Balancing family dynamics in a family business is tricky, needing a mix of respect, strategy, and innovation.
For many, the journey requires constant adaptation and communication, often within long-standing traditions and hierarchies.
As the second generation managing the family business, CEO and Director of Asia Green Group and Innovatif Plus Meeyydz Tan shared that many people think running a family business is easy. However, it is actually quite tough.
People who take over family businesses have to find a way to stick to what works while also trying new things. Meeyydz knows this well as her business related to real estate and timber industries has been around for over ten years.
“It’s not 100% that we have to change, but change is definitely important. Especially now, we are looking at different markets, so there are a few changes in terms of how we put them into place,” Meeyydz said at the Alliance Bank BizSmart Business Conference.
From enhancing the customer journey to adopting sustainable practices like moving to green buildings, the need for transformation is clear. However, balancing these changes with family dynamics can be challenging.
“It’s difficult, especially when a lot of family businesses are intertwined with personal relationships. Telling your father that he’s doing something wrong can be hard,” she shared.
So, here’s some advice from her on navigating the family business in the long run.
Hire third-party consultants to navigate hierarchies & facilitate change
Negotiating within a family business can be intricate due to the existing hierarchies and long-standing relationships.
Hence, bringing in consultants or third-party experts can add objectivity and facilitate smoother negotiations.
“Family relationships, especially in Asia, come with a hierarchical structure. Sometimes, the older generation might not be confident in new ideas from the younger generation,” said Meeyydz.
“Having a consultant who has been trusted by the family for a long time can help bridge this gap. It’s not coming from me, but from someone they already trust. It makes things easier.”
She added that working with consultants and key people in the company is also vital. They often bring in ideas and serve as a bridge between generations.
“Sometimes, speaking to relatives is difficult. Using a third party to convey your ideas can make things easier,” she empathised.
Build trust with long-term employees to help bridge the generational gap
Gaining the trust and confidence of family members and long-term employees often requires starting from the bottom and understanding the intricacies of the business.
“It took me 14 years to really grasp how the whole industry works, build trust, and work my way up,” she shared.
Not only that, managing employees who have seen you grow up can be another layer of complexity. “Some employees have been with the company long enough to remember me as a little girl,” she noted.
“Building trust takes time. It’s about being a leader who is both firm and empathetic.”
Balancing strict leadership with empathy is key to gaining the trust of long-term employees. “I’ve become the bridge between my father and the team. My father, as the founder, might not fully understand the working-class needs, so I step in to bridge that gap.”
Ultimately, navigating family dynamics in a family business requires a mix of understanding, respect, and strategic teamwork.
By embracing change, building trust through experience, and leveraging third-party input, family businesses can overcome interpersonal challenges and thrive in a competitive market.
- Learn more about the Alliance Bank BizSmart Business Conference here.
- Read other articles we’ve written about Malaysian family businesses here.
Featured Image Credit: Alliance Bank
