Don Tyler, Ag Management Coach and Advisor

Preparing the Next Generation for their role in the family business can be a constant challenge for the current leadership of the business. Production, management and leadership skills are all critical abilities that need to be passed on to assure long-term success for the business.

As I work with multi-generational families during transition out of one generation of leadership and into the next, we often find that just when the current generation is ready to take more time away from the operation—the next generation needs their mentoring—which takes more of their time…. This current generation has put in the long hours, taken great financial and personal risk, and plowed every extra dollar back into the business. As one of my dairy clients often says, “I’ve been paying this business for 30 years, it’s time it started paying me back!” Many of these owners have goals to travel, relax, take educational junkets, spend more time with friends and distant family, participate in mission trips, serve their community, or other great uses of their time.

They are torn between feeling like they should be able to take advantage of these opportunities now that they have the money and time—and feeling like they can’t leave because the next generation needs to be mentored.

Our solution is usually a combination of both goals. Here are the key strategies:

• Make your mentoring a very deliberate process. Have goals for mastering particular skills, covering areas of the business without oversight, and handling common challenges.
• Think long-term. Have a clear vision of what each family member will be doing in the business and work with them to develop a plan to groom them for that role.
• Measure progress and successes. Evaluate performance every 6 months to be sure you are on track and that goals are being met.
• Accept some setbacks. You know that your goals are challenging if some of them are hard to reach, so accept that you will occasionally have to adjust some goals to meet the ability level of everyone involved.
• Take extended time away. Neither you nor the Next Generation will know if they can handle the business unless you are away for two to three weeks at least once during the year—without daily phone conversations. This can be one of the best confidence builders for both generations, especially if there are unforeseen circumstances that arise and the outcomes are positive.

I once heard it said that the best test of management is how your people do when you are there, and the best test of leadership is how they do when you are gone.

If you take a very deliberate approach to mentoring the next leaders of the business, then one of the best ways to be sure that the Next Generation is prepared to lead—is for you to leave.

Don Tyler

dhtyler@frontiernet.net

A few years ago I had the privilege of working with the late Senator David Ford, a highly respected Indiana State Senator who was a true friend of agriculture and all-around great guy. We were on a state-level committee for an agricultural institute and were tasked with presenting to that institute’s Board of Directors a new approach to a key program. We did a very thorough presentation, answered questions, and got the Board’s response—“Sounds like a great idea, but we don’t think now is a good time to be making changes of this magnitude….” We appreciated their quick decision and frank discussion.

We stayed to eat lunch with them and while sitting beside Senator Ford he quietly leaned over to me, so that I was the only one that could hear, and he said, “Don, there’s nothing that builds camaraderie more than being shot down in the same airplane!” Since he was a pilot I figured he knew what he was talking about….

In working with family operations around the country I enjoy listening to the elder generation talk about their worst weather conditions, their toughest financial challenges, untimely family health issues, etc.—and how they overcame those difficulties. Imbedded in these stories is a variety of life lessons as well as the development of an exceptional level of camaraderie with those who faced the challenge shoulder to shoulder with them.

You’ve heard these same stories told over and over, and the best ones include the way that everyone was different after the experience. They knew they could count on each other at a higher level because they had “been in the fight” together.

Sometimes we establish life-long friendships with these people and know that we can count on them to come through in other challenges.

Remember these times and the success that you’ve had, and relish the camaraderie that could only come from these types of challenges. Share your stories and rely on each other as you face similar situations in the future.

Lessons Learned—and Handed Down

A man recently opened his mail to find a note from his bank with a returned check marked “NSF” (for non-sufficient funds.) After hearing all the difficulties that banks are having these days, he called their accounting department and asked, “Is it you……or me?”

In a recent visit with fruit growers in southern California, their accountant mentioned that his standard for “when the recession is over” is when the Fed goes five Fridays in a row without closing a bank. Of course, that is not the technical definition of the end of a recession, but it is the definition that reflects a healthy, stable economic environment for his clients based on his 30 years of experience.

We all have our standards for when we are doing better, getting worse, or just staying even. The most valuable standards are based on a logical, well-defined methodology. Some emotion tends to creep into those standards, but we need to avoid including those overwhelming emotions that difficult times create, and the poor decisions that can be made in their wake.

As we are beginning to see some glimmer of hope in these challenging times, it can be healthy to reflect on how we survived, the key decisions that helped our success, the decisions that we shouldn’t repeat, and how we would handle the situation again if it returns. These become those “lessons of a lifetime” that solidify our overall business savvy, to be passed on to future generations as they develop their position of predominance and success in whatever pursuits they choose.

New Year—New Attitudes

As we replace the wall calendar and the doodle sheet that covers our desktop, it is a good time to review procedures, policies and priorities.  This is the time of year that our employees seem to be the most open to new ideas—and the most accepting of change.  To maximize this opportunity, many operations schedule company-wide meetings to communicate with all the employees and provide a forum for feedback and discussion.

 In preparation for this meeting, some of the items that could be reviewed are:

• Any changes in Company Policy that need to be defined and enacted.
• Employee Handbook revisions.
• Updated procedures and production targets.
• Changes in structure and documentation such as a revised Organizational Chart, Performance Evaluations, Job Descriptions, etc.
• Implementation of new guidelines such as new Safety Procedures, Paperwork and Documentation, Performance Tracking, etc.

