Communication is to a family business what water is to agriculture - the lifeblood of success.

Over the past several years we’ve worked hard to unlock the secrets of succession planning for agribusiness owners. We’ve designed planning models, authored proprietary tools and completed numerous complex cases. Though each experience is critical to planning success, nothing is more important than a clear, concise and constant flow of communication.

A good planning environment is based on mutual trust and respect. If you have that, you have a situation ripe for planning and implementation. If you do not, I recommend a crash course in communication. Five keys to good communication are:
 

1. Clearly define your objectives or the intent of each interaction. Before you engage in a conversation, write an email or make a phone call, know the purpose. Conflict is often based in misunderstandings and unintended conversational tangents.

2. Seek first to understand the other person’s point of view. It is much easier to share opposing opinion when you start from a point of commonality. When two people stand side-by-side they look in the same direction; from there it is much easier to explain what’s different.    

3. There are many roads to town; be open to alternatives. Discussions are more fun when we remember that there is no single right way to do anything. I recall from raising my children there are many different ways to tie shoes…

4. Acknowledge that it takes complementary qualities to create a world class operation. Misunderstanding may be based in motivations, abilities, skills and/or vision, all of which may serve as the balancing characteristics necessary to build a business bigger-than-self.

With these five keys in mind, you should construct a communication strategy.. We recommend regular family meetings scheduled at a time that is convenient for most participants. Use a location that is not home turf for anyone. Create and distribute an agenda in advance; encouraging each participant to offer modifications, suggestions and/or additional concerns. Establish ground rules – Robert’s Rules of Order may be a little stiff – but mutual respect, common courtesy and no personal attacks may help. Always conclude with some form of action and agreement for follow-up. 

 

Conversation Starters

• Are you interested in participating in the family operation? If so, in what capacity?
• Are you prepared to assume that role/responsibility?
• If no, what will it take to prepare for that role/responsibility?
• Should family members not active in the operation attain/retain an ownership interest in the operation? 
• If no, how should family business assets be distributed?
• If you want to be included in the operation, are you willing to personally invest in ownership interest?
• What is your biggest question, or unanswered concern, regarding our succession intentions?
• Any other succession-related topics you would like to add to the agenda for our upcoming meeting?