This case study is a follow-up to my earlier blog, "Overcoming Challenges in Family Enterprises: Insights from Within and Beyond.

The Paska Group⁽¹⁾, based in Mexico, is a family-owned business conglomerate with a rich history spanning over five decades. The family's core business is textiles, with interests in other sectors. The group has successfully navigated the challenges of maintaining family values while growing and diversifying the business.

However, in recent years, the family and the business faced a growing conflict that threatened to tear them apart. Several family members who worked in the company felt they were not given enough opportunities to contribute to its growth and decision-making process. They believed their ideas were being ignored, and the family members who held key positions in the company were not interested in hearing their opinions.

The conflict between the family and the business reached its boiling point when two family members who worked there decided to leave and start their own textile manufacturing company. This move was seen as a betrayal by the other family members, who felt that the departing family members were not loyal to the family business.

To resolve the conflict, the family held a series of meetings to discuss the underlying issues. They agreed to bring us in to help them identify the root causes of the conflict and facilitate the discussions. We helped the family members recognize that the issues causing the rift were related to a lack of communication, trust, and clear roles and responsibilities within the business.

Based on our conversations, the family decided to implement several changes to address these issues, starting with establishing a Family Council, which comprised representatives from all branches of the family. The council handled the family's concerns, discussed business strategies, resolved potential conflicts, and ensured all family members had a voice in the process. The family also decided to improve communication between family members and establish clear channels for sharing ideas and feedback.

To further strengthen the family's commitment to their core values, the Paska Group developed a Family Charter outlining the shared values, principles, and policies governing the family and the business. This charter served as a guiding document to ensure the alignment of the family's values with business objectives.

In addition to the Family Council and the Family Charter, the Paska Group implemented a mentoring program for the younger generation of family members. This program provided guidance and support to help them understand the intricacies of the business and the importance of upholding family values.

Additionally, the family agreed to establish clear roles and responsibilities for family members working in the business. This would ensure that everyone knew what was expected of them and would prevent conflicts over decision-making.

By working together and committing to finding solutions that were in the best interest of the company and the family as a whole, the family members were able to rebuild trust.

Outcome

The family's commitment to addressing the underlying issues and building trust and communication helped them come together to ensure the long-term success of their business and preserve their family ties. Family members who had left the company returned, and the family was able to work harmoniously to make decisions and move the company forward.

As a result of these initiatives, the Paska Group has maintained its family values and culture and continues to grow and thrive in a competitive business environment. Today, the group is managed by the third generation of the family and is well-positioned for future growth and success.

Note:

(1)  The company name, industrial sector, and country are invented for privacy reasons