SOP s TO THE RESCUE. Time to get organized?!

Transcription

1 SOP s TO THE RESCUE Time to get organized?!

2 SOP s Introduction What is it? Why do we need Standard Operation Procedures? Real Applications How to Build SOP s

3 What is a Standard Operating Procedure? Employee Hand Books Process Manuals Contractor / Supplier Documentation.. i.e. insurance form How To? Client Documentation

4 The First SOP Define Your Operation Consistency, Slow Growth, Relationships Growth Production, Max Efficiency Slowing Down, Transition 1. Steady, Auto Pilot 2. Full Power, Take Off 3. Idle, Final Approach Define your Principals i.e. Integrity, Honesty, Quality

5 Why Standard Operating Procedures? SOP s Business sustainability / consistency Correct & Transparency Safety Self reporting, Aviation example Economic and personal growth Generational transition

6 Why? Efficiency increases profitability : and cross training / Backup support Designing standard processes for quality / productivity measurement if you can t measure it, you can t improve it. We can regulate ourselves, or - we can be regulated!! Allows you to delegate responsibility

7 WHY???

8 SOP s.. Over Done

9 SOP Challenges Discipline of writing them.. Not much fun Getting "buy-in" from others in the organization SOP's can often need updates or improvements Use them. Don t forget they are there Misuse / No Use Like a Treadmill

10 Extreme Ownership / The Book Leadership Clearly Defines Responsibilities Clear Chain of Command Defined / Specific Expectations / Timelines Measures Results Accountability Consistency

11 Business Structure Operations Business Parent Company Equipment Company Trucking Company How can we bring in extra cash? Diversification Company

12 Learn By Teaching If you can t explain it; You don t understand it! Employee Training : 5 minutes and go Vs. SOPs. Family and organizational meetings. Share your farms details with other farmers. (e.g. TPEN Host) Teach your suppliers (e.g. Brokers, Agronomic, Financial )

13 Safety SOP Farm Name Safety Training and Information General 10 mph speed limit in yard No texting and driving in any company vehicle No alcohol in company trucks or equipment No operation of trucks or equipment with blood alcohol over legal limit Shop Must wear eye and hearing protection Employees only (unless under direct supervision of an employee) Be sure cords and electric tools are in good condition

14 Safety SOP Grain Bins and Dryer Cautious of wet conditions and electricity Watch surrounding (kids) Don t go into grain bin without second person knowing Use lock out/tag out of electrical equipment during repairs Trucks Don t drive more than 35 mph on gravel 14 hours on/ 10 hours off Stay in truck when grain cart is unloading Machinery Do not approach moving piece of machinery Do not operate equipment with missing shields or safety guards, be sure to replace them after repairs, servicing, or if missing Additional information at: and

15 Cost of Production SOP Start Up Define Profit Centers, i.e. Corn, Soybean, Cattle, etc. Identify a unit price for every line item expense. Keep each expense in it s correct year Identify income with in the same year of production. Identify the right tools and PEOPLE for support Correct - Transparent Make the difficult decisions

16 Decision Rights/Responsibilities Land/Real estate acquisitions and sales Marketing Capital purchases/$1000 or more Equipment purchasing Employee hiring/firing/compensation

17 Decision Rights/ Resp0nsibilities Inputs i.e. seed, fertilizer, crop protection, herd health Financial analysis/business structure Operational structure (agronomic, logistics) Growth and development Maintenance and repairs

18 Decision Makers Primary: the ultimate individual responsible Secondary: backup/assistant Trust but verify (Protocol?) Support: third party opinions/consultants The person responsible for the results needs to be responsible for the decisions in the process!!

19

20 Maximum Farming. Example Save Money Better placement Better products Better Timing Protect yield potential Better overall Efficiency Increase Yields Precision Soil testing Balance nutrients Farmer focus on details Better zone management Setting higher goals

21

22 Calendar of events

23 Do Your Own SWOT Evaluation Strengths Weaknesses Opportunities Threats

24 Prioritize to Survive Business Structure Review. Know Where the Profit is Coming From. (Profit Center / Zone) Consider Networking Options. Know your Costs Per/ Bu. on Every Expense. Not Just the Check Amount. Control Return to Management Expenses. Market Value Balance Sheet with Trends Analysis. Earned Equity Do What You Do Well. Let someone else do the other stuff. Protect Yourself from Risk Insurance. Marketing. Keep it Simple and be Disciplined. Protect Working Capital. Without Impacting Productivity.

25 Dad s famous Quote We need to get organized around here What needs organized? Who is in charge? Who defines the process? Who does the process? Who makes sure the process is completed successfully? Who is accountable if the process isn't completed or fails?

26 Chris Barron AG View Solutions LLC. Phone: Website: Agviewsolutions.com