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Sieverkropp Consulting LLC.

Sieverkropp Consulting LLC. Contact: Elizabeth Sieverkropp esieverkropp@gmail.com ( 509) 398-6858 Website: www.sieverkroppconsulting.com Training Program Homepage: www.sieverkroppconsulting.com/fsa-borrower-training-program-homepage. Introductions. Name Where do you farm?

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Sieverkropp Consulting LLC.

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  1. Sieverkropp Consulting LLC. Contact: Elizabeth Sieverkropp esieverkropp@gmail.com (509) 398-6858 Website: www.sieverkroppconsulting.com Training Program Homepage: www.sieverkroppconsulting.com/fsa-borrower-training-program-homepage

  2. Introductions • Name • Where do you farm? • What do you farm?

  3. Strategic Farm Management Characteristics of Successful Farm Managers, Goals Setting, SWOT Analysis

  4. Objectives • Understand the importance of strategic management on the farm. • Understand how to set effective goals • Understand how to develop a mission statement and tell your farm’s story • Understand how to survey the business environment

  5. Where do we aim?

  6. Characteristics of Admired Companies • Lean towards action • Learn the needs of their customers • Promote managerial autonomy and entrepreneurship • Achieve production by paying attention to needs of their employees • Driven by value-based company philosophy • Focus on what they know best • Simple organizational structure Source: Essentials of Management by Koontz & Weihrich, 8 edition

  7. Traits of Successful Farm Managers • What is a manager? • “Someone who is in charge of a business, department, etc..” ~Merriam-Webster • What is a successful manager? • A successful manager continually adjusts decisions based on economic, technological, political, environmental conditions, and structural shifts. • Think of how differently you farm compared to prior generations.

  8. What do successful farm managers do? • Set goals, research, and devise a detailed plan of action • Communicate and execute plan of action with employees • Record and analyze the results of implementation • Keep a journal • Adjust the plan for the future based on results

  9. What do successful farm managers do? • Know exactly where the business is financially • Build connections and research input costs and technology improvements • Know how your farm can be more efficient • Effectively communicate and motivate employees

  10. Purdue University Top Producers * 100 = Highly Adopted Source: http://www.agrisk.umn.edu/Library/Display.aspx?RecID=3953

  11. What should you do? • Your time managing the farm should be split between: • Planning • Implementation • Control • Adjustment • Goal: find the balance that works for your farm.

  12. Running your business is like… Planning a vacation

  13. Strategic v. Tactical Management Strategic: Overall Strategy Tactical: Implementing Strategy Decision Making Identifying problem/opportunity Identify alternatives Collect data/information Analyze alternatives and make a decision Implement decision Monitor/evaluate results Accept responsibility • Define the mission of the business (Mission Statement) • Formulate the goals of the business (SMART Goals) • Access the resources of the business (SWOT analysis) • Survey the business environment (SWOT analysis) • Identify and select strategies that will reach the goals • Implement and refine strategies that will reach the goals

  14. Mission Statement • What is it? • “Short description of why the farm or ranch business exists and its goals.” ~Kay, Edwards, and Duffy • Why do you need one? • Defines and clarifies your dreams for the future • Keeps your goals on target • Keeps you focused on your strengths

  15. What makes a good mission statement? • Elements of a good mission statement: • States what the business might look like “when it grows up” • What • How • Why • Blends realism and optimism • Thinks long term

  16. Writing a Mission Statement • Brainstorm. • List your farm’s skills and abilities • List your farm’s personality traits • List your farm’s values, dreams, passions • Summarize in 1-2 sentences • Evaluate it. • Does it agree with generic missions? • Does it use the farm’s skills, traits, and values? • Does it provide ongoing challenges? • Does it provide inspiration and direction? • Implement it, share it, display it.

  17. Examples • Profitable growth through superior customer service, innovation, quality and commitment. ~AGCO • Our purpose is to create superior value for our customers, employees, communities and investors through the production, conversion, delivery and sale of energy and energy services. ~Duke Energy Company • We are a global family with a proud heritage passionately committed to providing personal mobility for people around the world. ~Ford Motor Company • We fulfill dreams through the experience of motorcycling, by providing to motorcyclists and to the general public an expanding line of motorcycles and branded products and services in selected market segments. ~Harley-Davidson

