In Part I of Harry Levinson’s analysis of family business dynamics, he looked at father-son conflicts. In Part II of this piece which originally appeared in the Harvard Business Review, we take a look at sibling rivalries in business.

Brother-Brother Rivalry

The father-son rivalry is matched in intensity by the brother-brother rivalry. Their competition may be exacerbated by the father if he tries to play the sons off against each other or has decided that one should wear his mantle, as I showed previously. (In my experience, the greatest difficulties of this kind occur when there are only two brothers in the organization.)

The problem is further complicated if their mother and their wives are also directly or indirectly involved in the business. Mothers have their favorites — regardless of what they say — and each wife, of course, has a stake in her husband’s position. He can become a foil for his wife’s fantasies and ambition.

The rivalry between brothers for their father’s approval, which began in childhood, continues into adult life. It can reach such an intensity that it colors every management decision and magnifies the jockeying for power that goes on in all organizations. Consider this situation:

Arthur, five years older than his sibling, is president, and Warren is an operating vice president, of the medium-sized retailing organization which they inherited. To anyone who cares to listen, each maintains that he can get along very well without the other.

Arthur insists that Warren is not smart, not as good a businessman as he; that his judgment is bad; and that even if given the chance, he would be unable to manage the business.

Warren asserts that when the two were growing up, Arthur considered him to be a competitor, but for his part, he (Warren) did not care to compete because he was younger and smaller. Warren says that he cannot understand why his older brother has always acted as if they were rivals, and adds, “I just want a chance to do my thing. If he’d only let me alone with responsibility! But he acts as if the world would fall apart if I had that chance.”

Every staff meeting and meeting of the board (which includes nonfamily members) becomes a battle between the brothers. Associates, employees, and friends back off because they decline to take sides. The operation of the organization has been turned into a continuous family conflict.

The Elder…

Ordinarily, the elder brother succeeds his father. But this custom reaffirms the belief of the younger brother (or brothers) that the oldest is indeed the favorite. In any event, the older brother often has a condescending attitude toward the younger. In their earliest years the older is larger, physically stronger, more competent, and more knowledgeable than the younger merely because of the difference in age, as in the case I just cited.

Only in rare instances does the younger brother have the opportunity to match the skills, competence, and experience of the elder until they reach adulthood. By that time the nature of this relationship is so well established that the older brother has difficulty regarding the younger one as adequate and competent.

Moreover, the eldest child is earlier and longer in contact with the parents, and their control efforts fall more heavily on him. Consequently, older children tend to develop stronger consciences, drive themselves harder, expect more of themselves, and control themselves more rigidly than younger ones. Being already, therefore, a harsh judge of himself, the eldest is likely to be an even harsher judge of his younger siblings.

…and the Younger

The younger brother attempts to compensate for the effects of this childhood relationship and his older brother’s efforts to control him by trying to carve out a place in the business that is his own. This he guards with great zeal, keeping the older brother out so he can demonstrate to himself, his brother, and others that he is indeed competent and has his own piece of the action for which he is independently responsible.

If the brothers own equal shares in the organization and both are members of the board, as is frequently the case, the problems are compounded. On the board they can argue policy from equally strong positions. However, when they return to operations in which one is subordinate to the other, the subordinate one, usually the junior brother, finds it extremely difficult to think of himself in a subservient role.

The younger one usually is unable to surmount this problem in their mutual relationship. He tends to be less confident than his brother and considers himself to be at a permanent disadvantage, always overcontrolled, always unheeded. Since the older brother views the younger one as being less able, he becomes involved in self-fulfilling prophecies. Distrusting his younger brother, he is likely to over-control him, give him less opportunity for freedom and responsibility — which in turn make for maturity and growth — and likely to reject all signs of the younger brother’s increasing competence.

If for some reason the younger brother displaces the older one, and particularly if the latter becomes subordinate to him, the younger brother is faced with feelings of guilt for having attacked the elder and usurped what so often is accepted as the senior brother’s rightful role.

Intrafamily Friction

The problems of the father and brothers extend to other relatives when they, too, become involved in the business. In some families it is expected that all who wish to join the company will have places there. This can have devastating effects, particularly if the jobs are sinecures.

The chief executive of a family business naturally feels a heavy responsibility for the family fortunes. If he does not produce a profit, the effect on what he considers to be his image in the financial markets may mean less to him than the income reduction which members of his family will suffer. So he is vulnerable to backbiting from persons whom he knows only too well and whom he cannot dismiss as faceless. Consider this case:

Three brothers started a knitting business. Only one of the brothers had sons, and only one of the those sons stayed in the business; he eventually became president. The stock is held by the family. Two widowed aunts, his mother, his female cousins (one of whom was already widowed), and his brother, a practicing architect, depend on the business for significant income.

When business is off, the women complain. If the president wants to buy more equipment, they resist. If they hear complaints from employees or merchant friends, they make these complaints known at family gatherings. The president is never free from the vixens who are constantly criticizing and second-guessing him.

