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. ...
Category: 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...
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...
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,...
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...
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...
How to build a stronger business-first farm family
Keeping and building family connections across generations is the single most effective way to reduce conflict. Written for Farm Futures and originally published 2/23/23 The ties that bind us together can get frayed over time. How connections are strengthened makes all the difference. Surviving and thriving in any business is hard. Difficult decisions are often made, and there is bound to be conflict in a multi-generational farm enterprise. How a family farm navigates conflict is a large factor in its success. Here is some good news: The family enterprise, or farm, has many strengths that not all businesses possess....
Strategic Planning isn’t just for Fortune 500 companies
Your farm will regenerate and reinvent itself to thrive in a changing world. Building commitment and alignment between the family and the business is key to a lasting legacy. Written for MILK and originally published in the Nov/Dec 2022 issue. Farms, and dairy farms, in particular, require constant reinvestment. But reinvestment goes far beyond just dollars and cents. It also requires personal and emotional reinvestment for each generation. Without both financial and emotional reinvestment, the farm will eventually cease. Firms have used strategic planning in one form or another for decades. In years past, when farms were smaller and less...
Gain Traction on Farm Transition
Originally published at Farm Futures on 9/28/22. While many farmers are unsure, maybe nervous, about the transition planning process. Not starting the process often makes things worse for everyone. However, getting started is often the hardest part. We'll explore how you can get transition traction, so your farm legacy stands tall. Most of us have pulled out some equipment that was stuck in the mud. Getting unstuck usually involves a plan of how to get unstuck, some basic equipment suitable for the job, and getting the ropes hooked up. But at every step, it takes communication, coordination, and...
Moving from Commander to Coach
The most powerful move you'll make is moving from the commander to the coach. Written for MILK Magazine and originally published in the July/Aug 2022 issue. It's fairly common for farmers never to retire. So common, in fact, that we seldom hear the phrase uttered when going through a transition plan. Yet deep down, we all know that no dairyman takes their cows into the grave. Here is a typical example. For decades the senior generation was in full command and maybe are still the majority owners. It's their name on the checks and their name on the barn. Yet...