession ; 7 – Systematization of

difficulties/obstacles/challenges regarding succession planning and implementation ; 8 - Lessons

learned ; and 9 – ‘Bridge’ to good practices regarding strategy (module 3), leadership (module 4)

and governance (module 5).



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References

Amason, A. C. et al. (1995). Conflict: an important dimension in successful management teams,

Organizational Dynamics, vol 24, issue 2, 20-35.

Carsten, K. W. et al. (2001). A theory-based measure of conflict management strategies in the

workplace. Journal of Organizational Behavior, 22, 645-668.

Cushman, D. P. & King, S. S. (2001). Excellence in communication organizational strategy. New

York: State University of New York.

DeChurch, L. A. & Marks, M. A. (2001). Maximizing the benefits of task conflict: the role of

conflict management. The International Journal of Conflict Management, vol 12, no 1, 4-22.

Dyck, B. et al. (2002). Passing the baton – the importance of sequence, timing, technique and

communication in executive succession. Journal of Business Venturing, 17, 143-162.

Gardener, E. (2012). Assertiveness – reclaim your assertive birthright. Bookboon.com.

Ibrahim, A. B. et al. (2001). A study of succession in a family firm. Family Business Review, vol

XIV, no 3, 245-258.

Sorensen, R. L. (1999). Conflict management strategies used by successful family business.

Family Business Review, vol XII, no 4

Vries, M. F. R. K. (1993). The dynamics of family controlled firms: the good news and the bad

news, Organizational Dynamics, vol 21, issue 3, 59-71.

Documents

Family Business Successful Succession Training Material · Module 6 “Communication and conflict management” ... Try to do the tests of assertiveness and communication style and