Case study: Mediation resolves succession conflict in a family business
Family mediation resolved a succession conflict in a medium-sized company by taking individual visions into account and leading to an accepted succession plan that strengthened trust within the family.
Order
In a medium-sized family business that has been manufacturing textile products for generations, a serious conflict arose over succession planning.
With the impending retirement of the current managing director, a member of the founding family, differences of opinion emerged among the potential successors.
The family opted for mediation in order to find an amicable solution and ensure the continued existence of the company.
The challenge
The main players in this conflict were the managing director’s three children, who all had different visions for the future of the company.
The eldest son wanted to modernize and internationalize production, the middle daughter focused on sustainability and local production, and the youngest son tended to withdraw from the operational business and was primarily interested in financial aspects.
In addition, the deep-rooted family ties and the emotionally charged atmosphere made discussions more difficult, as old conflicts and rivalries resurfaced.
Course of the mediation
The mediation process began with one-to-one meetings in which the mediator, an expert with extensive experience in family businesses, gave each family member space to present their perspectives and concerns without interruption.
This phase helped to promote mutual understanding and identify the real issues at the heart of the conflict.
Joint meetings were then held in which the various interests were openly discussed in strict confidentiality and with targeted questions from the mediator.
In these sessions, the family members worked actively to find joint solutions.
The mediator guided the family through a structured process in which a joint plan was developed step by step.
This plan included both short-term solutions for the transition phase and long-term strategies for the future management of the company.
Effects
At the end of the mediation process, a detailed succession plan was agreed upon by all.
This plan respected the individual strengths and interests of each family member, with the eldest son taking on the role of CEO, supported by his sister in leading the sustainability initiatives, while the youngest son decided to assist the company in an advisory capacity only.
The successful mediation led to improved communication and increased trust within the family, setting the company up for a stable future.
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