Setting the Strategy I A Compelling Vision John

Setting the Strategy  I A Compelling Vision John

Setting the Strategy I A Compelling Vision John Conway PRO-DAIRY Northeast Center for Risk Management Education Define Compelling Vision of Business Translated through Goals and into Systems of Interest Control You are here DMAIC* Approach to Problem Solving and Continuous Improvement Measure *adapted from Six Sigma Improve Analyze Control Plan What Critical Contr ol Points* will be monit ored? Monitoring pr ocedure including whos responsible?

Monitor ing t ime interval? Define St andard to meet wit h upper/ lower limits? The Big Rocks of Business Management Using the Managers Toolbox Compelling Vision of Business Translated through Goals and into Systems of I nterest Draw component schematic and relationships with other components Control Re-create measures, and perf ormance standards define DMAI C* Approach to Problem Solving and Continuous I mprovement *adapted f rom Six Sigma *What are the earliest measurable indicator s that either individual tact ics or the goal itself will be realized? I mprove What t ask or activity is to be done? Who is

Responsible? How and/ or wher e should the t ask be done? When t o perf orm t ask or activity (deadline, f requency, under what conditions?) when done Combine alternative generation, decision making and tactical planning Determine appropriate measures, apply and compare with benchmarks Analyze Decision Grid Scoring scale based on personal preference. Weighting Factor, when needed Does this address the root cause? Will everyone involved accept it ? Ranking/Rating Criteria Tactical Plan Measure Will it fit our current/future systems?

Does it provide greatest return? Will it enhance my farms resources for future generations? Will it adversely affect others outside my farm business? Likelihood of success Likelihood of sustaining if we measure success Tally area Goal: Determine root cause(s) of sub optimal perf ormance or accept current perf ormance Alternative Solutions Data and Information The Big Rocks of Business Management Living the Strategy A Compelling Vision Purpose Picture of Success

Values Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner Accurate Assessment of Business Resources plus Financial and Production Condition Long Range DRIVE Goals Directional, Reasonable, Inspirational, Visible, Eventual - Goals Goal Goal Goal Goal Goal Shorter Term SMART Goals Specific, Measurable, Attainable, Rewarding, Timed - Goals Goal Goal Goal Goal

Goal Implement-able Tactics Tactic Tactic Tactic Tactic Tactic Foundation View of Planning Tactics

SMART Goals (Short Term) DRIVE Goals (Long Term) Compelling Vision (Purpose, Success Picture, Values) Accurate Assessment of Business Resources plus Financial and Production Condition The Big Rocks of Business Management Working the Production Systems -Operations Management Milk production potential of forages no limitations Milk production potential of forage at feeding system Milk production potential of growing forage crop pH Soil Fertility Resource Manure

Tillage Hybrid/ Planting Agronomic Practices Harvest Storage Leakage Mismatch Below Inefficient Ineffective with Economic (time) (planting/hybrid) Crop and/or Threshold Ineffective Inefficient Rotation (time) Machinery/Equipment (condition/suitability) Disease Maturity Speed Insects (past prime) (slow) Water Speed Ineffective (slow) Machinery/Equipment (condition/suitability) Actual Milk production

The Big Rocks of Business Management Everything Hinges on the Person in the Process! Feedstuffs Inputs Facilities Milking System Milk:Feed Ratio External Agents Ration Mix Delivery Consumption Conversion Process Milk Outputs The Big Rocks of Business Management Put it all together on one page and you cant read it! Management is Demanding The Big Rocks of Business ManagementControl Plan Control Plan What Critical Control

Monitoring pr ocedure Points* will be monitor ed? including whos r esponsible? Living the Strategy Monitoring time interval? Standard to meet with upper / lower limits? Using the Managers Toolbox A Compelling Vision Purpose Define Compelling Vision of Business Translated through Goals and into Systems of I nterest Picture of Success Values Control *What ar e the ear liest measurable indicator s that eit her individual tact ics or the goal itself will be realized? Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner Tactical Plan Accurate Assessment of Business Resources plus Financial and Production Condition

Re-create measures, and perf ormance standards Tactical Plan What task or activity is to be done? Who is Responsible? When to per form task or activity (deadline, f requency, under what conditions?) How and/ or where should the task be done? when done Long Range DRIVE Goals Directional, Reasonable, Inspirational, Visible, Eventual - Goals define Draw component schematic and relationships with other components DMAI C* Approach to Problem Solving and Continuous I mprovement *adapted f rom Six Sigma Goal

Goal Goal Goal Goal I mprove Combine alternative generation, decision making and tactical planning Goal Goal Goal Goal

Scoring scale based on personal preference. Weighting Factor, when needed Will everyone involved accept it ? Ranking/Rating Criteria Tactic Tactic Tactic Tactic Alternative Solutions Does this address the root cause? Implement-able Tactics Tactic Determine root cause(s) of sub optimal perf ormance

or accept current perf ormance Decision Grid Goal Will it fit our current/future systems? Does it provide greatest return? Will it enhance my farms resources for future generations? Will it adversely affect others outside my farm business? Likelihood of success Milk production potential of forage at feeding system Likelihood of sustaining if we measure success Tally area Goal: Everything Hinges on the Person in the Process! Feedstuffs Inputs Facilities

