Communication and Succession Planning

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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

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• If the Succession Fairy came and solved
  everything how would you feel?
• Peace of mind More comfortable with conflict
• Healthier life Closer family ties
• More respect Insuring your family farm legacy
• Less for the tax man

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• When I get some time,
• Ill sit down and write
• my succession plan.

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• 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.

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• Succession planning from
• two different viewpoints
• The senior generationletting go
• Financially
• Emotionally
• The younger generationtaking charge
• Financially
• Relationally

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• Non-verbal communication
• Walk the talk
• You as role model

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• 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 childrens sweat equity
  issues. Equal is not always fair.
• Have regular family meetings
• Deal with conflict. Work on Communication

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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!

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• 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

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• Decision making
• Advise and consent for day-to-day management
  issues
• Majority Rules for housekeeping decisions
• Consensus for big picture decisions

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• 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

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• Family meeting Issues
• Transparency with Finances
• Consider paying for travel and child care
• Keep minutes and follow-up
• Educate and inspireshare that passion!

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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 wont
  go away after Mom and Dad go, it will only get
  worse.
• Build up momentum

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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

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Help everyone improve communication by

• Invite and respect the differing viewpoints
• Dont make assumptionsask!
• 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.

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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

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The Hagen Family Meeting

• Phone and written invitation
• to meeting
• Met at restaurant
• Dad was recorder and
• mom presided
• Dinner
• Followed up minutes, consultations

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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!