About this episode
Intro: My name is Andy Caygeon Junkin. Originally from Bobcaygeon Ontario and most of my friends call me Bobcaygeon or Caygeon. Married American farmgirl and live in Mt. Vernon Iowa. Company name is www.Stubborn.Farm and I just wrote my 7th book "Stubborn". My nice: I help stubborn farmers work better together 1/ What is the one thing that is the difference of perspective between generations about succession planning. the analogy to a girl being in a long term relationship and yet no ring. The need for commitment. 2/ What is the one thing that successors don't get, that causes their parents to be hesitant? (Three points on Page 1 of attached). What do you suggest that is different than what normal farm succession planners suggest? (9,000 hour rule -I'll take 4 minutes to explain it) 4/ Over that two year period, what are you trying to do? Why not just do succession planning in two meetings: (need for humility vs. pride. The need to get rid of arrogance and create a culture whereby everyone is humble and listening to each other FIRST, prior to the conversation). Get a performance review starting with successor for 6 months, then 360 degrees for two years. 5/ Why take the extra time? Why not just have someone come out and sell you a life insurance policy in an afternoon? 6/ Why did you write this book? No money in writing books for farmers. Completely different perspective change how farming is done. 7/ When is the right time to start doing succession planning? 8/ What is the benefit nobody really thinks about before starting your process? 5/ How does a successor get the process started, do you pull an ultimatum or what? In your experience, what is the common misunderstanding or oversight by successors that causes hesitation from their parents, as outlined in the three points on Page 1 of the attached? Initiating the process as a successor can be challenging. How do you recommend successors approach this, emphasizing humility and the need to create a culture of humble listening within the family? Can you share a benefit of the succession planning process that people might overlook or not consider before starting it, especially in terms of improving family decision-making and its impact on farm profitability? Conclusion: How do you learn something new the best? They can access a free copy of the audiobook (listen to it like a podcast) at www.stubborn.farm Avoiding succession planning in a family business can have significant adverse effects on mental health for all involved parties. Here are some potential impacts: Stress and Anxiety: The uncertainty about the future and the lack of a clear succession plan can lead to heightened stress and anxiety levels among family members. Concerns about the business's continuity and the financial well-being of each member can be overwhelming. Interpersonal Strain: Without a structured succession plan, family members may experience increased tension and conflicts. Ambiguity about roles, responsibilities, and future leadership can strain relationships, leading to resentment and misunderstandings. Feelings of Uncertainty: Individuals involved in the family business may feel a sense of insecurity when succession planning is neglected. Not knowing who will take over the business or how it will be managed can create a constant undercurrent of uncertainty. Impact on Leadership: For the current business leaders, the lack of a clear succession plan may hinder their ability to confidently step back or retire. The pressure to continue leading the business without a defined transition plan can lead to burnout and a decline in mental well-being. Family Dynamics: Succession planning involves open communication and collaboration. Without it, family members may experience a breakdown in communication, leading to isolation and strained family dynamics. This can affect both personal relationships and business interactions. Loss of Identity and Purpose: Family businesses often carry a sense of identity and purpose for the individuals involved. The absence of a succession plan may leave family members feeling adrift, questioning their roles and contributions to the business. Impact on Future Generations: In situations where succession planning is neglected, the next generation may experience frustration and a lack of motivation to engage in the family business. This can result in a loss of legacy and continuity. Financial Concerns: The financial implications of a poorly planned succession can contribute to mental health challenges. Concerns about the business's financial stability, inheritance issues, and equitable distribution of assets can create significant stress. Regret and Resentment: Individuals who postpone or avoid succession planning may later regret not taking timely action. This sense of regret can lead to feelings of self-blame and, in some cases, resentment towards other family members. Health Consequences: Prolonged stress and anxiety associated with the absence of succession planning can have physical health consequences. Chronic stress is linked to various health issues, including cardiovascular problems and weakened immune function. In conclusion, avoiding succession planning in a family business can have far-reaching implications on mental health, affecting individuals' emotional well-being, relationships, and overall quality of life. Addressing succession planning proactively can help mitigate these negative effects and contribute to a healthier family and business environment. Here are the three common problems that are rarely openly said, but often felt by parents: 1. The parents love their kids, but don’t feel that they can take over full management of the farm. At this stage Dad feels he can’t walk away from the business without it collapsing. He feels that once his kids get the reins, they’ll run the farm into the ground. 2. Although he pretends to be humble, the patriarch is arrogant and thinks he’s smarter. He (or she) doesn’t recognize the contribution of his kids over the past 20+ years to the growth of the business and feels that any non-relative would have been a better employee than the successor’s performance. The patriarch (or matriarch) looks at the farm as his, not ours. 3. Parents fear being pushed off the farm. The different generations have been fighting for control for years and don’t have a great working relationship. Dad fears that once he surrenders majority control of the farm’s shares, he won’t be welcome in the shop and die with his slippers instead of work boots on. Thus, he clinches power to his grave. In some cases, these beliefs are true, and many times these believes are false. Sometimes it is somewhere in between. These fears aren’t often stated but believe me…they are subtly there. The legendary tale of Alexander the Great and the Gordian Knot dates back to ancient times. According to the story, when Alexander encountered an intricate, seemingly impossible-to-untie knot in the city of Gordium, he decided to tackle it in an unconventional manner. Faced with the challenge, he drew his sword and sliced through the knot, rather than attempting to untangle it as others had failed to do. This bold and decisive action was interpreted as a sign of his destiny as a great conqueror and ruler. The "cutting of the Gordian Knot" has since become a symbol for solving complex problems or overcoming challenges through innovative and forceful means, emphasizing the importance of thinking outside the box and taking bold actions when necessary. Want Farm4Profit Merch? 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