Milking System Milk:Feed Ratio External Agents Process Data and Information Analyze Shorter Term SMART Goals Specific, Measurable, Attainable, Rewarding, Timed - Goals Ration Mix Delivery Consumption Conversion Measure Determine appropriate measures, apply and compare with benchmarks Milk Outputs Milk production potential of forages no limitations Milk production potential of growing forage

crop pH Soil Fertility Resource Manure Tillage Hybrid/ Planting Agronomic Practices Harvest Storage Actual Milk production Leakage Mismatch Below Inefficient Ineffective with Economic (time) (planting/hybrid) Crop and/or Threshold Ineffective Inefficient Rotation (time) Machinery/Equipment (condition/suitability) Disease Maturity Speed Insects (past prime) (slow) Water Speed

Ineffective (slow) Machinery/Equipment (condition/suitability) Working the Production Systems -Operations Management Principle in Play: If the business is a boat, a compelling vision understood and lived by its people is the rudder. A Compelling Vision Values Gives everyone a clear sense of where the enterprise is going; direction. Allows trained and equipped people focused on implementation of the agreed upon vision and direction to do things Picture right -- with passion. of Success Establishes recognition and positive consequence systems that sustain the behaviors and performance that the vision and direction require. The Long Range DRIVE Goals upward sonable, Inspirational, Visible, Eventual - spiral Goals of success! Goal

Goal Goal Goal Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner A Compelling Vision Significant Purpose Values Picture of Success Its your farms reason for existence Answers the question why, rather than just explaining what you do Should clarify what you really do. i.e. You may be in the cow care, comfort and well-being business with milk production and

sales as a positive consequence of your activities Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner A Compelling Vision Significant Purpose Values Picture of Success Not vague, something you can actually see Focus on the end result, not the process in getting there Necessitates a realistic picture of your business as it is today and for many, thats hard work! Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner A Compelling Vision Significant Clear Purpose Values Picture of Success

Provide guidelines on how to proceed as you pursue your purpose and picture of the future Answers: What do I want to live by? and How? Need to be clearly described so you know exactly what behaviors demonstrate that the value is being lived. Unfortunately fewer than 10% of organizations around the world have clear, written values. Need to focus on 3 or 4 core values, ranked by importance, to keep them inAdapted hearts and minds of all involved in the business. from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner Making A Compelling Vision Reality Once its clear and youre honest about present realities, theres not much to figure out! Picture Its notPurpose a plaque on the wall, its lived! So howofits created and communicated is Values Success everything No retreat necessary (or useful)! Best if its a dialogue over a reasonable stretch of time and everyone has their thumbprint on it. Consider it a journey notDRIVE a one-time Longand

Range Goals activity. Learning over time should continue to Reasonable, Inspirational, Visible, Eventual - Goals Directional, shape it. People new to the business should be able to feel it, and ultimately influence it. Goal Goal Goal Goal Goal goods & services find it easier to be Those providing to the business should complementary Living it means you are always focused on your vision. Obstacles and unforeseen events are reframed as a challenge or opportunity. Term SMART True commitmentShorter begins when youGoals take action. Lets get started! Specific, Measurable, Attainable, Rewarding, Timed - Goals Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner Making A Compelling Vision

y a Reality Picture of Success d Well work from our personal perspective o T in the business s s a l C t You can begin the process of x e building, N modifying or clarifying your farms r o compelling vision with other farm F stakeholders Purpose Values Long Range DRIVE Goals Directional, Reasonable, Inspirational, Visible, Eventual - Goals

Goal Goal Goal Goal Goal Shorter Term SMART Goals Specific, Measurable, Attainable, Rewarding, Timed - Goals A Compelling Vision I ts your f arms reason f or existence Significant Purpose Answers the question why, rather than j ust explaining what you do Should clarif y what you really do. i.e. You may be in the cow care, comf ort and well-being business with milk production and sales as a positive consequence of your activities You find yourself in a surprisingly engaging conversation with a person from an urban

background. They have told you what they do for a living and what that entails. Its your turn! How would you explain what it is you do, why you do it and how you make a living doing it? If you are part of a larger enterprise and are curious if most have the same sense of significant purpose that you do, take some blank copies and ask others in your business or on your team to take a moment and really think Significant purpose unsolicited and in a nutshell Dwayne; Yes sand will stick to cows, flame or clip the udders if you are concerned... That will also give you some added benefits in mastitis control, ease of milking, and better appearance. Sand will also stick to feet, legs, etc. so you will get small amounts carried into the milking parlor that could plug small drain pipes eventually..... We had the issue in one parlor and simply cut out the floor and installed bigger pipe and wider elbows. It was much worse thinking about it that doing it I have never seen a buildup of sand in a milk tank that required manual cleaning. If that becomes an issue, look for better filters, change more often, and/or install a larger one. Side discharge spreaders are as close to ideal as you will get to handle sand laden dairy manure. I have no idea how long one will last with only 80 cows but I would think quite a while. I don't worry about as I decided a long time ago that I am in the business of producing a lot of milk from healthy, clean, comfortable, long lasting and high producing cows.... I haul manure as part of that process but do not let manure spreaders dictate to me how to attain the above goals. We replace hammers and rebuild other parts pretty often but on a lot more cows. Bob Hennen, MN A Compelling Vision Not vague, something you can actually see Focus on the end result, not the process in getting there Go a little Wild! Necessitates a realistic picture of your business as it is

