Case study: mental illness at the top

Nation's Business, Jan, 1997 by Scott W. Kunkel, Louisa W. Frederiksen

At first Ron Russell, 62, appears to be very much in control. His 6-foot-4-inch frame, dark hair, dark eyes, and commanding voice make him an imposing force not only in the Russell family but also in the Russell Development Co. His wife, Linda, 60, and his son, William, 36, know just how imposing he can be.

Ron is bright and articulate, and when he is on medication, only his family knows he suffers from bipolar disorder, or manic-depressive illness.

"He has kept the condition hidden from others, but his mood swings are getting more and more frequent," says Linda. Sometimes he refuses to take his medication. Then he becomes increasingly agitated and is verbally abusive to Linda and William. They always try to walk a delicate line, trying not to anger him.

The Russell family has a history of mental illness; it afflicted Ron's grandfather, who started the business. William is so fearful of passing on the trait that he has decided to never have children.

Ron is not only the president of the company but also manager of three family trusts from earlier generations. The senior nonfamily managers are competent, and William and Linda support them wholeheartedly. Recently, however, Ron has tried to micromanage them. And now, although some managers still respect Ron, several are thinking of leaving the company. William, an architect in the business, prefers not to work for his father directly.

Ron's outbursts are getting harder and harder for William and Linda to live with. "How," they ask, "can we keep his behavior from hurting the business, the employees, and us?"

Response 1

Curb The Power

To Wreak Havoc

Mental Illness, alcoholism, and drug addiction present serious challenges to any family. Such challenges are exacerbated when there is also a business involved and when the majority of the family wealth is in the hands of the affected individual.

William and Linda should first speak to a psychiatrist to be sure they fully understand Ron's condition, the risk involved, and his medication. Second, they should speak to a trusted family adviser - such as an attorney, a CPA, or a family-business consultant - who may be able to help them convince Ron that it is time for him to relinquish control of the family trusts, either to William or to a professional trust manager.

William and Linda also need to get Ron to agree to include some outsiders on the board - if there are none now. It would be best if a majority of the board members were outsiders; this would decrease Ron's ability to unilaterally ruin the company with a rash decision.

Rather than accountants, attorneys, or other paid professionals whom Ron could feel justified in pushing around, the outside board members should be CEOs of other businesses whom Ron listens to and respects. He might be less likely to launch into a tirade in their presence. He might also accept other CEOs' assessments of his irrational behavior more readily than he would listen to his wife or his son.

Acting on these recommendations wouldn't cure the disease, but it could decrease the likelihood that the disease will destroy the family's livelihood.

Response 2

Be Open About

The Problem

It is difficult for any successful business executive to recognize that he or she may not always be in control, but often it is more difficult for someone who has been the driving force behind a family business. The dual responsibility to both family and business can be overwhelming, and family members as well as key executives may be alarmed by the perceived limitations of their leader. The true risk of the company, however, is not its leader's limitations but the fear of openly acknowledging them.

The Russells should seek both individual and group counseling. The anxiety over admitting that there is a problem with Ron's mental health needs to be overcome, and Ron needs to recognize that the way he is managing his bipolar disorder is harmful to the longevity of his business and family relationships.

If Ron is hesitant about seeking counseling, a trusted family friend, physician, or business associate may be able to get through to him when family members fail.

William or Linda or both should meet with all the key managers and ask for their patience and loyalty while the family works through this process. The company can't afford to lose these managers now, and communication will go a long way toward winning back commitment.

Ron should also have a succession plan in place and a timetable for a gradual transfer of power. If his mental health were to become a lot worse, a succession plan could provide for business continuity and survival.