Is Your Workplace a Family Drama? How to Break the Cycle of Dysfunction

Dysfunctional family dynamics often bleed into the workplace

Sarah’s non-profit team was drowning. A critical grant proposal was overdue, yet instead of tackling the problem head-on, they were stuck in a quagmire of unproductive process debates. The culprit? Emily, a team member notorious for missed deadlines and a casual approach to commitments. “I’m volunteering my time,” she’d deflect, “I deserve some flexibility.”

This triggered something in Sarah. Emily’s attitude was eerily reminiscent of her younger sibling, who has Down’s syndrome and required extra care growing up. Unconsciously, Sarah found herself treating Emily with similar kid gloves, prioritizing her emotional needs over accountability. Emily, in turn, bristled at any perceived authority—a pattern shaped by her own childhood with a controlling mother.

Sound familiar? Dysfunctional family dynamics often bleed into the workplace. This is especially true in smaller organizations, where close relationships and blurred boundaries create a breeding ground for emotional baggage and power struggles.

Why Small Organizations Can Feel Like Family (and Not in a Good Way)

Small organizations thrive on trust and intimacy. With fewer formal structures and more personal interactions, the lines between professional and personal often blur. Leaders may unconsciously adopt parental roles, while team members revert to familiar family dynamics. Ironically, environments striving for “virtuous” ideals can often foster greater entitlement.

Volunteer-driven organizations: “I’m giving my time for free; the least you can do is respect me.”

Purpose-driven organizations: “We’re on a spiritual mission; you should embrace me despite my flaws.”

Family businesses: “It’s hard to separate personal and professional relationships here.”

In these settings, minor triggers can unleash ingrained behaviors, with individuals falling into roles like:

The Overachiever: Driven by a need for approval, they take on too much and risk burnout.

The Rebel: Constantly challenging authority and testing limits.

The Caretaker: Prioritizing emotional needs above organizational goals.

The Scapegoat: Unfairly blamed for the team’s shortcomings.

Unchecked, these patterns create a cycle of projection and emotional reactivity that undermines productivity and trust.

The Spiritual Organization on the Brink

The perils of unchecked family dynamics are glaringly apparent in purpose-driven organizations. Take, for instance, a small but renowned spiritual organization in the US. When Mason, a retired executive, stepped in, he found an organization on the verge of collapse. Bloated salaries, a culture of entitlement, and staff who routinely ignored directives were draining the organization’s resources.

His attempts to introduce accountability, including necessary layoffs, were met with fierce resistance. Employees accused him of being ruthless and even biased. “They expected me to be so enlightened that I wouldn’t react to their tantrums!” Mason recalls.

So how did he navigate this storm? Three key strategies helped him steer the organization back to stability:

Radical Transparency: He laid bare the organization’s dire financial situation, helping employees understand the consequences of inaction.

Giving the Work Back: He resisted the urge to fix everything himself, empowering senior staff to take ownership and contribute solutions.

Staying Close to His North Star: He anchored himself in the reason he was doing this work. “I wasn’t there to make friends,” he explains. “I was there because I believe in our mission.”

Breaking the Cycle: A Guide for Leaders

If you’re navigating a high-entitlement environment rife with dysfunctional dynamics, these strategies can help:

1. Do Your Inner Work

Self-awareness is paramount. Reflect on your own family-of-origin dynamics and how they might be influencing your reactions. When you notice yourself over-involved in an employee’s emotional state, ask yourself, “Who does this remind me of?” Seek guidance from a therapist or coach to deepen your understanding.

2. Set Clear Boundaries

Define roles and responsibilities clearly and enforce them consistently. This prevents the blurring of lines that lead to dysfunction. Address boundary violations promptly and professionally.

3. Lead with Transparency

When tough decisions are necessary, be upfront about the situation. Transparency builds trust, even when the message is hard to hear.

4. Give the Work Back

Empower your team to take ownership of their responsibilities and experience the natural consequences of their actions. However, be mindful of providing appropriate support and guidance, especially for those who may struggle with this newfound autonomy.

5. Reconnect with Your North Star

Leadership can be lonely, especially when facing resistance. Ground yourself in your purpose and the reasons you do this work, or you may struggle with added resentment.

Conclusion: Leading with Clarity and Courage

When you find yourself entangled in a dysfunctional dynamic, take a moment to reflect: What am I bringing into this situation? Am I acting from my North Star, or reacting to old triggers? By cultivating self-awareness, establishing clear boundaries, and leading with transparency and courage, you can break free from the cycle of dysfunction and create a healthier, more productive work environment.

Dr Jonathan Marshall