These are just a few of the areas that could be included.  This is the best time of the year for major changes, so take the opportunity to challenge your employees to begin the New Year with a fresh attitude and a renewed focus.

With national and local economic issues still being major concerns, this meeting can also provide an opportunity for the Owners to instill confidence, provide general financial and production updates, and show their appreciation for the hard work of all the employees in the previous year.

 

This also seems to be a good time to handle that laundry list of “Pet Peeves” that irritate you but individually don’t justify pulling everyone together to have a meeting.  The items that could be included in this list might be:

·         Timeliness of turning in paperwork.

·         Neatness of records—good handwriting.

·         General neatness of work areas.

·         Employee parking and minor driving issues.

·         Organization and care of tools and equipment.

·         Appearance of production sites.

·         General attitudes.

 

Have a Profitable, Productive and Rewarding New Year!

 

Don Tyler

Tyler & Associates

“Not On My Watch….”
A hunter was out for a short walk in the woods near his cabin and soon found himself being charged by a bear. He was running as fast as he could toward the cabin with the bear so close he could feel the heat of the bear’s breath. As he got to the cabin steps with the bear just inches behind him, he tripped and the bear, running so fast and so close, rolled right over the hunter and through the door of the cabin. The hunter got up, closed and locked the door to the cabin, and then yelled to his hunting buddy, “You skin this one…. I’ll get the next one!”

Nearly every generation of a family business goes through a period of tough times that stretch their ability and challenge their confidence that the business will survive to the next generation. How they handle that era of the business can have a very positive—or negative—affect on their generation and the generations to come. Obviously there are financial outcomes to consider, but there are also management and leadership lessons that cannot be overlooked.

During a recent visit to a walnut, rice, almond and olive grower in California’s Sacramento Valley, the patriarch of the family was reflecting on some of those times he and his late brother had experienced. He shared with me the different times they had worked through floods, late frosts, early frosts and devastating market conditions that over the years had wiped out many of their neighbors. What captured my attention was the way that he reflected on those events in a calm, positive, almost nostalgic manner—revealing a true reverence for the experiences and what they had learned through surviving them. It was clear that the more he talked about those tough times, the more he missed having his brother there to share more of the good times that followed in the years to come.

He said that one of the keys to survival was a philosophy that centered around the concept of, “Not on my watch….” Here are some of their deeply held convictions…..

“This business is not going to fail On My Watch…”

“We will work as hard as we have to, and make any changes we have to, On Our Watch…. to keep this business viable for the next generation…”

“We don’t want anyone in the next generation to look back at our generation and say they should have done……… On Their Watch.”

His lessons were so clear, and he explained them in such a sincere and graphic manner, that I gave the third generation—his grandchildren and those of his brother that were in the business—the assignment to spend one lunch hour per month with him, listening to his lessons and recording them for the benefit of every generation to come. At the next family picnic, (held twice per year on Easter and Thanksgiving) this next generation would share some of these stories so that everyone could learn and reflect on the lessons.

How are you doing “On Your Watch”? These are tough times and though we may be turning a corner, the end is far from certain. We know that this business is changing and will not be what it has been for the last several years. There are many great lessons that will be learned, regardless of the outcome.

During tough times, we don’t have the option of telling the next generation, “You get this crisis, I’ll get the next one….” so be sure that you are sufficiently handling these challenges “On Your Watch”—but also chronicling them so that they can be valued for many generations to come.

The “Bickering” Family

We know these people. The family with the siblings who can’t seem to see eye-to-eye on anything and end up bickering over who, even now that they are in their 40’s, got the larger ice cream cone at the State Fair when they were 8 and 10 years old. (Yes, that’s an actual argument that I heard…..)

These arguments are so common and predictable that the people who work with them can recite each person’s lines of rhetoric, including the hand gestures and voice inflection, as though it were the dialogue in a movie they’ve watched 100 times.

Siblings that bicker over little things fail to grasp the affect that their petty disagreements have on the Elder Generation of the business. They feel like they have failed to instill in their children the ability to work through their differences. They also do not have complete confidence in their ability to lead the business in all areas in a manner that guarantees success. Additionally, it causes them to worry about the business more than they should since they never really know what to expect from their key people. They have this latent fear that the issues between their children could escalate and seriously harm the business, the employees or the reputation of the company.

Siblings will not always agree on their level of passion, priorities, business involvement, etc. but it is important to limit who else is privy to the exchange of these differences.

As the Elder Generation considers pulling away from the day-to-day activities of the business and handing the reins over to the Next Generation, they will be more comfortable with the transition if they can see them handling differences professionally, pragmatically and in a level-headed manner.

The more that they can exhibit professional behavior in the presence of their Elders and the entire staff, the more confidence they will have in their ability to lead the company. They can have their disagreements, but they need to keep them more private. It is somewhat like the times when we are having a disagreement with our spouse over how to handle a parenting issue with the kids. You can debate what to do, just don’t do it “in front of the kids….”

If we want the Elder Generation to be comfortable with the transition, we need to make them comfortable with our ability to handle differences of opinion.

“How the Mighty Fall”

Jim Collins’ new book, “How the Mighty Fall” is a great read for any business going through difficult financial situations—and those who want to avoid them. Though the title may initially cause you to think, ‘That’s all I need, more negativity!” the book provides empirical information on the common steps that highly visible companies have gone through in their decline, and others that turned it around mid-crisis.

