In family farming concerns, succession planning is seldom part of a business strategy. Yet it is crucial to ensuring a smooth transition from generation to generation, and the ultimate sustainability of the operation. So says André Diederichs, CEO of the Family Business Association of South Africa.
Diederichs stresses that a succession plan should be drawn up in good time to ensure continuity, should the current owner/manager retire or find it difficult to run the business.
He warns against the misconception that the firstborn child, or the firstborn son in particular, should automatically take over the reins, as he or she may not necessarily be the best choice to lead the business. The main objective of a family-run business is to create wealth for the family; it thus makes sense to choose a successor that clearly has the capability to do this. It might even be wise to appoint a successor (or CEO) from outside the family should family members be unable or unwilling to take over. The successor has to remain accountable to the family at all times. Moreover, he or she should be exposed to the company’s decision-making process from early on to learn the ropes while still under the guardianship of the current management.
“Parents can no longer afford to keep their last will and testament a secret. All family members should be fully informed about what the future holds to ensure a smooth transition from one generation to the next. If family businesses fail to plan for succession, they plan to fail,” warns Diederichs.
SAFEGUARDING THE BUSINESS
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Denne historien er fra October 30, 2020-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Syngenta Seedcare celebrates a decade of innovation
Syngenta's ambition is to enable their customers' investments to grow in healthy soil from treated seeds to young plants through innovation and collaboration, writes Magda du Toit.
Agri workers shine at Western Cape awards
Lindie-Alet van Staden, a garden and olive orchard manager at L’Ormarins Wine Estate in Franschhoek, was crowned as the Western Cape Prestige Agri-Worker of 2024 at a gala event recently held near Paarl.
Small and large farmers recognised at grain awards
The annual Grain SA/Syngenta awards ceremony bears testimony to the quality of farmers in the grain industry.
Growing partnerships: Fedgroup's flexible and innovative approach
Janine Ryan spoke to Warren Winchester, general manager of impact investing at Fedgroup, about why the company became involved in agriculture, and what it offers farmers and their immediate communities.
Why fish farms fail, and how to avoid becoming a statistic
The popularity of launching fish farms is not matched by their success. Leslie Ter Morshuizen, owner of Aquaculture Solutions, explores the factors that cause most of these businesses to go under.
Where history and modernity meet in a luxurious setting
Brian Berkman kept his eyes peeled for ghosts in the oldest continuously run hotel in South Africa, but all he found was a fabulous two-night stay.
THE HITCHING POST
I'm a stylish elderly lady with a radiant glow and a good sense of humour that keeps me young at heart.
Cutworms: check the weeds on your fields!
Zunel van Eeden explains why understanding the ecological interplay between cutworms and weeds is crucial for effective pest management. Producers should disrupt the life cycle of cutworms to minimise crop damage.
Does high-density grazing mimic grazing patterns of game?
In their paper on high-density grazing in Southern Africa, professors Angelinus Franke and Elmarie Kotzé from the Department of Soil, Crop and Climate Sciences at the University of the Free State say high-density grazing systems may not accurately reflect natural ecosystems. Roelof Bezuidenhout reports.
Global grain outlook: 2024/25 marketing season
In its latest summer crops report, the Crop Estimates Committee says South African farmers intend to plant 4,47 million hectares of summer grains and oilseeds in the 2024/25 season, up 1% from the previous season. As South Africa exports maize and soya bean, Annelie Coleman reports on the latest trends in the international grain and oilseed markets, amid fluctuations in weather conditions and ongoing armed conflicts.
