Setting the Strategy – I A Compelling Vision John Conway – PRO-DAIRY.

Setting the Strategy – IA Compelling Vision

John Conway – PRO-DAIRY

Northeast Center for Risk Management Education

Northeast Center for Risk Management Education

DefineCompelling Vision of

Business Translated through Goals and into Systems of

Interest

Analyze

Improve

DMAIC* Approachto Problem Solving

and Continuous Improvement

*adapted from Six Sigma

Measure

You are hereControl

DefineCompelling Vision of Business Translated through Goals and

into Systems of I nterest

defi neDraw component schematicand relationships with other

components

AnalyzeDetermine root cause(s)

of sub optimal perf ormance or accept current perf ormance

I mproveCombine alternative generation,

decision making and tactical planning

ControlRe-create measures,

and perf ormance standards DMAI C* Approachto Problem Solving

and Continuous I mprovement

*adapted f rom Six Sigma MeasureDetermine appropriatemeasures, apply and

compare with benchmarks

Ran

kin

g/R

ati n

g C

rit e

ria

Tally area

Scoring scale based on personal preference. “Weighting Factor”,when needed

Goal:

Does this address the root cause?

Will everyone involved accept it ?

Will it fit our current/future systems?

Does it provide greatest return?

Will it enhance my farm’s resources for future generations?

Will it adversely affect others outside my farm business?

Alternative Solutions

Likelihood of success

Likelihood of sustaining if wemeasure success

Decision “Grid”

Tactical Plan

What task or activityis to be done?

Who is Responsible?

How and/ or where shouldthe task be done?

When to perf orm task or activity(deadline, f requency, under what conditions?)

whendone

Data and Information

Control Plan

What Critical ControlPoints* will be monitored?

Monitoring procedureincluding who’s responsible?

Monitoringtime interval?

Standard to meet with upper/ lower limits?

*What are the earliest measurable indicators that either individual tactics or the goal itself will be realized?

Using the Manager’s Toolbox

The “Big Rocks” of Business Management


A Compelling Vision

A Compelling Vision

Long Range DRIVE GoalsDirectional, Reasonable, Inspirational, Visible, Eventual - Goals

Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

Shorter Term SMART GoalsSpecific, Measurable, Attainable, Rewarding, Timed - Goals

Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

Living the Strategy

Adapted from: Full Steam Ahead! Unleash the Power of Vision in Your Work and Your Life Ken Blanchard and Jesse Stoner

Purpose Values“Picture”

of Success

Implement-able Tactics

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Accurate Assessment of Business’ Resources plus Financial and Production Condition

Compelling Vision(Purpose, Success Picture, Values)

SMART Goals(Short Term)

Tactics

DRIVE Goals(Long Term)

“Foundation” View of Planning

Accurate Assessment of

Business’ Resources plus Financial and

Production Condition

Working the Production Systems --Operations Management

Milk productionpotential of forages – nolimitations

Soil Resource

pHFertilityManure Tillage

Mismatchwith

Crop and/orRotation

Below Economic Threshold

Inefficient(time)

Ineffective

Milk productionpotential of

growing forage crop


forage at feedingsystem

ActualMilk productionHybrid/

Planting

Ineffective(planting/hybrid)

Inefficient(time)

Machinery/Equipment(condition/suitability)

AgronomicPractices

DiseaseInsectsWater

Harvest

Maturity(past prime)

Speed(slow)

Harvest Storage

Speed(slow)

Ineffective


Leakage


Soil Resource


Mismatchwith

Crop and/orRotation


Inefficient(time)

Ineffective


growing forage crop




Planting


Inefficient(time)


AgronomicPractices

DiseaseInsectsWater

Harvest


Speed(slow)

Harvest Storage

Speed(slow)

Ineffective


Leakage



Feedstuffs

Inputs

RationMix

DeliveryConsumptionConversion

ProcessOutputs

Milk

FacilitiesMilking SystemMilk:Feed Ratio

External Agents

Everything Hinges on the Person in the Process!


Put it all together on one page…

… and you can’t read it!

Management is Demanding

DefineCompelling Vision of Business Translated through Goals and

into Systems of I nterest

defi neDraw component schematicand relationships with other

components

AnalyzeDetermine root cause(s)

of sub optimal perf ormance or accept current perf ormance

I mproveCombine alternative generation,

decision making and tactical planning

ControlRe-create measures,

and perf ormance standards DMAI C* Approachto Problem Solving

and Continuous I mprovement

*adapted f rom Six Sigma MeasureDetermine appropriatemeasures, apply and

compare with benchmarks

Using the Manager’s Toolbox

Feedstuffs

Inputs

RationMix

DeliveryConsumptionConversion

ProcessOutputs

Milk

FacilitiesMilking SystemMilk:Feed Ratio

External Agents

Everything Hinges on the Person in the Process!


R

anki

ng/R

ati n

g C

rit e

ria

Tally area

Scoring scale based on personal preference. “Weighting Factor”,when needed

Goal:

Does this address the root cause?

Will everyone involved accept it ?

Will it fit our current/future systems?

Does it provide greatest return?

Will it enhance my farm’s resources for future generations?

Will it adversely affect others outside my farm business?

Alternative Solutions

Likelihood of success

Likelihood of sustaining if wemeasure success

Decision “Grid”

Tactical Plan

What task or activityis to be done?

Who is Responsible?

How and/ or where shouldthe task be done?

When to perform task or activity(deadline, f requency, under what conditions?)

whendone

Tactical Plan

Data and Information

Control Plan

What Critical ControlPoints* will be monitored?

