Tag Archive for: Planning

What Just Happened?

The realization is now – Written by Marketing Expert Seth Godin

*** I wanted to share a copy of Seth’s article with you, simply because I believe it has a fantastic message, one that could serve as a sound directive to get our country and hopefully keep your business on track in so many ways. This was actually written five to six years ago. I hope you enjoy his thoughts, which fit almost every industry (The italicized items are my comments.):

“New polling out this week shows that Americans are frustrated with the world and pessimistic about the future. They’re losing patience with the economy, with their prospects, with their leaders (of both parties).

What’s actually happening is this: we’re realizing that the industrial revolution is fading. The 80 year long run that brought ever-increasing productivity (and along with it, well-paying jobs for an ever-expanding middle class) is ending.

It’s one thing to read about the changes the internet brought, it’s another to experience them. People who thought they had a valuable skill or degree have discovered that being an anonymous middleman doesn’t guarantee job security. Individuals who were trained to comply and follow instructions have discovered that the deal is over… and it isn’t their fault, because they’ve always done what they were told.

This isn’t fair of course. It’s not fair to train for years, to pay your dues, to invest in a house or a career and then suddenly see it fade.

For a while, politicians and organizations promised that things would get back to normal. (Remember, this was written 5-6 years ago, not during our recent pandemic… It’s fitting today, though, isn’t it?) Those promises aren’t enough, though, and it’s clear to many that this might be the new normal. In fact, it is the new normal.

I regularly hear from people who say, “enough with this conceptual stuff, tell me how to get my factory moving, my day job replaced, my consistent paycheck restored…” There’s an idea that somehow, if we just do things with more effort or skill, we can go back to the Brady Bunch and mass markets and mediocre products that pay off for years. It’s not an idea, though, it’s a myth.

Some people insist that if we focus on “business fundamentals” and get “back to basics,” all will return. Not so. The promise that you can get paid really well to do precisely what your boss (…or government leaders claim) instructs you to do is now a dream, no longer a reality.

It takes a long time for a generation to come around to significant revolutionary change. The newspaper business, the steel business, law firms, the car business, the record business, even computers… one by one, our industries are being turned upside down, and so quickly that it requires us to change faster than we’d like.

It’s unpleasant, it’s not fair, but it’s all we’ve got. The sooner we realize that the world has changed, the sooner we can accept it and make something of what we’ve got. Whining isn’t a scalable solution.”

I urge you to please join me in making the changes we need to in order to succeed and prosper! Next month, I’ll start my focus on the benefits of “Upstream” thinking from Author Dan Heath. Stay tuned. If I can assist you in any way prior to that, please reach out at john@success-strategies.com or at 209-988-8960.

What Would You Do?

Put yourself in this situation. It’s been a tough year, accompanied by lower sales & a small financial loss. I know – some of you are thinking – like normal… I know it can be painful. In fact, when I worked in the banking industry, we had a term for that. It was called a SNAFU, which stood for “Situation Normal, All Fouled Up…” I have a suggestion for you.

As you wrap up 2020, perhaps it’s time for a serious review of your accomplishments, e.g. what went well, what could have been better, and, perhaps most significantly, where can we improve?

First, what went right? What steps did you take & why do you feel it went so positively? When you know the answer to these questions, you have established the foundation for even greater success. How can you build upon it? Is it something that you will be able to repeat? If not, why not? Are you sure of this? If it worked in 2020, it could very well work going forward. Maybe you just need to make some adjustments & make it happen!

Next, what are the areas within which you fell short, and, once again, why? Was it due to the COVID pandemic, the economy or other items beyond your control? Was it due to poor or limited planning? Was it planned okay, but poorly executed? Please don’t take the answers to these questions lightly. Your future success might be dependent upon these very answers…

Finally, what are the areas that you feel you can do better on? More importantly, how? Here are some steps you can take to reach your objective(s):

  1. Determine what you want to pursue now. Define it clearly in your mind. If you don’t, guess what. Another year could go by, and you’ll still fall short of that objective!
  2. What steps do YOU need to take? What is your first one?
  3. Who else can assist you with this process? Are they already on your Team, or is it someone from outside? Forget about “saving your way to prosperity.” The right person on some of these tasks will pay for themselves 5-10X over. Ask anyone who has ever been saved from the brink of financial disaster. They never considered the cost, just the potential benefit.
  4. When do you want to achieve this result?
  5. What will the “drivers” of this challenge need?