The five steps that Collins identified are:

1. Hubris Born of Success
2. Undisciplined Pursuit of More
3. Denial of Risk and Peril
4. Grasping for Salvation
5. Capitulation to Irrelevance or Death

Collins and his researchers used the same methodology from their previous books, “Built to Last” and “Good to Great”, and applied it to “fallen" companies such as Ames Department Stores, A & P Groceries, Bank of America, Circuit City, HP, Merck, Motorola, Zenith and others. The steps were consistent in all these companies, yet a turn-around could have occurred during any of the initial steps.

The keys to his findings seem to be:

1. Just because you have a long history of success, developing a sense of hubris from that success can make you insensitive to the systemic changes in your industry and your own business. These companies tended to say, “We are successful because we do these things….” but the insightful, chronically successful company says, “We are successful because we understand why we do these specific things and under what conditions they would no longer work.”
2. These fallen companies had a tendency to overreach, and think that they could do anything because they had been so good at what they had already done.
3. Companies can create a sense of denial when they see the initial warning signs in their business reports, excusing away negative information at the early stages. Preventing a slide to the next stages requires a full acceptance of the situation and the realization that the business climate is no longer what it has been in the past.
4. “Grasping for Salvation” occurs when a company seeks a “business savior,” the “turn-around specialist,” new technology, or radical, unproven strategies in the desperate hope for a quick fix to their rapidly increasing decline. Some companies going through this stage of decline try all of these steps, and some of the several times, without realizing that they are near their end.
5. In the end, if no solution is found, the company ends up selling out or simply liquidating their assets because they got too far away from profitability and any possible solution.

Collins stresses that these findings should be viewed in the context of learning from the mistakes of other businesses, and providing a bit of a roadmap to help us identify where we could be, helping us make the appropriate course corrections in time to improve our situation.

Stage 1 does not necessarily lead to Stage 5. All companies have their ups and downs for a variety of reasons. Having a positive, realistic, pragmatic approach to addressing their situation proved essential to the eventual turnaround of those companies that recovered.

What are the lessons for Agriculture? I would encourage you to add your own, but here are a few I would suggest….

• Regardless of the situation, keep a positive attitude and enlist the help of all your employees and/or family.
• Realize that the business environment has changed. From borrowing to marketing, new standards and trends have--and will continue—to come to bear on our decision-making processes.
• Don’t compromise your core principles as you modify your practices and business strategy.
• Know why you do what you do, and why it has proven successful in the past.
• Face the facts of your situation. Denial is devastating and only prevents you from seeing the facts clearly and rationally.
• Your years of success can be the catalyst for your future—or a reason for your demise. Every business has some points in its history where critical decisions had to be made to position the company for continued success. Future generations will look back at these times to see what we did “on our watch.”

Don Tyler


tdyim52pbc

Professional Advice on Staying Positive: A couple of weeks ago when Ned Arthur and I recorded some podcasts for SwineCast, we mentioned that I am not a professional therapist or counselor. When working with clients I often provide some very personal guidance when asked, and use practical experience and logic to help them determine answers to their questions and concerns. I thought it might be good to hear from a professional on the challenge of “Keeping a positive outlook when under financial stress.”

Angeline Brechlin; APN, CNS is a career mental health professional and a lifelong friend of my wife and I. Here are her thoughts on staying positive:

• Look at the positives that you do have such as your health, family, supportive friends, etc. Even with the economy the way it is right now, look at what you do have as well as the strengths/skills that you possess and can use in dealing with tough situations.
• Find positive ways to deal with stress such as exercise, proper nutrition, etc. instead of turning to alcohol or other substances to make you feel better. Also to be sure and get adequate amounts of sleep. If you’re not sleeping well, it’s difficult to feel good about anything.
• Definitely find someone to talk with who is a positive influence and supportive… someone to bounce ideas off of and problem solve with—not someone who is going to tell you what to do—but rather who will help you in developing your own options.
• Prioritizing your tasks and having a life balance (work/family/playtime) is important – there has to be a balance between work and family/relaxation.
• If you are having problems with depression, seeking professional assistance may be needed to get you “over the hump” and feeling better. It could be going to a counselor, your primary care provider, or a mental health professional for medications. Support groups can also be beneficial.

Angie adds, "The key thing is that you have to want to do something and then to try some different things to see what works. It can be difficult to even make small changes when feeling depressed and in a rut. Also, change is uncomfortable and scary for most people – they would rather continue doing what they’ve been doing—even if it’s not working—than make changes in their routine, especially when it comes to jobs and relationships." Sounds like great advice….Thanks Angie! (Angeline Brechlin; Advanced Practice Nurse [APN], Clinical Nurse Specialist [CNS])

Don Tyler; Tyler & Associates

Being “Fair”

I grew up with three brothers and three sisters, so my Mom had to have the wisdom of Solomon, and the ESP of The Amazing Kreskin. We rarely got away with anything. She was a substitute teacher for awhile at our local Jr. High School, and after the first class that she taught on her first day our friends were telling us, “She really does have eyes in the back of her head! We tried every stunt that we play on new subs, and she just laughed! She had her back to us, writing on the chalk board, and she knew who threw the spit wad without even turning around! She called them by name!”

