In the first article of a new series from the Family Firm Institute Virtual Study Groups, Paul Edelman and Nuria Lasheras Mayoral of the Mediation Group examine how a second-generation family enterprise used mediation to navigate a leadership crisis, repair strained relationships, and strengthen strategic decision-making.

Drawing on a real-world case, the authors illustrate how mediation can serve as a structured process that links relational repair with governance reform. The case highlights the practical role advisors can play in helping families move beyond entrenched conflict toward clearer roles, more effective boards, and sustainable leadership transitions.

Introduction

One brother stormed out of the family’s Mediterranean winery after yet another heated argument with his older brother and refused to return for weeks. The business ground to a halt, as did the relationships that sustained it.

In this case, the absence of a clear governance structure and succession plan—combined with long-standing, unresolved family conflict—made decision-making especially difficult.

The family eventually sought outside help to break the impasse.

This case derives from the mediation practice of Nuria Lasheras Mayoral, whose professional experience provided the foundation for the analysis presented here.

Case Overview

The Mediterranean winery had been run for decades by its founder, who made all major decisions himself. After his death, ownership passed to the next generation. Two brothers assumed responsibility for daily operations—one overseeing administration and the other commercial activities—while their sister remained a non-operating owner. In the absence of a succession plan or governance framework, decision-making quickly became contentious.

The roots of the conflict ran deep. The brothers had a strained relationship dating back to childhood, which undermined trust and communication within the business. Their sister attempted to mediate between them, both informally and through the board, but lacked the structure and skills required to resolve the conflict effectively.

Recognizing the need for change, the family engaged a professional mediator. This decision marked the beginning of a structured process—twelve sessions over approximately six weeks—that would ultimately reshape both family dynamics and leadership structures.

Beyond Agreements: Building Confidence

The mediation began with a joint session to introduce the framework, goals, and boundaries of the process. This was followed by individual sessions with each sibling, designed to surface personal concerns and perspectives. With one exception, all sessions were conducted online, which helped reduce the emotional intensity typically associated with early, face-to-face confrontations.

The initial focus was on the two brothers at the center of the conflict. The company was their sole source of income, and they had worked together for twenty-five years. Both recognized that the status quo was untenable, yet they needed support in learning how to understand one another and move forward.

One of the first practical steps was to reduce the risk of direct confrontation. The brothers alternated days on-site and adopted more structured forms of communication, including scheduled calls, virtual meetings, and written updates. These measures provided breathing room and established a predictable rhythm for coordination without triggering entrenched patterns of conflict.

A major breakthrough occurred during the sixth session, held in person at a hotel. The mediator led a communication workshop that included active listening exercises, assertiveness techniques, and training in managing emotions such as anxiety and anger. This focus on emotional regulation enabled the brothers to develop greater self-control and to depersonalize their interactions.

Over time, the brothers gradually resumed shared office time and formalized new communication rules. Weekly meetings held in a neutral setting created consistency and accountability. These incremental but steady changes built momentum and demonstrated that disagreements could be managed constructively.

Agreements Reached Through Mediation

The mediation process resulted in a set of concrete agreements addressing both immediate sources of conflict and longer-term governance challenges. Together, these agreements formed the foundation for renewed collaboration and strategic clarity.

1. Operational Reorganization and Role Definition

The siblings agreed to maintain separate offices to reduce friction and reinforce role clarity. Previously, when they shared an office, employees would raise issues with one brother while the other overheard and intervened—often on matters outside his area of responsibility. This dynamic blurred accountability and fueled unnecessary conflict.

Physical separation clarified authority and decision-making channels for staff. Weekly meetings in a neutral location ensured alignment without undermining defined responsibilities, while a formal review of roles and responsibilities further strengthened teamwork.

