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Strengthen Your Team

RSS By: Bob Milligan, Dairy Today

Bob Milligan, with Dairy Strategies, Inc., provides fool-proof techniques to optimize employee performance, satisfaction and longevity.

Leading and Managing a Farm Business Today

Aug 08, 2011

Dramatic changes in farm business management mean decision-making is more complex, a team is needed to make decisions, and personal growth and development opportunities both within and outside of agriculture are needed.

  
Over the last 50 years, we have gone from feeding hay and grain to balancing rations for amino acids. With crops, we have gone from planting seed from last year’s crop to selecting varieties with specific nutritional traits.
 
Have the leadership and management of our farm businesses progressed as dramatically? In this article, I argue they have not, and I identify three key elements of a framework to address today’s complexities.
 
Let us begin with the farm where I grew up and which my brother Dave currently leads and manages. We had a farm like dozens in the neighborhood with a couple hundred acres and 30-40 cows. My father did essentially everything with some help from my brother and me. Mostly he worked very hard. As I remember, only the ag teacher and the county extension agent had college degrees. My father, like most other farmers, rarely consulted with them or anyone else.
 
Today, my brother crops in excess of 4,000 acres. Although Dave remains the ultimate decision-maker, he relies heavily on a long-time employee for operational decisions. He also relies on numerous consultants and utilizes research-based information from around the globe. Further, his investment in personal growth has taken him to various countries with the Michigan Bean Commission and outside of agriculture as a member and two-time president of the local Rotary Club.
 
Today, my brother farms the land that comprised most of those dozens of similar farms in our neighborhood. The farm businesses that remain are much larger and infinitely more complex.
 
Successful leadership and management of today’s farm businesses calls for recognition of three key farm management elements:
1.       The roles of the owner/leader/manager are dramatically different.
2.       Decision-making is not centralized in one person and is more complex.
3.       Leading and managing the farm business now require principles and skills that are best acquired by participating in personal growth and development opportunities both within and outside of agriculture.
 
New Focus in Owner/Leader/Manager Roles
 
Not far into our 50 years, we began to see headlines like, “When hard work is not sufficient,” referring to the need for excellent decision-making in addition to hard work. Most of this increased emphasis on decision-making and farm management was focused on the crop and livestock enterprises. The highest priority of the top decision-maker had transitioned from hard work to crop and livestock operations management.
 
The turbulence of the last four years has highlighted the next transition that excellence in operations management is no longer sufficient. At least one owner/leader/manager must shift his or her top priority to the chief executive functions. Hard work and exceptional operations management remain necessary for farm business success. Today, however, they alone are not sufficient.
 
Today, at least one owner/leader/manager must have the financial and strategic status and future of the business as their top priority. I often say someone must roll out of bed in the morning thinking about the future of the business instead of which fields to plant or which cows to cull.
 
Decision-making Structures and Complexity
 
The above-described explosion in leadership and management roles, the increasing size of farm businesses, the complexity of the decisions, the unique and often obscure opportunities that abound, and the threats that lurk at every turn require a dramatic change in management of the farm business – a team is needed to make the critical future-determining decisions. 
 
Our current farm owner/leader/managers are exceptional decision-makers. They are adept at collecting information and seeking input to make decisions. They, however, often lack the experience and skills to lead and participate in team decision-making. Team decision-making requires the involvement of team members in both the information gathering and in dialogue and debate to reach a decision. This discussion, debate, synergy and team support for the final decision is increasingly necessary for farm businesses to thrive. 
 
Fifty years ago, the family involvement was almost universally one family. Today, most farm businesses have members of more than one related and/or unrelated families. The challenge is to develop team decision-making structures that enable the farm business to operate successfully while continually providing career enhancing opportunities for current and potential family and non-family partners.
 
Greater Leadership and Management Expertise Required
 
Today’s farm businesses have access to innovative crop and livestock research and education that will continue to serve them well. In my opinion, the same cannot be said for farm business management. Owner/leader/managers of farm businesses must greatly expand their reliance on leadership and management expertise and education.
 
Where do they look for expertise on team building, chief executive functions, chief financial officer functions, etc.? Certainly they can continue to look to Cornell Dairy Executives, TEPAP, Dairy Strategies, and a short list of other specialists in agriculture. They, however, must increasingly look outside of agriculture.
 
This search should be guided by the recognition that farm businesses are predominantly family businesses. The research, professional development and consulting expertise in that field that can work collaboratively with what exists within agriculture.
 
