Understanding the different perspectives on succession

With several stakeholders being involved in succession planning, each person will inevitably reveal a different set of fears and regrets during the process. How this is handled can determine the success or failure of the agribusiness. This week, Trevor Dickinson looks at the situation from the perspective of the founder.

- Trevor Dickinson

To understand the impact of succession on a family agribusiness, it is necessary to differentiate the perspectives of the stakeholders. These comprise the family, the owners and the managers.

Each group tends to have different goals and expectations. Family members often view the agribusiness as an important part of the family’s identity and heritage, and as a source of financial security that will enable them to satisfy their lifestyle expectations.

In contrast, those in management see their careers as tied to the business and tend to regard it as a vehicle for professional development and economic achievement. From their perspective, the business’s primary goal is not to look after the needs of family members but to generate profits and ensure them continued career growth. Accordingly, they expect the resources of the business to be allocated to those who contribute directly to its growth.

Finally, the owners view the business predominantly as an investment from which they want to receive a fair return. Their expectations stem from an ownership right that is often difficult to exercise in the context of a family business. Importantly, individuals can belong to more than one group at the same time. The same person can therefore hold conflicting views about the ultimate goals of the business.

THE FOUNDER

Throughout the development of the family agribusiness, the founder tends to be the only person who is the dominant player in all three groups.