Chapter 560: Little Black’s New Ability
As the saying goes, “Father and son go to battle together,” referring to how a dad and his son can go to war hand in hand, leveraging their respective advantages.
For family businesses, the “father and son go to battle together” model is also a collision of tradition and innovation.
The dad plays the “traditional” role in the business, focusing on stability and inheritance, emphasizing corporate culture and values. The son, on the other hand, is the “innovative” role, pursuing development and breakthroughs, focusing on efficiency and profit.
In the process of inheritance, what conflicts and challenges will this “father and son go to battle together” model of family businesses encounter, and how should they be addressed?
I. Ideology: The Game of Old and New Concepts
As the helmsman of a family business, Dad prioritizes the stable, long-term development of the company and usually opts for conservative business strategies.
As the heir of the new generation, the son has received modern business education, possesses a more forward-looking vision, and tends to pursue innovation and breakthroughs.
This clash of old and new ideologies is the most common conflict in the inheritance process of family businesses.
Points of Conflict:
1. Business Philosophy: Tradition vs. Innovation
Dad: Focuses on product quality and brand reputation, preferring traditional marketing methods and a steady, long-term approach.
Son: Aims to expand market share and acquire more profits through diversified operations and internet marketing.
2. Talent Concept: Conservative vs. Open
Dad: Tends to select confidants and family members, believing they are more reliable and loyal.
Son: Emphasizes the professional capabilities and diverse backgrounds of talent, seeking to introduce more external talent to enhance corporate competitiveness.
Solutions:
1. Communication: Establish a communication mechanism for both parties to fully express their ideologies. Regular family and corporate meetings can be held to jointly discuss the company’s development strategy.
2. Integration: Mutual understanding and learning from each other’s strengths.
Dad can draw upon his son’s innovative thinking to inject new vitality. The son can learn from his dad’s business experience and network resources to avoid detours.
II. Strategy: Balancing Long-Term and Short-Term Benefits
As the founder of a family business, Dad usually focuses on the company’s long-term development and social responsibility.
The son, however, is more concerned with short-term benefits and shareholder returns.
This strategic divergence can also lead to indecision in corporate decision-making.
Points of Conflict:
1. Investment Decisions: Conservative vs. Risky
Dad: Prefers conservative investment strategies and focuses on risk control.
Son: Leans towards high-risk, high-return investment projects, pursuing rapid development.
2. Social Responsibility: Profit Maximization vs. Social Contribution
Dad: Cares about the company’s social image and reputation, emphasizing the fulfillment of social responsibilities.
Son: Considers profit maximization as the primary goal, potentially falling short of Dad in terms of social benefits.
Solutions:
1. Establish a Strategy Committee: Composed of Dad, the son, and external professionals, to jointly formulate the company’s development strategy and reach a consensus.
2. Balance Short-Term and Long-Term Interests: While pursuing short-term benefits, allocate a portion of profits to long-term strategic projects to achieve sustainable development.
III. Management: Centralization vs. Decentralization
Dad usually holds absolute authority in a family business, accustomed to micromanaging and concentrating power.
The son, having received modern management education, advocates for decentralization and emphasizes teamwork and professional division of labor.
This difference in management models is the most difficult contradiction to resolve in the inheritance process of family businesses.
Points of Conflict:
1. Decision-Making Power: Centralization vs. Decentralization
Dad: Likes to handle all matters, big and small, and has the final say on all decisions.
Son: Advocates for establishing heads of each department who can make independent decisions to improve efficiency.
2. Personnel Selection: Confidants vs. Professionals
Dad: Prefers to appoint confidants or family members, valuing personal relationships.
Son: Advocates for meritocracy, focusing on professional background and work ability.
Solutions:
1. Clarify Responsibilities and Authority: Develop a clear organizational chart and job descriptions to define the scope of authority for Dad and the son, allowing each to perform their duties.
2. Introduce Modern Management Systems: Introduce professional managers, implement equity incentives, and gradually establish a modern enterprise system to achieve professional management.
IV. Emotion: Kinship vs. Profession
In the inheritance process of family businesses, kinship and profession are the most difficult relationships to balance.
Dad hopes his son will inherit his legacy and continue the family business. The son, however, hopes to escape his father’s shadow and forge his own path.
This entanglement of kinship and profession is the deepest conflict in the inheritance of family businesses.
Points of Conflict:
1. Identity: Father-Son vs. Superior-Subordinate
Dad: Finds it difficult to view his son as a subordinate employee, easily injecting personal emotions.
Son: Finds it difficult to view his dad as a superior leader, easily becoming defiant or disobedient.
2. Expectations: Inheritance vs. Innovation
Dad: Hopes his son will completely inherit his business and become his shadow.
Son: Hopes to break tradition and incorporate his own creativity and ideas into the business.
Solutions:
1. Role Separation: Within the company, the father-son relationship should primarily be professional, focusing on handling issues professionally and objectively. During family gatherings, the focus should be on kinship, with mutual understanding and support.
2. Establish a “Mentor” System: Dad can act as a “mentor” to guide his son’s development in the company, avoiding excessive interference. The son should respect his dad’s experience and wisdom.
The “father and son go to battle together” model of family businesses will undoubtedly face various challenges during the inheritance process.
Only through communication, integration, clarification of responsibilities and authority, and role separation can conflicts be effectively addressed, and the sustainable development of family businesses be achieved.
This is not only the way family businesses survive but also the secret to their enduring prosperity.
Furthermore, external professionals and intermediary agencies are also needed to ensure the smooth inheritance of family businesses. For example, family business consultants can be introduced to coordinate conflicts between father and son from an objective and impartial perspective. Equity trusts can also be introduced to ensure the stability and inheritance of equity.
It is hoped that all family businesses can successfully navigate the inheritance period and pass on their family wealth and spirit.