In the introduction, we noted that while my father rarely left the farm, my brother has benefited from expertise within agriculture, availed himself of opportunities outside of agriculture, and even circled the globe in his continuing growth as a leader of a farm family business. Successful farm owner/leader/managers will increasingly learn how to lead and manage with the help of a broader set of agricultural and non-agricultural sources of expertise.
 
Conclusion
 
The challenge of leading and managing a farm – a family business – is immense. By focusing on the three elements outlined above, great strides can be made toward farm business success.
 
I continue to develop this framework as we further develop the Farm Business Success in Turbulent Times Program. I encourage you to share your ideas and thoughts with me.
 
Full steam ahead,
 
Bob
 
Bob Milligan is Senior Consultant, Dairy Strategies, LLC, and Professor Emeritus at Cornell University. Contact him at 651 647-0495 or rmilligan@trsmith.com.

Do You Work Too Much?

Jul 08, 2011

I just returned from an absolutely fantastic two week vacation in Italy (with Road Scholar educational programs). It has been an embarrassingly long time since I took a true vacation - no work, no emails, no phone calls. 

Although I certainly did not come home rested after a busy two weeks and a 7 hour time change, I do feel refreshed, reinvigorated and able to take a fresh look at what I am doing. 

I realize that not everyone can or should take a two week vacation; however, All of us need to periodically ask the question: Are we working too much? That is the topic of this article.

We begin by considering why we work "too" much.  Four possible reasons emerge:

  1. The farm or agribusiness financial status does not enable hiring sufficient labor to enable the manager to work reasonable hours
  2. No one else is capable of doing the work I do
  3. Time working on the farm is more urgent even though not more important
  4. There is nothing important to do in non-work time


The fourth is rare but for those it fits, my response is very simple:"get a life."  The first is a real challenge if true, but more commonly is at least partially an easier justification to oneself and others for reasons 2 and 3.

Those of us who work too much do so because we believe -- consciously or subconsciously; intentionally or unintentionally -- that we must be present for the necessary work to get done satisfactorily.  We all are trying to work less; unfortunately TRYING is not sufficient.  One informal definition of insanity is continuing to do the same thing and expecting the results to be different. 

Consider the following four suggestions:

1. Make Life Balance a Priority
Stephen Covey (Seven Habits of Highly Successful People) popularized a focus on Quadrant II (see diagram).  Quadrant II includes everything that is important but not currently urgent.  This quadrant includes many of the work activities of leadership, management, training, coaching and professional development.  It ALSO includes much of your personal and family time. 

Success as a leader/manager/supervisor requires expanding the time available for Quadrant II activities.  This is accomplished by making these activities a priority and establishing personal operating rules and structures that ensure sufficient Quadrant II time.  Remember time management is not about time; it is about priorities.

Urgent important quadrant

2. Plan for Life Balance
Bill is struggling with life balance issues resulting from the birth of a first child.  He has consistently expressed the need to finish work no later than 5:00 PM several nights a week.  Although his supervisor is supportive, Bill almost never leaves work before 6:00 or 6:30.  Why?  Bill's answer is that there are always uncompleted tasks remaining that only that can do.

Many of us are like Bill.  We work too much because we do not have a plan to do otherwise.  Here are my ideas:

  • Outline what needs to be done
     
  • Determine what can reasonably be completed in the time available
     
  • Complete high priority tasks that only you can do first even if they are tasks you tend to avoid
     
  • Delegate tasks to others
     
  • Become more efficient with your work time
     

The final two items are our last two suggestions to improve life balance.

3. Train Others to Complete some of Your Tasks
Several years ago I listened to a very successful farm manager talk about his success in managing employees.  He stated "90 % of the difficulties with employee performance are a result of something I did or didn't do."  Failing to recognize this possibility, managers frequently underestimate the capabilities of their employees. 

Let's try the following.  Close your eyes.  Stop focusing on the weaknesses of your employees.  When you open your eyes, look for the strengths and potential in each of your employees.  Based on these strengths and potential:

  • Select one task you currently do that one or more of your employees could complete successfully
  • Develop a plan to:
    o   Create an excitement for the new task in the employee(s)
    o   Provide the training required
    o   Establish performance expectations
    o   Coach and provide feedback including comparing actual and expected performance expectations
    ·         When this employee(s) is well on his or her way to success, select another task to transfer from your task list
     

Not only are you making time for more quadrant II activates including personal time, you are enhancing the productivity and most assuredly the job satisfaction of your employees.

