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( 0V(.5.727n.5?A/;o6~358 0'3P5s.(25(T555JUk\A/ F 0E  X+   G -  [ _W- :Y{@g,  C VBCgDEF?zz4$A NS!P0NJMZNgNPQRNML R7UPR_UUPSS U!RNNlMPSPSO2ORJzPKKN>IaJoP~QNQ RQ'Q4MPP]RfPrSNRLPP*LgPKHC:+AKR[btfFb/dddfcfBd-`d_dea@d+abb_d_`bdkdGd-dbbfa~f[b3fbbdd_dFdbdTabZNA4@j,/  # l'1 ?"p   T Click to edit Master title style! !   f 1 ?" `    W#Click to edit Master subtitle style$ $   fT 1 ?"``   X*   f< 1 ?"`    Z*   fx 1 ?"`    Z*`  H޽h @? ? f̙33 0 P"(    0  P     V*    0h       X*  d  c $ ?     0   @   RClick to edit Master text styles Second level Third level Fourth level Fifth level!     S  6  `P    V*    68  `    X*  H  0޽h ? ̙3380___PPT10._iE\ 0(p0(  0 0 0( P   ( `*  0 0((    ( b*  0 6d( `P  ( `*  0 6x:( `  ( b* H 0 0޽h ? ̙3380___PPT10._i0܄ YQ0 (     3 rxۤ1?P$ B    3 r|ߤ1?"  What can ranch/farm families do to improve their chances of continuing as a family business for generations? Lorne Owen Ministry of Agriculture & Food British Columbia, Canada>s$J$T  <f3޽h @ ? f̙33v &@P(  P~ P  f 1?@ Key Concepts to UNDERSTANDING& Understanding goal setting in the CONTEXT of the ranch/farm family business Understanding the VALUES that guide goal- setting in the ranch/farm family business Understanding the RESOURCES that enable goal-setting in the ranch/farm family business Understanding DECISION-MAKING that leads to successful goal-setting in the ranch/farm family business$"7P KHH P 0޽h ? f̙33 h`P$(  $ $  f( 1?<P8  * The absence of communication is NOT an option . Communication is the KEY to all successful family ranch/farm activity! zz$H $ 0޽h ? f̙33 `((  ( ( 3 r1 1?KT D The family business requires a team approach and if you are serious about keeping the operation going, making it a family affair, making improvements and having plans to deal with important issues, you must develop and maintain effective, respectful team interaction.   H ( 0޽h ? f̙33, |(  | |  f< 31?p0P PUnderstand The Context 2 | # l@ 1?@  ? Communicate   |  `1?0B |  `31? `@  |  fE 31?  LClarify Values/Goals |  `1?P 0  | # lK 1?@  @ : 2  |  `31?@@r   |  `31?@ 0  |  fN 31?  >   |  `1? pp   |  `1? P@ " |  `31?   | 3 rR 1?:c VFamily decision making process |  `0W 31?@ 4. WIdentify and Manage Resources    |  fd[ 1? p LDecide How To Decide |  f\ 31?0 ;ACT | 3 rc 1?  B  | 3 r] 1?@ B$ 3 | 3 rj 1?& 9Sean Brotherson, NDSU Extension Family Science Specialist::  +B | s *f3޽h ?O|| | | ̙33r  "  p% (    3 rt 1?j   2  # lXw 1?@P :     ftz 1? lRanch/Farm Family System82   3 r~ 1?  >     f 1?0* >     f 1?  >Family   # lp 1?0  >   3 r0 1? 1  >Social  # l 1?p@  >   3 r 1?o  @Personal    # lP 1?p  @Economic  R #  `f31? `p R $  `f31? @o b %  `f31?P n H  0޽h ? f̙33V <(  < < 3 r 1?P  B,  < 3 r( 1? >VALUES, <  f 1? Values form the base upon which the family farm/ranch is built. Values are the guide- posts expressed by team members that direct their activities as a unit and with each other as a team.$H < 0޽h ? f̙33 2*@(  @ @ 3 r 1?& nTechniques For Generating a Family History * Storytelling * Family Business Time-Line * Use of Genograms<o/$?$$e H @ 0޽h ? f̙33  dI(  d d 3 r 1?7 ^(Management Values of Farmers & Ranchers))(  d  f 1?PL s9Dedicated Producer Flexible Strategist Resource Steward::$H d 0޽h ? f̙33v &D(  D~ D 3 r8 1? V What do each of us value in terms of : * Teamwork * Money * Power * Size of Operation * Recognition * Amount of Work * Family * Recreation j)${$$H D 0޽h ? f̙33r "(  z  3 rt 1?&  Personal Goals The personal goals of family members may be the single most important factor influencing the direction that the business takes.,($H  0޽h ? f̙33   x (  x x  f 31?p0P PUnderstand The Context 2 x # l 1?@  ? Communicate   x  `1?0B x  `31? `@  x  f 31?  LClarify Values/Goals x  `1?P 0  x # l 1?@  @ : 2  x  `31?@@r   x  `31?@ 0  x  f 31?  >   x  `1? pp   x  `1? P@ " x  `31?   x 3 r 1?:c VFamily decision making process x  `D 31?@ 4. WIdentify and Manage Resources    x  f4 1? p LDecide How To Decide x  f 31?0 ;ACTB x s *f3޽h ?Oxx x x ̙33<  \|(  \D \ 3 r8 1?=v8G \Ranch/Farm Operational Resources * Basic * Human * Financial * Livestock * Wildlife *]!(<$H \ 0޽h ? f̙33S  (  [  3 r 1?]$  sFamily Resources Successful businesses are built by strong teams, comprised of members with complimentary skills.*t(b$H  0޽h ? f̙33X  p(  p` p 3 r 1??6- hPersonal Resources Personality Creativity Stress Management Communication Cooperation Negotiation:i,S$,H p 0޽h ? f̙33  HY(  H! H  f* 1?   UFour Types of Decision-making * Autocratic * Majority * Unanimous * ConsensusVV$H H 0޽h ? f̙33   ` (  ` `  fl3 31?p0P PUnderstand The Context 2 ` # l7 1?@  ? Communicate   `  `1?0B `  `31? `@  `  fh< 31?  LClarify Values/Goals `  `1?P 0  ` # lB 1?@  @ : 2  `  `31?@@r   `  `31?@ 0  `  fE 31?  >   `  `1? pp   `  `1? P@ " `  `31?   ` 3 rI 1?:c VFamily decision making process `  `N 31?@ 4. WIdentify and Manage Resources    `  fQ 1? p LDecide How To Decide `  f$V 31?0 ;ACTB ` s *f3޽h ?O`` ` ` ̙33 0](  %   fl] 1?