On the long list of to-do’s for farm managers and families, transition planning is often near the bottom. This is a common challenge faced by farm families, especially early in the process.
Knowing the challenge ahead of time, understanding that you aren’t alone in facing it, and having some tools in your back pocket to counteract it, can help ensure that transition planning gets the timely attention it requires.
In fact, several related challenges are quite commonly experienced in the early stages of transition planning.
Getting started
Transition planning is often discussed and too often deferred. Farmers always seem to have more urgent matters to attend to, especially when it comes to production.
Unfortunately, taking transition planning seriously often begins only when an event or crisis forces families to react. It is always less stressful to be proactive. Not knowing where to start or what to do first is one of the most common obstacles.
The simplest way to get started is to call a meeting. Of course, this requires that one person takes action, but this can kick-start the process and get everyone involved.
Other tactics can be helpful, such as accountability and process facilitation. Having someone lead the process or arrange a first meeting can help in getting started. You can get someone from outside the family to help with process facilitation and give them responsibility to arrange the first meeting.
Families find this helpful, if only to get the process started. They can continue on their own afterward if they choose.
Procrastination
Advancing the transition plan is easy to leave on the to-do list. Often families encounter conflict, feel overwhelmed by the enormity of the project or are uncertain how to proceed.
As a result, they struggle to maintain momentum. If left too long, families forget what they have discussed and decided.
Accountability can be helpful in avoiding procrastination. Also helpful is deciding on an end date for the planning. When does the family need to have its transition plan completed and ready for implementation?
Once determined, all meetings and related decisions to meet this deadline can be prescheduled. Meetings with advisers can also be prescheduled so there is pressure to have certain transition items discussed or decided in advance of the meetings. It also helps to ensure the advisers are not holding up the process.
Accountability
Many plans are derailed because no one feels responsible or accountable to keep the process moving forward. It does not have to be solely one person’s responsibility but there is a better chance of success with fewer people in control.
Roles and responsibilities may change as the plan evolves and the business changes. There can be too many assumptions made about who is in charge. Things can fall through the cracks because people assume someone else was responsible.
At least, this situation can derail the process and cause frustration. At worst, it can result in conflict and financial costs where, for example, tax issues are not optimally managed.
Not many people want the hassle of nagging their family to attend meetings or to complete transition planning duties, but this is exactly what is needed.
Whether the decision is to have one person charged with accountability or to assign specific individuals with specific responsibilities, it is critically important to clarify roles, authorities and accountabilities during the planning process and eventual transition. Accountability to a third party, such as a consultant or adviser, is an option.
Communication
Families must communicate, both internally and externally, for the transition planning process to flow smoothly. If advisers are not kept abreast of discussions and potential decisions, they cannot provide valuable input.
If there is conflict or concern around discussions or decisions but it is not communicated, there is no opportunity for resolution. Most importantly, individuals cannot provide input if they are not given the opportunity to do so.
Suggestions to promote more formalized and structured communication include:
- Conduct meetings according to an agenda, take notes and circulate them to everyone in attendance and others as necessary.
- Ensure all stakeholders are informed about transition planning progress. Make sure they have an opportunity for input where applicable.
- Increased awareness of these common challenges early in the transition planning process can help mitigate their potential impact. It will help set you up for success through the rest of the planning cycle.
Gavin Betker is a farm management consultant with Backswath Management Inc. He can be reached at 204-995-4978 or .