4. Enhanced Personal Efficiency
The demands of graduate study present significant life balance challenges.  When I was completing my Ph.D. course work, many in my class had a policy of getting away from our studies on Friday night.  Our hope, usually achieved, was to return refreshed bright and early (well not early by farm standards) Saturday morning.  One member of our class, Ron, would invariably be at the office on Friday night.  As we were getting back into our studies on Saturday morning; Ron would drag in, tell us how frustrated he was that he "had to study" on Friday night, how little he had accomplished, and how little motivation he had to study today.

Do you have "Ron time"?  Time when you are burnt out and inefficient; time when you get an "F" in life balance because you are accomplishing little or nothing at work but YOU ARE AT WORK.  Take some time and identify your "Ron time".  Now reschedule your work so you have sufficient personal and family time to avoid being inefficient at work ("Ron time").

Concluding suggestions
We end with suggested habits to relieve the stress of work and create quality time for yourself, your family and your friends.  Try some of the following:

  • Schedule time during the day when all family members are together. Talk about the day. Ask each person to share one or two positives from their day - a new friend, an accomplishment, something learned, an exciting experience with an old friend.
  • Go for a walk. Don't look for weeds in the corn. Listen to a bird sing, watch a butterfly flit by, marvel at a beautiful flower or the quiet of the countryside. 
  • Read something you enjoy. You need not spend a long time. A chapter or a few pages a day really adds up. A short period of reading or reflection is very important to many very successful people.

 

Leading a Successful Dairy Business in Turbulent Times

Apr 11, 2011

Four key responsibilities are necessities, including requiring excellence in operations, and establishing and implementing a winning business direction and strategy.

 

Recently, in discussing “Strategy in Turbulent Times,” I introduced: Embrace Change + True Urgency = Opportunity.

While teaching and reflecting on these ideas, I have thought about the broader issue of what must the owner of a farm business do to successfully lead a farm business in these turbulent times.  That is this month’s topic.

We look at four key responsibilities of those who own, lead and manage a farm or other family business. They are:

  1. Require excellence in operations.
  2. Establish and implement a winning business direction and strategy.
  3. Nurture and change the business culture as needed.
  4. Attract, develop and retain an exceptional workforce.

 

Require excellence in operations
As the other responsibilities increase in priority emphasis, the importance of excellence in day-to-day operations becomes no less critical. For a dairy farm, this means staying abreast of research and technology to ensure exceptional dairy and crop efficiency and productivity. Emphasis on implementing the best practices/processes, quality assurance to ensure consistency, and proactive problem solving continue to be essential. 

For any other business, the processes are different but excellence in those processes must be maintained. This responsibility has been the primary focus of most owners/leaders/managers in the past. In the future, its importance will not diminish; however, the leader or leaders may have to delegate more of this responsibility to enable the required time be spent on the other key responsibilities.

Establish and implement a winning business direction and strategy
A great strategy is the synergistic intersection of:
•  The unique and specific business direction of the business
•  The resources – physical and human – available to the business
•  The available markets for the business’ products and services

This description generates three key points about direction and strategy:

  1. The strategy must emerge from the direction of the farm business -- the mission and vision. This is one of the key linkages between the family and the business. The business strategy emerges from the vision and mission of the family or families that own the business. Unfortunately, we have often treated the farm as a way of life and the farm as a business as in conflict. They need not be in conflict when the strategy emerges from the vision and mission of the owners and their families.
  2. Each of the three synergistic components of strategy is becoming increasingly diverse.  This trend means that more than ever before, each farm business must have its own unique strategy.
  3. The strategist must increasingly be aware of the external world and how it impacts the business. It is becoming increasingly important for farm business owners to expand their knowledge of the local, national and global world around them and expand their network of acquaintances, mentors, teachers and trusted advisors.

 

Nurture and change as needed the farm business culture
Organizational culture is comprised of the norms and values of the business. Have you noticed characteristics of successful agribusinesses, restaurants and other businesses you frequent? These characteristics – friendliness, attentiveness, optimism, promptness -- represent the culture of those businesses. This is another key area of interaction between the family and the farm business.

I had cousins who lived only a couple miles from us when I was growing up. Every time I visited them, I heard their father complaining about how bad farming was. That was a part of the culture of that family and that farm business. It is no surprise that neither of my cousins chose careers in agriculture.

In a recent article, we talked about the importance today of a true urgency culture: a culture where the focus is on what is important (as determined by the direction and the strategy) and continuous improvement.

Your farm has a culture. Your challenge is to nurture the parts of that culture that support success in turbulent times and to change, consistent with your values, those parts that do not support success in turbulent times. To succeed in our turbulent times, you must alter your farm business culture to be more consistent with the true urgency we discussed last month and to embrace change.

