You Won’t See How to Reach Your Goals

David Allen, in his book entitled Ready for Anything stated:

“You won’t see how to do it until you see yourself doing it. Our brain’s pattern-recognition mechanism is triggered by the images you identify with and the focus you hold. You see the outcome first, and then you are unconsciously made conscious of information. If you won’t see yourself having or doing something until you see how to do it, you’ll never recognize the methods, though they are all around you. Notice what you notice and how you make that happen.”

Allen says: “I am continually amazed at how often I forget about our astonishing ability to create what we want by what we envision. Outcome thinking and the willingness to visualize something’s being true before it’s physically present is a master skill that we all could probably develop to a much greater degree.”

I recently pulled out a long term life plan that I had developed about ten years ago. I was amazed at how many of my goals I had reached, some of them without even realizing it. Wow! What was happening here? My plan included finances, work, and family items.

Allen added: “Those images for years had sparked and supported my significant choices. Some of the pictures weren’t very exact, in terms of what I achieved. I never really got to a proficient level of playing jazz flute, as I had drawn. But much of the little mural was quite exact about what has come to pass. Some of my visions were pure fantasies when I had them. But I allowed myself to draw the blueprint.”

Why does this work? Two lines of thinking include:

  1. “Your automatic creative mechanism is teleological. That is, it operates in terms of goals and end results. Once you give it a definite goal to achieve, you can depend upon its automatic guidance system to take you to that goal much better than you ever could by conscious thought. You supply the goal by thinking in terms of end results. Your automatic mechanism then supplies the means whereby.” – Maxwell Maltz
  2. “If you limit your choices to what seems possible or reasonable, you disconnect yourself from what you truly want, and all that is left is a compromise.” – Robert Fritz

Getting the results you want requires that you start to visualize them. As Dan Sullivan, my Business Coach and president of The Strategic Coach™ stated:

“Getting results doesn’t take much time at all. It’s not getting the results that takes up all the time.”

Think about it, as you begin a New Year!

Take a Lesson from Jeb Bush

Dairy farmers have a solid business lesson to learn from a prior article in the Wall Street Journal written by Jeb Bush, former governor of Florida, in which he discussed his state’s efforts to reform education and how difficult the process really had been. He stated, “The reality of reform is vastly different from the theory, and change is a lot harder than it looks. But there are a few rules for real reform that makes it possible.” I realized many of the same rules apply to making certain we have our dairy operations “reformed,” especially after prosperous years like 2014.

“The first rule is that when you run for office, you need to say what you’re going to do and then do what you said you would.” The same rule applies at your dairy when you need to make necessary changes for three reasons: Your survival may depend on it. Your management team is counting on it. The implementation of the changes you’ve discussed with your team can only improve your results if they are actually carried out. Your banker is expecting it. These points become even more crucial if milk prices soften. It is quite common for high milk prices such as we have seen this past year to lead us to increase our expenses because “we can afford it.” When milk prices drop, we need to be careful that expenses are still in line with lower revenues.

“The second rule of reform is that if you don’t measure it, you don’t care.” While, on one hand, this might sound harsh, it really is true. If you are not tracking your financial results on a regular basis, you can’t be too concerned with your outcome. I suggest you should outline your plan for what you will do to improve the weaker areas and implement changes to make more positive financial returns.

“The third rule is that big reforms require long-term commitment.” This is also true on the part of the dairy operator and his banker(s). I was asked an interesting question at a conference where I was once speaking. My presentation was entitled, “Taking Your Dairy to the Next Level.” I presented a case study of one dairy’s financial turnaround that we had successfully completed. A member of the audience asked how long it took to complete the client’s financial recovery process. I explained that the complete process took more than two years. We need to exhibit great patience while completing two tasks – planning our work and working our plan. Just be certain that you have a clearly defined plan!

“Another rule – the fourth – is to communicate what you’re doing…” This needs to not only explain what you are doing but also why you are doing it. It is essential that this communication extends to your management team, banker(s), CPA, employees, vendors, and family. Increased communication yields greater commitment from each of your key players and will be crucial to your continued success.

“The fifth rule is that success is never final and reform is never finished.” This is true not only in a financial turnaround process but with everything we do. You either get better or worse, because we are not operating in a static environment. Many things are changing so we need to adjust our course to stay on track. What worked just five years ago might fall short today.

Since the challenges in any industry arrive at our doorstep often without prior warning, use your professionals and your team to your fullest advantage. Follow their lead and “stay the course” to further success. You’ll be glad you did!

