Obstacles to succession planning, and how to overcome them

It is critically important to address common problems before you get down to the business of succession planning. Addressing these challenges proactively and in a positive way will enhance a family agribusiness’s chances of enjoying continued success and prosperity, says Trevor Dickinson.

- Trevor Dickinson

To be profitable in the long term, family agribusinesses need to confront the obstacles inherent in succession planning. These obstacles often prevent family members from moving from their current state to navigating the succession planning process smoothly and successfully.

CHALLENGE 1: LACK OF APPRECIATION, RECOGNITION, AND LOVE

The problem: The senior generation desperately wants appreciation from their adult children, but they will deny this fact to their dying day! Younger-generation adult children have the same issue: they are still looking for recognition from their parents for their accomplishments and uniqueness.

The lack of feeling recognised and appreciated underlies many of the problems in family-owned agribusinesses. There is an implicit assumption that people are loved, but the fact that it is rarely expressed often creates an obstacle.

The solution: Teaching family members how to talk about their expectations of each other in an emotional sense, and how to express appreciation, recognition and love. Many families have a hard time doing this, and just take it for granted. Most families need to learn that the emotional bottom line in a family-owned agribusiness is just as important, if not more so, than the financial bottom line. Appreciation, recognition and love need to be expressed regularly.

CHALLENGE 2: LACK OF FORGIVENESS