2. Governance Reform

The family agreed to implement the following governance practices:

• Regular quarterly meetings, scheduled in advance and held as planned except in cases of force majeure
• Meetings conducted off-site, with an approved budget and shared lunch
• A predefined agenda covering investments, opportunities, outlook, strategy, and performance results
• A review of each sibling’s role on the Board of Directors
• Advance distribution of documentation and formal minutes for follow-up
• The mother stepping down from the Board, while remaining a member of the Shareholders’ Assembly

3. Future Commitments

Beyond resolving the immediate conflict, the family also committed to two longer-term initiatives:

• Participation in family therapy to address unresolved emotional issues stemming from childhood
• Development of a formal succession plan to ensure leadership clarity for the next generation

Stronger Family Relationships, Better Strategic Decisions

With communication stabilized and agreements in place, the focus of mediation shifted from crisis management to building a durable foundation for long-term success. The siblings came to recognize that their father’s centralized leadership style had left them ill-prepared for shared decision-making.

They also acknowledged that the Board of Directors had not functioned effectively. Although formally composed of four members, their elderly mother had never actively participated, leaving the siblings to make decisions on their own. In practice, their sister often found herself mediating between her two brothers. This fragile dynamic was further strained when the board approved two major initiatives simultaneously—an ERP system change and a vineyard expansion—creating significant financial and operational pressure.

Ultimately, the siblings agreed to restructure the board so it could function as a forum for thoughtful, consensus-driven strategic decision-making, with their mother remaining solely in the Shareholders’ Assembly. This shift marked a move away from reactive choices toward a more deliberate, forward-looking governance approach.

By the end of the process, the family was functioning effectively and with a shared focus on the future. Mediation proved to be a catalyst for strengthening family relationships, reforming governance, and preparing the enterprise for succession.

As one brother reflected at the conclusion of the process, mediation had been more than a means of resolving conflict; it marked the beginning of a better journey together into the future.

Insights for Advisors

Key lessons for advisors supporting families through conflict include the following:

• Create safety first. Families engage more openly when they feel respected and protected from immediate confrontation.
• Use structure to lower tension. Sequenced steps—individual conversations, joint sessions, and clear protocols—make difficult dialogue manageable.
• Clarify roles. Boundaries such as separate offices and defined responsibilities reduce conflict and reinforce accountability.
• Build on small wins. Modest agreements, such as neutral-site meetings, create momentum and reshape expectations.
• Link relationships and governance. Improved trust enables structural reforms, including professionalized boards and succession planning.
• Position mediation as a strategic tool. Mediation can open the door to future-oriented decisions involving additional professionals, such as family therapists or family business consultants.

Conclusion

This next-generation family enterprise entered mediation in crisis. A sibling conflict had halted both communication and operations. Over twelve sessions conducted in just six weeks, the mediation restored day-to-day functioning and produced concrete agreements that reshaped how the family worked together.

Operational changes—including separate offices and neutral-site meetings—reinforced role clarity. Governance reforms professionalized the board, establishing stronger decision-making structures for the future. Commitments to therapy and succession planning pointed toward deeper work beyond the mediation itself.

Through dialogue, incremental agreements, and intentional relational repair, the siblings rebuilt trust and confidence in working together. Beyond resolving conflict, mediation became a platform for strengthening governance, preparing for leadership transitions, and laying the groundwork for sustainable growth.

For family enterprises, conflict often signals the need for deeper change. When approached thoughtfully, mediation equips families with both the skills and structures necessary for lasting stability. In this case, renewed trust, clarified roles, and reformed governance emerged as durable assets—enabling the family to make high-stakes decisions together and carry their legacy forward.

Mediation gave this family the clarity and confidence to lead together and plan for the future.

About the Contributors

Nuria Lasheras Mayoral is a family business consultant and mediator specializing in family governance. Working from a systemic approach, she strengthens family cohesion by guiding business-owning families in positive communication, consensus-based decision-making, and conflict resolution. Her work focuses on building governance structures and transition plans that prevent disputes and support long-term continuity.