The Search for Meaning

Throughout the crazy events sometimes surrounding us, it’s often difficult to find meaning – in effect, to make sense of things that are occurring every day. Victor Frankl was a survivor of the Auschwitz Concentration Camp in Nazi Germany. Many entered Auschwitz; few survived. Victor Frankl in his book entitled Man’s Search for Meaning explained that the key to survival was that people needed to do six things. There may be some guidance for us, too.

First, he said, “Realize that the game of life has changed.” Isn’t that applicable today with our worldwide economic situation? As Frankl stated, the old game is over, a new game has begun. That’s true for the dairy industry, as well. We’ve got to operate under a new set of assumptions because the old game is over. Be open to change – it’s already coming!

Second, every day, you must find something beautiful. For Victor Frankl, from his cell, he could see a mountain range. For us, maybe it’s a sunset.

Third, every day, you must find something humorous, something funny. For Frankl, it may have been the way one of the guards walked. As you face the stress of working through the current dairy downturn, find some humor each day. We all need it.

Fourth, every day, you must find something to be grateful for. Instead of focusing on what we’ve lost or what you don’t have, focus on what you do have; something you are grateful for!

Fifth, every day, you must find some way to be useful. For Victor Frankl, it was helping others by listening to them. What will it be for you? How can you be useful to someone or to our industry today?

Finally, every day, you must find something to help you prepare for the future – a big goal, for example.  We all need a bigger goal beyond this current experience. For Frankl, what kept him going was his goal to write his book: Man’s Search for Meaning.

As Dan Sullivan, founder of The Strategic Coach organization says, “All progress starts by telling the truth.” So, remember, as Victor Frankl stated, realize the game has changed. We’re in a new experience. The sooner we realize this, the sooner we’ll be able to rise above it. Also, don’t forget the other five steps to success:

Every day, find something:

  • Beautiful
  • Humorous
  • To be grateful for
  • Some way to be useful
  • A reason to prepare for the future – A Goal!

Try this today. I think you’ll be glad you did!!!

Planning for Success

In my last blog, I discussed how we each need to have a plan for the success of our business. Guess what? Now is the time! It is late in the year, and I personally find that this is the most optimal time of year to complete this process.

There are several reasons for this. First, you have a fairly good feel for what the current year’s results will be. This will provide you with insight into the areas you want to improve. It will also guide you to set new objectives for next year.

Second, it is nearing year end, and your banker will be pleased to know that you are planning for next year. Why not share a copy of your plan with him or her? This is especially important if there may be new financing required…

Finally, any expense involved will be deductible for taxes this year. With that in mind, let me provide you with several ground rules:

1.)    Establish what planning tasks you want to accomplish while you are doing this process. What is most important to you for next year?

2.)    Know “Why” you want to accomplish a certain objective next year. If you know your why, the how will become much more evident!

3.)    Get offsite to do this planning.

4.)    Yes, I did say offsite! This will minimize your distractions and interruptions. Besides, you don’t work for “Corporate America,” so you don’t need permission to do this. In fact, I believe your expenses should be deductible. Ask your Accountant.

5.)    Stay focused (another advantage to being offsite). Stay on task and push yourself to set higher and more challenging goals.

6.)    Plan an agenda before you go, and follow it closely.

7.)    I suggest that any business owner do this at least once per year. Having a mid-year checkup is not a bad idea either.

8.)    Best wishes for a successful planning session.

Follow these steps, and I believe you will be well on your way to achieving higher levels of success, your reward for Next Level Thinking!

What Was He Thinking?

Recently, I was talking to a colleague of mine who does nutrition work for many of my Clients. He pointed out that my Clients were operating at such low levels of debt, it must be easier for them.

After thanking him for his compliment about how I had helped them achieve these lower debt levels (and, believe me, this is not true for all of them), I started to think about some of the objectives we had set and accomplished with these Clients during the past ten years. He was correct in his statement, but I believe that everything we achieved could be done at any dairy or, for that matter, any business at all.

Before you tell me that this cannot be done on your operation, allow me to explain that I cannot remember any case where this was completed with ease. Every one of these Clients had challenges to overcome and required a solid game plan! We became focused after the dramatic downturn in 2006. I recall getting to the end of 2006 and saying to my wife, “Man, I hope we never have another year like this one. I am exhausted!”

Little did I know what was waiting around the corner in 2009 with its rock bottom milk prices or in 2008, 2012 and 2013 with record high feed prices… So, clearly we lost some ground (or made progress at a slower rate) in those years, but we still pushed forward.

