Family firms with a well – developed capability for managing paradoxes are very adept at accepting – even appreciating – the tension contained in the two seemingly opposing sides of the paradox. They understand that this tension contains useful energy that can be harnessed to bond the family and propel the business.

No two things are as closely related as opposites: hot and cold, love and hate, war and peace. The study of contradiction over the centuries has cut across many areas of thinking, including philosophy, science, and mathematics. For further information and insights regarding historical paradoxes, see Appendix A, “Historical Perspective on Paradox.”

Georg Wilhelm Friedrich Hegel, the nineteenth – century German philosopher, asserted a then – controversial approach to philosophy and history, a perspective still highly relevant today. In Hegels view, Change was the rule of life. Every idea, every force, irrepressibly bred its opposite, and the two merged into a “unity” that in turn produced its own contradiction. And history was nothing but the expression of this flux of conflicting and resolving ideas and forces.Whether or not we agree with Hegels view of history as a naturally dialectical process, his central insight is useful in managing paradoxes.
Inherent to paradox is contradiction, which begs the question of whether two seemingly opposing forces, when addressed together, can be integrated, synthesized, and in some cases even fused for the long run. Before answering that question, its important to understand its implication: that in the long run, contradictions can be integrated, or in some cases fused. Underlying this notion is the idea that over an infinite – or at least very long – time horizon, contradictions no longer seem to exist, as their opposing sides can meld together.

In the short run, however, real tension points are experienced as contradictory forces push and pull from both sides of the paradox. As mentioned earlier, the key is to recognize this tension and use it as an advantage, keeping in mind that over time, this tension, or these opposite forces, have the potential of resolving themselves and even of becoming mutually supportive. This is the potential power of the contradictions within a paradox.

A recent Harvard Business Review article presents a compelling example of how actively managing contradictions can lead to superior results. The article, “The contradictions that drive Toyotas success,” describes a company culture that is at once “stable and paranoid, systematic and experimental, formal and frank,” and concludes that Toyotas historical success is in large part due to “its ability to embrace contradictions like these.” In other words, Toyota uses the tensions created by opposing ideas, or contradictions, to generate new and innovative ways to deal with the issues it faces.15 Figure I.2 highlights several of the contradictions noted, in the form of paradox, that fuel Toyotas innovation.

The article confirms that “Toyota deliberately fosters contradictory viewpoints… and challenges employees to find solutions by transcending differences rather than resorting to compromises.” This approach is a radical departure from how most businesses are run. Moreover, this transcending of differences is the key to fusing a paradox, or melding its seemingly opposite sides. The article goes further to suggest that “companies have no choice but to embrace contradictions as a way of life,” and “develop routines to resolve contradictions.” These conclusions are true for all businesses. But they are especially true for family businesses, as family firms have lived the fundamental paradox of family and business daily, since the business began.

 WHAT LIES AHEAD

This books ultimate goal is to enable family business leaders and supporters to build the capacity and capability to appreciate and manage paradoxes. That means:
having the awareness that paradoxes are a different sort of problem.
being able to tolerate and even embrace the ambiguity and uncertainty associated with the contradictions imbedded in a paradox.
developing the capabilities to manage paradoxes.
This is reflected in the books more specific objectives and structure, as outlined below.
To help readers understand that interest in paradoxes is not new. Paradoxes have been studied through most of history and discussed in depth in modern business contexts. They are recognized as key factors in success, especially in times of great change. (Appendices A and B)

To recognize that family business is a paradox in and of itself, and that family firms are filled with paradoxes that must be managed actively, rather than solved.
To take an in – depth look at one paradox that poses particular challenges – and opportunities – for family businesses: the paradox of tradition and change is found in all organizations, but has special significance for family enterprises. To identify the special challenges family businesses face in the form of paradoxes, by listing a set of classic conflicts and paradoxes that are predictable, pervasive and persistent. These challenges emerge from:
- The generational evolution of the business
- The interaction of the three main subsystems in family businesses – family, management and ownership.
To introduce methods and tools to manage the continuum of paradox options from Either/Or to Both/AND ends of the spectrum.
To explore some of the components of family and business cultures that are most conducive to the management of paradoxes.
To make the argument that, with curiosity and practice, family businesses can harness the tensions and conflicts from paradox – based contradictions to strengthen family bonds and propel business success.
The book is organized into four parts. Part I details why family businesses are uniquely positioned to address paradoxes and to reap their benefits. Part II identifies what paradoxes will likely be encountered as generations transition and as the family – manager – owner system evolves. Part III shows how to manage paradoxes with specific frameworks and tools. Part IV, the Conclusion, considers when the culture of a business and of a family is most supportive of successful paradox management.