Succession: Where do we begin?
I recently polled farm managers on their next big project this year, half of the respondents said Succession was a priority, which I am excited about as I love planning for the future. Many feel they don't know where to start, but from my experience if you’ve taken your child to the field or they work alongside you, then you have started, and you're further than you think. So what's next? The most successful successions are over-time. A solid succession is a process; not a one time transaction. The most common obstacle is procrastination, and we put things off when we are uncertain of what’s involved or we think it will be hard, which keeps us stuck.
"I don't know how to start the conversation about the future"
It's normal to feel overwhelmed with "succession" it's not clear, and we think we only have one shot to get it right...when many of us aren't certain what we want in the first place. And is it what everyone else wants? Do we have a common goal regarding the farm. Further this work involves discussing the most difficult topics that may make some uncomfortable, these are hard things…death, finances, divorce, and trust (the more honest the better).
How to gain traction in your succession
1. Ask yourself, what’s the end game?
Why do you do what you do? Really sit with that. And everyone involved in the enterprise. Write it down, send it to me. I’m here to make you successful, and that includes asking hard questions and making you think. And there are no right or wrong answers.
2. Ask yourself, “what’s at stake?”
The biggest risk on farms today is having one person in charge (of everything) and keeps everything they do stored in their head.
Everyday you go to work without processes or plans written down; wills or agreements up to date you are putting millions of dollars in flux; maybe more will end up with someone you don’t want instead of protecting the ones you love most. Loving your family and making sure they are taken care of may be your most important reason to start.
3. Hire a coach or facilitator
How much have you invested in you, your family and your farm? If you don't know someone who you already trust to work on the people side of the transition.
Effective Succession Planning requires 80% non-technical work
It's not your job to facilitate hard discussions, be present and curious and take notes on what was said surrounding an emotional conversation; it takes a third party if you don't have regular meetings that discuss more than the day-to-day.
4. Learn to balance logic with emotion
Don’t get me wrong emotion can be dangerous. Lets find ways to manage the emotions and those related decisions ... we don't want to remove it and truth is you can't make a decision without emotion, its a fact.
Emotion is okay; it means you are passionate.
There's a balance between emotional and logical decisions and that is found after we've looked at all the facts.
5. Play the what-if game
Start thinking about what you want (in your head and in your heart). What you think in your head, may not be the same as what you know in your heart, that’s a ‘disconnect’ and it will get you in trouble. The most important part that is often overlooked. I need you to ask yourself this.
"If something happened to me, what would happen to this farm? Is that what my family would want?”
This needs to be discussed and documented when we have an idea of what that would be.
6. Communicate the right things
We don’t need more communication, we need the right communication. We are experts at discussing the day-to-day, the markets, logistics; but it’s harder to discuss the uncomfortable things like a living situation or finances. We need the right things at the right time (this requires asking permission of the others); with a coach who can facilitate, and make the process easier.
What’s Next?
Succession is not an event, it’s a process, let’s build it together. Give me a call or book a discovery.
-Danielle
306 203-9426