Mom also developed a great way of making decisions as fair as possible. If one of my brothers and I wanted a candy bar, she would tell us that we had to split it. She would hand one of us the candy bar, the other one the knife, and whichever one of us got to cut the candy bar, the other one got to pick which half he got! My older brother would actually get out a ruler…

When trying to make things “fair” for employees, we need to keep in mind that they often interpret fair as being “what is best for them—and only them.” They may need some help understanding how any decision that you make for them also affects their coworkers. If they get to leave early, it leaves more work for someone else. If everyone always gets the same raise, the people who work harder, are never late to work, go the extra mile, etc. feel that their initiative is not appreciated.

More and more, it seems that we have to explain to employees the impact of their behaviors, including the unintended consequences. We need to tell them how other people interpret their actions, words and behaviors—and how this may determine whether or not their coworkers like them. It is necessary to go even further and talk about the longer-term consequences, and their overall job satisfaction.

Some specific ways to make the workplace as fair as possible include:

· Have an Employee Handbook and follow it consistently.

· Keep a brief record of conversations with individual employees so you can refer to them in the future, and verify what was said.

· Don’t focus on keeping things “even” between employees, focus on being fair and have some basic guidelines that you follow consistently as you deal with common situations—i.e. family illness, personal “emergencies”, etc.

· Explain why you are willing to do certain things for some employees, but are hesitant to do them for another one. (i.e. loaning tools, borrowing equipment, etc.)

We don’t all have the insight of my Mom, but a little creativity in how we establish fairness in the workplace will encourage our better employees, and challenge the mediocre ones to modify their attitudes.

Don Tyler

Having an optimistic nature is a requirement for a person to even consider agriculture as a profession.  The ups and downs of agriculture that are regularly served up courtesy of the weather, the markets, equipment breakdowns, and the occasional “stuff happens” are what we grow to accept as a part of the business.

When nearly all the challenges of agriculture align with a severely negative bias, and that negativity continues for a much longer duration than grandpa can remember, our emotional foundations start to weaken.  For some, it is foreign territory and they become emotionally disoriented to the extent that they fail to function within their own established range of normalcy.  The talkative ones go dormant, and the more reserved become even more distant.  We see frustration where we used to see logic, and the visionary struggles to just get through today.

Often, we accept these behaviors as a part of “tough times” and do our best to approach it one day at a time…..and then we read about a suicide in the dairy business…..and it all seems much more real and urgent.

I’m not a therapist, but I have worked with clients who have gone through some pretty tough times.  Here are some of the things that they did to prevent being overwhelmed:

• They limited themselves to only a few minutes of self-pity—then got back to work.
• If they were having a particularly tough day, they found something they could repair or clean up that gave them an immediate sense of accomplishment.
• They sought out positive people, and ignored those who only wanted to add their personal woes to the conversation.
• They knew where to go for realistic and factual information, and avoided news programs, e-mails, websites, market commentary, Op-Ed’s, etc. that make them feel more depressed or hopeless.
• They identified friends who would be honest with them, those who would sincerely listen, and those who asked questions that helped them evaluate what they were going through—and wouldn’t avoid emotional issues.
• They kept close to their family, shared their concerns and found something positive to think about when they went to bed at night….
• They did not confuse their “self-worth”…… with their “net-worth.”

With the “new” flu virus dominating the headlines and our industry being one of the hardest hit, this is a critical time for us to spread the message that our products are safe. You might have received the informative e-mails from industry groups and other producers, but have you multiplied its message?

I don’t forward many e-mails, but this matter is an exception. The information that the average consumer is getting from the traditional media lacks the emphasis needed to reassure consumers of the safety of pork. It is also not focusing on the impact that this near-pandemic is having on the lives of producers and their employees.

Here are a few suggestions to increase the impact of the message:

• Forward those informative e-mails to your family and friends, especially those not closely involved in agriculture. (If you are like me and rarely forward e-mails, the impact of getting this from you will be all the more meaningful…)
• Print out the information, distribute it to your employees, and makes copies for them to take home and give to their friends, family and neighbors.
• Watch the TV news, read the paper and listen to radio broadcasts. Send a quick e-mail (or make a quick call) to those newspaper, TV and Radio stations that are still using the “Swine Flu” terminology in stories. Many ran the stories about it not affecting pigs or pork meat, but some still use the Swine Flu wording and show pigs in their graphics. Remind them that they have an obligation to be factual and consistent in their reporting, and that thousands of people’s jobs could be lost if the misinformation continues.
• Encourage your employees to talk to their family and friends about this issue. Give them the information and remind them that this is their industry as well.

This site has several good resources for the information you need to create your own message, or you can simply copy the sections that are appropriate.

Here is a sample of an e-mail that I got from a local producer:

= = = = = = =

Dear Friends, Neighbors and Family,

No doubt you have all heard of the outbreak of the H1N1 virus that the media is calling “Swine Flu”. Our family feels compelled to provide you with the best information about this situation that we have available.

First, the World Health Organization claims that the proper name for this virus should be the North American Influenza, not the Swine Flu. The best we understand is that viruses are named after the animal they are first found in. This particular virus was isolated in a pig in 1930, thus the name Swine Flu has “stuck”.

Secondly, at this time no pigs or people working with pigs, in Mexico or the US, have been found infected or sick with the virus. It is not known for sure if this new strain of the virus will even cause any type of illness in pigs.

