Myth or Fact: In-laws are Outlaws

One of the challenges of a family in business is for family relationships not to get in the way of business growth. As a family in business, it is given that family conflicts usually lead to family business conflicts.

Thus, there is a need to manage family relationships for the family businesses to sustainably grow without the disruption of family conflicts.

It is a common story among family businesses that issues regarding in-laws are a sensitive topic that can potentially disrupt the good family relationships. Although in-laws may be warmly welcomed into a family, they may hold a tentative position in the family business.

This may be due to the fears surrounding in-laws: that they will influence the family member spouse to be self-interested rather than for the interest of the common good; that they bring conflicting values to the family; that their marriage will not be successful.

With these fears, many family business members ask the questions: Should in-laws be involved in the family business? If so, how can we avoid conflicts in the business from seeping into the family?

Consider the case of Prime Distribution Company, where the second son’s wife (in-law) works as Area Manager for the eldest brother, who is VP in sales and marketing division.  The brothers have always had some sense of competition but it never escalated to a full blown conflict.

Not until the eldest brother, as VP, terminated his brother’s wife, an Area Manager, for failure to reach the expected sales quota in her area. This triggered the brothers conflict that will soon escalate to one family branch distancing or even getting into a legal battle on how to divide the business.

It is possible that issues regarding in-laws can lead to family conflicts. And it is these type of stories that have fueled the myth that in-laws are outlaws.

But, is the reality of the negative effect of in-laws an absolute in all family businesses?

What about the other family businesses who have successfully integrated their in-laws into the family business leadership?

Take the example of the Ayala group, who have recognized that an in-law, Col. Joseph Mcmicking, made a vital contribution to their real estate development. Or take the family owned company, Walmart, who have appointed a son-in-law to be vice president.

This makes us ask the questions:

• What makes an in-law thrive in the family business?
• How can a family business resolve possible issues in order to successfully integrate the in-laws in the family business?

And so, are the fears surrounding in-laws supported by fact or just a myth?

In the 2018 Family Enterprise Excellence conference on September 28-29 in Marco Polo Hotel Cebu City, Professor Roger King of  Tanoto Center for Asian Family Business and Entrepreneurship Studies shall challenge the belief that “in-laws are outlaws” as he shares his personal experience on being a successful in-law in a Hong-kong based family business.

One of King’s topic is “Monetizing the Family Business: the influence of an in-law”

Join other family businesses in this conversation at the Family Enterprise Excellence Conference 2018 or visit the website www.familyenterpriseconference.com.

You can register now.