Be Your Team Captain of Your Farm s Succession Plan. Amy Wirtz, J.D., C.E.P.A. Family and Business Success

Transcription

1 Be Your Team Captain of Your Farm s Succession Plan Amy Wirtz, J.D., C.E.P.A. Family and Business Success

2 Course Objectives Identify who needs to be on your planning team and the difference between a technician and a visionary team member. Understand how to create S.M.A.R.T goals. Identify the five steps to getting the project completed.

3 The Dream of Family Transition

4 The Plan and Getting It Done One Bite At A Time!

5 Outline of Project: Value Acceleration Process Overview

6 The Project Manager Does the Following Quarterbacks Defines the Process Translates complicated information from multiple sources. Manages Accountability Manages the Team Makes Referrals Helps create a new vision for owner and family Mediates

7 Reflection Moment Please take a moment to list your advisors

8 Possible Advisors CPA Financial Planner Wealth Manager Business Attorney Estate Attorney Banker/Lender/Money Manager Insurance Specialist Family Members

9 Technician or Advisor? Technicians Advisors Do Tasks You Assign to Them Sell Products Rarely Listen Have Limited Involvement Interests vs. Demands Part of the Plan for Transition Challenge Your Positions Work Well with Other Advisors

10 How Many Advisors?

11 Organizing principle for C.E.P.A. Teams We work in teams to create the synergy needed to deliver the best process possible during a business ownership transfer.

12 Why Work in Teams? Team Members A team becomes more than just a collection of people when there is a strong sense of mutual commitment. A team creates synergy, thus generating performance greater than the sum of the performance of its individual members. See

13 Goals The System Provides Owners With: 1. Steps To Identify Risks to Value and Transition 2. Defined Goals That Can be Timely Accomplished 3. Valuation and Validation Through Business Methods 4. A Process to Decrease Risk and Increase Value 5. Assistance in Creating a Version for the Next Chapter of the Owner s Life 6. A Defined Method to Evaluate and Select Options

14 Balancing Act Goals Personal Business Family S.M.A.R.T. Implementation Change Daily Life Conflict Productivity Resistance

15 Leading to Accountability Always Publish Deadlines Have Simple and Regular Progress Reviews Think About Eating an Elephant Here Break the Project Down to 30, 60 or 90 Day Objectives Always Delegate and Never Abdicate Have team rewards so that the team becomes the peer pressure for follow through Good leaders will allow the team to be the first form of accountability, but the leader is the ultimate arbitrator for discipline

16 Managing Commitment Agendas Restate the Primary Goal and What Has Been Accomplished to Date Give Summaries of the Meetings with what was Decided, Homework for Members and Next Steps Give Deadlines and Manage the Deadlines If a member consistently is failing to meet deadlines, be willing to use peer pressure and get to the why of it

17 Before Goals Comes Visioning Express Personal Values Inspires and Unifies the Team Focuses Action Disciplines Us to Think Strategically

18 Vision is What is Required to Finish! Answer the Following: When do you want the transfer of leadership to occur? Is this a reasonable time frame? Who must I be to reach this goal? What must I let go of to reach this goal? What is in your way? Who else do I need on my team to get to the end? Who is in the way?

19 What Is Success To You?

20 Make The Time To See It So You Can Do It! Personal Professional Aspirational Concrete Family

21 What Drives Us? Personal Identity Financial Security Health Status Family Responsibilities Business Lifecycle Market Enthusiasm and Passion Partner & Family Situations Community Involvement

22 Aspirations Relationships Finances Activities Health Work Expertise What Makes You Happy?

23 The Vision Thing.. Desires I want a better life (work-life balance) I want more money I want to get my kids involved I want a more effective management team I want to retire or transition so that I can I want less risk I want to give back I want to dominate my market S.M.A.R.T Goals I want to turn off my phone at 5:30 p.m. I want my rate of return to increase by 3% this year. I want to decrease my expenses by 10% this year. I want to create measurable goals for my managers and have bi-weekly meetings. I want to review my crop and property causality insurance polices. I want to be on the school board by 2017

24 Success Areas Value Systems Personal Management Family Financial Alignment? Business Owner Define Success From Several Viewpoints Know Your Important Relationships

25 Who Are Your Stakeholders? Primary Stakeholders Shareholders Spouse or Significant Other Children In-Laws Key Employees Secondary Stakeholders Non-Essential Employees Customers/Clients Vendors/Suppliers Local Community

26 Goals Should be S.M.A.R.T Specific Measurable Attainable Realistic Time-Based

27 Goals Should be S.M.A.R.T Specific Measurable Attainable Realistic Time-based I want to maximize the value of my business. I want my business to provide me financial security. I can retire in five years when my wife retires. I d love to triple the value of my business in 5 years. I would like to transfer the business to my daughter.

28 Transpose Vision to S.M.A.R.T. Goals Take two of your visioning statements and make two S.M.A.R.T. Goals out of them Example: I Need More Money? How Much? By When? How? What For? I Want to Spend More Time With My Teenage Daughter Help With Conversation: Money: How Much? By When? How? What For? Daughter: What does your daughter like to do? What is her time frame vs. yours?

29 Start With Solid Goals Financial Need vs. Want Risk Income Personal Wealth Retirement security Long term healthcare Personal Family & Friends Self Worth Self Identity Philanthropy Health Fun Religion/Beliefs Strategic Questions Can I achieve my personal objectives without the income from the business? Strategic Questions I don t have time - what if you did? Do I have an identify outside the business? Will I have regrets? Financial Personal Alignment? Business To successfully transition, the personal, financial, and business goals must be aligned Business Clarity of direction Value factors Net worth Salability Viability Predictability Financial health Personnel/Mgmt Systems Mgmt Succession Risk Management Strategic Questions How attractive is my business from an outsiders point of view? How ready is my business to transition? Have I mitigated business risks? Are we focused on maximizing value or generating income?

30 Goals and Objectives 90 Days from Now 1 Year from Now 3 Years from Now Personal Business Financial

31 Time Is A Ticking.

32 Accountability Business-Peer Groups S.M.A.R.T. Goals Visioning 30, 60, 90 Day Goals What Is Your Reward? What Is The Consequence?

33 This Is A Marathon Not A Sprint

34 Course Objective Review Identify who needs to be on your planning team and the difference between a technician and a visionary team member. Understand how to create S.M.A.R.T. Goals Identify the five steps to getting the project completed.

35 Be Your Team Captain of Your Farm s Succession Plan Amy Wirtz, J.D., C.E.P.A. amy@wirtzlegal.com