Finally, based on the information from the US Center for Disease Control (CDC) we would like to reassure you even if the virus was found in pigs that the flu cannot be contracted from pork and pork products. Additionally, we have stepped up our bio-security measures to protect our employees and the welfare of our animals. If you have any questions, feel free to call us at _________.

If you would like additional information, check out the National Pork Board’s website at Pork.org. We take seriously our role to be responsible members of our community, and to provide pork products for consumers around the world.

Thank you,

= = = = = =

(Thanks to Mark and Phyllis Legan--Coatesville, IN)

Update this information as needed and make it personal to your operation.

This is a unique opportunity to enlist the force of your employees as an army of informed consumers to share valuable information about your industry.

Don Tyler

Making the Tough Decisions:

The current economic crisis has put some producers in a position that they have never before seen…the need to cut salaries or even lay off some employees.  Family businesses tend to have close relationships with the people who work for them due to hiring predominantly local people who are often long-term family friends, the long and irregular work hours, the tough weather conditions, and their closeness to the land and livestock.

 

There is no formula for laying people off or asking for salary cuts.  Generally, employees want to know that these actions are fair, consistent and well-thought through.  Each situation needs to be fully analyzed and the individuals considered on a case-by-case basis. Here are some “Do’s and Don’ts” for layoffs or compensation reductions:

Do:

·         Be consistent in your reasoning.  If you only reduce compensation or lay off the people who everyone knows you “never really liked” you will lose the good will of your long-term employees.

·         Keep communications open.  Be available to talk to people one-on-one and sincerely listen to their questions and concerns.

·         Provide as much information as possible without making constant revisions to recent statements.

·         When changing your compensation, provide it in writing (with a copy for each person) and explain the duration, the specific changes, and when you expect the salaries to return to previous levels.

·         In most cases, have a group meeting that explains the details with everyone present at the same time.  This limits misunderstandings and helps everyone realize that this is a situation for the entire group.  Keep the meeting very short, very specific, and do not belabor any points—the more ways that you try to explain a situation, the greater the chance for misunderstandings.

Don’ts:

·         Don’t communicate all the changes in a memo without any personal contact.

·         Don’t insulate family members from the cuts…

·         Don’t “communicate by dropping hints.”  Be specific, be truthful, and be clear about the challenges.  People will interpret off-hand remarks in very different ways, so never expect everyone to understand ambiguous references to your situation.

·         For larger organizations, don’t do all of your layoffs at the production level without making some cuts at the management level.  This never goes over well in the community or with the production staff, so provide some balance and at least show how the cuts and “sacrifices” are distributed throughout the company.  Mistakes in this area can have an effect on your ability to hire good people many years into the future.

·         Don’t make the “middle management” explain all the bad news.  This is a time for the owners and upper management people to be taking the lead, explaining the specifics of the changes that will be made, and making themselves available to the employees.

  

These situations are very rare in agriculture, and my sincere desire is that it will stay that way for many, many years to come.  This is one of those rare occasions that I hope this advice is never needed….

 

Don Tyler

Changes in Motivational Factors:

The change in the economic outlook has had an interesting impact on how employees rate their “Motivational Factors” at work.  First, some background:

There are two types of motivators—Intrinsic and Extrinsic.  Extrinsic factors include material rewards such as: bonuses; gift cards; trips; pay increases; etc.  The “Carrot at the end of the stick” so to speak.

Intrinsic factors “come from within” and include: satisfying work; a sense of accomplishment; feeling “in” on things; having input in decisions; feeling like you belong; etc.

Extrinsic factors are valuable, but tend to be short-lived.  As soon as the reward is achieved, the person looks for another form of material reward.

Intrinsic factors tend to be nearly cost-free and yet have a much longer lasting effect on the individual.  As a result, focusing on intrinsic factors will have a better return for your management effort and will be more motivating to the employee.

A blend of both types of motivators is desirable and a clear understanding of the impact of each is extremely important to your overall efforts to reward and motivate your staff.

 

Back to the change in ratings…

Typically when employees are surveyed on their “Top Motivators at Work” we find that intrinsic factors such as “Feeling ‘In’ on Things”; “Rewarding Work”; “Opportunities for Promotion” tend to be at the top of their list.  In recent surveys done within businesses that I have worked with, we have seen some interesting differences.  Now it seems that “Job Security” and “Good Wages” have floated to the top in some parts of the country.  This is not surprising given the economic climate, but does reflect the changes in attitude that people are having about their jobs.

What it means:

1.      Short term, there is a shift towards needing to confirm the basic elements of a job—Am I paid enough?  Is my job secure? Does my boss like me?  Where do I stand with the company? Etc.

2.      When people feel insecure about their job it can be a major distraction to their work.  They may spend “more time around the water cooler” discussing personal problems or trying to confirm the status of the company.  If it is extreme, they can become a safety hazard and perform at an unacceptable level.

3.      Their confidence can go down, which can lead to poor performance, unacceptable attitudes, criticism of others and uncharacteristic moodiness.

4.      Their lack of security could have other effects on other performance, and issues such as a lack of attention to detail, carelessness, poor communication, etc. could arise.

What we should do:

1.      Promote a sense of security by spending more time with your employees and making yourself more available to them.  Be more visible.

2.      Ask your employees questions about how they are doing, any concerns they may have, and their overall feelings about their job, the company and their sense of security.

