Managing peer groups in family business centers: directors’ sensemaking practices

Purpose This study examines how executive directors of family business centers deploy sensemaking to create psychologically safe environments while engaging members in peer group activities. Design/methodology/approach A qualitative case study approach was employed, involving semi-structured interviews with five executive directors from four different family business centers in the USA. The study also draws on document analysis. Findings The findings reveal that these directors navigate a complex and uncertain environment where the need for member engagement and the need for a safe environment sometimes contradict each other. Their sensemaking draws on both cognitive and social processes to accomplish meaning-making, often involving a cyclical process of noticing, discernment and enactment. This effort is, at times, constrained by the directors’ inability to gather cues due to their commitment to maintaining confidentiality and privacy within peer groups, limiting their ability to directly observe discussions. Despite this constraint, sensemaking enhances the directors’ capability to foster safe and engaging environments, though the challenge of balancing members’ needs for confidentiality with a safe and productive engagement environment remains a continuous reality. Practical implications This study highlights the crucial role of sensemaking leadership in family business networks, requiring directors to balance individual and group needs. Leadership development should focus on enhancing this sensemaking ability. Family business centers must be designed with flexibility and adaptability to accommodate evolving needs. This involves attentive observation, balanced programs, psychological safety and continuous learning. These findings extend to any peer group requiring high trust, emphasizing the leader’s role in creating a safe and engaging environment that balances individual needs with collective goals. Originality/value This study makes several original contributions to the literature. First, it extends existing knowledge on sensemaking by exploring its application in a previously under-researched context: how executive directors navigate complexity and uncertainty within family business networks. Second, it examines how sensemaking informs the ongoing challenge of balancing peer groups’ need for a safe engagement environment with the need for productive engagement, an area that has not been explicitly addressed in prior research. By shedding light on these under-explored aspects of sensemaking, this study offers valuable insights for both researchers and practitioners involved in family business networks and peer group management.