Who Has Time to Develop a Plan?

We live in such a busy world, don’t we? While we are all trying to be more successful, every one of us still needs to take some time to “plan our work, before we work our plan.” 

I recently had a Client who said, “Are you kidding me? I barely have time to get everything done as it is. Now you think I should allocate some time to planning?” As soon as he completed his statement, I think it actually occurred to him what he had just said. He had realized that he needed a better plan to get things completed correctly and on time. I know you have heard the old adage: If you don’t have time to do it right, where will you find the time to do it over?

Doesn’t that same rule apply here? I am sometimes guilty of the same thing, that is, not planning the detailed steps of my work and then being disappointed when everything does not turn out quite like I had hoped. What can we do? I am glad you asked. 

There is never a bad time to plan tasks we wish to accomplish, but this is particularly true as we approach a new year. It has been said that the best time to plant an Oak tree is 20 years ago. However, the second best time is today! As you approach the end of this year and start planning for the upcoming one: 

–         Set some positive Goals for you and your Team.

–         Decide what Achievements you really want to accomplish.

–         Lay out the Steps necessary to reach these.

–         Determine what your intended Time Table will be for each step.

–         Decide Who will be involved. Do you need additional people or is it something you can hire an outside contractor for?

–         Establish some solid Measurements to track your level of progress.

–         Outline what Specific Activities you will use to monitor this progress and review them with your Team.

–         Finally, Celebrate Your Success and share the achievements with the rest of your Team!

Follow these eight steps, and I believe you will be well on your way to achieving higher levels of success!

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.”

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!

Watching Out for Fair Weather Lenders!

Recently, I heard about a couple of banks who were anxious to start lending to dairy operations again. This seems odd, yet fitting, since they both could be described as “Fair Weather Lenders,” who give you an umbrella when the sun is shining and take it away as soon as it starts raining. They were both lenders who had clearly exited the industry during the past three years. In fact, in one bank’s case, they had inflicted lot of “pain” on their borrowers by making changes in their lending terms which, while they may have been beneficial over the long term, certainly were next to impossible to meet in the short term.

As a result, many producers were faced with lower herd values and tighter advance rates against their herd and feed assets, forcing them to be out of compliance. Then came the heartless “workout guys” with their weekly demands for additional reporting and a “plan” for the borrower’s exit strategy, either from the bank or, if necessary, from the dairy industry. When the “Goon Squads” were done with most borrowers in these situations, they were more than happy to leave this lending institution behind and go elsewhere.

The problem with “Fair Weather Lenders” is that, when you need them the most, they won’t be there for you. On the contrary, they will tighten the terms of your current agreement, either by bank-wide fiat or at your next loan renewal or extension. Rather than “riding through the storm” with you, they start making additional demands of you when you can least afford to be without credit. As a result, you get “painted into a corner” with very few options to fall back on. 

If you get approached by marketing people or loan officers from this type of bank, they will be quick to point out that their bank’s prior decision to exit the dairy industry (or any industry, for that matter) was not theirs. Rather, it was mandated from senior officials of the bank, based upon their stock’s performance, shareholder value, trends in the industry or who knows what. All of that may be true, but what is to stop this same thing from happening again during the next industry downturn?

Management guru Peter Drucker, in his book entitled The Daily Drucker stated, “Character is not something one can fool people about… They may forgive a person for a great deal: incompetence, ignorance, insecurity, or bad manners. But they will not forgive a lack of integrity in that person.” Blaming the “people upstairs” is not a very good example of either integrity or positive leadership. I want to know that my Loan Officer is going to be there for me when I need his or her assistance.

What’s the best response to have ready when the Fair Weather Lenders come calling? I suggest that you ask them how many dairy operations they “shut down” from 2009-2013. Also, you can ask them if you can talk to some of their borrowers who they stayed with during the same downturn. If they can’t or won’t answer those two questions for you, your time and efforts would definitely be better spent on managing your operation, because you have probably just met a Fair Weather Lender!

If you would like to learn more about building your banking relationships, check out the section entitled “Help for Dairy Farmers – Dairy Farm Loans” on my website at www.success-strategies.com. I hope you find my articles helpful!

“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!

Knowing Your “Why”

Many of us understand the benefit of establishing a solid set of Goals. These can be for your business, your personal life or any number of other items. I believe they represent one of the most important tasks that you can undertake. Yet, many people set goals every year, but then fail to accomplish them. New Year’s resolutions are an excellent example of this. Why is it that these so often fail to come to fruition?

Actually, I am glad you asked! The reason is that setting your goals is only part of the process. Of equal importance is of knowing your “Why.” Why is this goal important to you? Why does it matter to you? Why do you want to accomplish this specific item?

Let’s look at one example. First, you may have the goal of having your dairy herd average 90 pounds of milk per cow per day. That’s nice, but why does that really matter? Well, you contend that this production level will make you more efficient. Then, I might ask, why do you want to be more efficient?

Somewhat frustrated, you claim that if you can operate more efficiently, you will be more profitable. So, I then ask why you would want to be more profitable. Is it just to acquire more money? Finally, you reply (somewhat out of exasperation at this point) that being more profitable will allow you to take your family on a vacation occasionally, have money set aside for your two children to go to college, and also get you financially prepared to retire sometime in the future.

Aha! I finally got you to focus on what really matters most with your Goal Setting. Of course, the Goals, themselves, are significant. Without them, you will meander, at best, in making any progress. In addition to setting your goals, though, it is essential to understand “Why” you are pursuing this goal.

Without understanding why, it is so easy to get frustrated and give up your pursuit of any goal. However, if you take the time to understand and write out your “Why,” you will be better positioned to “stay the course” and ultimately reach your objective. For example, if the weather turns extremely hot or your feed supply gets damaged due to rain or other weather issues, you may get easily frustrated and give up your goal of hitting the 90 pounds per cow per day goal we discussed above, settling for less. 

On the contrary, though, if you understand why you are pursuing this goal and the long term implications of actually reaching it, you are far more likely to do whatever it takes to reach your long term objectives. Knowing your “Why” will provide you with the motivation necessary, as the Boy Scouts state, to “Improvise, adapt and overcome!”

Build a solid foundation under your Goals, by knowing your “Why!” I think you will be glad you did. To learn more about Goal Setting and related topics for your business, check out the articles on the home page of my website at www.success-strategies.com. I hope you find them helpful!

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!