What Dairy’s Next Generation Needs for

Succession SuccessPresenter: Elaine Froese, CAFA, CHICoach

Text: 1-204-534-7466Email: elaine@elainefroese.com

Clarity

Certainty

Commitment to act

Courageous Communication• Conflict resolution…not avoidance• Clear vision for dairy business…not broken promises

• Certainty of equity ownership proven by next generation’s manager role

• Consensus decision making…not disrespect or mistrust

• Cash flow to manage debt well…and lifestyle income stream

• Consideration for family time

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The Neutral ZONE William Bridges

What needs to end ?

What needs to begin ?

Understand Age Needs20…making it30…success, mastery40…taking charge / ownership50…quality of life60…legacy, starting over, new roles

70…mentoring80…elder blessing

Why don’t you wantwhat I want?

HEART… feels good I like it!GUT…trust it works I trust you!

HEAD…understand I get it!

Founder’s Needs

• Income stream for lifestyle• No fear of next generation creating failure

• New residence• Fairness to non-dairy heirs• Less stress, less complexity

Emotions Impact Decisions

• Identity tied to love of the cows• Letting go to move forward• Be a deal making entrepreneur• Work holism impacts relationships• How to re-invent the founder’s role?

Next Generation Needs• Decisions respected• Time for family and play• Certainty of agreements & ownership• Debt service capacity & income stream• Skill development, trusted advisors

Conflict Costs Money!• 21% more profitable with regular business meetings (Virginia Tech Study)

• TOOLS: – Curiosity– Common Interest– Intent

Conflict resolution is a business risk management strategy

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Intent, Action, Effect

INTENT

EFFECT

ACTION

Women are Successsors• Ireland: Clare O’Keefe• New Zealand: Mandi McLeod• Australia: Christine Baker • USA: Jolene Brown, Dr. David Kohl

Success Factors• Clarity so that conflicting visions are resolved

• Clear understanding of roles and age needs

• Certainty of contracts and next generation’s ownership

• Cash flow for decent income and servicing debt

•Commitment to communicate and then ACT!

Discuss the UNDISCUSSABULLTM

• Talk about the issues• Define what success means to your operation and all generations.

Clarity

Certainty

Commitment to ACT!