 I believe the keys include:

1.)    Develop a plan and have clearly established Goals to shoot for in terms of profitability and debt reduction.

2.)    Make sure your debt structure allows you maximize your cash flows and still reduces your overall debt levels each year.

3.)    Don’t borrow for anything unless you need to, but when you do, shop for the best rates and repayment plan.

4.)    Monitor your results every month. This is the only way you can stay on track and ensure that you reach your objectives.

5.)    Push yourself and increase your goal levels every year, whether it is on profitability, debt reduction or both.

6.)    Never give up. As Winston Churchill stated, “Never, never, never give up.” That, my friends, is a definite!

7.)    When you reach your Goals, as I am confident you will, celebrate with your Team. Remember, they helped you get there.

8.)    Finally, if you get off track, get some qualified assistance. You gain absolutely nothing by claiming that you never needed anyone’s help to get where you are but then “hit the wall,” as so many businesses have the last five years. If you need some guidance, get some. Why wait?

This will allow you to re-focus on Steps 1-7, after which I believe you will be well on your way to achieving higher levels of success, your reward for Next Level Thinking!

Entering a New Game!

Welcome to a new year, a fresh season and a clean slate – all with the makings of a positive start. With this new beginning, we all get a clean score card without any pluses or minuses. The scoreboard simply has all zeros. Unfortunately, this state won’t last long.

Take a quick look at your results for last year, and figure out what went well and what areas need to be improved. Are you prepared? I realize this can be a difficult question, but what have you done to prepare for this year? Have you set new Goals and developed a Plan for reaching them? This process can be challenging, but it definitely is needed in every business (including mine). Here is a list of questions designed to assist you with this preparation process:

  • Do you know what you want to accomplish this year? Share these objectives with your Team.
  • Have you set specific goals for items that have a direct impact on your efficiency? Written goals will keep you consistently focused on your target.
  • Do you have an established system in place for measuring your results on a regular basis versus just waiting until year end to see how it all works out?
  • Take the time to establish profitability goals on a monthly basis. Do you measure your margins monthly?
  • The best thing you can do is to measure your outcomes versus your plan regularly. There is no better way to know whether or not you are on track!
  • Do you have established Team Accountability measurements in place? These should be set with your employees and your outside professionals. People do not rise to low expectations, but, in all cases, it always helps to know what your expectations (Goals) really are.
  • Do you have a system in place to measure these results throughout the years? With my Clients, I use a scheduled set of Management Team Meetings with them, their key employees and other professionals to track our results throughout the year.
  • Finally, as the saying goes, “Plan your work, and work your plan.” Having a plan in place will dramatically increase the odds that you are more successful this year. Using this tool as a guideline for what items you need to focus on improving will serve you well as you proceed forward.

Following a solid plan based upon the points listed above and your business’ unique aspects, and then measuring your monthly results against an established plan, will get you closer to your objectives. Best wishes for a successful year!

Busy Earning a Living…!

Do you ever go through a period of time when, no matter how much work you finish, you just cannot seem to catch up, leave alone get ahead? I know I have had this feeling at times. Maybe it’s just part of being caught up in the never ending race called Corporate America, yet even today I find myself getting caught up in this “race,” and I don’t actually work in that arena anymore…

I recently talked with a friend who just could not seem to get everything done. In fact, I talked to him several times over a period of three days. Each time that I did, he sounded like he was further behind. No, it wasn’t because he had talked to me those times. I believe it was because he was suffering from what business author Mark McCormack described as “working too hard earning a living, to really make any money.”

He was so focused on trying to get everything done, that he had never stopped long enough to determine what items on his lengthy list were most important. In fact, did I say he had a list? Perhaps in his mind he did, but he killed his own efficiency by failing to take several key steps.

First, he never stopped long enough to literally make a list of the items he needed to complete. Additionally, he did not take a moment to prioritize them. I believe this is what Stephen Covey referred to as “beginning with the end in mind.” He needed to decide what he wanted to accomplish and then prioritize the tasks that would get him closer to those specific goals.

What? Who has time for this, you ask? I would suggest that the process of making a list could end up saving you a significant amount of time. Making a list and determining what is most important, what should be second, and so on would likely save you a considerable amount of time. Who knows? You might even find some synchronization of steps where you and your colleagues can gain some efficiency by working together…

 My advice is that when you get this “busy,” you need a road map planned out more than ever. Most people don’t plan to fail. They simply fail to plan and then lose their focus. I suggest you give it a try, because as famous investor Warren Buffet says of such times, “It’s only when the tide goes out that you find out who’s not wearing swimming trunks.”

