COMMUNICATIONS. Communicate your way to higher profits!

Transcription

1 COMMUNICATIONS Communicate your way to higher profits!

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3 INTRODUCTION Why Communications? Types of Communication. Who and What we are Communicating. Communication Barriers. Being more effective in our Communication. Practical Applications; Examples for your Operation.

4 WHY IS COMMUNICATION SO IMPORTANT?? It will be the single business item that separates the Best operations from the mediocre operations, in the next 3-5 years. Take the Controls!

5 AG S BIGGEST BLACK SWAN?? Our ability to deal with the challenges and opportunities that lie ahead in the next several years for agriculture. 1.) An aging population. Becoming less motivated. 2.) Ag. economy in downward cycle. Markets/Real Estate. 3.) A rapid generational transition occurring now. 4.) Communication at all levels will be critical.

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7 TYPES OF COMMUNICATION Verbal / Talking / Phone Listening Body language Non Existence / Silence Written / Documentation E mails / Texting Social Media: Facebook, Twitter, Instagram, Snapchat

8 Family / Spouse WHO ARE WE COMMUNICATING WITH?

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10 WHO ARE WE COMMUNICATING WITH? Family Employees Business Partners Lenders Landlords Neighbors Suppliers Merchandisers Public / Consumers Government What could the breakdown in communication cost, in any one of these categories? Good times V.S. Bad times Put a value on each one of these for your own operation.

11 US Population Density

12 What crop covers the most acres?

13 3 MAJOR COMMUNICATION CONFLICTS Transparency Economic, Planning, Information exchange Technology Generational, Rapid change, Resistance Transition Expectations, The unknown, Comfort as it is now

14 GETTING YOUR POINT ACROSS?? Do you communicate just to be understood? Do you communicate to not be misunderstood?

15 3 THINGS WE ALL CONSIDER BEFORE HAVING MEETINGS. 1. Is the content going to be confrontational or painful? 2. How long will the meeting take? 3. When we are done talking, what will we get out of it and what is expected out of me?

16 Content: forbes.com COMMUNICATION INTERPRETATION OF OTHERS? The messages that we receive from others depends on the 3 categories % is based on their facial expressions and their body language % is based on the tone of their voice. 3. 8% is based on the words they say.

17 COMMUNICATION BARRIERS Body Language / Reaction Lack of interpretation Attitude Emotions i.e. Fear Lack of interest Distractions Life Selective Hearing Assumptions Time Exaggerations! Coffee shop talk Which of these barriers do you need to address in your operational communication? Prioritize Take action to improve!

18 COMMUNICATION INTERPRETATION? We tend to tell people what we want them to think. Instead; provide information and ask for feedback of their interpretation. One set of data + 5 people = 5 different interpretations

19 2014 Results DATA EXAMPLE CROP EXPENSE Corn $4.05 Soy $10.84 TOTAL CROP EXPENSE CROP INCOME total ac TOTAL CROP Income LAND PRINCIPAL / Int. Rent $332, CORN $910, Return to Mgt. ALL Overhead $135, SOYBEANS $298, Interest on LOC $26, AG. PROGRAM PAYMENTS $8, Seed Corn/Soybeans $173, LDP PAYMENTS Fertilizer & Lime $98, CUSTOM/Equip. Spring $66, Nitrogen $146, Grain Handle & Dry corn $117, Herbicides / Insecticides $57, Crop Insurance $176, Field Operations HG / Labor $274, ARC County Payment? Trucking $75, Drying $82, Crop Insurance $53, TOTAL EXPENSES 2013 $1,458, TOTAL Income 2013 $1,578, $67.31 Net Income $119, ROI 8.2%

20 As a "Percent of Cost 5% 13% 2% 11% 34% Land Equipment N P K 17% 19% Seed Herbicides Zone Mgmt. / VRT Equip. Other Expenses

21 LEADERSHIP COMMUNICATION: 2 TYPES Captain of the Ship: Transmission Fluid: 1. Give direct work orders 2. Leader makes all decisions 3. Chain of command 4. Information: top - down 1. Delegate Responsibility 2. Decisions at each level 3. Creative ideas to improve 4. Information: All Manage Up

22 FARM COMMUNICATION DYNAMICS Family Governance Requires Respect Listen and Understanding Family Structure 3 rd Party Rights by Privilege / Age Driven by Emotions Business Governance Requires Professionalism Facts and Documentation Business Structure 3 rd Party Rights by Qualification Driven by Facts / Conditions In God We TRUST. Everyone else bring numbers!!

