managing for today and tomorrow n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Managing for Today and Tomorrow PowerPoint Presentation
Download Presentation
Managing for Today and Tomorrow

Loading in 2 Seconds...

play fullscreen
1 / 15

Managing for Today and Tomorrow - PowerPoint PPT Presentation


  • 96 Views
  • Uploaded on

Managing for Today and Tomorrow. Succession Planning Part Four Developing the Action Plan. Key Succession Planning Tasks. Planning for the gradual shift in management from one generation to the next. Shifting ownership of the assets involved from generation to generation.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Managing for Today and Tomorrow' - gavivi


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
managing for today and tomorrow

Managing for Today and Tomorrow

Succession Planning

Part Four

Developing the Action Plan

key succession planning tasks
Key Succession Planning Tasks
  • Planning for the gradual shift in management from one generation to the next.
  • Shifting ownership of the assets involved from generation to generation.
  • Anticipating events that could disrupt management and ownership succession.
building a management team
Building a Management Team
  • Design a team approach
  • Develop new management skills
  • Cross train
  • Seek a functioning and effective system of routine communications
  • Implement non-threatening evaluation processes
developing the next generation of managers
Developing the Next Generation of Managers

“The final test of greatness in a CEO is how well he chooses a successor and whether he can step aside and let the successor run the company.”

Peter Drucker

turning over control
Turning Over Control
  • Start early to learn each potential successor’s capacity
  • Successor may be in-law, grandchild, or neighbor
  • Ask yourself, “can I live with their decision”
  • Give control over different sectors of the business so the next generation can master each one independently.
  • Rome was not built in a day – your successor’s transition into control should be gradual (but not so gradual that they lose interest)
addressing power issues
Addressing Power Issues
  • Who controls decision making
  • Decision making control should be secondary to the quality of the decisions
  • Decision making under alternative scenarios
assuring fair compensation
Assuring Fair Compensation
  • Address compensation for labor, management and capital contributions
    • Especially younger generation members with little or no decision making power
valuing ownership interest
Valuing Ownership Interest
  • Ownership interest on a fair and equitable basis
  • Review process for establishing ownership interest
protecting minority owners
Protecting Minority Owners
  • Minority owners should be protected from the harshness of majority rule
encouraging phased retirement
Encouraging Phased Retirement
  • Encourage older individuals to retire
    • Level of compensation
    • Access to retirement benefits
    • Reduced-responsibility positions on the management team
anticipating disruptions
Anticipating Disruptions
  • The 5 D’s review
    • Death, Disability, Disaster, Divorce, Disagreement
  • Legal risk and other liabilities
remember to communicate
Remember to Communicate
  • Satisfying Succession Plans depend heavily on the personal chemistry of the individuals involved
  • The underlying success of any business agreement depends on healthy family relationships
  • More two-generation family business arrangements fail because of poor family relations than any other reason
barriers discussion
Barriers Discussion
  • What are some of the barriers you have discovered in reaching a decision to transition the farm or ranch business or pass a set of assets to the next generation?
transition plan road map
Transition Plan Road Map

Transfer Stages

Testing

Commitment

Establishment

Accomplishment

Beginning

End

Transfer Process

Divide Income

Transfer Management

Parent

Child

Transfer Ownership

your action plan
Your Action Plan
  • Family Meeting Date: _________
  • Goal Setting Date: _________
  • SWOT Analysis Date: _________
  • Advisory Team Date: _________
  • Decision point Date: _________
    • Are you going to transfer a farm business,
    • Or are you going to distribute assets?
  • Transition Plan Date: _________