Leadership in Family Farming Businesses

Leadership always comes with its own set of consequences, especially within a family business. Balancing the natural instincts of being a parent with the demands of leading a successful enterprise requires a delicate touch. This is particularly true in family farming businesses, where the leader must navigate complex family relationships while ensuring the business thrives.

Navigating Dual Roles: Parent and Leader

In a family business, the challenge often lies in reconciling parenthood’s nurturing, coddling nature with the strategic, sometimes tough decision-making required in leadership. Good leadership in this context involves self-awareness about how you carry yourself, the mood you project, and the behaviours you reward.

The Growing Importance of Leadership

As family farming businesses grow larger and more financially complex, the importance of effective leadership becomes ever more critical. With up to four generations potentially involved, the ability to lead effectively can make or break the business. Leadership is about communication and making deliberate decisions that sometimes require putting aside natural family instincts for the greater good.

Beyond Execution: Working on the Business

Many business owners spend 99% of their time executing tasks and only 1% working on the business itself. However, the long-term sustainability of a farming business hinges not on external factors like weather or market prices but on the quality of leadership during the current generation. This leadership sets the tone for future success.

What Does Good Leadership Look Like?

Good leadership is a balance of hard and soft skills. It’s about fostering a positive culture within the family, excelling at family events, and ensuring robust documentation and processes are in place. This includes asset policies, employment policies, and clear operational guidelines. Professionalising the business is critical to leadership, and effective communication through various channels is essential.

The Impact of Your Leadership Shadow

Every leader casts a shadow that impacts the business and its culture. Your leadership style, communication methods, and ability to collaborate with family and team members significantly influence the business. Recognise that your generation’s leadership will have the most substantial impact on the business’s future.

Collaborative Leadership

Leadership doesn’t always mean leading from the front. It’s crucial to value the ideas and perspectives of family and team members. The next generation and younger team members often bring fresh views and different ways of processing information. Embracing these differences can strengthen the business.

Tips for Being a Good Leader in Your Family Farming Business

1. Acknowledge Your Leadership Role: Understand that your leadership has consequences and is vital for the business’s success.
2. Dedicate Time to Leadership: Balance execution with time spent working on the business. Most businesses need to focus more on strategic planning.
3. Establish a Communication Structure: Consistent communication is key. Use various platforms to keep everyone informed and engaged.
4. Be Mindful of Your Presence. Your attitude and behaviour are critical, and how you show up at work and with your family sets the tone.
5. Understand Your Leadership Impact: Recognise your leadership’s significant influence on the business’s future.

Leading a family farming business is a unique and challenging role. By balancing family instincts with strategic leadership, fostering a positive culture, and valuing collaborative efforts, you can ensure your business thrives for future generations.