Monitoring procedureincluding who’s responsible?

Monitoringtime interval?

Standard to meet with upper/ lower limits?

*What are the earliest measurable indicators that either individual tactics or the goal itself will be realized?

Control Plan


Soil Resource


Mismatchwith

Crop and/orRotation


Inefficient(time)

Ineffective


growing forage crop




Planting


Inefficient(time)


AgronomicPractices

DiseaseInsectsWater

Harvest


Speed(slow)

Harvest Storage

Speed(slow)

Ineffective


Leakage


Soil Resource


Mismatchwith

Crop and/orRotation


Inefficient(time)

Ineffective


growing forage crop




Planting


Inefficient(time)


AgronomicPractices

DiseaseInsectsWater

Harvest


Speed(slow)

Harvest Storage

Speed(slow)

Ineffective


Leakage

Working the Production Systems --Operations Management

A Compelling Vision

A Compelling Vision


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

Living the Strategy



of Success

Implement-able Tactics

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Tactic

Accurate Assessment of Business’ Resources plus Financial and Production Condition

Principle in Play:

If the business is a boat, a compelling vision understood and lived by its people – is the rudder.

A Compelling Vision


ofSuccess


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

A Compelling Vision

A Compelling Vision

PurposePurpose ValuesValues“Picture”

ofSuccess

“Picture”of

Success


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

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 right” -- with passion.

Establishes recognition and positive consequence systems that sustain the behaviors and performance that the vision and direction require. The “upward spiral” of success!


It’s your farm’s 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


A Compelling Vision

A Compelling Vision


of Success

Significant

A Compelling Vision

A Compelling Vision


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, that’s hard work!


Significant

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 in hearts and minds of all involved in the business.

While examining values may be difficult, the gain from any struggle will invariably outweigh the effort!


A Compelling Vision

A Compelling Vision


of Success

ClearSignificant

A Compelling Vision


ofSuccess


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

A Compelling Vision

A Compelling Vision


ofSuccess

“Picture”of

Success


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

Once it’s clear and you’re honest about present realities, there’s not much to figure out!

It’s not a plaque on the wall, it’s lived! So how it’s created and communicated is everything

No retreat necessary (or useful)! Best if it’s a dialogue over a reasonable stretch of time and everyone has their “thumbprint” on it.

Consider it a journey and not a one-time activity. Learning over time should continue to shape it. People new to the business should be able to “feel” it, and ultimately influence it.

Those providing goods & services to the business should find it easier to be complementary

Living it means you are always focused on your vision. Obstacles and unforeseen events are reframed as a challenge or opportunity.

True commitment begins when you take action. Let’s get started!

Making Reality


A Compelling Vision


ofSuccess


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

A Compelling Vision

A Compelling Vision


ofSuccess

“Picture”of

Success


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal


Goal

Goal

Goal

Goal

Goal

Making Reality

Today

For Next C

lass

We’ll work from our personal perspective in the business

You can begin the process of building,modifying or clarifying your farm’s compelling vision with other farm stakeholders

I t’s your f arm’s reason f or existence

Answers the question “why”, rather than just explaining what you do

Should clarif y what you really do. i.e. You may be in the cow care, comf ortand well-being business with milk production and sales as a positiveconsequence 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. It’s 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 this through.

A Compelling Vision

A Compelling Vision

PurposeSignificant

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.

We replace hammers and rebuild other parts pretty often but on a lot more cows. 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. Bob Hennen, MN

Significant purpose unsolicited and in a nutshell…

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 istoday…and f or many, that’s hard work!

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). It’s fair game to predict changes in the industry and the world!

Go a little Wild!

Does everyone involved in your business have a picture of success? Are they different? Grab a blank and find out!

A Compelling Vision

A Compelling Vision

“Picture”of

Success

Provide guidelines on how to proceed as you pursue your purposeand 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 behaviorsdemonstrate that the value is being lived.

Unfortunately f ewer than 10% of organizations around the worldhave clear, written values.

Need to f ocus on 3 or 4 core values, ranked by importance, to keepthem in hearts and minds of all involved in the business.

While examining values may be diffi cult, the gain f rom any strugglewill invariably outweigh the eff ort!

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?

…is Hard Work!

Examining personal and business values…

A Compelling Vision

A Compelling Vision

ValuesClear

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 Farm’s 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”.

Is there a commonality among people involved in your business? These may represent the business’ “clear values”.

Environmental stewardship Notoriety SpiritualityEnvironmental stewardship Notoriety SpiritualityEnvironmental stewardship Notoriety SpiritualityEnvironmental 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”?

What 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. It’s 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 this through.

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

VisionA Compelling

Vision

PurposeSignificant

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). It’s fair game to predict changes in the industry and the world!

Go a little Wild!

Does everyone involved in your business have a picture of success? Are they different? Grab a blank and find out!

We see ourselves as being a highly competitive dairy taking advantage of

our farm’s physical resources (great grass) and operating at a size and

scale available acreage allows.

A Compelling Vision

A Compelling Vision

“Picture”of

Success

Environmental stewardship Notoriety Spirituality

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”?

What 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!

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!

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

Further Reading:

Next up…

Case Farm Introduction (15)

Case Farm: Setting Long and Short Term Goals (45)

Setting the Strategy – I A Compelling Vision John Conway – PRO-DAIRY.

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Transcript of Setting the Strategy – I A Compelling Vision John Conway – PRO-DAIRY.