Engaging the founder and family in the succession process

Are you a consultant or other outsider trying to help a farmer hand over to the next generation? If so, you’re probably meeting with resistance! Trevor Dickinson suggests ways in which to bring about change.

- Trevor Dickinson

In past articles, I’ve discussed the reluctance of many agribusiness founders to implement a succession plan, and the damage this can cause to the business and family relationships.

If you’re a consultant, lawyer, accountant, director or other decision-maker involved in trying to persuade a difficult owner to hand over the reins, you’ll know just how challenging this can be. Here are helpful tips to approach the situation.

UNDERSTANDING THE FOUNDER

Your first step is to address the founder’s emotions and insecurities about succession, as these are usually why the founder is resisting a succession plan.

One option is to help the founder develop a ‘support group’ of business founders who have carried out succession planning and understand what it entails. Conversations with these peers may help the founder understand that reluctance to let go is a common response. At the same time, peers who have planned their succession properly are likely to transmit to the founder a sense of pride and accomplishment, setting an example worth following.

Interestingly, many founders who plan their succession do so after a close encounter with death, such as a heart attack or the death of a close friend. This experience often makes people more willing to come to terms with the consequences that their death could have on their family and business.

MAKE THE FAMILY AWARE