July 2011 Archive for Leave a Legacy

From Legacy Moment eNewsletter (07/22/2011)
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There are a few common business tools farm owners should use to separate operational decisions from family issues. Since family leadership and business management are two completely separate avocations, these tools allow owners to use pre-established rules and guidelines to manage the operation. A properly structured business will include an operating agreement that governs management decisions at the ownership level.

 

An operating agreement is a binding document owners agree to follow when making important decisions. When used in an LLC, the agreement is similar to the bylaws that govern a corporation or partnership.

 

While there are many benefits of an operating agreement, most are related to objectivity and control. An operating agreement:

 

1. spells out an owner’s rights, duties and obligations;

2. details decision-making authority, conditions and process;

3. ensures that the entity is distinct and separate from the owners of the operation;

4. keeps the government from settling disputes, dissolution issues, etc., which are governed by respective state statutes or default rules, if no agreement exists; and

5. removes subjectivity, ensures objective reasoning and informs owners, employees and applicable family.

 

A family-owned operation should also have a family employment policy, which pre-negotiates understanding of how, when and under what circumstances a family member may be eligible for employment.

 

Though it sounds a bit formal, a job description spells out the duties and responsibilities of each position in the operation. It also includes the method management will use to review employee performance.

 

Job descriptions and a family employment policy are components of an employee manual. This serves as a go-to source of information for all employees, management and employee candidates.

 

For more information, check back regularly to this Farm Journal Legacy Project website, or contact me.

 

 News & Resources for You

 

 

Establishing a Family Employment Policy spells out the criteria and helps to create a business-like environment.

 

Our Job Description Template helps you fit the best candidate to each operational role and ensure that everyone involved is clear about the position's qualifications and expectations.

 

Reach into the Legacy Project Toolbox for other useful resources.

 

   

 

 

From Legacy Moment eNewsletter (07/15/2011)
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Have you seen “Leave a Legacy TV”? Every four weeks, I host a half-hour television program, which airs in place of “AgDay TV.” It’s designed to help America’s farm families learn more about succession planning. The show features agripreneurs who manage innovative operations. Frequently, I also visit with an adviser or planning professional who specializes in some facet of the succession planning process. Plus, in each episode we highlight an exemplary leader in the “Legend of Leadership” segment. These individuals exemplify the admirable traits shared by leaders in our agriculture communities.

Guests on the show include experts like Barry Posner on leadership and Mike Walsten on real estate. We’ve hosted Ed Hoover, a family business consultant, and Aubrey Daniels, a behavioral scientist. We had a visit from USDA Deputy Secretary Kathleen Merrigan and soon we’ll broadcast my interview with Temple Grandin, a legend in the livestock industry. The show is about bringing you the expertise you need to grow the operation, plan for a successful transition, and prepare the next generation for leadership.

   

 

 

From Legacy Moment eNewsletter (07/08/2011)
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“Mark is the only farming (active) child in a very successful farming family. He works with his parents, John and Sue, on the family’s dairy operation. At a family gathering, about 18 months prior, his twin sister Janet expressed a sincere interest in joining the family business. At that time, Sovereignty Valley Dairy was just starting the construction phase in a long-anticipated expansion.

During the session you’ll learn:

• The keys to planning success
• Which resources are available to help the family
• What a comprehensive planning process includes
• Who should be included in planning
• How to get started

   

 

 

From Legacy Moment eNewsletter (07/01/2011)
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Leadership matters. Three things you should consider: