A Conflict Resolution policy is certainly helpful to…, well, ummm…resolve conflicts!  This is an agreed upon process or procedure by which disagreements and conflict will be remedied.  The end result will certainly not make everyone happy in every situation, but the fact that key stakeholders discussed the process ahead of time should help make anyone that might feel jilted be able to accept the outcome because the policy was created before the conflict arose.  After all, they agreed to the process, didn’t they?

Our experience strongly, strongly reveals that when policies are created before the actual need arises, that partners and teammates feel more fairness in outcomes.  Otherwise, policies developed “on-the-fly”, when things are tense and a conflict is at-hand, may seem arbitrary and personal as opposed to what might be best for the business.  

Creating a Conflict Resolution Policy and process ahead of time can work well for the longer-term harmony within your family farm business.  This is a part of your management system and communications platform that can be accomplished in a relatively short time period and won’t take all day to figure out.  Go ahead, make an investment in your business.  If you need a little help getting started, send me an email and I can share some resources with you and your team. 

Maybe your family business has been able to beat the odds and there are no hidden agendas, alligators in the closet, jealousies or misunderstandings.  Heh.  Your investment in improving these areas of your business is MORE IMPORTANT than saving ¼ percent on your line of credit, or which combine gets overhauled this winter.  Without a professional communications platform for your family farm, business stagnation, paralysis and breakup are often the ultimate outcome.

A few areas you might consider addressing in your family farm business are guidelines for meetings and personal accountability standards for you and your teammates.  Discussing and developing the reasons and types of meetings you will hold can help end the sometimes useless meetings that can creep into your business.

The practice of Personal Accountability has several components as its foundation.  One key component is the notion that each individual person on your team’s personal behavior adheres to the “It is My Mess.  I Own It.  It is Up to Me to Change It.” mindset.  When interacting with others this involves asking questions in a different way.  For example, asking “How” and “What” questions as compared to asking “Who”, “Why” and “When” questions.

“When” questions suggest someone else might be responsible and that all you can do it wait for something better…a form of procrastination.  “When is management going to do this?” or “When will Billy do what he promised?”, etc.  This is not good.

“Who” questions suggest that someone else is to blame.  It’s the Blame Game.  “Who made that decision?”.  “Who is going to fix this?”, etc.   This is not good.

“How” questions are a search for a solution.  “How can we make better decisions?”.  “How can I help you?”.  “How are we going to fix this?”.  This is good.

“What” questions seek answers.  “What can be done?”.  “What is the lesson to learn from this mistake?”  “What is the solution?”.  This is good.

Personal Accountability is all about being ready to answer the questions:

“How can you improve or change this situation?”  and “What are you willing or able to do?”  

By focusing on the situation, issue, opportunity or problem…and NOT other people…
creativity, productivity and more harmonious relationships can develop.

Of the many reasons why meetings are so energy-sucking is because the meetings have limited structure, there are not clearly defined areas of responsibility or standard practices for performing routine activities.  Not every decision to be made requires a committee, nor attended by everyone in the business.  To become more effective with your family business’s meeting structure, answering the who, what, when, why and where can be very simple to execute:

• How many and what types of meetings are applicable to your family farm?
• Who should attend and participate in the various meetings?
• What items are appropriate for any given meeting?
• When and where will meetings take place?
• Why are we having this meeting and what are the expected outcomes?

Agenda setting is a key to making sure that meetings remain focused on the appropriate topics for those attending.  Before moving along, it is prudent to talk about who sets the agenda.  If you have adopted the practice of defining roles and responsibilities inside your business, this is another to add to someone’s job description.  So, let’s assume that the agendas for the various types of meetings in your business will be the responsibility of a designated person…a meeting planner.  The meeting planner has the task of recognizing that inside almost every business there are employees, managers and owners.  Agenda items need to be relevant to those attending in their various capacities (staff, manager, owner).

Staff meetings are generally intended to discuss tactics and day-to-day business activities.  These will vary in frequency.  On the family farm, there is often a need for short, quick daily “stand-up” meetings to discuss immediate needs and planning.  Daily “Stand-Up” meetings are just that…standing.  Don’t sit down.  The goal is to make it quick, efficient and productive.  Weekly meetings may be more appropriate during slower times and can be used for outlining goals for the week and assigning activities.  Ad-hoc meetings can be called for training and internal announcement type information.

Management meetings are intended to explore bigger picture issues like planning, defining job responsibilities, coordination of resources, deciding on priorities, determining how to gather and analyze data and employee reviews and training programs.  These meetings can be weekly, monthly, quarterly and annually.  It depends on the agenda and the desired outcome of the meeting.

Ownership and board meetings should be conducted at least annually and involve key stakeholders, owners and spouses.  Many times, there is a need for these to take place quarterly and monthly, especially as your family business becomes more complex.  Whether they are involved in day-to-day activities or not, spouses are a big part of ownership meetings for family businesses.  They act as silent partner in the business by virtue of being married to an owner.  These meetings are appropriate for strategic planning issues, general policy setting for operations, dividend distribution and management compensation.

There are several reasons for having a meeting.  The expected outcomes from various agenda items fall into one of three categories:  1) Give information, 2) Get information, or 3) Develop options or make decisions.  These need to be clear when agendas are shared with attendees.  If attendees are not clear, some may be trying to make a decision while others are simply sharing information.  Does that make sense?

Some best practices for helping ensure productive meetings include trying to make sure that attendees have balanced participation.  Locate the meeting where business can be conducted without interruption, including cell phone usage during the meeting!  Whoops, I let that pet-peeve out of the box.  Toddlers should not be present and the TV should be turned off.  Holding meetings at the kitchen table is not the best practice and is conducive to interruptions and perceptions of low seriousness.  Location is important. Rotating locations can add some variety and helps level the “home turf” advantages that can subconsciously creep into the situation.  Schedule meetings when they are appropriate.  Don’t schedule a 4 hour long-term planning session during the middle of harvest.
 
Keeping meeting notes and using them as a basis for follow-up helps eliminate those decisions that are sometimes made where no one ever gets busy with the specific action items.  Meeting notes also help create an environment of personal accountability.  If everyone knows that there will be follow-up, odds increase that the work will actually get performed.  You may have experienced it – everyone is excited about an idea, but it never gets implemented because the “who”, “what” and “when” of the idea were never decided upon.  Several months later, the same discussion often takes place again…a complete waste of time.

General Rules for Business Meetings and Guidelines for Personal Accountability can provide serious productivity and accomplishment to various meetings in your business.  Coming to an agreement on these things before holding meetings is a best practice and something we can explore in the near future.

When the family farm was owned by one family member, communication was generally “one-way” and therefore, fairly easy.  As more successors and/or partners join, or contemplate joining, the family farm business, communication and behaviors can get more complicated.  This Code of Conduct and the process of developing it helps increase the appreciation and recognition for everyone’s individuality.  It helps ensure that behaviors are something mutually agreed upon rather than imposed by senior leadership.  It provides a guideline for more constructive and productive interactions.

As with most things in life and business…things change.  Therefore, these things are not written in stone and can be edited as time marches on.  If you have been with us for a while, you know that this article is only about one component of your family farm’s communication platform, which in turn is an important part of creating a professional management system for your family business

A Communications Pledge, or Code of Conduct, is also a reflection of your values in action.  Your behaviors reflect what you value.  By working with one another on this project, it offers team members a chance to develop a written collection of the rules, principles and expectations about behavior and relationships that they consider significant and fundamental to the successful operation of your family farm business.  Also known as a Code of Conduct, it can spell out these standards and help further systematize your professional management system.  How this is finally developed is up to you…it’s your family business.  To help get you started on this exercise,send me an email requesting a sample Code of Conduct, a Communication Pledge or both.

