May/June 2024 - 20

BUSINESS MATTERS
IMPROVE
THE ODDS
Strategies to enact a
successful succession plan
BY MICHAEL A. COHEN CRPC, CBEC
CONTRIBUTING WRITER
ur previous articles in this series explored the
four quadrants of farm succession planning,
including why every operation needs two
distinct succession plans and the surprising reasons why
most plans fail. In this article, we'll explore strategies to
improve your odds.
O
We've found that the greatest stress point in farm
succession planning is communication. Fortunately,
communication strategies can minimize conflicts
and the breakdown of trust by having a written
family mission and values statement; a written farm
employment, management and ownership plan and
regularly scheduled meetings.
Family mission and values statement
The mission and values statement defines the " why "
of your operation. When developed with the input and
consent of the entire family, this statement can provide
many benefits. A good policy clarifies your organization's
purpose and goals. It also answers the questions: Why do
you farm? What are your objectives? How do you define
success? Additionally, it reminds the family members
(and in-laws) what's important and how the members
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should conduct themselves in reaching common goals.
The mission and values statement also enhances decisionmaking,
particularly when tough choices elicit differences
of opinion, and improves culture by creating a strong
organizational structure with clear expectations - and
helps the family work as a team to reach its goals.
A strong written agreement is your first line of defense
against family conflict providing needed direction and
reassuring family members that a given decision isn't
capricious, but in line with the long-established policy for
the operation.
Family employment, management and
ownership plan
Most farm families we work with have children on
and off the farm. What happens when an off-farm child
wishes to enter (or re-enter) the operation? Is there an
established process to follow? Disagreements between
family members on this issue can fracture family
relationships, sometimes irreparably.
An effective, written employment, management and
ownership policy should be communicated early and
often and address topics such as:
May/June 2024

Table of Contents for the Digital Edition of May/June 2024