3.      Keep them updated.  If the business is going through a rough patch, let them know and give them some coaching on what they can do to help the bottom line.

4.      Praise more.  When employees get regular recognition it gives them a sense that their job is secure and their boss is not avoiding them.

5.      Show your appreciation.  Write an occasional note that tells someone they did a good job—be specific and brief.  Notice when an employee goes out of their way to do something extra. 

6.      Encourage employees to thank their coworkers and praise them.  It’s not just the boss’s job to encourage employees.

For a copy of a very simple “Top Motivators” survey for your employees, send an e-mail to:  dhtyler@frontiernet.net and I will forward a copy for you to use with your staff.

 

Don Tyler

 

Over the last two months several of the livestock operations that I work with have had a new experience—they are getting several applicants for open positions.  There are some regional differences, and not every area is seeing this change, but it is a noticeable pattern and one that bears watching.

For these operations, it is providing an opportunity to help those in their community who have lost employment, and it is giving the company a chance to “upgrade” their current labor force.  Due to low unemployment in most areas over the last several years, some businesses have found themselves keeping sub-par employees who lacked the motivation, skills, work ethic or core values that they needed because they knew it would be difficult to find anyone to fill that position.  I am never a fan of hiring “anyone that can fog a mirror” but some jobs can be performed to a minimum standard by even mediocre employees.  With the increase in available labor, the opportunity exists to move the company forward with greater accountability and higher productivity.

Here are some thoughts on “upgrading” your labor force when the opportunity exists:

·         Be professional.  Don’t take the attitude that since you have abundant applicants that you can now treat employees any way you want.  Your reputation in the community is very vulnerable in these situations.

·         Be fair.  Your good employees want everyone in the business to be treated fairly, so as you raise your level of accountability be sure to allow an opportunity to improve, and communicate your expectations very clearly.

·         Have a plan.  Hire carefully, be sure that any new hire is an improvement, and take your time to be sure that you are hiring qualified people.  Check references, ask thorough interview questions, and make your selections in a logical, fact-based manner.

 

I would be interested in your experiences in different parts of the country concerning changes in the availability of labor.  Send a quick message to dhtyler@frontiernet.net, and let me know if you are getting more applicants, seeing no change, or getting fewer applicants.  Be sure to include your area of the country and I’ll share the results after a few days.

Thanks!

Don

Counseling Employees on Finances:

More and more of my clients are having difficulty with their employees who are in a personal financial mess.  Tough economic times tend to expose the strengths and weaknesses of people’s overall money management.  Sometimes they try to maintain their regular spending habits with credit without the thought that eventually they have to pay the bill.

As an employer, we have to be very careful trying to “help” them out of their situation.  Providing counsel can be difficult because in order to do a good job we really need to know their entire financial picture, and they are often reluctant give us the complete information.

Here are a few things that we can do:

1.      Ask them if their problems are simply some late payments on some debts—or something that is much more serious (facing bankruptcy).  Based on that, encourage them to get the help they need in the local area.  Perhaps even suggest a good credit counselor, someone at your bank, or someone that can help them with their specific issue.

2.      Encourage them to take action.  Too many times people who are getting collection calls and dunning letters just avoid the issue and do not respond or communicate.  Help them understand that this will get worse and the earlier they communicate the easier it will be to resolve the issue.

3.      Do not keep giving them loans.  The occasional emergency loan, so long as it is paid back promptly with interest is not a problem, but very often these loans are not paid back or the employee leaves without paying.

4.      Provide them with materials that can help them do a better job of managing their personal finances.  Several of my clients have purchased the Dave Ramsey materials and found them very helpful for their employees.  The employer purchases the original materials and CD set for the employee to borrow, and then the employee can decide if they want to continue on with the program on their own.  If so, the employee buys their own materials and keeps up the program (budgets, tracking expenses, prioritizing debt reduction, etc.) with their family.  These materials are available at www.daveramsey.com.  Ramsey has a very successful radio show and is a regular contributor to business and news TV programs on finance.  His advice is practical, blunt and specific.

 

For the future, consider having a financial counselor come to your business and provide a short seminar on a series of topics, such as: Understanding Your Home Mortgage; How to read a Credit Card Statement; What to look for in Refinancing Your Home; How to set up and follow a Budget; etc.  These programs seem to go well when done after hours when other members of the employee’s family can attend as well.

Don Tyler

Tyler & Associates

Preventing Burnout During Stressful Times

The normal challenges of weather and markets in agriculture provide enough stress for the average producer to re-think their career choice on an annual—or maybe even a weekly—basis.  This self-assessment rarely lasts past the next day, when the combine is fixed, the markets are up and the sun comes out.  Unfortunately, this year has been the most challenging one that many producers can remember and stress levels have remained high throughout the fall.

Too many times we can get focused on our own challenges and forget that our employees and family members are going through these tough times with us.  They have put in extra hours, worked in the mud and the cold, stood in the door of the machinery shed as the rain kept falling, and went for days without sunshine.  Their families were wondering when the “rush” would be over so they could get back to a regular schedule.  They also feed off of our attitude, so keeping ourselves “up” during tough times is critical.

I am seeing some signs of “Burnout” in these stressed-out producers, their families and their employees.  These signs include but are not limited to:

• Significant change in mood.
• Being withdrawn when normally social.
• Overly critical of small mistakes.
• Tardiness and increased absenteeism.
• Poor performance from the best people.
• Short tempers from normally patient people.
• Disrespectful of authority when normally respectful.