Perhaps more critical for the health of the business are the factional divisions that spring up in the organization as associates and subordinates choose the family members with whom they want to be identified. (Often, however, those who take sides discover that in a crisis the family unites against “outsiders,” including their partisans, who are then viewed as trying to divide the family.)

If the nonfamily employees or board members decide not to become involved in a family fight and withdraw from relations with its members until the conflict is resolved, the work of the organization may be paralyzed. Worse yet, the dispute may eventually embroil the entire organization, resulting in conflicts at the lowest levels, as employees try to cope with the quarrels thrust on them.

Now the business has become a battleground that produces casualties but no peace. Such internecine warfare constitutes a tremendous barrier to communication and frustrates adequate planning and rational decision making.

A business in which numerous members of the family of varying ages and relationships are involved often becomes painfully disrupted around issues of empires and succession. Its units tend to become family-member territories and therefore poorly integrated organizationally, if at all.

As for succession, the dominant or patriarchal leader may fully expect to pass on the mantle of leadership to other, elder relatives in their turn. He may even promise them leadership roles, particularly if he has had to develop a coalition to support his position.

But for both realistic and irrational reasons he may well come to feel that none of the family members is capable of filling the role. He cannot very well disclose his decision, however, without stirring conflict, and he cannot bring in outside managers without betraying his relatives or reneging on his promises. On the other hand, he fears what would happen if he died without having designated a successor.

He may decide that the only way out is to sell the business (at least each relative will then get his fair share). But that solution is costly — it signifies not only the loss of the business as a means of employment, but also the betrayal of a tradition and, inevitably, the dissolution of close family ties that have been maintained through the medium of the business.

Facing Up to It

What can be done about these problems?

Most entrepreneurial fathers seem unable to resolve their dilemma themselves. They tend to be rigid and righteous, finding it difficult to understand that there is another, equally valid point of view which they can accept without becoming weaklings. Well-meaning outsiders who try to help the father see the effects of his behavior and think seriously about succession usually find themselves rejected. Then they lose whatever beneficial influence they may have had on him.

Several approaches have worked well. In some instances, sons have told their fathers that they recognize how important it is to the father to run his own business, but it is just as important for them to have the opportunity to “do their own thing.” They then establish small new ventures either under the corporate umbrella or outside it, without deserting their father.

In a variant of this approach, a father who heads a retail operation opened a store in a different community for each of his sons. They do their buying together, with appropriate variations for each community, and maintain a common name and format, but each son runs his own operation while the father continues to run his.

In still another situation, the father merged his company into a larger one. Each of his two sons then became president of a subsidiary, and the father started a new venture while serving as a policy guide to his sons.

The Son’s Role

Whether such alternatives can work depends in part on how the son conducts himself. He must be honest with himself and consider his paternal relationship candidly. He must take steps like these:

He must ask himself why he chose to go into the family business. Most sons will say it is because of the opportunity and the feelings of guilt if they had not done so. Often, however, the basic reason is that a powerful father has helped make his son dependent on him, and so his son is reluctant to strike out on his own.

He rationalizes his reluctance on the basis of opportunity and guilt. Struggling with his own dependency, he is more likely to continue to fight his father in the business because he is still trying to escape his father’s control.

Having examined this issue, and recognizing whatever validity it may have for him, the son must realize how often his own feelings of rivalry and anger get in his way. The more intense the rivalry, the more determinedly he seeks to push his father from his throne and the more aggressively the latter must defend himself. The son must therefore refrain from attack.

He must quietly and with dignity, as a mature man, apprise his father of the realities — that he needs an area of freedom and an independent medium to develop skills and responsibilities. He can do so within the company framework or, if that is not feasible, outside it. In his own self-interest, as well as the company’s, he must be certain that he gets the opportunity.

He must not allow himself to be played off against his brother, and he must not allow his guilt to be manipulated. By the same token, he himself must not become involved with others in manipulation.

He must honestly recognize and respect his father’s achievement and competence. To build a business is no mean task, and usually the father still has useful skills and knowledge. Furthermore, the son should recognize the powerful psychological meaning of the business to his father and not expect him to be rational about his relationship to it.

If the son is still unable to make choices about what he wants to do, then, despite his pain and his father’s reluctance to seek help, he himself must do so. Only he can take the initiative to relieve his anguish. Here is an example of how a group of sons has taken the initiative:

In Boston, a group calling itself SOB’s (Sons of the Boss) has been formed to encourage men in that position to talk over common problems and share solutions. After educating themselves about the psychological dimensions of their situation, the group will make it a practice from time to time to invite their fathers as a group to discuss their problems openly. Then fathers and sons will get together separately.

This procedure may enable fathers and sons to realize that their particular problems are not unique to themselves, and to obtain support from those in a similar predicament.

