Switch from grass to people, profits
It takes courage and commitment to deliberately choose a role requiring full-time focus on problem solving and conflict resolution.
This current dairy downturn presents another opportunity for farming couples and family businesses to find a way prosper despite what may lie ahead. While farm performance, cost control and profitability will be important, success will start with fostering and protecting quality teamwork and relationships. This is what will build stamina for a sustainable future.
So what are the ingredients for resilience that will keep these farming operations adaptable and agile?
Their strength usually starts with the commitment of a dedicated farming couple. Those with a clear view of what they want to achieve and the values they want to operate are the engine room of an effective farm enterprise.
This aspect of any enterprise won’t manage itself. It will depend on having the right disciplines and protocols in place. So the first priority must be to ensure the balance between personal and business roles is protected.
Learning how to separate these enables both dimensions to flourish. Effective couples and family staff realise they are more than their work so they establish clear boundaries to protect everyone’s work/life balance. A structured approach to time management enables them concentrate on the business operation without diluting the time available for personal, family and recreational endeavours. Most importantly they manage the tension between ‘getting it right’ and ‘getting it done’.
High-performance farming families avoid the trap of life becoming one continuous business event. They eliminate the negative impact of random business conversations. Instead they make time to plan and prepare so that business focused discussions are more productive. Essentially, they understand and agree when to be a family and when to be business colleagues.
A second factor is clarity regarding their relative strengths. They learn to view their differences as their strengths and allocate roles according to their training and natural talents. They know who will be most effective at managing relationships and therefore better equipped for roles such as people management, negotiation and networking. They recognise others may have strengths in dealing with detail, ensuring quality control which makes them more capable at forecasting, planning and analysis.
Allowing each family team member to realise their potential creates synergy that yields significant advantage. These operations thrive because everyone delivers 100% rather than adopting a ‘50-50’ mentality. The ability to stand back and let the other get on with the job keeps things simple and time effective.
The family business structure is enhanced by prudent selection of business growth pathways. Sustainable growth depends on choosing strategies that capitalise on the strengths of the key stakeholders rather than exposing their weaknesses. Sadly, I’ve seen a few situations where unplanned growth has taken a business into areas that require mindsets and skills that were not consistent with the owners’ natural talents. It’s important to drive growth in the right direction with the right structures rather than just let it happen. Clarity about goals and capabilities is essential to define what represents real opportunity and is a key resource for any business.
Finally, top couples in leadership develop their capacity to mentor and grow the next generation’s ability to collaborate. A cohesive multi-generation operation means broader business capability, enhanced opportunity for delegation and positive working relationships that enable business longevity for future generations.
I’m impressed by the many farming visionaries I work with who are focused on growing prospects for themselves and for generations ahead. This long-term drive extends beyond just the next generation and is genuine evidence of dedication to leaving a legacy.
Well-thought-out alignment of personal, business and succession strategies shared with the wider family can create a seriously resilient, satisfying and secure future. That’s hardly surprising in an industry that understands what it is like to ‘reap what you sow’. It’s also fundamental to a solid foundation that will ensure farming operations learn and thrive in adversity rather than just getting through.
• Kerry Ryan is a Tauranga agribusiness consultant available at www.kerryryan.co.nz
