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Family Enterprise / Governance & Mediation

The Family Business That Mistook Sentiment for Strategy

Racine, Wisconsin

Situation

Three generations of one family, one manufacturing company — and zero alignment. The business was profitable on paper but emotionally bankrupt in practice. Board meetings felt like therapy sessions without the breakthroughs. Every conversation circled back to inheritance, favoritism, or a decision Grandpa made in 1983.


The third generation had joined the company with ambition and modern ideas. The second generation still held the keys — literally, the office keys — and operated by instinct, tradition, and grudges. The first generation, semi-retired, served as a ghost in the boardroom, invoked whenever anyone wanted moral cover for doing nothing.


What had once been a tight-knit legacy brand was now a slow-motion standoff.


Challenge

They didn’t need new spreadsheets — they needed new rules of engagement. Personal history had overtaken corporate logic. Every proposal was interpreted as a betrayal. The siblings and cousins couldn’t separate ownership from identity.


The challenge wasn’t just to stabilize the business — it was to stop the emotional freefall. The family’s accountant quietly warned that if they didn’t formalize structure soon, succession disputes could fracture the company before the next fiscal year.


Approach

Clarity Consulting entered as both translator and referee.


Step one: map the alliances. We charted who trusted whom, who feared whom, and who quietly ran the show despite not having the title. It became clear that “tradition” was often just nostalgia weaponized.


Step two: reframe the story. We turned “legacy” from an excuse into a mandate. The narrative shifted from “what Grandpa would’ve wanted” to “how Grandpa would’ve prepared.” That subtle linguistic pivot changed everything — from guilt-driven maintenance to future-driven stewardship.


Step three: design the governance. We built a transparent decision-making framework with a rotating chair, formal voting protocols, and an external advisory board. Personal grievances were moved off the agenda and into private mediation. Each member received defined roles and measurable responsibilities, not emotional ones.


Results

Within six months, meetings stopped feeling like family court. A new COO (from outside the family) was unanimously approved — a first. The business, once paralyzed by sentiment, made its first strategic acquisition in a decade.


The real win wasn’t financial; it was emotional. That Thanksgiving, they all sat at the same table without a walkout. No one mentioned EBITDA — or Grandpa’s will.


Takeaway

Family businesses don’t implode because of money — they implode because of memory. Strategy starts when history stops being the agenda.


Jeff Donahue

847-612-1001

donahuejd@gmail.com

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