Four tips to avoid transition planning problems. Written for Progressive Dairy and originally published 5/30/2024 HERE. Sustainability applies not only to the environment but also to sustaining future generations of farmers. It's also important to keep in mind that succession or transition planning in a strong dairy market is easier than in a tough market. Not only is there more optimism for the future and more options for growth, but there is also more money to go around. Unfortunately, today, there isn't extra money in dairy. Sustainable family dairies are strong in three areas: family unity, family asset growth...
Category: Succession Planning
Succession Planning
The Five Steps You Need to Know to Create a Farm Legacy
Determining the roles people will play in the process is the first step. Written for Milk Business Quarterly and originally published 4/30/24 on dairyherd.com So, you've had the family meeting regarding transition planning and agree that you need to start the process. Now what? Every situation is unique. We've done transition planning for twenty years and have developed a process that is flexible enough to allow for the unique needs of each family. For anyone who has run a dairy, processes come naturally. Milking, feeding, and reproduction all have detailed processes. This framework is just another process, with steps and...
Succession Planning
Transition Planning – Where to begin on a short notice.
Sometimes, you don't have much time. What info do you absolutely need to get started? Written for Farm Futures and initially published in their March/April 2024 issue. Planning a transition plan over several years is not always possible. Sometimes a sudden event moves the transition planning from "someday" to an urgent "right now." How do you begin? Transition planning, even under the best of circumstances, is not easy. Throw in a sudden death or other family event, and the process is even more dire. Successful transition plans all have one thing in common. The family follows a process. While no...
Succession Planning
Where Perks Create Conflict
What to watch for so perks don't create unintended issues down the road. Written for MILK and originally published in the Feb 2024 Quarterly issue. The issue at hand, at least on the surface, was the fish house being built in the farm shop. For those in warmer climates, let me explain. Here in the upper Midwest, we can fish all year long. In the winter, it gets cold enough, and the ice thick enough to drive pickups on the ice and pull out fish houses. These look like small 8x12 ft. (some are longer than 18 feet!) enclosed trailers....
Business Growth Strategy, Succession Planning, Uncategorized
Keep the Peace: Farm business vs. farm life
As farms become larger, many families conclude that perks must be limited and keep business more separate from personal life. Written for Farm Futures and published in the February 2024 issue. Most families get along great and, on most days, enjoy working together. This can lead the family to believe they are in alignment on essential issues. But, often, there is enough differences between some fundamental principles that someday will cause friction. Alignment around these principles falls under an underused area of transition planning called family governance. They are critical in keeping the peace and creating a strong family farm. ...
Communication, Succession Planning
How to start awkward conversations
Begin the transition planning conversation by keeping it tight. Ask to have an initial conversation about transition planning at some point in the future and encourage others to speak up about their vision for success. Written for Progressive Dairy and originally published January 1, 2024 issue. Transition planning for a family dairy is not easy, and the stakes are high, not only for the business but also for the family. Even if it isn't verbalized, there is often a powerful desire to get transition planning over with but not a strong desire to go through the process. After all, the...
Business Growth Strategy, Succession Planning
Two Habits of Successful Business Families
The natural way of a family business is a decline over time. So, successful family businesses must take actions to counteract the decline. Written for Farm Futures Dec 2023. You have heard the adage. "The first generation builds it, the second generation maintains it, and the third generation loses it." This is not just an American problem; it is an international phenomenon. The decline of family farms is due to tendencies that repeat themselves. The natural way of a family business is a decline over time. So, successful family businesses must take unnatural or unorthodox actions to counteract the...
Business Growth Strategy, Succession Planning, Uncategorized
Why do People Resist Change – Part 2
Three types of Resistance to Change I don't like it. I don't understand it. I don't trust you. Written for MILK magazine and originally published Aug. 2023 The entire dairy industry is going through massive restructuring and change. These changes are forcing dairies to scale up to remain competitive, working with suppliers, finding labor, and finding a market for the milk. The changes are also coming from within as many dairies transition the business to the next generation. These changes are profound, and change is hard. Not every dairy will make the transition to the new dairy economy. While sad,...
Business Growth Strategy, Succession Planning, Uncategorized
Good Conflict is Necessary – Really, it is.
Good Conflict unearths all possible scenarios and the best solutions Written for Progressive Dairy and originally published June 2023. High-functioning family businesses need good conflict just as much as they need the right protocols for production. "I don't see it that way at all! I don't think you are seeing everything," a key employee emphatically exclaimed to one of the owners. Several long seconds passed before the owner quietly asked, "OK, how do you see it, and how did you come to your view?' The setting was a strategic planning retreat I was facilitating. This group included two owners and...
Business Growth Strategy, Succession Planning, Uncategorized
Why do People Resist Change?
Have you ever wondered why some topics, people, or plans resist change? Written for MILK magazine and originally published May 2023. The dairy conference "season" is drawing to a close, and you undoubtedly have many good ideas you would like to implement on your dairy. After my presentations, I'm often asked a variation of this question. "How do I get the rest of the owners or leadership team to make the changes we need to make?" "I give them the facts, but we don't make a decision." Change is necessary to survive and thrive. No one operates their dairy the...