Outside Business Activities -- Another component to consider is your team’s policy in regard to individual owners’ (or potential owners) outside business activities, outside investments or their possibilities.  Ever thought about that?  How is that handled?  Ahhh…good question Grasshopper.

For example, is it acceptable that a successor in a senior management position takes on a major commitment in a voluntary role with an industry association?  Yes, no, maybe.  If it takes time away and significantly impacts job performance and the business, maybe not.  If the activity complements the business and leads to further education and networking opportunities and the business can handle the departure, then maybe it should be pursued.  

How about sharing in or simply disclosing outside investment opportunities?  Full and open disclosure among business partners seems prudent.  But, if you have never discussed it, how can everyone be on the same page?  You can’t be, necessarily.  

The most successful multi-generation family businesses share outside business activity and investments with one another.  Oftentimes, they invest together.  Is that mandatory?  Of course not.   So, why is it important and generally a good practice?

How would you feel if your business partner invests in something, doesn’t share it with you, then makes a killing and now has millions and millions?  Of course you would be happy for him…but there might also be a little bitterness.  When big discrepancies in personal wealth develop between business partners, especially siblings and cousins, it can become more difficult to keep the team together.  There is also the trust-building factor that is accompanied with the sharing of outside investment opportunities.  Sharing helps create and foster the spirit of generosity, “team” and looking out for one another. 

These were some simple examples of outside business activities to be discussed and agreed upon.  If you put your mind to it, I am certain you could come up with a dozen other areas.  

So give it a whirl.  See what you and your family business team members come up in these two areas of your farm management system – A Code of Expected Behavior and an Outside Business Activity Guideline.  While doing so, try to pay attention to the benefits of the actual process, as much as the final prepared documents.  Because that is where the real value is derived…working together.  Good luck!

What is a “Deliberate Communication Platform”… Jim!  Let’s look at a dictionary definition to begin this discussion.  Actually, let’s begin with a thesaurus instead.

• Deliberate also means Thoughtful, Slow, Unhurried, Measured, Considered, Methodical, Purposeful, Conscious, Intentional, Calculated or Planned.  

• Communication is the exchange of thoughts, opinions or information by speech, writing or signs.

• Platform also means Policy, Proposal or Program
  

Your Deliberate Communication Platform could then be described as “the policy or procedures by which your family business partners and team members share information and talk to one another”.  What the…?  “Just say it man!  What is all this mumbo-jumbo?”  I know, I know.  Seems rather academic doesn’t it? 

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Taking time away from the endless chores and things to do is sometimes difficult, but it might help to understand that this isn’t an exercise in feel-goodliness, warm-fuzzy, feel better inside, mushiness, but rather has real-world, bottom-line, operational and human capital implications that are just plain good for the long-term success of your family business.  The development of these various statements are used to:

The downside of not having a vivid picture of the future for your team to visualize often results in team members that are not fully engaged in their work.  You’ve seen it.  Yeah, Joe is a good guy, doesn’t really do anything wrong, but doesn’t really do anything extra, above and beyond the minimum.  Joe may be doing good things on a daily basis, but he is not inspired because he has no passion for pursuing a larger vision that brings out the best in Joe.  How can he?  It’s not his fault.  You as the business leader may not have provided it Joe.

People naturally want to be part of a successful team; a team with a vision of the future for achieving something great.  All they simply need is for you to take the time to develop a vision and then share it with them and help point them in the right direction on how they can contribute to pursuing your vision.

So, how do you create a compelling vision that inspires passion in people?   The following characteristics can be used as a reference to help point you in the right direction:

As your family business’s leader, when was the last time you reflected on your vision for the future? Do you have one?  Is it clear to you?  If not, there is no way it can be clear to anyone else.  Is it written down?  Do you have some work to do?  I hope this helps illustrate some compelling reasons you might want to take the time to develop a clear vision statement and some ideas on how to get started.  If you would like a worksheet or template to help you develop your own vision statement, please email me for a copy.