Attract, develop and retain an exceptional workforce
The outstanding research by Jim Collins as reported in Good to Great has popularized the phrase “get the right people on the bus and in the right seats in the bus.” This is just as important for your family business as it was for the good-to-great companies Like Walgreens, Kroger and Wells Fargo Bank.  You must attract and hire the right people – partners, family members, employees. As or even more important are the responsibilities of each member of the business workforce including owners and family members. They each must be assigned responsibilities consistent with their strengths, interests and career goals.

Conclusion

Owning, leading and managing a farm or any other family business presents great challenges, opportunities and rewards. Success begins by clearly identifying your role in the success of your farm in these turbulent times. Next month we will address several key attitudes and perspectives required to excel in these responsibilities.

Bob Milligan, with Dairy Strategies, Inc., provides fool-proof techniques to optimize employee performance, satisfaction and longevity. Contact him at 651 647-0495 or rmilligan@trsmith.com.

Strategy in Turbulent Times

Mar 29, 2011

Three years ago, none of us could have imagined what would transpire over the next three years in our dairy and agricultural industry or in the general economy. I have been referring to this as TURBULENCE X TURBULENCE.

Since there is no indication that either the dairy/agriculture economy or the general economy will return to anything approaching stability, it is important that we consider whether these changes mean we should view strategy differently. I think the answer is “yes.”
 
Jim Dickrell, Dairy Today editor, wrote an article in his AgWeb Blog titled “The New Normal.” In that excellent article, based on a speaker he hadheard, he used three words – uncertainty, volatility, risk – to describe “The New Normal.”
 
In this article, I want to extend Jim’s insightful analysis in two dimensions. First, I would argue that the new normal is that there is no normal. Based on this turbulence and the increasing diversity of factors facing each farm business, I argue that it is absolutely essential that each farm business (and agribusiness) develop its own unique strategy.
 
Secondly, let me suggest that the three works are too much alike and also paint far too negative an image of the future. Uncertainty, risk and volatility have very different statistical properties but refer to a similar idea.
 
Let me begin by asking you to think about the three words that you would use to describe our turbulent future:
1.       ________________________________
2.       ________________________________
3.       ________________________________
 
The three words that I choose are Change, Urgency and Opportunity. They are used in the diagram below that captures my suggested approach to developing strategy in turbulent times:
 
Embrace Change + True Urgency = Opportunity
 
Embrace Change
 
Our tendency is to think that change is something we respond to. That view of change is a reactive response. To thrive in turbulent times, we must view change more proactively as described by embrace change.
 
The proactive view of change should be applied both to how we view change that is external to our farm or agribusiness and to change that is internal to our business. We will leave a more extensive discussion of external change for a future article.
 
The surprising conclusion of those who research change is that we as human beings have only two patterns for response to change – one when we perceive the change to be a loss and a second when we view the change as an opportunity. Without going into detail about the patterns, we can conclude that we would prefer our workforce perceive change as opportunity as opposed to change as loss.
 
We as leaders are the one that set the tone for everyone in our business. If we embrace change and view that change will create opportunities for our business, our partners and employees will be much more likely to view changes we introduce as an opportunity and enter the change as opportunity pattern.
 
What then, besides setting an example, can we do to increase the likelihood that others will view the changes we initiate as opportunity:
·         Involvement: The more we are involved in planning the change, the more likely it will be viewed as a change as opportunity. Do not spring change on your employees. At a minimum provide them with a preview by seeking their ideas for improving your change plans prior to finalizing everything.
·         Control: The more we view that we be in control of our responsibilities and success, the more likely we will be to view the change as opportunity. Be certain that everyone understands why the change is important and that they will be provided the training, support and coaching they will need to succeed after the change.
True Urgency
 
John Kotter, world renowned change expert, argues (in an insightful book titled A Sense of Urgency) that change starts with a sense of urgency. The problem is that most businesses facing financial pressure have either complacency or a false sense of urgency. 
 
True urgency both in Dr. Kotter’s and my experience is rare but feasible. Review the signs of complacency, false urgency and true urgency in the table below.
 

 

Complacency
False Urgency
True Urgency
More pervasive than realized
Pervasive, insidious but not true urgency
Rare but necessary
Roots are in real or perceived success
Created by failures and short-term problems
Emanates from leadership
“I know what to do, and I do it.”
“What a mess this is.”
“Great opportunities and hazards are everywhere.”
People are content
Everyone is anxious, stressed and often angry
The workforce has a powerful desire to win
Actions change little, opportunities and hazards are ignored
Frenetic activity, people are running around “like chickens with their heads cut off.”
Urgently focused on important activities; fast moving, externally focused decision; relentless purging of the irrelevant
All is well; nothing can hurt us
We are in trouble; more and more with less and less
We will overcome; do more of what is important and less of what is unimportant
Arrogance
Blaming, anxiety, stress
Focus, determination, informed

 

 
Farm and agribusinesses wishing to develop a true urgency culture must first clearly identify what is important – mission, values, strategies, objectives goals – and then focus on them every minute of every day. The phrase above “relentlessly purging the irrelevant” has resonated with farm managers learning about strategy in turbulent times.
 
