Wealth and Relationships: Power Plays in Family Business

Power and control affect every organization, but in family businesses, these dynamics are magnified by personal relationships and legacy. When family dynamics aren’t anchored in shared purpose, succession planning and decision-making can become battlegrounds—leading to friction, poor performance, and sometimes the loss of both wealth and relationships.

Estate planning is designed to take care of assets, not relationships. The lesson is clear: expert structures alone are not enough—families need a shared mission and trust to weather leadership transitions and preserve family unity.

Family-owned companies matter far beyond the kitchen table. Collectively, they generate more than $9 trillion in annual revenues and employ 30 million people worldwide. Their sustainability depends on balancing business performance with the expectations of family members. And it is not just businesses transitioning. Cerulli Associates now estimates $124 trillion will transition in the next 20 years. That is a lot of dynamics to navigate.

Through our work with families, we’ve identified four “fault lines” that commonly undermine family enterprises and successful wealth transition:

1.     Lack of trust. Only 30 % of family businesses survive into the second generation—and our research suggests that breakdowns in trust and communication are responsible for as many as 60 % of failures.

2.     Lack of shared purpose. Generations often bring different values, but alignment around a common mission provides clarity, stability, and a framework for cooperation.

3.     Control vs. care. Conflicts over money, power, and succession can sink a business when family members focus on control rather than stewardship. Where trust is absent, control rushes in to fill the gap.

4.     Cordial hypocrisy. Avoiding tough issues creates unspoken tension that erodes relationships and performance over time.

These issues aren’t inevitable — they can be repaired or avoided with intentional effort and focus on new ways of engaging each other. Families that invest in building trust, articulating shared purpose, and putting decision-making protocols in place often see a positive impact both in their business and in their relationships. That means:

·       Keeping commitments and delivering on promises to build credibility.

·       Publicly declaring and living the family’s mission and values.

·       Learning methods for feedback, conflict resolution, and difficult conversations.

·       Inviting inclusive decision-making so that everyone has ownership in outcomes.

We recently worked with a family stuck in intergenerational tension and indecision. Through facilitated dialogues, we guided them to co-create a clarity of roles, conflict resolution protocol, and shared purpose centered on social impact. With clearer roles and boundaries, each family member found a way to contribute meaningfully. Today, their business is stronger—and they’re making coordinated philanthropic contributions to their community.

The payoff is real. In fact, research shows that family businesses often outperform public peers during downturns, thanks to cohesion, long-term thinking, and resilience. Aligning around trust, purpose, and well-designed governance not only helps protect family wealth—but enables the family to be a stronger force for positive impact. In an increasingly volatile world, there’s no better time than now to address power dynamics in your family business.