Analysis: As the Gallagher brothers have shown again and again, there's a lot of pressure and strife when it comes to working with family members
Working with family members is the norm in every culture, country and sector. The oldest family business in the world, a Japanese hotel Hoshi Ryokan, has been run by the same family since 718. That's 46 generations of the same family working together for centuries.
But despite their global and national economic dominance, the statistics on failure of family businesses are pretty stark with only 30% of family businesses make it to the second generation, 10-15% make it to the third generation and 3-5% make it to the fourth generation. Reasons for such failure rates include succession planning and conflict in family businesses, with sibling rivalry in adulthood also a contributory factor.
Sibling rivalry is very much in the news currently with the Gallagher brothers putting their differences aside to embark on what will be a very lucractive Oasis reunion tour. Media reports suggest their mother, Peggy, played a key role in mending the rift and their return to a partnership.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
From RTÉ Archives, Niamh Nolan reports for RTÉ News on Oasis' headline show at Slane Castle in 2009 in front of 80,000 revellers
This is not surprising as matriarchs are often described as the emotional glue that binds the family together. The sibling relationship has been described as the most enduring of all familial relationships. After all, who else shares the exact social background and upbringing as you?
Sibling rivalry is deemed a normal feature of family life and is often associated with the struggle for parental attention, affection and approval. It is something anyone with siblings has experienced. The nature of the sibling relationship in adulthood is very complex, and past rivalry in childhood and adolescence can affect the sibling relationship. When sibling rivalry in adulthood spans family and, in the case of Oasis, their business and becomes a source of conflict, it can be detrimental.
Research shows that family-related conflicts frequently result in damaging organisational outcomes such as poor decision making, high nonfamily employee turnover, and reduced firm performance. In extreme cases, these conflicts can lead to the demise of a family business orm in the case of Oasis, a hiatus of 15 years. There are many mythological, historical and literary examples that highlight the severity of sibling rivalries, such as Cain and Abel or Romulus and Remus. The intensity of rivalry between the Roy siblings as they strive for their father Logan’s love and attention in the hit TV drama Succession has captivated millions of viewers, highlighting the role of parents in managing sibling rivalry.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
From RTÉ Radio 1's The Business, Eric Clinton from DCU's National Centre for Family Business and Vincent Carton, former CEO of Manor Farm, on how to avoid sibling strife when it comes to succession planning for a family business
The role of parents is crucial for the quality of the sibling relationships during childhood. Parental attitudes and behaviour exhibited through constant sibling comparisons, contrasts and inferences can have a profound effect on whether rivalry will be cultivated among their children.
Dysfunctional parental attitudes and behaviours, such as stereotyping or incessant preferential treatment, can lead to hostile sibling rivalries in childhood. Children can develop feelings of competitiveness over parental love and attention and extreme resentfulness, if they do not get their way. If this continues into adulthood and spills over into a business relationship, it can be very damaging to both the family and the business.
Is it all bad news for those working with family members? Although working together may be plagued by conflicts, research has indicated that family-related conflicts involving contrasting viewpoints and opinions among business family members may fuel productive debates and aid strategic planning. Family-related conflicts can be managed so that the conflict process is less destructive, and the conflict outcome is more favourable.
We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
From RTÉ Radio 1's The Business, advice from family businesses about how the handover works between generations
In a recent all-Ireland study of succession intentions of family businesses, almost half of respondents indicated that they had seriously considered taking over their family business. Most respondents report positive wellbeing and positive emotions and feelings in relation to their family business and posses a strong sense of emotional attachment.
Can this sense of positivity be maintained once the next generation enters the business? Parents should avoid generating perceptions of preferential or unfair treatment and distribute tangible and intangible resources fairly, in the sense of acknowledging and celebrating their offspring’s individual differences and individual needs. Allowing siblings to manage their differences and roll with it without parents becoming too entrenched in childhood squabbles should serve the next generation well into adulthood. Building up a sense of trust and fairness among the next generation is crucial.
Follow RTÉ Brainstorm on WhatsApp and Instagram for more stories and updates
The views expressed here are those of the author and do not represent or reflect the views of RTÉ