“Building a World Class Team!”

A few years ago, I attended a Leadership Conference at Duke University and was fortunate to hear a keynote address delivered by Duke’s Head Basketball Coach Mike Krzyzewski entitled “Building a World Class Team.” His message centered around his experiences developing the USA Basketball Team that competed in the 2008 Summer Olympics in Beijing, China. He also outlined what he felt are the primary Keys to Positive Leadership and Sound Teamwork. Perhaps, you will find these helpful as you develop your internal management team and build relationships with other professionals you work with. The attributes he described include:

1.)    No Arrogance – Now remember, he was dealing with a team consisting of professional NBA players, some of whom are earning up to $10 Million per year. Are there some egos involved here? Absolutely, yet, they have learned to put the team first and themselves second. This is no small task, but it can be accomplished in your operation, too, by helping your Management Team to share your vision for success and put their individual egos behind your team’s progress.

2.)    Collective Responsibility – Simply stated, we win together and lose together. Is the loss of a game the responsibility of the player who missed the last second shot from 20 feet out? I don’t think so. Collectively, if we had played better throughout the entire game, maybe we would not have been under such pressure at the end. The same holds true for your business. When your milk flow is down, don’t blame the nutritionist. Maybe we should have watched the breeding program closer to ensure better heat detection & more pregnancies, resulting in more fresh cows.

3.)    Work Together to Get Better – Remember, in a great team setting, I don’t lose if you win at whatever role you play. We both win! Life is not a “zero-sum” game. Rather, it is the summation of a series of win-win situations wherein we grow. We need to work together to get better collectively.

4.)    Confront Under-Performers – There are so many examples in our society where we attempt to “equalize” everyone’s results, so we “feel better” about ourselves. I need not single out any sector or institution, because you already know what I’m talking about. As I said above, work together to get better & cultivate excellence.

5.)    Teach Your Legacy to New Talent – We can all learn from others. Everyone’s experiences are valuable, so why not make it a point to teach the younger “players” in your organization? Why force others on your team to learn by making the same mistakes you’ve already experienced? Pass your experience on!

6.)    Create a Vision – Set Goals for your Team and tell them what’s in it for them. For Coach K, it was to win a Gold Medal for the United States. For you it might be to increase production per cow to a certain level or to reduce the average days open in your herd and shorten your calving interval. You decide. You might be surprised how interested your employees are in helping you reach your goals. A lot of people enjoy working for someone else. Thank goodness, because we need good employees. They simply want to be aware of what your vision is for the business, because they cannot help you achieve a goal you do not have…

7.)    Be Worthy to Win – Work hard and play by the rules, but play to win! When you do reach your objectives, be sure to share the success with your team. You probably could not have done it without them.

8.)    Use the Power of Words – When Coach K autographed his book for me, he stated, “Always believe in the ‘Power’ of ‘Words.’” This can be a word of encouragement or, as he shared in his book Beyond Basketball, it might be as simple as stating “I believe in you” when you are interacting with a teammate. Words can also be a powerful visualization tool for people. Be sure to use them wisely.

9.)    Have Passion! – Be excited about what you do. Whether you’re an owner, milker, herdsman or Cooperative Board Member, play your role to the fullest extent possible. My dictionary defines Passion as “Great enthusiasm.” Coach K described it as “… extreme emotion. When you are passionate, you always have your destination in sight and are not distracted by obstacles.” However you define passion, be sure to demonstrate it on a daily basis as part of your success routine. I am sure you will have no regrets!

Going for the First Down!

Not long ago, I had a Client who informed me of their desire to acquire more land. I asked them if they were ready for it. “Of course we are!” was their immediate response. “Are you sure?” I asked. “Absolutely! No question about it,” they replied, “and it will only cost us $1,000,000 to buy it.”

I then asked them if they were ready to pay $350,000 in the form of a down payment. Of course, they wanted to borrow the whole $1,000,000 purchase price. Unfortunately, that was not an option, since they did not have enough equity built up in their other property. As a result, their bank would require them to front the 35% down payment, allowing them to only borrow $650,000 of the total price. 

Needless to say, they were not thrilled with this concept of having to come up with the first 35% and naturally asked how they could do that. I suggested some budget trimming and, more significantly, establishing a plan to reach the $350,000 milestone. There were several items that I suggested they could use for this saving plan.

