Family Business Transitions presented by The Family Furrow

© The Family Furrow

The Family FurrowFARM & FAMILY BUSINESS ADVISORS

Jim J. SoldanB.Sc. Ag., P.Ag., C.A.F.A.

Principle … Trainer

Jillian RobbinsB.Sc. Comm., C.A.F.A

Training Partner

9699 McLeod RoadChilliwack, BC V2P 6H4

Tel/Fax: 604-794-7186 / [email protected] / [email protected]

mailto:[email protected]

mailto:[email protected]


Family Business Planning …reaffirming the case; it’s more then ‘production’

“Sowing the Seeds for Tomorrow’s Family Business”

… building the foundationfor ‘Our” family business


The Family Business Formula


X

= Production

The Business The Team of People


Living and Working with Family…the Family Business

• It All Starts with– A Thought– An Idea– A Dream

• First, we prepare for, then start planning and building the ‘foundation’..…



Living and Working with yourFamily team

• We Must HAVE…A Vision

Our Mission

Goals

Strategies

Objectives


‘OUR’ Operating andMaintenance Manual


Our “Foundation” Blocks


Acceptance

Our… Beliefs and Values

It takes a “heart attitude”

Trust/Honesty

Accountable FunPatience

Understanding

Forgiveness Respect Good Will

YieldsHarmony


Our Foundation Blocks (cont’d)


Code Of Conduct

Our ( Me / My )Beliefs and Values

Roles

Responsibilities PoliciesProcedures

Transition

Ownership Meetings TransitionSuccession

Our Governance, Operating and Maintenance Manual


Why?? Because there is nothing “soft” about this!



What are Good Relationships?…what does ‘YOUR’ ‘engine’ look like?

Trustworthy Understanding Seeks input Heart to Listen High Integrity Counted on


Dependable Encouraging Honest Respectful Sincere Supportive


Living and Working with yourFamily team … growing

The team needs to KNOW ….– What do the team members require

for themselves, family, and business?– The questions to ask, without fear– What we hold Important – Family/ Business

– What we stand for, who is part of it,and our family and business CHARTER



‘Seedbed Preparation’needed for GROWTH

• Care of the ‘engine’ #1 priority

• Meetings ‘attitude’

• PLANNING along side TECHNICAL

• ‘NOW’, before you create a MONSTER

• Start TODAY



CONFLCIT; where it starts

• Poor Communication

• Lack of Planning

• Tight-Fisted control

• Lack of Documentation

• Lack of Foundation



Common AreasWhere Conflict Arises

• Compensation• Decision Making• Roles and Responsibilities• Ownership• Siblings outside business• Imbalance re work and recreation• Imbalance re family and business



Common Stumbling Blocks

• Lack of initiative and training• Unrealistic Expectations• Refusal to let go• ‘New’ family member left out• ‘Who’ should be the next leader • Positional / unwilling to seek out interests



Common Stumbling Blocks

• Confusion over what is ‘fair’ • “Someday this will be yours”• Confusion - Desire / greed / need• Secrecy• Closed Will • Poor to No leadership: on/in the business


(cont’d)


Foundational Principles forSustainable Family Business

• Hold ‘Engine’ maintenance top priority• Top priority for Interpersonal C and R• Unconditional freedom for expression• Priority for MEETINGS / coming together• Leadership – influence vs position• Outlaw culture of conflict



Foundational Principles forSustainable Family Business

• Relationship realities• Forward looking • Transition; ongoing operational• Affirm Effective Communication• Attention to Emotion and Content• Outlaw litigation as resolution route• Ban ‘non-interaction’



Factors Leading to ‘Sick and Stunted Growth’

• Absence of TRUST

• Fear of CONFLICT

• Lack of COMMITMENT

• Avoidance of ACCOUNTABILITY

• Inattention to RESULTS


Lack of FOUNDATION – Values/Vision


Key ‘Actions’ For Starting the Success Route

• Complete Participation / Involvement• Effective vs. Functional Communication• Sound planning• Shared control• Download wisdom / Training • Time for interaction



Where do we start ?…working on the Big 7

• Communication• Conflict Management• Meeting on Purpose • Leadership• Accountability & Consequence• Responsibility & Authority• Create YOUR .... OMM



Our ‘Personalized’ Operating andMaintenance Manual

• Who we are / history• Balance Sheet to present day / base line• Policies and procedures/systems/rules• Development of team / Genuine interest• Our Foundation • Our Code of Conduct• Our ‘Charter’ … Our Governance Guide



‘Engine’ Requirements

• REGULAR service • Authentic Desire / Good Attitude• Meetings – Purposeful & Attitude• TIME• Hard work• Balance



Helpful Hints for A SuccessfulFamily Business

• View ‘Engine’ maintenance top priority• Ensure skill, attitude and desire exists• Create “Our” Family Built Foundation• Create Operating and Maintenance manual• Learn, Learn, Learn, Learn • Transition >>> Succession • ‘Manage’ the transition period



Questions to Reflect on …

• If the ‘FAMILY BUSINESS’ had authority to ‘hire’ and ‘fire’ would you still be employed?

• If a family team member presented an ‘opinion’, would they be listened to?

• Are Family Businesses just production complexes?



Working toward …….

• Sharing our ideas and thoughts• Seeking and Evaluating everyone’s input• Respecting everyone’s input• Incorporating everyone’s input• Developing our “Family Built” FOUNDATION• Enforcing Accountability and Consequence• Yearly evaluation / adjustment



Acting and Applying These PRINCIPLES..…

Will transform…

>Yourself, your spouse, your children

>Your family business team, and

>Your business



Formalize Major Transition Issues …

• With FB Trainer, Accountant / Lawyer• Sign commitment of intent• ONLY after the entire family input:

>> is heard >> seriously considered / evaluated

>> based on “our” FOUNDATION



What is Real Success ?

… A product of : Harmony x

Leaving a positive legacy xProfit x

Fun xBeing a value x

C C



“Putting Our Wisdom Towards Your Success….”

Background to The “Family Business Team” Training Series

Thank You for giving of your time and allowing us this privilege of speaking with you and allowing us to share our thoughts and ideas.



Questions and Answers
