What can ranch/farm familiesdo to improve their chancesof continuing as a familybusiness for generations?

Lorne OwenMinistry of Agriculture & FoodBritish Columbia, Canada

Key Concepts to UNDERSTANDING…

Understanding goal setting in the CONTEXTof the ranch/farm family business

Understanding the VALUES that guide goal-setting in the ranch/farm family business

Understanding the RESOURCES that enablegoal-setting in the ranch/farm family business

Understanding DECISION-MAKING that leadsto successful goal-setting in the ranch/farmfamily business

“The absence of communicationis NOT an option”. Communication is the KEY to allsuccessful family ranch/farmactivity!

The family business requires ateam approach and if you areserious about keeping the operation going, making it afamily affair, makingimprovements and having plansto deal with important issues,you must develop and maintaineffective, respectful teaminteraction.

UnderstandThe

Context

Communicate

ClarifyValues/Goals

Family decision making process

Identify andManage

ResourcesDecide

HowTo

Decide

ACT

Sean Brotherson, NDSU Extension Family Science Specialist

Ranch/Farm Family

System

Family

Social

PersonalEconomic

VALUES

Values form the base uponwhich the family farm/ranchis built. Values are the guide-posts expressed by teammembers that direct their activities as a unit and witheach other as a team.

Techniques For Generating aFamily History

* Storytelling

* Family Business Time-Line

* Use of Genograms

Management Values of Farmers & Ranchers

•Dedicated Producer

•Flexible Strategist

•Resource Steward

“What do each of us value interms of”:

* Teamwork * Money * Power * Size of Operation * Recognition* Amount of Work * Family * Recreation

Personal Goals

The personal goals of familymembers may be the singlemost important factorinfluencing the direction thatthe business takes.

UnderstandThe

Context

Communicate

ClarifyValues/Goals

Family decision making process

Identify andManage

ResourcesDecide

HowTo

Decide

ACT

Ranch/Farm OperationalResources

* Basic* Human* Financial* Livestock* Wildlife

Family Resources

Successful businesses arebuilt by strong teams, comprised of members withcomplimentary skills.

Personal Resources

PersonalityCreativityStress ManagementCommunicationCooperationNegotiation

Four Types of Decision-making

* Autocratic

* Majority

* Unanimous

* Consensus

UnderstandThe

Context

Communicate

ClarifyValues/Goals

Family decision making process

Identify andManage

ResourcesDecide

HowTo

Decide

ACT

A Will to Succeed: A powerful desire to overcome obstacles isthe impetus to survive and prosper in family farming/ ranching. Many farm or ranchdifficulties can be linked to a lack of will.Without an internal conviction to make abest effort, any business venture takes aprogressive decline. With a will comes noguarantee of success. But an absence ofcommitment is a near 100% indicator ofeventual failure.

Peter Reese, Successful Farming, June, 2002