If you can truthfully answer these five questions, you will undoubtedly position yourself for a stronger finish. If you take the time to complete this process, I’ll look forward to seeing you at the “Finish Line!” If I can assist you with this process, please contact me at john@success-strategies.com or 209-988-8960. Best Wishes for a joyous Holiday Season and continued prosperity in the coming year!

When Will You Find Time?

This is a question I recently asked a new Client of mine. Please allow me explain my thought process. During our initial discussions and analysis, we had discovered several areas of his operation that needed some ‘fine tuning.” In other words, they were unintentionally off course in terms of their costs. Please take my word for it. They were way too high, in comparison to other producers.

To provide you with some background, his production was solid, and most of his expenses were admirable in comparison to industry guidelines. However, his Feed Expense and Cost of Supplies were both well above where they should have been. I had originally assumed that they were two separate challenges. However, as it turned out, they were both traced back to a common source.

For years, in an effort to save money, he had used the same Nutritionist from a local feed company. However, while saving the $1,000/month fee of a neutral third-party Nutritionist, he was spending thousands more on Feed Costs. His Supplies expense was also being impacted by the use of some “Pixie Dust” powder that was being added to the calves’ rations. Please don’t ask me why it was included in his Supplies cost. I assume it was placed there as a result of its’ “medicinal benefits…”

Now, understand that any Nutritionist can run into these same challenges and then need to make some changes. The difference here was that his current feed advisor wasn’t willing to make the necessary changes. With the guidance of another Nutritionist, this producer lowered his Feed Cost by $0.40/cwt and decreased his Supplies Cost by $0.10/cwt. Now, this change generated $10,500 of reduced costs per month. After paying the new Nutritionist $1,000 per month, his bottom-line return was still boosted by $114,000 per year.

Now, while the net impact of this change was dramatic, my point is not to pick on his former Nutritionist. This situation could happen with almost any advisor. The significance really revolves about the willingness of this producer to fully analyze these sizeable cost variances and then actually take the steps to improve his results. How much money had he left on the table because he was “too busy” to make these changes? Our industry is one with thin margins in most years. That is precisely why it’s so important to take action today! Do you know the best time to plant an Oak Tree? The best time was 20 years ago, but the second-best time is today.

Going back to the original question, “When Will You Find Time?” your very survival depends upon this type of thinking. Based upon my experiences of the past 22 years, it will make a huge difference. If I can assist you with this analysis process, please contact me at john@success-strategies.com or 209-988-8960.

Why Don’t You Just Go Away?

Hopefully, I caught your attention with this question. Please allow me to explain. Read on & see 3.a. below. Cal Newport in his fantastic book Deep Work defines “Deep Work” as:

 “…the ability to focus without distraction on a cognitively demanding task. It’s a skill that allows you to quickly master complicated information and produce better results in less time. Deep work will make you better at what you do and provide the sense of true fulfillment that comes from craftsmanship. In short, deep work is like a super power in our increasingly competitive twenty-first century economy.”

As you attempt to wrap up 2020 which has, at times, been very challenging, this focus on “Deep Work” becomes very crucial. Here are a couple of questions for you to consider as you strive to finish strong this year:

  1. What items went right this year? We probably all tend to dwell on what items went “sideways,” but think about and write down what went well. Was your production per cow better this year? Could it be, going forward? What’s your profitability look like, especially in light of the CFAP money from USDA? Are your 2020 costs in line? How about Labor costs? Did your 2019 investments pay off? What else would boost efficiencies?
  2. What needs to change? Are there better cost controls you need to put in place? For more on that specific topic, please see my October 14th NLT blog entitled “Why Bother?” Do you need to maximize Labor Efficiency, i.e. become more productive, especially in light of rising labor costs? How about your debt per cow, especially as we consider the strong possibility that, at some point in the future, we will see lower milk prices…? Do we need to decrease your debt levels?
  3. Most important, ask yourself, What’s Next? Treat this like “Deep Work,” because that is precisely what it is. My recommendation includes the following:
    1. Go Away! No, I’m not telling you to get lost. Just simply get away from your everyday distractions and do some “Deep Work” on your business, using the information above as a guideline.
    1. Focus on what, specifically, you want to see next year! Yes, I know it’s only late October or early November as you are reading this, but soon the Holidays will be upon us, and will you find time then? Not likely…
    1. While you are in solitude & focused: What specifically do you want to accomplish next year? Who is involved? What steps do you need to take? By when? Do your proposed changes require some financial analysis? If so, please contact me if I can assist you.
  4. Take the time to focus on this “Deep Work” now. Your future success depends upon it!

If I can assist you with any steps of this process, please contact me at john@success-strategies.com or 209-988-8960.