The future of a family business was in peril. The fourth-generation, two cousins, had taken over, with equal shares in the business. The transition was successful, and all was calm for a few months. But the cousins’ relationship quickly soured.
One cousin criticized the other for being too aggressive—and for hiding client meetings. The second cousin thought the other was diverting profits into his preferred manufacturing lines. Each cousin believed the other was making decisions that benefited themselves and not the business.
They relayed different information to their clients. They went behind the other’s back. And then, they lost one of their major clients.
This real-life case represents a situation far too many family businesses go through: lost trust. And too often, the business falls apart as a result of that eroding trust.
What can family businesses do to remedy this situation—or altogether avoid it in the future? This article has the answer.
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