Leading the Way
How leadership works on the ranch.
contributed article by B. Lynn Gordon Leader Consulting
THREE-STEP FORMULA FOR SUCCESSION PLANNING THE FRAMEWORK TO HELP RANCH FAMILIES WITH GENERATIONAL TRANSFER
Succession planning. Just
hearing the words often creates an uncomfortable feeling resulting in added stress and anticipation. The reason why is, “succession planning represents planning for the future and the only thing we know about the future is it is an unknown,” says Alan Hojer, Manager and Legacy Consultant of Keep Farmers Farming, a division of First Dakota National Bank, Yankton, SD. Unlike the past, the future, and what it will be is uncertain.
December 2019
For the past five years, seasoned agricultural family farm business advisor and rancher, Hojer, through Keep Farmers Farming, has worked with farm and ranch families facing the monumental task of generational transfer. He has identified a three-step formula to facilitate the pathway through succession planning, keeping the best interest of all those involved at the forefront.
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STEP 1 – DISCOVERY (LOOKING BACK) “Step 1 is so important. It creates the foundation for everything
moving forward,” says Hojer, “but if you don’t take the time to work through Step 1 then you will have limited success in the following steps.” Step 1 is looking back. It is taking a historical perspective on what molded the family business into what it is today. “Everything behind us is the past: the past is a known; the future is an unknown.” Thus, when meeting with families, Hojer begins his discussion with the question, “Tell me about the history of the business.” This step focuses on taking a historical perspective on what molded the family business to what it is today. Hojer has determined that leading families through a conversation on the past, discussing the challenges and successes, is often a discovery point for the next generation. They may have heard their father or grandfather reference a past situation, but the framework of how the situation developed and how it impacted the ranching business or the family may not have been thoroughly discussed. “They may be hearing but are they really listening?” “History is so important. We
have confidence in what we have done in the past, and everything moving forward will be judged against our history.” For example, looking back on history can reveal elements of the ranch the next generation is unaware of. There may have been other people, entities, or financial institutions involved at one point, that got the operation to where it is now. Critical in Step 1 is not only what is said but what is not said. Are there things a family member is reluctant to say? As an outside observer, Hojer says this is one of the most important aspects of his role. An outside facilitator often notices what is not said in the discussion because they do not have an emotional tie to the ranching or farming business. Hojer encourages families to start sooner than later. Start the discussion, begin to talk about the history and lay the groundwork for the process of succession. “This Christmas, ask mom and dad, how did this operation get started? Or ask grandma or grandpa to tell stories. Take the time to listen, and you will obtain many answers to the hurdles overcome or chal-
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