Presentation on theme: "Communication and Succession Planning Robin Klemm, Ph.D. A. E. Coleman Chair in Family Business Interim Executive Director Austin Family Business Program."— Presentation transcript:
Communication and Succession Planning Robin Klemm, Ph.D. A. E. Coleman Chair in Family Business Interim Executive Director Austin Family Business Program College of Business Oregon State University
If the Succession Fairy came and solved everything how would you feel? Peace of mindMore comfortable with conflict Healthier lifeCloser family ties More respectInsuring your family farm legacy Less for the tax man
“When I get some time, I’ll sit down and write my succession plan.”
Procrastination is not just avoiding a task. It is avoiding the emotions that accompany an uncomfortable task. The fears that promote procrastination are themselves affirmed and reinforced by the avoidant action of procrastination.
Succession planning from two different viewpoints: The senior generation—letting go Financially Emotionally The younger generation—taking charge Financially Relationally
Non-verbal communication Walk the talk You as role model
Communication is the glue for your succession plan Discuss and write down your goals Discuss these goals with your family (eclip) Deal up front with children’s “sweat equity” issues. Equal is not always fair. Have regular family meetings Deal with conflict. Work on Communication
Ties to Your Land Write down guidance for future generations Develop connections to the property beyond just work and business Get your heirs out on the property Groom, train, and support the next leaders Remember to have fun!
Establishing Family Meetings – Hold family meetings – Circulate an agenda and seek input – Include decisions to be made at the meeting and how they will be made
Decision making Advise and consent: for day-to-day management issues Majority Rules: for housekeeping decisions Consensus: for big picture decisions
Family Meetings Kick start Send out an invitation Neutral facility Decide who will run the meeting and who will take notes (eclip) Decide who will participate
Family meeting Issues – Transparency with Finances – Consider paying for travel and child care – Keep minutes and follow-up – Educate and inspire—share that passion!
Family Meeting Cautions Problems that are bigger than communication Bring in a trained facilitator or other guest Children need to get past old hurts. This won’t go away after Mom and Dad go, it will only get worse. Build up momentum
General communication tips 1. small agreements build rapport 2. questions are powerful language tools 3. express more appreciation affirmation 4. Use “I” statements and limit “you” statements
Help everyone improve communication by: Invite and respect the differing viewpoints Don’t make assumptions—ask! Rephrase to be sure you understand. Ask about what others feel and think. If you have reservations, voice them respectfully Stick to Issues No interrupting No personal attacks Give positive feedback.
Closing the meeting – Wrap up with highlighting progress – Go around the room as ask for buy-in and assignments – Set the next meeting and the agenda
The Hagen Family Meeting Phone and written invitation to meeting Met at restaurant Dad was recorder and mom presided Dinner Followed up: minutes, consultations
Final Review You can do this! With belief, careful planning, and help from others you can insure the legacy of your family farm. The benefits of succession planning are yours to enjoy!