The key to recognizing burnout before it occurs is in the change in a person’s normal behavior.  Heading off the final stage of burnout—when a person “gives up” and is no longer functional in their current job—can be accomplished through some basic changes in attitude and behavior.  Some of these include:

• Say “thanks” often during the day.
• Do something nice for someone.  Offer your assistance.
• Keep from making negative comments.
• Avoid situations that cause frustration when at all possible.
• Take time to relax during the day, even if only for a few minutes to clear your thinking and reprioritize your day.
• Take advantage of opportunities to get away from the business, even if only for a couple of hours.
• Have plans for the evening that include something you enjoy.
• Find something to look forward to each day.

These may sound like a tall order on some of those rough days when nothing seems to be going right, but even the simplest change in attitude can have a dramatic effect on our mental state.  Put a few of these into practice, and help your family members and employees understand these tactics and the benefits of doing them for their own well-being.

 

Don Tyler

Tyler & Associates

The Role of Patriarch

 

There are many factors that help make a family business achieve exceptional levels of success and maintain them over multiple generations, but the one that is rarely mentioned is the presence of a strong “Patriarch” figure. This person is the wise and respected elder who helped to build this business “on their watch” and still has influence over major decisions.

 

The advice of the Patriarch is sought after and heeded.  The Patriarch rarely interjects their opinion unless it is requested, and yet is ready with a thoughtful response when called upon.  They seem to know everything that is going on, even when they’ve been traveling for three weeks without a single phone call back home.  Members of the youngest generation respect them more than any other person, and can often be found asking for advice—when no one else is looking.

 

These Patriarchs are rare. They are willing to risk sharing their control of the business just at the time that they are reaping the rewards of their hard work, so that the Next generation can learn while they still have some influence.  In my discussions with them, they are humble, reserved….and watchful.  They know what really matters…. and what won’t make a bit of difference 5 minutes from now, let alone 5 years from now.  They tend to say the least in business meetings, but are always the ones most listened to when they do choose to speak.  They are rarely interrupted by others, rarely challenged, and usually….right.

 

In difficult times they don’t talk about how bad it was in their day, but instead they share how they worked through the challenges one at a time, learned from their mistakes, worked hard, and kept a positive attitude.

 

I have met them in the Sacramento Valley (rice, almonds, olives and walnuts) and the Imperial Valley (dates and ornamentals) of California.  In Iowa (corn and pigs), Nebraska (cattle), Minnesota and Wisconsin (dairies).  In Oklahoma (cattle, pigs, cow/calf), Texas (cattle) and Kansas (pigs, dairy).  In all these places these Patriarchs are the same.  They have the same presence, the same self-confidence, the same humility and the same predisposition for being right regardless of the question or circumstances.

 

Those families without one have no idea what they are missing, nor can they fully compensate for their disadvantage.

 

Here’s to all the Patriarchs!

 

Don Tyler

A Strategic Plan for Labor:

 

The successful, forward-thinking business person has an overall Strategic Plan for their business that includes a Vision Statement, a Mission Statement, Specific Goals and a Timetable for accomplishing those goals.  Greater competition, rising benefit costs and a shrinking labor pool for employees in agriculture requires that we have an additional Strategic Plan for our long-term labor needs.

 

A Strategic Plan for Labor requires a discussion of some tough questions, such as;

·        “Who will our labor force be in the next 5 to 10 years and where will we find them?”

·        “What will their experience level be and how will we train them?”

·        “What will the other employers in the area be offering 5 to 10 years from now and how will we compete with them for employees?”

·        “How will we keep the good employees we have?”

·        “How can our business become the “Employer of Choice” in our area?”

·        “What changes in technology can we implement that will reduce our labor needs?”

·        “How will we train our employees in the use of new technology that requires a higher level of skill and knowledge?”

·        “How do we progressively reduce our labor costs while continuing to pay competitive wages and benefits?”

 

These sample questions provide a basic introduction to the issues that must be investigated to develop your strategy.  As they are discussed, it is essential to have an open format, perhaps with a meeting facilitator, to assure that all ideas are welcomed and that action steps are implemented.

 

Including a “SWOT” analysis in this discussion can be extremely helpful.  SWOT stands for your Strengths, your Weaknesses, your Opportunities, and “Threats” to your business.

 

Having this type of written, researched, specific strategy provides a clear set of priorities and action steps that significantly increase your probability for success.

 

If you want a sample outline of what is included in a typical Strategic Plan, just e-mail me at dhtyler@frontiernet.net, and I’ll forward it to you.

 

Don Tyler

Tyler & Associates

I thought I would step out of my normal blogging on family, employee and management issues and forward a few observations and notes from conversations with producers across the midwest.  My travels this spring and summer have taken me to most of the parts of the country that have seen weather extremes, so I thought I'd share what I've seen and heard.  These comments are all anecdotal, so use them at your own discretion.....

 --In speaking with a seed sales rep in the central/eastern Iowa area, they cut off re-seeding beans in the flooded areas on July 10.  The reason being that even if they do come up, the same areas that are prone to flooding are the same areas prone to an early frost......