todayand f or many, thats hard work! Picture of Success You may not yet have a clear, objective picture of how the business is currently performing. But everyone can speculate! Based on your informed intuition, describe your business being quite successful in the near future (5 10 years out). Its fair game to predict changes in the industry and the world! Does everyone involved in your business have a picture of success? Are they different? Grab a blank and find out! A Compelling Vision Provide guidelines on how to proceed as you pursue your purpose and picture of the f uture Answers: What do I want to live by? and How? Need to be clearly described so you know exactly what behaviors demonstrate that the value is being lived. Clear Values Unf ortunately f ewer than 10% of organizations around the world have clear, written values. Need to f ocus on 3 or 4 core values, ranked by importance, to keep them in hearts and minds of all involved in the business. While examining values may be difficult, the gain f rom any strug gle will invariably outweigh the effort! Examining personal and business values is Hard Work!

Taking an honest inward look is not easy. Coming to grips with what really matters when challenged to the core may not be initially obvious. As you think about the value indicators on the next page and are asked to winnow them down, what are the things that if taken away from you would move you to action? Exercise: Your Core Principles & Values What you find worthwhile & meaningful Critical to your happiness & fulfillment Important for making farm business decisions Step 1. Check 10 that are important Step 2. Circle 4 that are crucial Step 3. Are there commonalities (among Farms key players)? What I value most This thought seeder is designed to flush out your most significant core principles and values. You may wish to add to this collection. Place a by the 10 items that are most important to you. Circle 4 of the 10 that you would consider your core. Environmental stewardship Notoriety Spirituality Is there a commonality among people involved in your business? These may represent the business clear values. Are we there yet? A compelling vision

You have come across a new company with whom you may do some business. A rep will be stopping by. Can you combine significant purpose, clear goals and your picture of a successful future in a way that anyone in your business or connected to your business can look at it and say I get it, this is how this business ticks? we would like you to know about Sparrowtail Dairy, L.L.C. The entire process may take quite awhile but in the end it is worth it! You find yourself in a surprisingly engaging conversation with a person from an urban background. They have told you what they do for a living and what that entails. Its your turn! How would you explain what it is you do, why you do it and how you make a living doing it? We live to provide exceptional care, comfort and general well-being for our 150 dairy cows and their youngstock. As a result we are able to market high quality milk garnering premiums above the prevailing market price as well as the opportunity to sell fresh or springing cows and heifers to other dairies at a competitive price. The minority of animals leaving our farm who enter the beef chain are of the highest quality and we would not hesitate to purchase at retail ourselves. A Compelling Vision Significant Purpose If you are part of a larger enterprise and are curious if most have the same sense of significant purpose that you do, take some blank copies and ask others in your business or on your team to take a moment and really think this through. You may not yet have a clear, objective picture of how the business is currently performing. But everyone can speculate! Based on your informed intuition, describe your business being quite successful in the near future (5 10 years out). Its fair game to predict changes in the industry and the world! We see ourselves as being a highly competitive dairy taking advantage of our farms physical resources (great grass) and operating at a size and

scale available acreage allows. A Compelling Vision Go a little Wild! Picture of Success Does everyone involved in your business have a picture of success? Are they different? Grab a blank and find out! Environmental stewardship Notoriety Spirituality Are we there yet? A compelling vision You have come across a new company with whom you may do some business. A rep will be stopping by. Can you combine significant purpose, clear goals and your picture of a successful future in a way that anyone in your business or connected

to your business can look at it and say I get it, this is how this business ticks? we would like you to know about Sparrowtail Dairy, L.L.C.: We at Sparrowtail Dairy feel that our people and resources at hand can provide our dairy animals the utmost in comfort, well-being and quality feed. We ship milk, dairy replacement animals and beef at competitive costs to markets who appreciate the quality products we strive for. Our real strengths are treating people and cows as we would like to be treated and looking under every rock to find ways to improve our business and the lifestyle that goes with it! The entire process may take quite awhile but in the end it is worth it! Further Reading: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life. 2003, 2004 Ken Blanchard, Jesse Stoner The Six Sigma Way, How GE, Motorola, and Other Top Companies Are Honing Their Performance. 2000 Peter Pande, Robert Neuman, Roland Cavanagh Dairy OnTime -- Getting Work Done on Your Dairy On Time All of the Time. Dairy Strategies, LLC. 2000 John Young ISO 9000 Implementation for Small Business. 1996 James Lamprecht The Goal: A Process of Ongoing Improvement. 1992 Eliyahu Goldratt, Jeff Cox The Dancing Wu-Li Masters -- An Overview of the New Physics. 1984 Gary Zukav Next up Case Farm Introduction (15) Case Farm: Setting Long and Short Term Goals (45)

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