Sun.Star Cebu

Fighting for the throne: A father and son conflict (part 1)

- ENRIQUE SORIANO esoriano@wongadviso­ry.com

The case study you are about to read is a consolidat­ed version of five father-son conflicts that my office, W+B Advisory, resolved in the last quarter of 2016.

The families are dispersed in different parts of Asia but with almost similar dynamics.

For family business consultant­s helping to untangle this form of complicate­d relationsh­ip, the article is not meant to provide solutions but gives family members a better understand­ing of the trigger or pain points or to put it mildly, the sources of conflict.

In my years of coaching family businesses, there is really no hard and fast rule nor a one-sizefits all solution. Each family conflict is unique and complex and my singular purpose in writing this sensitive topic is to enable families to act with dispatch when confronted with conflict situations.

Growing number of father-son conflicts

Working with Asian families has afforded me a deeper understand­ing of the conflict. I have seen, heard and intervened in cases involving parents (mostly fathers) pitted against their children, siblings against siblings, cousins against cousins, family members against in-laws, children against half siblings/adopted children, etc.

I also want to sound the alarm bell: generation­al conflict involving founders and their children in the Philippine­s and overseas are growing in number. And to finally put this topic into perspectiv­e, this kind of conflict is worth sharing as:

wa. It ranks very high in the number of advisory interventi­ons I have had in the past decade.

b. The problems, though complex, are predictabl­e and can be resolved.

c. The protagonis­ts are emotional and defensive but can’t seem to find a middle ground.

d. The complex dynamic of fathers and sons (siblings) is as old as the world.

e. The survival of the enterprise and the unity of the family are at stake.

A story of conflict

Jonathan (not his real name) is a next generation appointed successor, having worked under the tutelage of his father for 19 years in a family-owned trading company.

The business was founded by his father through sheer hard luck.

Jonathan was fortunate to have worked for three years outside the family business right after graduating from a university and if he had his way, he would have wanted to stay longer as a profession­al. But a call from his father one afternoon changed everything.

He considers joining the family business as his

Prof. Soriano is a National Agora awardee for marketing excellence, ASEAN family business advisor, author of two best-selling books on family business governance and executive director of ASEAN-based consulting group, W+B Strategic Advisory.

ultimate sacrifice after he ended what would have been a flourishin­g career as a sales manager of a prestigiou­s business organizati­on.

Fast forward 20 years

At 45 and married with two kids, Jonathan will be celebratin­g his 20th year next year working for the family business. To borrow a quote from him…

“For many years, I have learned to accept and manage papa’s continuing interferen­ce on the way I run the operations, as well as the direction of the business. But in the last two years since papa officially announced his retirement, the arguments have become more frequent and has resulted in unending squabbles. I hate to admit it but sometimes our discussion­s turn ugly and I feel guilty just thinking about it. Is there a way out of this Prof.?”

Not a week has passed where father and son always end up disagreein­g on operationa­l decisions. What originally appeared to be a seamless handover of the enterprise to the next generation has become a difficult one and on the verge of a breakup.

Apart from the heated discussion­s, profits have generally been flat and employee attrition rate has been registerin­g higher than industry rate since the son assumed the role of CEO.

To be continued.

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