On their dairy site, I suggested they save the cash from the sale of bull calves and all cull cows, or at least as much as possible. “Whoa, but that’s our spending money,” they exclaimed. “Yes, and most people who buy homes and other real estate also save their spending money,” was my response. 

I also suggested that they take any miscellaneous revenue, as well as any government program payments they received and put them away. This amounted to at least $165,000 per year on their dairy operation, beef ranch and cropping operations. While I realize that this would require some sacrifice on their part, I also knew that they would not have any regrets if they actually reached their goal. 

Business success, as well as life in general, is a series of tradeoffs. There’s no such thing as a “free lunch,” but that does not mean you cannot achieve your objectives if you work toward them. Sometimes that requires difficult sacrifices, but I happen to be of the opinion that these are the price we have to pay to achieve what we’d like to. 

I realize that saving money in our country seems to have gone out of style. We need look no further than our own federal government for a perfect example of this. I’d elaborate on that point, but it would require more text than I can include in a blog post. 

Ironically, this Client opted not to save their funds and make any more land acquisitions. I guess they felt it was too much of a sacrifice. However, after I suggested this to another Client, they started right away and in nine months had saved enough to add a new maternity area and transition barn for their fresh cows. As a result, their milk production is up by four pounds per cow per day. Their reward will continue indefinitely. 

That sounds like a solid return for their sacrifice! If you would like to learn more about ways to save money, either in your business or personally, check out my website at www.success-strategies.com or take a look at my latest book Saving for a Sunny Day at https://www.createspace.com/4588708. I hope you find it helpful to you!

What is Your Level of Commitment?

Recently, I have held discussions with two different producers about their level of commitment. One suggested that he had to be insane to tolerate the volatility of the dairy industry with its highs and lows in milk prices and feed costs the past five years. Right now, he is faced with having to buy springers each month… On the other hand, the second dairyman said he could not imagine doing anything else but being a dairy producer. What is the difference between their two outlooks? I believe that the primary difference revolves around their level of commitment.

In their book Great by Choice – Uncertainty, Chaos and Luck – Why Some Thrive Despite Them All, authors Jim Collins (who also wrote Built to Last and Good to Great) and Morten T. Hansen (author of Collaboration) talk a great deal about the roles of Resilience, Skills, Commitment to Preparation & Luck, and just how these factors can all play a role in the success or failure of your business. They tell the story of Malcolm Daly, a mountain climber who survived a horrible fall and his ensuing rescue from the side of Thunder Mountain in Alaska, just a few feet below its summit. “Malcolm Daly had been lucky enough to survive the fall, but he also had to be strong, skilled and resilient before the 44 hours of peril after his two-hundred-foot fall.”

They go on to say that “Luck favors the persistent, but you can only persist if you survive.” So, how do we go about surviving and to an even greater degree, thriving?

1.)    Start with a plan. Knowing what you want to accomplish, your target date and what steps you will take to get there are necessary ingredients for reaching your objectives. In an interview on DairyLine Radio, I previously stated that the future belongs to those who have a clearly defined plan. Whether you are driving your pickup truck, choosing a spouse or holding a discussion with your banker about expanding your business, you will always be better off with a plan.

2.)    Develop some resilience. No one ever said it would be easy to reach your goals in business and in life. However, that doesn’t provide us with a license to walk away, just because it may tough. When the going gets tough, the tough get going!

3.)    Obtain the skills you need to reach your objectives. It may cost some money, but it is far less expensive than facing a bankruptcy. I have been consulting for sixteen years and served as a commercial loan officer for seven years before that, but I still don’t know everything I need to know to succeed. I use a business coach, too.

4.)    Be prepared. As Jim Collins and Morten Hansen state in their book, “There’s an adage that says, ‘Better to be lucky than good.’ And it’s perhaps true – for those who seek to be only good, not much better than average, creating nothing exceptional. But our research brings us to an entirely opposite conclusion for those who aspire to more: it’s far better to be great than lucky.”

5.)    Finally, work hard to stay on course with your plan and always know where you are with respect to that plan. There is no alternative, other than to be like the warehouse worker, who, when asked how long he had worked at his current job, replied, “Ever since they threatened to fire me…” Staying on course with your plan will lend itself to far superior results.

To summarize, what’s your level of commitment? When challenges arise, will you be prepared? If having a plan to succeed in your business ever became a crime, would you be “guilty as charged?” If I can help you as you think about developing a bigger and better future, please let me know. Meanwhile, take a minute to go our home page and visit our free Success Tips section. You may find just what you are looking for!