23 NAVIGATIONAL PHRASES: FOR DIFFICULT PEOPLE / MEETINGS 1. That may be, but.. 2. I understand, however.. 3. I see your point, and.. Pick one and repeat.. Broken record concept. Source: Dan O Conner; YouTube

24 APPLICATION: STRUCTURE MEETINGS Progress Meetings: Once per week Have a specific Agenda / Right People Topic Examples: Production info., markets, problems, ideas, employee updates, etc. Same time / location / Time limits on topics table some for next meeting Understand the why on every agenda topic Documentation / Minutes Provide specific action items with who is responsible / Accountability Whether you have 2 people or 20. Have the meeting!!

25 WHY ARE MEETINGS SO IMPORTANT? Working Capital Improvement Form 2016 Expense Improvement Value Income Improvement Value Restructure debt $300,000 Non GMO Premiums $15,000 Purchase Freeze (Items over $1,000) $30,000 Custom planting Income "Net" $5,000 No Pickup trades for 2016 $25,000 Liquidate unused equipment $7,500 No bonus compensation. $35,000 Strict Basis Management $3,000 Reduce hired labor $40,000 Provide shop repairs for hire $10,000 Use credit card if possible/ 2% Back $7,500 Other custom / for Hire Jobs "Net" $15,000 Reduce part time Labor: more efficiency $10,000 Share Equip. Labor $5,000 Totals $452,500 $55,500 Grand Total Improvement $508,000

26 Questionnaire YEAR END REVIEW : EMPLOYEE EXAMPLE 1. Describe your biggest achievement over the past year 2. How do you envision your future with the operation? 3. What are your specific goals for increasing the productivity and profitability of the operation on a daily/annual basis? 4. How would you describe the overall atmosphere during a typical day at work? 5. Is there anything specific that you feel is a hindrance to completing your duties? 6. Is there anything specific that you see as a threat to your job or to the operation as a whole? 7. Is there anything you feel needs to be done to make your job easier or to make you more productive? What tools, supplies or services do you need? 8. What personality trait would you like to improve on to have a more positive effect on the team? 9. What specific value do you feel you bring to the team?

27 FEEDBACK EXAMPLE Ask everyone in the organization to define their specific roles in the operation. (In their own words How they see themselves ) 1. Repairs / foreman in the shop. 2. Planter operations in the spring. 3. Combine operations in the fall. B- B+ A- Ask them to grade themselves on each responsibility.

28 AN ACTIVE LISTENER = EXCAVATION COMMUNICATION Dig for the what they are really asking??? / Context? That s Interesting.. 1. Tell me more? 2. Why would you say that? 3. Why would you do that? 4. Why would you ask that?

29 COMMUNICATION EFFECTIVENESS?? Can the other person rephrase your message? Are the right people getting the right message at the right time? Is the other person comfortable asking questions? Are you getting the response & actions that you want? Don t tell me! Show Me! Do you believe in what you are communicating? 20% Is Knowing the topic 80% Is Belief in the topic

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31 UNDERSTAND BARRIERS AND FIX THEM What we think we have said is oftentimes different from what we really said Solutions. SOP s Develop Rapport Gain Information Without Assumptions! Clarify Positions Established Facts Promote Understanding Formalize your Communication! Source: channel1.com

32 KEYS TO GOOD COMMUNICATION If you are talking, you re only repeating what you think you already know. If you are listening you are learning.

33 WHY IS COMMUNICATION SO IMPORTANT?? Communication will be the single business item that separates the Best operations from the mediocre operations, in the next 3-5 years. Take the Controls! You can either participate or observe

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