February 23, 2021
Many of you have participated in one or more of my presentations on business IQ at either an in-person event or on a webcast. Recently, a viewer asked if there was any noticeable difference in business IQ scores by generation. While no formal study has been conducted, my general observations would indicate that there is a difference. The next question is at what age is the older and younger generational divide? Let's assume 45 years of age as a general rule when considering the older versus the younger generation. While the business IQ scores can be high or low in any age group, the following is an analysis based on my casual observations.
Generally speaking, 25 percent of the older demographic would register a score above 35. About 50 percent would fall in the middle with a score from 28 to 35. The other quarter of the senior generation would score less than 28. It is not that this age group is less progressive from a business management standpoint, but the focus and necessity for prioritization of business aspects may wane as they age. In some cases, higher equity and less debt may result in less focus on the business attributes. Others in the older generation have been successful with a singular focus on production and yields to be ahead of the curve and maintain profits.
Moving to the younger generation, the pressure to service debt and grow the business usually results in a higher percentage of this group with strong business IQ scores. Others have seen bottom line results improved by following a marketing plan and knowing their cost of production and breakeven points. Some in the junior generation have found that modesty in the family living budget allows for faster growth in the business. Still others find that developing a cash flow with financial scenario testing and preset goals allows for focus and communication as they work with their team of advisors or agricultural lender.
However, as I mentioned earlier, there are exceptions to every age demographic. One member of the senior generation indicated that he maintains a positive management mindset by engaging with the younger generation. In this instance, his business IQ was above 40 as a result of collaborating with his daughter, who is a manager and encouraged using an advisory team.
At the opposite end of the spectrum, a young man who was approximately 30 years old did not want anything to do with the business side of the farm. His score was in the low 20s and he had inherited the farm from his grandparents. Only time will tell whether he will preserve this newfound wealth.
While age is not a determining factor in the result of the business IQ assessment, generational differences may affect how business owners and managers perceive and use the results.
Source: Dr. David Kohl, which is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.
Read more about:Farm TransitionGenerations
About the Author(s)
You May Also Like
Fendt brings versatile 200 Series tractor to U.S.Mar 20, 2023
World Water Day reminds us we can do betterMar 20, 2023
Argentina’s loss may be U.S. farmer’s gainMar 21, 2023
4-H food challenge highlights healthy livingMar 17, 2023
Support independent bookstoresMar 21, 2023
Douglas-fir in Klamath Mountains in declineMar 21, 2023
Beef specialists warn of wheat pasture bloatMar 20, 2023