Importance of this Conference

Transcription

1 8th Annual Farmer Cooperatives Conference Cooperative Opportunities in a Global Economy Global Involvement Lessons Learned John E. Gherty Immediate Past President & CEO Land O Lakes, Inc. Importance of this Conference 2 Recognizes global nature of 21 st century economy/marketplace Reflects our responsibility to be good global citizens

2 Global View 3 In today s s complex and changing economic environment, being financially successful and adding value for members long term, will for many of our cooperatives require that we be prepared to pursue international business Global View 4 The question is not whether we will have to operate in in a more unified global market but rather when and how.

3 Topics 5 The ways international business can add value for cooperatives and members How you build board and membership support for international efforts How Land O Lakes O has approached these issues Adding Value through International Activity 6 Historic cooperative focus commodities Today access depends on being least-cost on a global basis Future opportunity will be in finding ways to add value to commodities Differentiate member production

4 Adding Value through International Activity 7 Differentiating member production Further processing Quality Dependability of supply Traceability Exporting new technology Meeting global needs of domestic customers Adding Value through International Activity 8 Helping generate the size and scale necessary to compete and win Critical mass and economies of scale key attributes of successful companies

5 Communicating with Board and Members 9 CEO develops Vision for international involvement Develop and implement detailed communication plan Develop and implement specific projects and strategies CEO s Role 10 Be point person with the Board Critical point of sale Demands compelling Demands compelling message(s) Based on facts and data Use outside resources Also need to build broader membership support

6 Ten Things to Think About in Communicating Strategy The CEO or leader must be fully committed to the Vision 2. You need to craft compelling messages around the Vision 3. Take your messages to decision- makers first 4. Send written material ahead of any meetings 5. Have a communications plan with tasks, timing and accountabilities Ten Things to Think About in Communicating Strategy Once you go beyond the board, be tactical about whom you communicate with first 7. Use information meetings in the country 8. Keep other stakeholders informed 9. Be a good listener and incorporate feedback 10. Over-resource resource your communication efforts

7 13 The Land O Lakes Experience Early 1980s Land O Lakes: O UMW regional cooperative little international vision CEO Ralph Hofstad started the process Had a vision for Land O Lakes O growth domestically and internationally Land O Lakes Global Involvement 14 Land O Lakes O is proud to be a leader in the delivery of international humanitarian and technical assistance.

8 Land O Lakes Global Involvement Albania Bosnia Macedonia Armenia Azerbaijan Georgia 15 Turkmenistan Ukraine Uzbekistan Russia/Siberia Colombia Honduras Afghanistan Bangladesh Pakistan Philippines Angola Ethiopia Kenya Malawi Mali Mozambique Nigeria South Africa Sudan Tanzania Uganda Zambia Communicating Our International Vision 16 Key objectives: Reach out and help farmers in less developed countries Use international development projects to develop relationships that could lead to commercial opportunity Get board, members and employees involved - Make them advocates

9 Communicating Our International Vision 17 Initial challenges skepticism Global development assistance would create new competitors Doing business in global markets would detract from our ability to succeed at home Communicating Our International Vision 18 Key messages: International development was a reflection of who we are as an organization Our involvement in international development had the potential to create positive relationships and open the door to commercial opportunities Land O Lakes O faced a very real need to expand its horizons

10 Communicating Our International Vision 19 Enlightened Self Interest Communicating Our International Vision 20 Took these messages to: Board Membership Annual meeting Country meetings Member publications

11 Communicating Our International Vision 21 Spreading the message: Getting directors, members, employees and retirees directly involved in international development programs You learn by doing! Land O Lakes Today 22 Directors, members and employees: Proud of our international development efforts Understand importance of the ability to think, plan and globally Recognize global activities create new opportunities, rather than foster new competitors

12 Land O Lakes International Development 23 International Development Division established in 1981 Record of achievement: 137 projects in 66 countries Training for 2,500 cooperatives and private companies Training for more than 50,000 foreign nationals Global school nutrition programs have fed more than 1.5 million youngsters. Land O Lakes International Development 24 Goals: Provide meaningful assistance Generate a positive image in current and potential markets Develop Land O Lakes O international experience and expertise

13 Land O Lakes Global Business 25 First exported butter to Africa in 1925 Late 1980s developed staff specifically dedicated to sales in Latin America and Far East Land O Lakes Global Business 26 Dairy Foods 34 countries Feed 39 countries Seed (alfalfa) 5 countries

14 Cooperatives and the Global Future 27 Cooperatives cannot afford to ignore global opportunity or global competition Cooperatives need to focus on core businesses and competencies The most significant opportunities exist in the value-added added sector No one organization will do it alone collaboration and cooperation will be key