At the end of January, we had Kemin Industries and Libby Nelson as our guest for the Virtual Breakfast Series. Kemin is truly one of Iowa’s most amazing firms in my opinion. I can’t say enough about the thoughtful planning and communication the Nelsons have developed over the years and we are grateful for their involvement with the Center. Their products improve the lives of billions of people – yes, BILLIONS! – every day. They are currently led by their second gen of family with several third gen family members involved. 

Every year we save one of our Virtual Breakfast Sessions for the topic of succession planning. It’s the one topic that all families have to deal with. It can be done in a nearly infinite number of ways and thus it's critical for business families to hear about as many of those paths as possible.

The Nelson family doesn’t just plan for the next generation of succession, but has taken the approach of thinking and planning out seven Generations. Libby is an attorney by trade and, as part of a family-owned firm, she has the unique ability to see things through both of those lenses. 

On to my top three:

1. Communicate, Communicate, Communicate!
   This came through loud and clear from Libby’s conversation. They’ve had family meetings since Gen 2 was in middle and high school. Involving the family and talking about your vision on a consistent basis serves to reinforce it, clarify your direction, and give everyone a forum for discussing any differences or future ideas. These family meetings don’t need to start with a three-hour agenda and a formal board room. The kitchen table and a couple cold beverages is a great place to start. 
2. Plan Early with Trusts
   The Nelsons use a system of trusts as part of their succession planning – setting them up when family members are still in their teens and 20s. Your options are always more favorable when you start earlier in life. 
3. Advisory Board
   I know I bring this one up a lot – hopefully there is remembrance in frequency. Libby specifically called out how important outside advisors have been for their family business journey. They involved attorneys early with the mission to protect and prolong the business they were building for their family. So “lawyer up” is certainly part of this. 

But the other point she made was about how they have developed an advisory board with experts and advisors. They started this early in their history as a company and continue to leverage this group as a source of expertise, connectivity, accountability, and so much more. 

I appreciate Libby mentioning how this wasn’t something they created once they hit a certain threshold of revenue or other size metric. 

So I will close by advising you to think about your own vision for your family firm. And remember you can’t get there if you don’t start now.  (Given that last sentence, I feel my New Year’s resolution slipping away, I better hit the gym.)