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Using Personality Profiling to get Joint Ventures & Equity Partnerships off the Launch Pad

What do most organisations use personality profiling for? In our experience, ninety percent of the profiling we do is in the recruitment and selection space. At the basic end, employers look for reasons to, or not to, hire a candidate by exploring the potential risks uncovered by personality questionnaires.

Our more sophisticated clients take the additional steps of identifying personal and professional development priorities to form the basis of an agreed development plan for the first year in the role. These clients also seek to find common ground between the manager and new hire and guide them in how to get the best from each other and avoid potential personality clashes.

Towards the end of 2017, we were approached by an innovative thinking Real Estate Branch Manager, Mark Fabish of Morrinsville Real Estate Ltd (Professionals), to bring the approach of our more sophisticated corporate and public-sector clients to address this issue which has profound effects on New Zealand’s farming generations and succession planning, and therefore the country as a whole:

Whilst Joint Ventures and Equity Partnerships have presented a navigable solution to the issue of transferring farm ownership and farming operations from older generations to younger generations with the passion and innovation for farming (but not the immense capital to enter the profession as owners rather than employees), unfortunately these ventures and partnerships have a high rate of failure, possibly as high as 50 – 70 % over the past 20 years.

These failures can unnecessarily create emotional and financial losses to owners wanting to sell their farms and those seeking to acquire them. Negative public attitudes can develop toward this ownership model. General losses of talent and capability to the agricultural sector can develop and opportunities to advance are lost when equitable transfers in farm ownership to a new generation fail, however obstacles to success and risk of a partnership failure can easily be minimised, if not avoided.

Mark Fabish chose us at People Central Ltd to join the more traditional professional grouping associated with the transfer of farm ownership; Rural Real Estate Agents, Solicitors, Accountants, Farm advisors and of course the Banks! You can see the basis of their Joint Ventures & Equity Partnership Programme at this link.

What makes the Professionals approach so effective is to look at the relationship between the farm seller and buyer/partner in addition to the legal agreements and financial transaction, by inviting buyers and sellers to complete the comprehensive 15FQ+ personality questionnaire. Both parties can make an informed choice on whether to enter into a new joint venture relationship together with their eyes wide open and have answers to questions that otherwise get uncovered through a demoralising process of trial and error on and off farm, which can lead to deteriorating motivation, morale and communications and result in the relationship coming to a costly and emotionally draining end.

Questions uncovered typically include:

  • How does this prospective buyer/partner like to be managed and motivated?
  • How will they manage and motivate my staff and manage long standing valuable relationships with my suppliers and contractors?
  • What is it about working/partnering with this buyer that is likely to irritate and annoy me?
  • What can this buyer/partner add to the operations of my farm and profitability?
  • What am I likely to do to irritate and annoy this buyer/partner?
  • What could both of us do to adjust the way we work together so that we’re stronger through our differences rather than divided by them?
  • Out of the prospective buyer/partners, which one is likely to provide the most enjoyable and rewarding experience to work with, until I sell/hand over all of the reins?

Avoiding the risks can be achieved readily through a simple process whereby both parties complete the questionnaire. Sellers identify with the assistance of People Central Ltd which prospective buyer/partners are likely to provide the most worthwhile working relationship and where there is a need to adjust their preferred way of working to minimise risk and conflict in the growing relationship

Prospective buyer/partners gain a similar perspective of how best to work with the seller/partner during the period of transition of ownership, which could run into years as detailed in a partnership agreement between them.

So, what could you use this different approach to establishing effective relationships and minimising risks to those relationships for? Applications could include:

  • Any business owner selling a business that involves a transfer period
  •  Organisations bringing in new Investors
  • Organisations looking to engage new Board Members
  • Organisations looking to bring in external Advisors

In short, any significant new relationship in the workplace can get off the launch pad effectively, so do contact us before you sign them up.