How do you Measure Up?
Posted by Lance Johnson on Saturday, January 16, 2010
Under: Articles
If you don’t know the answer to this question, then your operation is at risk!
You might work harder than your neighbour and put in longer hours, but this doesn’t mean you’re a better farmer. Only those who take regular and multiple measurements of their operations can truly tell how they are doing. And guess what…these tend to be the most profitable farmers.
I know all of you have heard government and advisors preach the need for business planning. Although I whole heartedly agree that not having a business plan is akin to not having a GPS in Los Angeles and trying to navigate the unnerving traffic in a 28 foot Winnebago (another story for another time!), I’m going to use this space to climb up on my “Measure It” pulpit.
Growing up on a mixed farm I was always amazed at how organized and efficient dairy farms were. I was also jealous as they always seemed to be doing better than the average grain or cattle guy. Now one can discard much of their management skills and instead insist that it’s the price controls that made them their money. And you may be partially right. But, quota wasn’t the only key. Daily measurements provided the real advantage. They tracked every minute detail of their milk factory. They used this data to tweak their processes on a daily basis to optimize their production.
So what can we learn from our dairy cousins? If you measure it, you can improve it. I’m not suggesting that you need to take measurements every day as I don’t know any beef or crop producer who can do this. What I am suggesting is that the top 10 or 20% of the producers in your part of the industry are measuring more than you are. Ask yourself two questions: What are they measuring? How are they measuring it? Now replicate these measurement best practices in your business, use the information to make adjustments to your management and see your profits reach new highs.
It’s the knowledge of what is working and what isn’t that will be the key to your success. You can’t determine this if you don’t measure it. Now as the famous saying goes, Just Do It!
Lance is the founder of Drive Solutions Corp., a strategic business consulting company that helps agriculture businesses and organizations reach new levels of success.
You might work harder than your neighbour and put in longer hours, but this doesn’t mean you’re a better farmer. Only those who take regular and multiple measurements of their operations can truly tell how they are doing. And guess what…these tend to be the most profitable farmers.
I know all of you have heard government and advisors preach the need for business planning. Although I whole heartedly agree that not having a business plan is akin to not having a GPS in Los Angeles and trying to navigate the unnerving traffic in a 28 foot Winnebago (another story for another time!), I’m going to use this space to climb up on my “Measure It” pulpit.
Growing up on a mixed farm I was always amazed at how organized and efficient dairy farms were. I was also jealous as they always seemed to be doing better than the average grain or cattle guy. Now one can discard much of their management skills and instead insist that it’s the price controls that made them their money. And you may be partially right. But, quota wasn’t the only key. Daily measurements provided the real advantage. They tracked every minute detail of their milk factory. They used this data to tweak their processes on a daily basis to optimize their production.
So what can we learn from our dairy cousins? If you measure it, you can improve it. I’m not suggesting that you need to take measurements every day as I don’t know any beef or crop producer who can do this. What I am suggesting is that the top 10 or 20% of the producers in your part of the industry are measuring more than you are. Ask yourself two questions: What are they measuring? How are they measuring it? Now replicate these measurement best practices in your business, use the information to make adjustments to your management and see your profits reach new highs.
It’s the knowledge of what is working and what isn’t that will be the key to your success. You can’t determine this if you don’t measure it. Now as the famous saying goes, Just Do It!
Lance is the founder of Drive Solutions Corp., a strategic business consulting company that helps agriculture businesses and organizations reach new levels of success.
In : Articles
Tags: "business plan" measure management