\ A Will to Succeed: A powerful desire to overcome obstacles is the impetus to survive and prosper in family farming/ ranching. Many farm or ranch difficulties can be linked to a lack of will. Without an internal conviction to make a best effort, any business venture takes a progressive decline. With a will comes no guarantee of success. But an absence of commitment is a near 100% indicator of eventual failure. Peter Reese, Successful Farming, June, 2002$$  H  0޽h ? f̙33  0 ]U(  X  C    U  S   @   A growing, multi-dimensional, diversified business requires organized and pro-active handling of complexities: * consumer demands * free-trade * non-family employees * multi-generational teams * succession * otherH  0޽h ? ̙33 0 |t (  X  C    t  S   @   Effectiveness of operating today s ranch/farm business comes through open consultation with the entire team.  That is fine for you to say, but we don t talk about business things, it s too `touchy feely` . Even though difficult, you must continually communicate. Especially if long periods have passed without discussion of important family business issues.$hmaH  0޽h ? ̙33 0 |t@ (  X  C    (t  S h( @  ( If you are part of a family ranch/farm business team, you don t have the luxury of disassociation. If you don t want to talk or listen then you must remove yourself from the team.  A farm or ranch family divided will eventually fail! 7H  0޽h ? ̙33 0 bZ(  X  C    (Z  S ( @  ( vECONOMIC  The family and operation are linked economically. Economic decisions/goals impact the family system, e.g., purchase of a $120,000 combine, taking an off-the-farm job, starting a new enterprise. SOCIAL  Social life and family life are tied to the rhythm and fabric of the farm/ranch. Spending time together (or not), in-law relations, even marriage can be tied to the flow of the operation. PERSONAL  One s sense of identity is often tied to the land and the operation. Witness the emotions of individual producers who must sell off livestock during drought conditions.  Economists view family operations as a business venture and all decisions must be made from that standpoint. Ag. Families view their operation as a personal venture and make decisions from that standpoint. John Reeve, Queensland, Austrailia.<G%,%  H  0޽h ? ̙33z 0 :2(  X  C    (2  S ( @  ( To establish and reach goals for the family, it is important to understand family values. Decisions we make, how we use our time, things we spend money on, are influenced by our values. Most successful farm businesses have a clear path the generations have traveled to get to where they are today. A written history helps document this. This written history is especially useful for new members of the family and with non-family employees.H  0޽h ? ̙33  0 T L  (  X  C    (L   S 1( @  ( N A great starting point for writing a family/business history is to spend an evening telling stories. As the events are retold and the feelings that accompanied the events are recounted, someone should take notes. Old family photographs can trigger memories and foster curiosity, especially in the younger generation. ( Use the word file, Write Your Family History, as a way of raising important points about the ranch/farm family.) A family history can be depicted in a number of ways. It can be shown as a timeline with events spaced out along a horizontal line. Positive happenings can be illustrated as lines going above the horizontal line (the more positive the event, the higher the peak of the line). Negative or unhappy events can be drawn as lines going below the neutral line. Start the family s timeline with a significant event and proceed to the present moment. Another method of diagramming the family history is to construct a genogram. A genogram uses symbols and words to depict a family s history and significant events. A genogram shows the names and ages of family members; date of birth, marriage, separation, divorce, death, etc.; residences, illnesses, changes in life plans and other major events in the family s history. It also shows the nature of relationships  whether they were close, distant or painful. Ideally, a genogram will depict a minimum of three generations. Use symbols that are applicable to your family.$R=P N ( \H  0޽h ? ̙33  0 h(  X  C    (  S R( @  ( jManagement styles of ranchers/farmers will influence how they address the challenges of today s agriculture. The management values combine goals with management styles. It is an orientation toward ranching/farming which is set in the context of family, community, and economic constraints. This orientation can be business directed or lifestyle directed. Research on management values has identified three styles that impacts decision making: Dedicated Producer  thrives on farm work and achieving a quality product. Flexible Strategist  believes that marketing is the key element in success of the operation. Resource Steward  desires an operation that is environmentally sensitive and one on which family and lifestyle can be enjoyed. (Download the file, Management Styles of Farmers and Ranchers which is a self-assessment and interpretation of management values of ranchers/farmers.)Z{& $)ZH  0޽h ? ̙33  0 }u (  X  C    (u  S d( @  ( In a meeting with your family team, discuss what each member values in terms of several pre-determined areas important