What can ranch/farm families do to improve their chances of continuing as a family business for generations? Lorne Owen Ministry of Agriculture & Food.

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Presentation transcript:

What can ranch/farm families do to improve their chances of continuing as a family business for generations? Lorne Owen Ministry of Agriculture & Food British Columbia, Canada

Key Concepts to UNDERSTANDING… Understanding goal setting in the CONTEXT of the ranch/farm family business Understanding the VALUES that guide goal- setting in the ranch/farm family business Understanding the RESOURCES that enable goal-setting in the ranch/farm family business Understanding DECISION-MAKING that leads to successful goal-setting in the ranch/farm family business

“The absence of communication is NOT an option”. Communication is the KEY to all successful family ranch/farm activity!

The family business requires a team approach and if you are serious about keeping the operation going, making it a family affair, making improvements and having plans to deal with important issues, you must develop and maintain effective, respectful team interaction.

Understand The Context Communicate Clarify Values/Goals Family decision making process Identify and Manage Resources Decide How To Decide ACT Sean Brotherson, NDSU Extension Family Science Specialist

Ranch/Farm Family System Family Social Personal Economic

VALUES Values form the base upon which the family farm/ranch is built. Values are the guide- posts expressed by team members that direct their activities as a unit and with each other as a team.

Techniques For Generating a Family History * Storytelling * Family Business Time-Line * Use of Genograms

Management Values of Farmers & Ranchers Dedicated Producer Flexible Strategist Resource Steward

“What do each of us value in terms of”: * Teamwork* Money * Power* Size of Operation * Recognition* Amount of Work * Family* Recreation

Personal Goals The personal goals of family members may be the single most important factor influencing the direction that the business takes.

Understand The Context Communicate Clarify Values/Goals Family decision making process Identify and Manage Resources Decide How To Decide ACT

Ranch/Farm Operational Resources * Basic * Human * Financial * Livestock * Wildlife

Family Resources Successful businesses are built by strong teams, comprised of members with complimentary skills.

Personal Resources Personality Creativity Stress Management Communication Cooperation Negotiation

Four Types of Decision-making * Autocratic * Majority * Unanimous * Consensus

Understand The Context Communicate Clarify Values/Goals Family decision making process Identify and Manage Resources Decide How To Decide ACT

A Will to Succeed: A powerful desire to overcome obstacles is the impetus to survive and prosper in family farming/ ranching. Many farm or ranch difficulties can be linked to a lack of will. Without an internal conviction to make a best effort, any business venture takes a progressive decline. With a will comes no guarantee of success. But an absence of commitment is a near 100% indicator of eventual failure. Peter Reese, Successful Farming, June, 2002