Wednesday, August 15, 2018  
Crops |  Farm Life |  Livestock |  Headline News |  Futures Markets |  Portfolio |  DTN Renewable Fuels | |  Options |  Charts 
 Cash Bids
 John's Comments
 Crop Insurance Update
 Katy's Comments
 Raelynn's comments
 Option Prices
 Short Dated/Serial Options
 NOAA/Drought Monitor
 USDA Report Links
 Acreage Maps
 Discount Schedules
 Livestock Comments
 Fall Storage vs Futures/Options
 About Us
 Contact Us
Printable Page Livestock   Return to Menu - Page 1 2 3 4 5 7 8 10 11 12 13
Family Business Matters       07/13 10:25

   Watch Out For the Little Things

   Develop strategies to deal with big-ticket challenges and daily interactions.

By Lance Woodbury
DTN Farm Business Adviser

   Many of these columns have focused on big, strategic moves family businesses 
should make to enhance their success with estate plans, management succession, 
family employment, compensation, governance and conflict management. A degree 
of certainty on these important issues helps family members make better 
decisions and maintain relationships. 

   Challenging as the big issues may be, many family businesses are derailed by 
the little things. Seemingly minor events, an unintentional sleight, unequal 
time spent with different family members or an offhand remark becomes the spark 
that ignites a forest fire in the family firm. Consider whether some of the 
following concerns place your family business at risk for a blowup.


   When working together in business, our human inclination is to notice how 
coworkers use their time. Even though family members have different 
responsibilities or roles, our tendency is to want to see everyone working the 
same number of hours. But, this often isn't the best strategy for a successful 
business. Some work inside and some outside, some are with people, some with 
equipment and some with technology. Some put in long hours at certain times, 
while some are steadier year-round. Some family members are more efficient with 
their time. 

   The overall result of these differences is some family members often feel 
they are working harder than others, which may be the case. Feelings of 
resentment can arise about perceptions of time spent working. These problems 
often start small but, over time, develop into a real relationship problem in 
the business. 


   When the comparison shifts to money and the expenses paid by the business, 
conflict can heat up in a hurry. What if one family member eats lunch out most 
days and pays with a company credit card, while another brings his or her lunch 
to work? Or, what if one occasionally fills up his or her personal vehicle's 
gas tank at the farm? What about paying for a spouse's expenses on a business 

   One meal or tank of gas by a family member may not be a firing offense. 
However, over months and years, frustration and resentment about what the 
business covers and whether people are taking advantage of the business and 
each other can create a serious wedge between family members.


   If a grandparent takes one grandchild on trips more frequently than others, 
it doesn't mean the other grandkids are loved any less. But, it probably 
doesn't feel like that to the others. How people are included in business 
discussions, whether they go on trips together, even the number of meals eaten 
together can create friction when compared with other family members. Again, it 
isn't one meal or one trip, but, instead, the accumulation of time spent that 
increases friction.


   It is ideal, but naive, to expect people not to compare how they spend their 
time, the money of the business or the attention they receive from others. 
Consider two strategies to address these issues. First, commit to checking in 
with other family members. More often than not, the offending family member 
isn't aware of, or being held accountable for, their work habits, use of 
company funds or time spent with others. Simple awareness can go a long way. 
Second, when it comes to time and expenses, consider crafting a policy that 
spells out what hours are expected and what expenses are covered. Good policies 
can prevent problems and are often routine in non-family enterprises. 

   There are always challenges in working with family members. A commitment to 
communication and a few key policies can help clarify expectations and prevent 
these small issues from becoming large headaches for your family business.


   Editor's Note: Write Lance Woodbury at Family Business Matters, 2204 
Lakeshore Dr., Suite 415, Birmingham, AL 35209, or email  


Copyright 2018 DTN/The Progressive Farmer. All rights reserved.

No other Daily email offers as much useful Ag information as DTN Snapshot – Sign up Free today!
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN