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Family Business Therapy: From Founder Pairs to Dynasties

Written by
Tom Skotidas
Published on

In my work as a family business psychotherapist, I work with founder pairs of two and dynasties of thirty. The emotional patterns are the same: fear, shame, and sadness driving protective behaviours that govern every interaction.

What changes is the structural complexity the pattern hides inside. A pattern between two people is visible immediately. The same pattern inside a family of twenty hides under governance, alliances, and corridor conversations.

At every size, I work alongside governance advisors, not instead of them. The advisor manages the structure. The psychotherapist works with the people inside it.

Note: what follows are simplified illustrations of my clinical work and should only be undertaken with the guidance of a trained psychotherapist.

A Family Business of Two: Founder Pairs

The Challenge

In this family size, there is no third party to absorb the tension. Every unresolved pattern sits between two people with no buffer. If the relationship ruptures, there is nothing to catch it.

When two people have not developed the capacity to manage their emotions separately, they react to each other more intensely (Willis et al., 2021). With no one else in the room, there is nowhere for that intensity to go.

"When it's just us in the room, there's nothing to distract from it. If we're not okay, the business is not okay."

The Interventions

For individuals: Each person sits opposite an empty chair representing the other. I guide them through each emotional lens: fear, sadness, shame, and joy, asking what they feel physically as they speak. This approach has strong empirical support for resolving long-held relational patterns (Greenberg & Malcolm, 2002). I also invite the client to coach me into their partner's voice, then I speak it back in character. The client now faces the pattern directly, with a therapist who can hold what arrives.

For dyads: Once both have built resilience through individual work, I bring them together. I am present in the room, attuned to the moment the pattern fires between them. I name the switch as it happens, and invite each person to speak from their primary emotion rather than the protective behaviour (Johnson, 2004). I also invite each person to coach the other: "If he could do one thing right now that would tell you he sees you, what would it be?" The partner then practises it in the room, not as a concept but as a lived experience.

I will also bring myself into the frame as data when it is useful. If I notice my own response to the dynamic, I share it:

"I want to share something. I may be wrong, but as the two of you spoke just now, the room shifted when you named the fear instead of the criticism. What comes up for you hearing me say that?"

What they say in response is often more useful than anything they reached on their own. The pattern has been named from outside it. I explore this approach further in my article on what family business therapy actually is.

A Family Business of Three to Five

The Challenge

Triangulation usually forms the moment a third person enters the family. Two experience tension. One recruits the third to carry a message, take a side, or absorb the anxiety. Bowen (1978) identified the triangle as the smallest stable unit in a family emotional system. Coalition theory confirms that in a triad, two members predictably ally against one (Caplow, 1968).

In a family business, the "odd person out" position often becomes fixed rather than rotating. One person absorbs the exclusion permanently. Important voices get silenced. Veto deadlocks wear down trust.

"I never speak to my brother directly about money. I tell Mum. She tells him. We've done it this way for twenty years."

As the family grows from three to five, childhood roles harden into business roles. One sibling carries the operational weight because they were always "the responsible one." Another holds equity but is overlooked in governance.

Sub-groups form. Insiders develop a shared language outsiders cannot access. Research on the three-circle model confirms that these overlapping roles create structural ambiguity that amplifies conflict (Tagiuri & Davis, 1996).

The Interventions

For individuals: I set up empty chairs representing the other family members. My client speaks to each from their primary emotion, then sits in each chair to experience the dynamic from the other positions. This reveals which relationship carries the most fear and which is being used as the escape route. When the client can feel the dynamic from each corner, the pattern loses its invisibility.

For families: I bring the family together and name the routing as it happens: "You just turned to your mother instead of saying that to your brother. What felt dangerous about saying it directly?" I hold the space the third party used to fill. I stay with the discomfort rather than letting the family recruit its usual buffer. I also take the family through a structured cycle of emotions: anger first, then fear, sadness, shame, finally joy and gratitude. The receiver shares only the primary emotion that landed. Each round reveals something the governance meetings have never touched.

For dyads: The key pair that needs focused work typically emerges from the family session, not before it. Once visible, I bring those two together and help them speak directly from primary emotion, without the third person to absorb the tension. The work is slower here because both are practising something they have avoided for years. Direct contact. I explore this pattern in my article on triangulation in family business.

A Family Business of Six to Nine

The Challenge

Multiple generations enter the room. In-laws, non-family executives, and long-serving advisors become part of the family's emotional world whether they hold a title or not. The people with the most emotional influence often hold no formal role.

Cross-generational coalitions develop frequently at this size (Minuchin, 1974). A parent allies with one child against another. A senior generation member bypasses formal governance to influence decisions through a favoured next-generation member. These coalitions violate the boundaries the governance was designed to protect.