Another approach for a son would be to ask his father to read this article and then discuss it privately with a neutral third party of their choice, to develop a perspective on their feelings and behavior. Having done so, a father is then in a better position to talk with his son, in the presence of the third party.

The third person must use his good offices to subdue recrimination. At the same time he must foster the father’s expression of his fears over losing control, being unneeded, and suffering rejection, as well as the son’s concerns about being overcontrolled, infantilized, and exploited.

If meeting with the third party fails to help, the next step is consultation with a psychologist or psychiatrist. There are rare instances, usually when conflict becomes severe, in which father and son are willing to go to a professional together or separately. In such cases it is often possible for the father to begin to make compromises, learn to understand his and his son’s motivations, and work out with him newly defined, more compatible roles. Usually, however, such an effort requires continued supportive work by the professional and strong desire on the part of both men to resolve their differences.

If all these measures fail, those who work with patriarchs must learn to tolerate their situation until the opportunity arises for a change.

Fraternal Spirit

With respect to the brother-brother conflict, it is important for brothers to see that in their relationship they recapitulate ancient rivalries, and to perceive clearly the psychological posture each assumes toward the other. Once they understand these two issues, they must talk together about them. They should try to discuss freely the fears, worries, anger, and disappointments caused by each other. They should also be able to talk about their affection for each other.

Since there is love and hate in all relationships, theirs cannot, by definition, be pure. They should not feel guilty about their anger with each other, but they do need to talk it out. Having done that, they then must consider how they can divide the tasks in the organization so that each will have a chance to acquire and demonstrate competence and work in a complementary relationship with the other.

A brother cannot easily be subordinate at one level and equal on another. If a brother is an operating executive subordinate to the other, he gets into difficulty when he tries to be an equal on the board of directors. If more than one brother is on the board, then only one, as a rule, should be an operating executive. Of course, such rules are unnecessary if the brothers work well together.

If the brothers still cannot resolve their conflicts, then it becomes necessary to seek professional aid. If that does not help, they should consider being in separate organizations. In such a case, the big problem is the guilt feelings which the departing brother is likely to have for deserting the other and the family business.

Toward Professional Management

Where there are multiple and complex family relationships and obligations in a company, and particularly problems about succession, the best solution is a transcendent one. The family members should form a trust, taking all the relatives out of business operations while enabling them to continue to act in concert as a family.

The trust could allot financial support to every member who desires it to develop new business ventures on behalf of the family, thus providing a business interest that replaces the previous operating activity. This also helps maintain family cohesion and preserve the family’s leadership role in the community.

In general, the wisest course for any business, family or nonfamily, is to move to professional management as quickly as possible. Every business must define its overriding purpose for being, from which it derives its objectives. Within this planning framework, the business must have a system for appraising the degree to which it and its components are achieving the goals that have been set.

All organizations need to rear subordinates in a systematic manner, thus creating the basic condition for their own regeneration. I know of no family business capable of sustaining regeneration over the long term solely through the medium of its own family members.

Where there is conflict, or inadequately rationalized territories, members of the family should move up and out of operations as quickly as possible into policy positions. Such movement recognizes the reality of ownership but does not confuse ownership with management.

It also opens the opportunity for professionally trained managers to succeed to major operating roles, instead of having to go to other organizations as soon as they are ready for major responsibility. The more competitive the business situation, the more imperative such a succession pattern is.

More than others, the family members need to have their own outside activities from which they can derive gratification equal to what they can obtain in the company. Otherwise they will be unable to let go and will continue to be barriers to others. Moreover, they will make it difficult to recruit and develop young persons with leadership potential who, as they mature, will see the inevitable barriers.

A number of family businesses have handled these issues wisely and have become highly professional in their management. The Dayton-Hudson Corporation and E.I. du Pont de Nemours are examples. Family members in both organizations must compete for advancement on the same terms as nonfamily managers. This practice is reinforced, at least at Dayton-Hudson, by a thorough performance appraisal system which includes appraisal of the chairman and president by a committee of the board.

Concluding Note

It is very difficult to cope with the problems of the family business. That does not mean, however, that one should merely endure them. There is no point in stewing in anger and guilt, since chronic irritation is only self-flagellation. It solves no problems; it only increases anger and hostility and paves the way for explosion, recrimination, and impaired relations.

The family member can do something about such problems, as he can with any other. If reasonable steps to solve the problems do not work and he continues to feel bound to the organization, his problem is largely psychological. To free himself to make choices about what he wants to do, he must talk his feelings out with his rival in the organization, which is best done in the presence of a neutral third person. Sometimes professional help is necessary.

This will reduce sufficiently the intensity of the emotions generated by the problem, so that he can see possible alternatives more clearly and make choices more freely. That is better than the years of agitation that usually accompany such problems, unless of course the rival needs to expiate his guilt by continuing to punish himself. In that case, it is his problem and not necessarily that of the family business.

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