Gregg Hadley PhD Assistant Director Agriculture Natural Resources and Community Development KState Research and Extension ghadleyksuedu 7855325838 Why Grandma and Grandpa The Past Generation ID: 415205
Download Presentation The PPT/PDF document "Succession Planning Overview" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Succession Planning Overview
Gregg Hadley, PhD
Assistant Director – Agriculture, Natural Resources, and Community Development
K-State Research and Extension
ghadley@ksu.edu
785-532-5838Slide2
Why?Slide3
Grandma and Grandpa
(The Past Generation)
Mom and Dad
(The Current Generation)
Farming Brother and Sister (The Next Generation)
Non-Farming
Brother and SisterThe Brothers’ and Sisters’SpousesThe Brothers’ and Sisters’ Kids (The Future)Slide4Slide5
What is Success?Slide6
An Ongoing Farm
& A
Happy FamilySlide7
Rules & PromisesSlide8
Commonly used terms
Transition planning
Estate planning
Succession planning
What is Succession Planning?Slide9
Refers to planning for any change
Expansion
Contraction
New technology
Transition PlanningSlide10
Refers to
how assets will be passed on to heirs
Estate PlanningSlide11
So, What is Succession Planning?Slide12
My perspective
Estate Planning
is about how assets will be transferred to
heirs
Succession Planning
involves discussing so much more:Estate planningEstablishing the business philosophy rightsLeadership, management and workload rightsDetermining how the partners will work and communicate togetherSuccession feasibilityEstate Planning & Succession PlanningSlide13
Estate
Planning is One Piece of the Succession Planning PieSlide14
Do You Need
a
Detailed Succession Plan?Slide15
Current owners & managers:
Do you always agree with your
successor’s
business philosophy, management ideas and decisions?
Test Questions
to
Determine if You Need Succession PlanningSlide16
Future owners
& managers:
Do you always agree with
the
current owner/manager’s
business philosophy, management ideas and decisions? Test Questions to Determine if You Need Succession PlanningSlide17
If You Said No, You
are
Honest
and
Need Succession PlanningSlide18
If You Said
Yes,
You
are Probably a Liar or Kidding Yourself!Slide19
A Common
Belief
Most
successions fail due
to the lack of a good estate planSlide20
Disagreements about business philosophy
Inadequate earning capability
Transfer of work and management decision making
Emotional roadblocks
Poor communication
Death, disease, disability, disaster, divorce (5 Ds)
Poor estate plansNot AlwaysSlide21
Most Farm and Ranch Situations Require a Detailed Succession PlanSlide22
What are the Steps in Succession Planning?Slide23
Succession Steps
Succession Participants
Concern
Step
Estate Plan
1
Financial Feasibility
2
Business
Plan
3
Dealing with Emotional
Roadblocks
4
Learning how to Communicate and Teambuilding
5
Succession FacilitatorsConcernStepEstate Plan5Financial4Business Plan3Dealing with Emotional Roadblocks2Learning how to Communicate and Teambuilding1Slide24
Who Should Be Involved in Succession Planning?Slide25
Grandma and Grandpa
(The Past Generation)
Mom and Dad
(The Current Generation)
Farming Brother and Sister (The Next Generation)
Non-Farming
Brother and SisterThe Brothers’ and Sisters’SpousesThe Brothers’ and Sisters’ Kids (The Future)Slide26
So, When Should I Begin Succession Planning?Slide27
On-going
process
The actual succession plan should be developed before the next generation starts working for the farm in a career position
The plan should be reassessed frequently
Never know when one of the 5 Ds will hit
Today!Slide28
It Can Be A Lengthy Process
Succession Planning Meeting
Meetings
Required
(1/2 Day Meeting)
Team building1 to 2 MeetingsCommunications1 MeetingConflict management1 MeetingBusiness philosophy and strategy Issues1 to 3 MeetingsOperational issues1 to 3 MeetingsFinancial issues1 to 2 MeetingsDecision making and work responsibility transition map1 to 2 MeetingsEstate planning1 to 4 MeetingsPlan finalization1 to 2 MeetingsSlide29
Succession Planning Can Be Stressful!Slide30Slide31
Start Today! It Is So Worth It!Slide32Slide33
Good Luck With Your Farm or Ranch Succession
!
Thank You!