"My brother's wife doesn't sit on the board. But nothing happens in this business without her opinion first. No one will say that out loud."

The Interventions

For individuals: Individual sessions remain the entry point. At this size, geography can make weekly in-person sessions with every member impractical. I use online sessions to maintain therapeutic contact with members in different cities, and phone-based sessions for members who are travelling or working remotely.

For families: I invite each member to name one specific behaviour they need to see from the others. Not a feeling or an attitude, but a visible, practisable behaviour. I then ask the receiver whether the request falls within their core values and the person they want to be. If it does, they accept it. If it violates who they are, they may reject it. Once confirmed, the new behaviours are practised in the room.

For dyads: Key pairs emerge from the family sessions. I am present to the pattern between them, name the switch as it happens, and invite each person to speak from their primary emotion. These sessions can be delivered online when geography requires it.

A Family Business of Ten or More

The Challenge

Research confirms that complexity increases non-linearly as generations and branches multiply (Gersick et al., 1997). At this scale, formal governance typically exists: family councils, shareholder agreements, advisory boards. The governance is well-designed. The emotional reality of the family ignores it.

Informal hierarchies and silent coalitions develop beneath the governance structure. Some members withdraw while others dominate. Consensus becomes performative. People agree in the meeting and disagree in the corridor. Real decisions are made by alliances that predate the governance and operate outside it. At dynasty scale, the "family" becomes an institution. Members may share a surname and a governance structure but barely know each other.

"We have a family charter. We have a code of conduct. And every Christmas, the same two cousins refuse to be in the same room."

The Interventions

Vulnerability is unrealistic at full-family scale. Very few people will access primary emotion in front of thirty. The work happens in concentric rings, each ring creating the safety for the next.

For individuals: Individual therapy comes first. I introduce sociometric mapping at this size, a structured relational mapping technique developed by Moreno (1953). I adapt the method for geographically dispersed families by distributing a structured questionnaire via email. Who do you rely on for key decisions? Who do you avoid? Who would you approach first in a crisis? The responses are mapped into a visual diagram revealing the architecture beneath the formal governance: alliances, exclusions, and the pathways that actually govern the family. The data identifies which individuals are most distressed, most relied on, or most avoided. I work with them online to build resilience and prepare them for what follows.

For dyads: The sociometric map often reveals relationships the family itself had not identified as the source of disruption. I am present to the pattern between them, invite direct communication from primary emotion, and help them rescript the interaction that has been governing their branch for years (Giacomucci, 2021).

For larger groups: I supplement individual and dyad work with psychotherapy-informed relational workshops designed for larger family groups. These workshops build emotional awareness, practise direct communication, and surface patterns that governance meetings cannot reach. They can be delivered in person or via secure video.

Why This Matters

The pattern is the same at every size. What changes is where it hides.

Better governance does not resolve the pattern at any scale. The pattern yields only when it is fully seen, by the people running it.

The advisors you work with are equipped to build governance for any size family. Family business psychotherapy works at the relational layer beneath it, whether there are two people in the room or two hundred in the family.

I hope you find this helpful.

References

  • Bowen, M. (1978). Family therapy in clinical practice. Jason Aronson.
  • Caplow, T. (1968). Two against one: Coalitions in the triad. Prentice-Hall.
  • Gersick, K. E., Davis, J. A., Hampton, M. M., & Lansberg, I. (1997). Generation to generation: Life cycles of the family business. Harvard Business School Press.
  • Giacomucci, S. (2021). Social work, sociometry, and psychodrama: Experiential approaches for group therapists, community leaders, and social workers. Springer. https://doi.org/10.1007/978-981-33-6342-7
  • Greenberg, L. S., & Malcolm, W. (2002). Resolving unfinished business: Relating process to outcome. Journal of Consulting and Clinical Psychology, 70(2), 406–416. https://doi.org/10.1037/0022-006X.70.2.406
  • Johnson, S. M. (2004). The practice of emotionally focused couple therapy (2nd ed.). Brunner-Routledge.
  • Minuchin, S. (1974). Families and family therapy. Harvard University Press.
  • Moreno, J. L. (1953). Who shall survive? Foundations of sociometry, group psychotherapy and sociodrama. Beacon House.
  • Tagiuri, R., & Davis, J. A. (1996). Bivalent attributes of the family firm. Family Business Review, 9(2), 199–208. https://doi.org/10.1111/j.1741-6248.1996.00199.x
  • Willis, K., Miller, R. B., Yorgason, J., & Dyer, J. (2021). Was Bowen correct? The relationship between differentiation and triangulation. Contemporary Family Therapy, 43, 1–11. https://doi.org/10.1007/s10591-020-09557-3

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