Family businesses rarely follow a straight line when it comes to succession. Sometimes the path leads somewhere unexpected – like it did for one of our agricultural clients who discovered their next leader wouldn't be a family member at all.
Breaking From Tradition
When a successful third-generation livestock operation approached us about succession planning, they weren't looking to break from family leadership. With $100 million in annual revenue and decades of family stewardship, the assumption was that the fourth generation would take the reins.
But assumptions have a way of colliding with reality.
"Historical dynamics within the family created subtle tensions," Jim Stranberg, founder of Stranberg, recalls. Previous business splits and leadership changes had left their mark. The current CEO had taken control during one of these transitions, and while successful, some family members still harbored mixed feelings about how that handover had played out. While the surface appeared smooth, undercurrents of past conflicts made choosing a family successor particularly delicate.
Reading Between the Lines
Our team at Stranberg spent time with every stakeholder – interviewing over a dozen family members across generations. Each conversation revealed another layer of complexity. The sitting CEO was ready to step back, but the fourth generation didn't feel prepared to step up. More importantly, they weren't sure they should.
The family's self-awareness was refreshing. They recognized that bringing in outside leadership might prevent reopening old wounds or creating new ones. A non-family leader could offer something valuable: neutrality. Without historical allegiances or biases toward any branch of the family, they could focus purely on business decisions.
Finding the Right Fit
This wasn't just about finding a capable executive. We needed someone who could navigate the unique dynamics of a family enterprise while respecting its legacy. Our search led us through three key sectors:
Agricultural markets and livestock producers
Regional family-owned businesses
Food production companies with family ownership
"The search evolved as we thought through similar industries and related fields," Jim explains. "We ended up finding our successful candidate at a major private food company – exactly the experience we needed."
The criteria went beyond just industry knowledge. We needed someone who could:
Understand agricultural operations at scale
Navigate the nuances of family business decision-making
Demonstrate a track record of building trust with family owners
And maybe most importantly, put ego aside when needed for the greater good
As Jim notes, "Decision-making in family businesses involves more stakeholders and more complex layers than traditional corporate environments. Leaders need to spot subtle signals that might seem simple but actually run deep through both family and business."
The Hardest Part? Letting Go
Despite intellectually accepting the need for change, the outgoing CEO – who had led the company for four decades – struggled with the reality of stepping back. This is where the true test of our selection process revealed itself.
The success of the transition came down to what Jim calls "servant leadership" – the new CEO's ability to lead while honoring the past. This meant:
Regular, honest conversations about decisions and their rationale
Showing genuine respect for the company's history
Finding ways to share both the challenges and the vision
Navigating delicate situations, like the former CEO's desire to attend management meetings
Demonstrating that changes were evolving the business, not erasing its legacy
"The incoming CEO had to demonstrate that their passion for the business was genuine," Jim reflects. "When that happened, the difficulty of the transition became shared rather than opposed. Something as simple as explaining why certain changes needed to happen right away became easier when both parties trusted each other's intentions."
What We Learned
Every family business faces unique challenges, but this transition highlighted some universal truths:
Sometimes protecting the family means looking beyond it for leadership
Past experience with family enterprises matters more than you might think
Technical skills matter less than relationship skills
Even the most logical transitions need time and patience
The best leaders know when to sublimate their ego for the greater good
Trust is built through consistent communication and demonstrated respect
Looking Forward
At Stranberg, we've spent over three decades helping family businesses navigate these pivotal moments. Every situation is different, but they all share one thing: the need to balance progress with preservation. This agricultural operation's story shows how bringing in outside leadership, when done thoughtfully, can help family businesses move forward while honoring their past.
We've changed identifying details to protect client confidentiality while sharing the valuable lessons from their experience.
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