Helping Family Businesses Bridge the Generations

1
Helping Family Businesses Bridge the Generations

• Ohio State University Extension

2
Teaching Team

• Bernie Erven-State Specialist
• Jeff McCutcheon-Extension Agent, Ag
• Mark Mechling-Extension Agent, Ag NR
• Dave Miller-District Farm Mgt. Specialist
• Pam Montgomery-Extension Agent, FCS
• Howard Siegrist-Extension Agent, Ag NR
• Chris Zoller-Extension Agent, Ag NR

3
Program Development

• County ag needs assessments identified the
  importance of assisting family farms and
  businesses
• Built upon previous program that targeted
  emerging or junior managers
• Focused on the transfer of management

4
Program Format

• Six different segments were taught
• Q and A/ Discussion period followed each segment
  facilitated by Bernie Erven
• Each session built upon previous session
• Topics were designed to build on conceptual,
  technical and interpersonal skills required of
  manager

5
Program Content

• 1) What do managers do?
• 2) How do you get the next generation ready for
  their responsibilities?
• 3) How do we create opportunity?
• 4) How do we share responsibility?
• 5) How can we be honest about ourselves and our
  business?
• 6) How do we communicate with family members who
  are part of the business?

6
1) What do managers do?

• Five Functions of Management
• Planning
• Organizing
• Staffing
• Directing
• Controlling

7
2) How do you get the next generation ready for
their responsibilities?

• Developing management skills of younger
  generation
• Discussed techniques used to transfer of
  management to the next generation

8
3) How do we create opportunity?

• How will your business stay competitive?
• Structural changes within agriculture
• Who creates these new opportunities?

9
4) How do we share responsibility?

• Authority, responsibility and accountability
• Art of delegation
• Job descriptions for each business employee
  including family members
• Transitioning the business

10
5) How can we be honest about ourselves and our
business?

• Is there a viable business to support multiple
  families??
• Can we get along?
• Are both generations committed, have the maturity
  to make it work and have an appreciation for
  everyones roles?

11
6) How do we communicate with family members
including those who are employees?

• Importance of communications
• How do we communicate?
• Techniques for improving communications between
  family members

12
Program Results

• Two day-long programs were conducted in 2003
• Audience was primarily farm and small business
  families
• About 80 participants in total
• Participants gave high marks through
  end-of-meeting survey

13
Program Results-Continued

• Some individual follow-up with families after
  program by agent
• Five issues of a newsletter dealing with the
  transfer of management were sent to participants

14
Post-Workshop Evaluation

• Participants initiated the following
• Business goal planning
• Improvement of family communications among family
  members
• Strategic planning
• Questioning of current family business practices