 --Grain producers in eastern Nebraska have seen very good, even rains and some have not irrigated at all, except for some fertilizer application.  Normally these areas would start the irrigation pumps in early May and rarely shut them off until mid-August.  My clients tell me that their center pivots typically cover 160 acres and use 800 gallons of diesel per week, which would give them about 1.5" of water.  This rain is saving them TENS OF THOUSANDS of dollars each week.

--One of the biggest frustrations that I hear from livestock producers is that they have no point of reference, no historical patterns to base any decisions or trends on, and no sense of where prices could actually go.  For some of them, this is the first time in their business that they feel unable to develop a sound business strategy, marketing strategy or purchasing strategy.

 --Whether it is Wisconsin, Minnesota, Iowa, Illinois, Indiana, Nebraska or Kansas, it seems that for the most part corn is 7 to 10 days behind schedule, and beans are 2 to 3 weeks behind (except for those heavily flooded areas that are much later)

--Reports are that crops are uneven at best, and scouting reports are extremely variable.

 --I live in central Indiana which is very flat prairie land, and even though we did not see the heavy flooding in our area, we do have significant ponding losses.  This is not uncommon in these areas due to the flat land and the inability of tile to take the water away fast enough, but this year will be worse and some fields will have 10% losses in acreage--but not in all fields.  Making up for this, though, is that quite often when there is flooding in these flat areas, the rain that caused the flooding provided good growing conditions for the rest and nearly makes up for those ponding losses.  The bottom line--this just adds to the challenge of predicting yields.

--There would normally be a fair amount of double-crop beans this year--but I have seen none in our area.....and there was more wheat than in a typical year....

= = =

Again, just some observations, so consider them at your own discretion....

 

Have a great week!
Don Tyler

Managing People in Tough Times:

 

A client of mine who is a Texas dairyman was going through a rough time several years ago, and asked about managing his people.  He realized that he was going out to the parlor more often and looking over the employee’s shoulders, talking about how tough things were and making sure that everything got done right because there was no room for error.  We talked about the parlor manager there, and sure enough—he had been there for 12 years and was considered one of the best in the entire industry.  So why look over his shoulder and nitpick?  We discussed the possibility of not going out there and interacting with the people unless he had a positive attitude and could avoid micro-managing the staff.

 

In a conversation awhile later, and he told me that things had changed for the better, and he got an interesting comment from that parlor manager.  The owner had decided to not go down there unless he had a positive attitude about things—which meant that he avoided the parlor for two weeks…..  (Everything went just fine without him)  When he did finally go back in, the manager immediately pulled him aside and said, “I noticed that you haven’t been down here for a couple of weeks.  And I just wanted to say……THANKS!”

  

Last week, the Minnesota Pork Producers held their annual conference, “Managing People in Pork Production.”  They focused this year’s event on “Managing Good People in Bad Times.”

 

Bernie Erven of The Ohio State University, provided some great thoughts on Employer’s Fears vs. Employee’s Fears during bad times:

 

Employer Fears:

• Losing the business
• Losing employees
• Employees learning the truth
• Employee morale

 

Employee Fears:

• Losing their jobs
• The unknown
• Well-being of their co-workers and employer

 

Bernie mentioned four key areas to focus on during these times as a way to overcome these fears:

--Have a positive attitude

--Have a plan to get through

--Adjust your Human Resource practices—temporarily

--Communicate

 

Some more specific comments:

• Ask employees for ideas and include them in the choices that need to be made
• Be honest about the bad times when hiring new employees
• Be fair about work loads
• Continue to reward high quality employees
• Honor previous commitments
• Catch people doing things right and say ‘thank you’
• Don’t nitpick
• Listen to your employees
• Avoid daily complaints about how bad things are
• Continue giving priority to your management responsibilities

 

In my presentation titled, “Would You Work for You?” I asked the group to make a list of the “traits of the people they would prefer to work for.”  This is always a fun exercise, and very revealing.  Some of the traits they listed included:

• Flexible
• Dependable
• Honest
• Positive
• Motivated
• Self-starter
• Trustworthy
• Perceptive
• Disciplinarian
• Flexible
• Empathetic
• Visionary
• Financially stable
• Knowledgeable
• Family oriented
• Communicator
• Core values
• Organized
• Optimistic
• Approachable
• Accountable

 

That’s a long list….and intimidating when we turn it around and ask the question, “So how do you measure up as a manager?  How many of these traits do you have?”  We look at that list and can say that we have most of those traits, but all of them?  All the time?

 

To be an effective leader, manager, coach and team-builder we need to possess these traits… and probably more, especially during difficulties.  If we don’t back up what we say with action, if we fail to keep a positive attitude even in tough times, if we continue to seek out the bad news first thing in the morning just to see how bad things have gotten overnight….then we can expect our people to lose confidence in our ability to lead and manage.  It’s a natural result of our actions.

 

Our people need us to lead, and no one can lead while brooding and pitying over their situation.  These are certainly tough times and they need our complete, focused, rapt attention—and we need our people to be with us rather than avoiding us to preserve their own emotional well-being.

 

In tough times, whether they are financial, health-oriented, personal issues, or production issues, we need to remember that our people are on our side.  They want to keep their jobs, and they need assurances that we aren’t giving up on them.  Positive comments, attitudes and behaviors start at the top, and can be contagious if we garner the support of our people and give them a feeling of confidence that they can get behind.

 

Don Tyler

Tyler & Associates