RECRUITMENT

WELCOME
By David Pring
Welcome to this month’s family business feature. As the national gold sponsor of
Family Business Australia, KPMG was delighted to be part of their annual conference
for the 11 th consecutive year. This month’s feature includes a summary
of the conference highlights. Good communication in family businesses is the
BF
FAMILY
BUSINESS
WESTERN SYDNEY
topic of our second article this month. Following on nicely from that theme is an article
on family meetings and the challenges of getting them right so that they are effective. As
always, if you’d like to discuss any of the topics in this month’s feature please feel free to
contact me directly on 9455 9996 or da vidpring@kpmg.com.au.
Rating your FB communication
FEEDBACK
WHEN assisting family businesses to
resolve their issues, we often interview
family members and pose the question:
How would you rate the level and quality
of communication amongst family members?
Recent interviews with two brothers in
one family business elicited these responses:
“Things are only communicated on a
need-to-know basis or unless it is a personal
grievance which then manifests in an
argument or disagreement.”
“It has been difficult. I would say 6 (rating
from 1 to 10) but everyone is walking
on eggshells. If we aren’t talking about
work it is more like an 8.”
Miscommunication is a common issue in
family businesses. Sure, it can be an issue in
any business; however where family businesses
differ is the layer of emotion, familiarity and
family dynamics that come with conversations
and decision making.
When asked about communication,
family members are proud to report that “yes,
we talk all the time”. But when you scratch
below the surface, a different picture emerges.
Yes they talk, but have difficulty communicating
effectively about issues that concern
them and do not have the means of separating
family, business and ownership issues… they
are muddled together.
So what is the answer? In the interests of
maintaining harmony, some families fall into
the trap of using the ‘silent treatment’.
For example, the first generation family
owner won’t discuss leadership of the business
in the next generation of future ownership.
The issue isn’t resolved; it just simmers below
the surface, creates tension and builds to a
head over time.
“I will inherit this business but our
future direction is unclear…it’s all in dad’s
head.” (Quote from second generation family
member).
“What am I working towards? I have my
own aspirations” (Quote from second generation
family member).
On the issue of silence, many family members
wrongly conclude that silence equals
agreement.
When no one in the family voices disagreement
to an idea or plan, some family
members assume everyone else is on side.
“Things are only
communicated on a needto-know
basis or unless
it is a personal grievance
which then manifests in an
argument or disagreement.”
In this scenario different family dynamics
are at play: the first born family member
assuming they are the decision maker for the
family; the passive family members who want
everyone to be happy; the family member
seeing it as a sign of disrespect to question the
family business founder who has provided the
family with so much; or the family business
leader who is sensitive to other family members
asking questions, seeing it as a sign of mistrust.
KPMG’s role is often focused on assisting
the family to make a progressive shift from
‘talking all the time’ to effective communication.
Here is some food for thought:
Effective communication is the sending
and receiving of messages. However, often we
focus more on the sending part: ‘we need to
communicate more’ is misconstrued as meaning
‘we need to give more information’. But to
foster effective inter-personal communication,
attentive listening is paramount.
Listening is greatly facilitated when the
message is transmitted in a proper manner.
The message is often lost due to the familiarity
of family member relationships i.e. “oh they
aren’t arguing, they always deal with each
other like that”.
Mean what you say – be open and
transparent with respect to your intentions,
motivations, views and reasons for taking a
certain position on an issue.
Robust debate between family members
with differing views can be a good thing provided
it is constructive and respectful.
Engaging family members in some key
decisions not only improves the quality of the
decision, but also enhances the satisfaction
and motivation of all concerned – even when
the decision taken is not necessarily favourable
to them.
Tension and disagreement amongst
family members on family related business
issues and ownership is ‘normal’, if not
inevitable, regardless of how harmonious the
family is.
The key is how the family effectively communicates
to address the issue so it doesn’t
become deep-seated and cast a cloud over
family relationships and decision making in
the family business.
Learning to better communicate is a fundamental
element for family business success.
17 th Annual Family Business Conference
SUCCESS
THE 17 th annual FBA conference, held on
the Gold Coast last week, was attended by
over 400 delegates from across the country.
Family businesses really are the backbone
of the economy and it’s at this conference
where that fact becomes clearly evident.
The conference included a presentation
from Kirsten Grant Meikle of William Grant
&Sons, Glenfiddich Distillery – a 125 year
old fifth generation family owned business;
what an amazing success story.
Dr Lee Hausner, an internationally renowned
psychologist who works with family
businesses spoke about how to articulate a
collective vision and aspiration for the future
which can be embraced by all family members.
Sally Paech of Beerenberg spoke about
the success of the company’s rebranding
exercise and KPMG’s Dominic Pelligana gave
a great presentation with the title ‘Are you
equipped to navigate your family business in a
Volatile, Uncertain, Complex and Ambiguous
(VUCA) environment?
KPMG was pleased to again host the Next
Generation dinner, an opportunity for those
who will in time lead Australia’s leading family
businesses, to come together, network and
share experiences.
The conference wrapped up with KPMG
hosting the Distinguished Family Business
of the Year award dinner, this year’s recipient
was Charles Parsons.
The business, now celebrating its
centenary, was founded in 1915 by Charles
Leslie Parsons. Charles Parsons and
Company remains a privately owned 4th
generation family business with a proud
heritage and diverse expertise in textiles
and fabrics.
Commencing in 1915 supplying fabrics
to suit manufacturers, Charles Parsons has
expanded across almost every category wherever
fabric or textiles are used. Congratulations
to this iconic family business.
Thinking
Beyond
today
Are you thinking
beyond today?
So are we. Talk to KPMG.
kpmg.com.au
© 2015 KPMG, an Australian partnership. All rights reserved.
WESTERN SYDNEY BUSINESS ACCESS SEPTEMBER 2015
19