Setting the Strategy – I A Compelling Vision

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

2. Problem Solving Cycle Define Compelling Vision of Business Translated through Goals and into Systems of Interest  You are here Control DMAIC* Approach to Problem Solving and Continuous Improvement *adapted from Six Sigma Measure Improve Analyze

3. The “Big Rocks” of Business Management Data and Information Decision “Grid” Using the Manager’s Toolbox

4. The “Big Rocks” of Business Management Accurate Assessment of Business’ Resources plus Financial and Production Condition

5. “Foundation” View of Planning Tactics SMART Goals (Short Term) DRIVE Goals (Long Term) Accurate Assessment of Business’ Resources plus Financial and Production Condition Compelling Vision (Purpose, Success Picture, Values)

6. The “Big Rocks” of Business Management Working the Production Systems -- Operations Management

7. The “Big Rocks” of Business Management

8. The “Big Rocks” of Business Management Put it all together on one page… … and you can’t read it! Management is Demanding

9. The “Big Rocks” of Business Management Control Plan Data and Information Tactical Plan Decision “Grid” Using the Manager’s Toolbox Working the Production Systems -- Operations Management

10. Principle in Play: If the business is a boat, a compelling vision understood and lived by its people – is the rudder.

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

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

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

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

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

16. Making Reality Today We’ll work from our personal perspective in the business For Next Class You can begin the process of building, modifying or clarifying your farm’s compelling vision with other farm stakeholders

17. You find yourself ina 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.

18. 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. 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

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

20. 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?

21. 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)?

22. “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”.

23. 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!

24. You find yourself ina 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? 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. 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.

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

27. 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.: 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!

28. 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

29. Next up… Case Farm Introduction (15) Case Farm: Setting Long and Short Term Goals (45)