to your operation. If is of little sense to work as a family team unless an acceptable level of agreement and acceptance around values exists. In fact it is dangerous to physical health and relationships if people working together in the farm business have deep divisions along value lines. In situations where individuals working together have differing values around important issues, these differences need to be recognized and action must be taken to resolve them. The farm/ranch needs group values which govern how it operates; individual values and business values are needed to mesh for strong relationships and a successful operation.H  0޽h ? ̙33  0   n (  X  C    (   S s( @  ( p 0 Having a clear understanding of our own as well as other family members goals is critical to the success of the family operation. If the goals of different members of a family are in conflict, problems arise. Families need to discuss their individual goals and then determine how these goals can be made to fit with the business goals. Discussing goals can be difficult, especially for families not accustomed to talking about dreams, hopes, and aspirations. A good starting point is for each family member to list the things he or she wants to achieve. There are three different types of goals to consider: goals for myself, for my family (or social), for the operation. (The file, A Goal-Setting Worksheet, can get you started.) You won t come up with complete answers to the worksheet. This is a starting point only. Look at the goals. Do any of the goals for your family or personal life conflict with the goals for the business? The next step is to discuss these goals with others in the family. See where the goals coincide with others and see where they diverge. The impact these will have on the day-to-day operations and the long-term values need to be considered.$H  0޽h ? ̙33 0 ^(  X  C    (  S ( @  ( `LIt is not enough to simply identify goals, they must be acted on. The ranch/farm family needs to identify and evaluate the operational, family, and personal resources available to help the family reach their goals. Land, labor and capital make up the operational resources. The Western Integrated Resource Education process identifies five operational resources basic, human, financial, livestock, and wildlife. The ranch/farm family needs to look at the operation,  what does your operation provide that could be used to your competitive advantage? H  0޽h ? ̙33 0 n(  X  C    (  S `( @`  (H@___PPT9" Today s ranch/farm operation is serious business. To succeed, seven tasks need to be carried out with excellence: Vision and planning 2. Organization and administration 3. Production and maintenance 4. Sales management and customer relations 5. Advertising and public relations 6. Financial management 7. Regulatory compliance. Realistically, one person can only handle one or two of these tasks. Study each family member to understand their strengths and interests, looking for gaps or overlaps. (The files, Draw Your Own Chart and Build a Successful Team can help in this task.)dr" " rH  0޽h ? ̙33G 0  (  X  C    (  S d( @  ( An agriculturist may possess superior livestock, fertile land and adequate financial. But if the rancher/farmer does not effectively manage his or her own physical, mental, and emotional well-being (personal resources), it may not matter how productive the operation. Personal resources in ranch/farm families center on PERSONNEL MANAGEMENT and PERSONAL MANAGEMENT. Personnel management focuses on staffing, hiring, training, motivating, and supervising employees. Personal management focuses on how the rancher/farmer interacts with family members, employees, businesses and agencies, an even society in general. (For a detailed discussion of The Human Side of Human Resource Management in Ranch/Farm Operations go to: http://agecon/RiskMgt/HumanRisk/HUMANDEFAULT.htm)$E9P H  0޽h ? ̙33   0   08 (  X  C    (   S d( @  ( :  After identifying values, setting goals, and evaluating resources; it s time to act. Good decision-making paves the road to sound management, and how the members make those decisions is on of the vital keys to family farm/ranch business survival. Four types of decision making styles are possible in ranch/farm families: AUTOCRATIC  One person makes the decision with or without consulting others. Used in the military and patriarchal organizations. Suited to emergencies. MAJORITY  The democratic approach means the 51% carries the decision. Used in businesses with shareholder and directors, and in politics. UNANIMOUS  Requires that everyone must agree with the decision. Used in some partnerships and in critical decisions such as disposal of family assets. CONSENSUS  Requires that most everyone agree. Each person speaks about his or her concerns. An attempt is made to reconcile the concerns with the majority. In the end, everyone may not agree entirely with the decision, but will support it anyway. (Use the worksheet, How Are Decisions Made in Ranch/Farm Business? Are changes in decision-making needed in your operation? 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