Two ways to quickly begin moving toward true urgency are:
1) show urgency yourself by focusing everything on the important, and
2) lead by example by always setting and meeting deadlines and by always meeting your commitments.
 
Remember: Embrace Change + True Urgency + Opportunity

 

Contact Bob MIlligan at 651 647-0495 or rmilligan@trsmith.com.

"Good Job!" How People Respond to Positive Feedback

Dec 13, 2010

Praise motivates employees and builds confidence. What if you provided high-quality positive feedback at least once a day for the next 21 days?

 
Achieving superb farm performance requires excellence in both our technical and our people processes.
 
What people processes, then, do we utilize to ensure that our workforce performance is also outstanding? 
 
People are different from livestock and crops in three ways:
1.       Emotions -- They have emotions and make judgments, including their motivation level based on those emotions.
2.       Think -- They can learn, think and make decisions.
3.       Speak -- They can talk and ask questions.
 
You use information from the crop and livestock monitoring to make outstanding decisions. Workforce members (owners, family members and employees) can also use their attributes – emotions, thinking, speaking -- to enhance their current and future performance. To maximize their performance, they must :
a) know the level of their current performance, and
b) understand what they must do to improve performance. 
 
They require accurate and precise performance feedback.
 
Providing this feedback requires leaders and supervisors to be proactive – as we are in monitoring crop and livestock performance. It involves two steps:
1.       Just as with crops and livestock, we must observe and monitor the performance of workforce members.
2.       Very different from with crops and livestock, the people attributes – emotions, think, speak – provide the great opportunity to communicate our assessment to the workforce member and work with him or her to improve performance.
 
The challenge, of course, is to effectively communicate the assessment.
 
Recall how many times you have provided positive feedback in the last 24 hours. Research by the Gallop Foundation finds that less than one employee in three received positive feedback from their supervisor in the last week. 
 
I have no doubt that each of us understands the value of positive feedback – compliments, kudos! Why then do we provide so little positive feedback? 
 
There are two legitimate and solvable reasons:
1.       Most of you were trained to be outstanding crop and livestock problem solvers. Since livestock and crops have little or no response to positive feedback, your training focused on identifying and solving problems. It is only natural to take a similar approach to workforce productivity.
2.       Most adults do not show their true emotional response when provided positive feedback. The apparent neutral or even negative immediate response discourages us from providing additional positive feedback.
 
Research and my experience from coaching is that adults respond just as positively as children to positive feedback; they just do not show it. Many times managers in discussing their efforts to increase positive feedback have reported that they were not certain that their employees appreciated the positive feedback until they heard from the employees’ spouses.
 
Why then should we provide positive feedback?
·         Positive feedback is motivating. “Feelings of personal accomplishment” and “recognition for achievement” are two of Herzberg’s motivators.
·         Positive feedback focuses the recipient on success. To be effective in increasing performance, the feedback must be specific, timely and accurate.
·         Positive feedback builds confidence. Since many members of our workforce are young and often pretty insecure, this advantage is powerful.
·         Excellent, specific positive feedback engages the employee in their performance.
 
The following three-step process for providing positive feedback has proven to provide a level of comfort to the manager providing the feedback and reduced the reticence of the workforce member receiving the feedback:
Step 1: Observe good behavior.
Step 2: Compliment the employee on the positive behavior or performance you desire.
Step 3: State the specific current behavior or performance you are complimenting.
 
The following is an example for the three steps:
Step 1: You have been stressing the importance of attention to detail. You observe an example of attention to detail by Jack.
Step 2: “Jack, thank you for following through on our emphasis on attention to detail.”
Step 3: “I noticed you going out of your way to remove the leaves that had blown into the alleyways.”
 
These three steps provide specific feedback that reinforces the behavior or performance you desire and clearly identifies the action that is being rewarded.
 
I challenge you to provide high quality positive feedback at least once a day for the next 21 days. Use the three step process to enhance the quality of the feedback.
 
Please contact Bob MIlligan (651 647-0495; rmilligan@trsmith.com) to share your positive feedback experiences.
 
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