“Stepping up our own game to create the results we really want.” We hear this theme often from society but what does it really mean? And, what has it got to do with farming?
Currently, we are “witness to one of the significant shifts in human history. Peter Drucker, one of the greatest management thinkers of our time, puts it this way: “In a few hundred years, when the history of our time is written from a long term perspective, it is likely that the most important event those historians will see is not technology, not the Internet, not e-commerce. It is an unprecedented change in the human condition. For the first time – literally – substantial and rapidly growing numbers of people have choices. For the first time, they will have to manage themselves. And society is totally unprepared for it” – from “The 8th Habit” by Stephen Covey.
In other words, personal leadership (or stepping up our own game to create the results we really want) has become incredibly important. This abundance of choice means it will be tough to survive, let alone prosper in the years ahead. The old comfort zones of the past provided by the Government and banks (among others) are rapidly being eroded. We must learn to direct our own thinking, efforts and lives.
Why would this be important? Over the long term most of us struggle with poor, inconsistent or at best average results. Most of us yearn for a better life and better results but we generally either don’t know how to achieve it, or we don’t believe we can. Often the same old patterns continue. Increasingly we tend to shrink our goals and expectations to fit our current situation. To get new results requires the formation of new habits, therefore new actions, therefore new thinking. New thinking requires a new way of viewing ourselves and the world. This is about paradigm change, not just tweaking the current situation.
Who can make these changes in our lives? No-one but ourselves. This is a choice. On a personal level we need to take the initiative within to influence the outer conditions of our lives – it first must happen in the mind before it happens in the physical. As Einstein put it, “The significant problems we face cannot be solved at the same level of thinking we were at when we created them.”
How does this relate to Farm Business?
To emerge with just reasonable annual farm business results requires very effective management. But being effective is no longer optional – it is the price of entry to the playing field. In moving towards what is really important in life, effectiveness is not enough - it takes outstanding management and leadership. Personal leadership is vital to making the shift.
We must learn how to operate with equity position and cash flow (or more precisely profit which is positive cash flow), not just capital gain. The recent tough economic times have highlighted this enduring truth. Over and above this we must have enough left to live well, reduce the pressures, take more opportunities and achieve what is most important. Reward for ownership and effort in our businesses must be realised. If not then what are we really doing it all for?
We must learn to bank and keep profit every year. We must know how to turn our basic resource (pasture) into cash. We need to know how to set up for that (financially and physically) to ensure it happens. We need to measure our businesses so that we know where we are and where we are going, as well as what options (Plans B, C, D or E) we have available if needed. This is all among uncertain and wildly varying markets, market values and seasons! We also need to give our time and effort to those most important to us including family, causes, committees, school boards, sports activities and community organisations we support!
Whew! That’s a lot to keep under control! Well, it can be done. Next month I will discuss how to get started on this track of stepping up our own game to create the results we really want.
This article appears in the GrowFARM Connector (January 2010) - our monthly e-Newsletter. Click here to subscribe to the e-Newsletter