  18. To help our clients achieve their financial objectives by serving as their tax and financial partner. As the world's largest tax services company, H & R Block has one-to-one relationships with millions of clients, helping them benefit from all of the deductions and credits available to them and build a better financial future. It is the only major company that offers a full range of software, online and in-office tax solutions, combined with financial information and suggestions that enable clients to consider how they could achieve their financial objectives. This advice -- the H &R Block Advantage -- includes suggestions about retirement savings, home ownership, saving for their children's college education, eligibility for government programs and other alternatives. When clients request in-depth financial plans and investment advice, their H &R Block tax professional refers them to H & R Block Financial Advisors Inc., which can assist them with a detailed investment plan and investment services. H &R Block Financial Advisors, member NYSE, SIPC, employs more than 1,000 financial advisors serving clients in more than 150 offices in the U.S. H & R Block Inc. is not a registered broker-dealer. Clients who request information about home mortgages are referred to H &R Block Mortgage Corp., which offers a full range of retail mortgage products. Our research shows that our H &R Block Advantage advice package along with related financial services increased client satisfaction with H & R Block's tax services. H & R Block has long been a trusted tax partner to millions of taxpayers. Now we are enhancing the value of our tax services by helping clients as their tax and financial partner. ~H & R Block • Create value for shareholders through the energy business. ~Kerr-McGee Corporation

  19. Your Farm’s Story • Why do you need one? • You can’t determine where you are going unless you know where you have been • “Standing on shoulders of giants” • Marketing to consumers

  20. The Power of Goal Setting • Running a business or life without goals is like starting a road trip only knowing you want to reach the east coast. It’slong, drawn out, stressful, expensive, and filled with road closed signs. • What goal setting can do in your business: • Unite your team • Streamline your hard work and create efficiency • Creates a reference point for decision making

  21. SMART Goals • Specific: goals need to be straight forward (summarized in 1 sentence) • Ex. “To expand my beef herd” vs “To expand my beef herd by 50 mother cows” • Measurable: allows you to gauge your progress and develop a plan of action • Attainable: is your SMART goal realistic? • Relevant: needs to be related to your operation’s values, mission statement, and definition of success • Time Limit: creates motivation through deadlines

  22. Making Goals Stick • Write goals down • Make your goals yours • Share your goals with those that need to know • Post your goals where you can see them everyday • Celebrate when you accomplish your goals • Keep setting new goals as you achieve old ones

  23. SMART Goal Examples • To expand our beef operation by 50 mother cows by December 31, 2018.  S  M  A  R  T • To fully repay our loan of $80,000 for the combine by September 15, 2016.  S  M  A  R  T • To build a farm emergency fund of 6 months, equivalent to $100,000, by December 21, 2019.  S  M  A  R  T

  24. SWOT Analysis • SWOT is a simple brainstorming activity that identifies your farm’s strengths, weaknesses, opportunities, and threats. • Bird’s eye view of your business • You’re already doing a SWOT analysis, you just need to write it down.

  25. Strengths • What is my farm’s advantage over a similar neighboring operation? • What is my strength as a manager compared to a similar, neighboring operation? • What are my employees’ strengths compared to a similar, neighboring operation? • What makes my farm unique compared to a similar, neighboring operation?

  26. Weaknesses • What is my farm’s disadvantage compared to a similar, neighboring operation? • What is my weakness as a manager compared to a similar, neighboring operation? • What are my employees’ weaknesses compared to a similar, neighboring operation? • What am I most dissatisfied about in my business?

  27. Opportunities • What is happening in my market that could benefit my farm? • What is happening in the government that could benefit my farm? • What is happening locally that could benefit my farm? • What technology could benefit my farm?

  28. Threats • What is happening in my market that could harm my farm? • What is happening in the government that could harm my farm? • What is happening locally that could harm my farm? • What technology could harm my farm?

  29. Tips for SWOT Success • Complete this activity with your management team or family. • Set aside several hours. • Only accept precise, verifiable statements. • i.e. instead of “changing market” try “decrease in cattle supply is expected to result in higher cattle prices” • Prioritize from most important/urgent to least important/urgent. • Use SWOT to adjust goals and make decisions. • Complete SWOT for each enterprise and possible business ventures.

  30. Farm Story/Mission Statement • Goals • SWOT Analysis

  31. Tactical Management • Daily decisions that help you move forward towards your SMART goals and mission statement. • Goal: To expand our beef operation by 50 mother cows by December 31, 2018. • Tactical Steps: choose feed rations to keep cows healthy, retain an additional 10 replacement heifers each year, acquire hay for the winter • What tactical decisions can you think of?

  32. Strategic Planning Process Source: Northwest Farm Credit Services

  33. Homework • Write a mission statement for your farm. • Write your farm’s story. • Develop SMART goals for your farm. • Complete a SWOT analysis for your farm.

  34. One Minute Takeaway • Take a minute to write down one or two ideas or takeaways from this lesson.

  35. Sieverkropp Consulting LLC. Contact: Elizabeth Sieverkropp esieverkropp@gmail.com (509) 398-6858 Website: www.sieverkroppconsulting.com Additional Resources: www.sieverkroppconsulting.com/additional-resources

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