Potato Grower

September 2018

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32 POTATO GROWER | SEPTEMBER 2018 Diggin' In Diggin' In FARM MANAGEMENT| Stanley Moore, Michigan State University Extension Families working together on the farm experience great benefits, but it can also present unique challenges. But They're Family! Family businesses, including family farms, create opportunities to build great relationships, accomplish goals together, nurture skill development in the next generation, and see the business continue beyond the current generation. Family businesses can also create challenges: work vs. home life balance, conflict resolution skills, communication, and business succession. According to a 2012 Harvard Business School study, the top three reasons family businesses fail are: 1. Lack of clear leadership structure; 2. Inability to separate business from personal; and 3. Inadequate preparation to handle complex issues such as succession, exit or death of a partner, and growth of the business. Family businesses can improve their chances of success by thinking through some critical areas before they bring on new family members as employees or partners. These areas for consideration include hiring, management/ownership opportunities, and exit strategies. Hiring family employees can often look very different from hiring non-family employees, but should it? As a Michigan State University Extension educator, many farms I work with insist on a formal break between the time where a son and daughter see work as "chores," and when they are formally hired. This break could be college, or it could be a period of employment outside of the family farm. The break also creates an opportunity to set a more formal working relationship, including an interview. "Interview?" you say, "but they're family!" I believe family members deserve an interview by the farm owners. If we fail to give them interviews, we can perpetuate an idea of entitlement, rather than earning an opportunity. We also do them a disservice by ignoring the question of whether this hire makes sense for both the employee and the business. Is there a need for another employee, or are we just creating a spot for them? Do the family member's skills meet the need, or can they be trained? I also encourage farms to have a job description for the position they wish to fill with the family member. Job descriptions help the farm management think through what is needed to be successful

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