The key to any relationship (business or personal) is communication.  What we say matters and how we say what we say matters. 

The topic of communication within a family-owned business can be a difficult one.  Many times, the owners and employees not only work together but often live together too or at least in proximity.  Their recreational activities may also involve one another as they are related.  This can put additional stress on not only their relationships but the business.  It is crucial to practice and work on healthy communication skills within these family and business relationships. 

Succession planning for any business whether family owned or not is a continuous process that involves transferring knowledge, skills, labor management, control and ownership between generations.  It is not simply a few meetings and its done.  It will take time, planning, and consistency.  Healthy communication through the process will allow it to progress more smoothly.  I am going to address healthy communication skills as well as communication skills to avoid.  Then I will address those from each generation’s perspective.

Here are five healthy communications skills that if incorporated into the succession planning process by both generations will allow the transition process to be much more effective and progress more smoothly than without these skills present. 

1. Be Respectful
2. Be Honest
3. Be a Good Listener
4. Be Consistent
5. Be Intentional

In obvious contrast to the above skills are communication skills to avoid.

1. Being emotionally out of control
2. Being rude, disrespectful or critical
3. Being condescending and/or accusatory
4. Being unwilling to let the past go (bringing past hurts into current situations)

I would like to address the Jr Generation first.  Many times, this generation grew up in the business and while some may have gone away to college, trade school, military, or to pursue other jobs for a limited time – many have never left the farm.  There may be expectations (whether verbalized or implied) placed on them regarding taking the farm over.  This is where healthy communication is vitally important to the planning process.  This generation needs to decide for themselves what they want their future to look like.  If they feel forced into taking on a business, they don’t want or are unable to run it can cause bitterness and resentment on both sides.  What does healthy communication look like for the younger generation?

1. Be Respectful:

• of the older generation and their position within business/family
• of the decades of work the older generation has put into building the business
• of how hard it may be for the Sr Generation to let go of control and ownership to another person/generation
• of the Sr generations desire to work as long as physically able to on the farm

2. Be Honest:

• About your desires, dreams, goals and visions for your future, even if that means it does not involve taking over the business but rather being an employee only.
• About your timeline to take on more responsibility and/or control
• About your skill set – what you bring to business and what you need to learn to be a better manager/owner

3. Be a Good Listener:

• Be willing to listen to the Sr Generations input. Whether it’s regarding your vision/goals, finances of the business, their feelings about retirement, management techniques, etc.  *They have decades of experience behind them.  Listening respectfully doesn’t necessarily mean you are doing everything they tell you to do, but it does however mean that you are giving them the respect that their title as owner deserves.  It demonstrates that you value their years of experience, ownership and even their position within the family structure.
• Recap what they have said to you – asking them if you understood them correctly. Sometimes what we hear from another individual isn’t what they meant.  Ask for clarity on what you don’t understand. 

4. Be Consistent:

• Set times for regular meetings to discuss succession planning. Keep those meetings business focused. 
• Bring others into the planning process to help with accountability and professional advice (ex: Accountants, business planners, lawyers, other farmers who have successfully transitioned their farms, etc.)
• Build any additional measures into your planning process that will help you stay on task and be consistent.

5. Be Intentional:

• Being intentional takes planning and hard work. If the Jr generation desires to take the business over – then they need to be intentional about knowing everything they can about the business.
• Ask questions about all aspects of the business. Be intentional about learning as many of those aspects as you can before the transition takes place.  It helps you be a better owner when you understand what it takes to run the business.
• Plan to learn the major facets of the business one at a time

                      For Example: Year one – learn the finances.

                                                Year Two – learn the labor management.

                                                Year Three – learn cow/crop production.

For the Jr Generation, there are many aspects to consider before jumping into ownership.  The more you can learn from the Sr Generation about what has or hasn’t worked for them in the past, where the business stands now, as well as what they see for the future of the business the more educated your decision and planning process will be.  Add to this learning these key communication skills and you will be on a path towards a successful farm transition.

The Sr Generation, the generation that either started the business or took it over from the generation before them, brings a different perspective on the succession planning process than the Jr Generation.  This generation brings a wealth of knowledge about the business, decades of experience and hopefully wisdom to pass on to the next generation.  The way they handle themselves and the planning process can set the tone for success or continual conflict.

1. Be Respectful:

• Of the younger generations excitement and energy to take the business over
• Of their lack of experience – you didn’t know all you know now when you were their age. Experience comes through time – successes and failures.
• Of the difference in culture, cultural expectations and economic differences between your generation and theirs. Times changes.  Each generation faces different challenges.  Respect that.

2. Be Honest:

• About future desires – wanting to scale back or not wanting to scale back etc.
• About fears of transitioning business, loss of control, loss of identity

3. Be a Good Listener:

• Be willing to listen to the younger generation – their ideas, dreams, goals, expectations, timelines, visions for their future as well as the future of the business. *Listening respectfully doesn’t mean you will implement all their ideas & goals. But it does communicate that you value and respect their ideas and opinions.

4. Be Consistent:

• Set times for regular meetings to discuss succession planning.  Keep those meetings business focused.  As the Sr Generation – take charge of this and set the tone for the meetings.
• Bring others into the planning process to help with accountability and professional advice (ex: Accountants, business planners, lawyers, other farmers who have successfully transitioned their farms, etc.)
• Build any additional measures into your planning process that will help you stay on task and be consistent.

5. Be Intentional:

• Transitioning a business takes an estimated 10 years from planning through completion. So be intentional in mentoring the younger generation. Teach them the skills they will need to run the business successfully. (Ex: finances, labor management, production).  They will naturally be drawn to what they are good at – but they will need training in all areas to be successful.

The Jr Generation and Sr Generation both have a lot of growing, adapting and adjusting to do and the key is good communication. Applying the tips listed above will help.