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Case Study: Succession Planning & Executive Search Ease $100M Family Agribusiness Transition to First Non-Family CEO


Family playbook article cover

In family business, it’s common for the organization and those who operate it to exist in close proximity. But, for one fifth-generation farm, the family, quite literally, resides at the heart of the business. The entire operation – processing plants, barns, silage, shipping and logistics facilities and acres of verdant land – is built around the family home. While the farm has undergone numerous changes since its founding over a century ago, one thing has remained constant: the family ran the farm.

 

Until some years ago, the farm was run profitably and stably by the fourth-generation descendant of the founder. When he decided to take a step back from day-to-day operations, the farm found itself at a minor crossroads: none of the CEO’s daughters wanted to fill his proverbial shoes. Instead, two of the CEO’s sons-in-law (both farmers who had worked in the business for a decade) unofficially assumed his responsibilities.

 

The Problem: Misalignments Disrupt Business & Family

 

One son-in-law focused on administration and the other on farming. Despite appearances, fundamental flaws existed. Neither son-in-law had a title, and their roles and responsibilities were nebulous. Because of this, the right hand was often unaware of what the left hand was doing. The cracks in the business’s foundation deepened over the years; no defined governance structure was in place, so the sons-in-law ran the business primarily on instinct – and largely without oversight.

 

Those missteps came to a head about eight years ago. Unsound financial decisions came to light – and it quickly became apparent that the business was hurdling toward a cliff.  

 

To pull the business back from the brink, the former CEO returned and roped his daughters in. They leaned out the organization, formed a new board of directors, and took steps to more clearly define the roles and responsibilities of each son-in-law: one became CEO and the other CFO. Their efforts saved the business – but the ordeal shook the family and left deep scars. Both sons-in-law felt disgraced and mistrust among certain members of the family ran rampant.

 

The family – and business – grappled with how to move forward. Some members of the family felt compelled to closely monitor the sons-in-law. In turn, both men felt micromanaged and struggled to distance themselves from the mistakes they made. Ultimately, the CEO retired – leaving his position vacant.

 

The remaining son-in-law expressed his interest in filling the position, which renewed strife within the family. They were eager to avoid another near catastrophe but didn’t know how to tell the son-in-law he wasn’t fit to lead the company.

 

The Stakes: Legacy & Livelihoods on the Line

 

The family knew the business was still in a relatively delicate position – and was aware that their legacy and livelihoods weren’t the only things at stake. Hundreds of employees work on the farm and are reliant on its success.

 

Choosing the wrong CEO could undo the strides they had made – and threaten the future prosperity of the family and their employees.  

 

The Solution Part I: Succession Planning

 

The company brought in a family business consultant who referred them to Stranberg to conduct succession planning services and an executive search.

 

Instead of jumping into conversations about who would fill the vacant CEO position, Stranberg first met with the family and key members of staff to learn about their vision for the business – and aggregate perspectives on what the company would need from its leadership team going forward.

 

Stranberg also established an understanding of how the business operated on the ground. Employees took them on tours of the farm and were encouraged to share their thoughts and ideas. By creating an atmosphere of trust and openness, Stranberg was able to gain a clear-eyed understanding of how the business functioned – from the top down.

 

Stranberg organized the information they gathered into a report that gave the family a neutral assessment of what worked in their business – and what was needed. From there, Stranberg helped the family to devise a position description for a CEO that would primarily focus on rebuilding the company’s market position. Absent from these conversations was any mention of who, specifically, would fill the role of CEO.

 

After the family reached alignment on the business’s needs, Stranberg shifted the conversation to focus on identifying qualified candidates for the role. With the CEO position clearly defined, the son-in-law realized he was not the right fit to lead, and voluntarily withdrew from the selection process.

 

The Solution Part II: Executive Search

 

Over the next five months, Stranberg helped the family vet external candidates. Unlike many traditional recruitment firms, Stranberg looked beyond on-paper qualifications. While certain hard skills were required, values, character and cultural fit bore equal weight.

 

The search ultimately narrowed to two strong contenders. The first was, theoretically, the perfect fit: he had executive-level experience in the company’s specific industry and strong business acumen.

 

The second didn’t have direct experience in the company’s specific industry but was well qualified – and presented himself differently from the first candidate. He demonstrated a clear commitment to not only leading the business, but also supporting the family and upholding its values. Over shared meals and time spent getting to know each other around the family coffee table, the candidate proved himself to be an excellent cultural fit. He was ultimately hired as CEO.

 

The Results: Peace of Mind

 

In Stranberg, the family found a thorough and thoughtful partner. They were grateful to have a neutral third party guide them through the thorny transition – and are pleased with the outcome.

 

Since the new CEO assumed his position nearly a year ago, he has made significant strides to increase the company’s market presence and grow profitability and distribution. He works in harmony with the family – and has improved and documented operating procedures to ensure transparency and alignment. The shareholders and a majority of family members are pleased with his performance.

 

Importantly, the new CEO has also helped to make the farm feel like the farm again. The family is confident their business is in good hands – and its members are now free to repair their familial bonds without the constant creep of operational pressures.

 

About Stranberg

 

Family-owned and founder-led businesses trust Stranberg to ensure leadership continuity by identifying what is needed for the next generation of CEOs and executives and who is best qualified to fill those roles. Grounded in the values that define your family and business, Stranberg’s succession planning and executive search services help you get leadership-level hiring right the first time.


Whether the right fit is a family member, an internal candidate, or an external placement, we prioritize aligning leadership decisions with your business’s unique culture and vision. By deeply understanding your organization, holistically assessing candidates, and navigating common pitfalls, Stranberg places leaders who embody your values and are ready to fulfill their responsibilities – ensuring your business thrives for generations to come.



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