WOW! This is not Your Parent's
Agricultural Industry
Dr. Bob Milligan
"If you don't drive your business,
you will be driven out of business."
-- B. C. Forbes, Founder of Forbes
Magazine
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.
My childhood
Today
Today
2045
?????
60 second
pair discussion
Greater Change –
In Agriculture,
Nationally, and Globally
What is the greatest
change you have seen in
the last ten years in how
farms are lead and
managed?
We Must View the World Differently
Understanding Your Reaction
Change as loss
Change as opportunity
Understanding Your Reaction
Change as loss
?
Change as opportunity
Understanding Your Reaction
Change as loss
?
Change as opportunity
TURBULENCE x TURBULENCE
Change as opportunity
Change as loss
Change as opportunity
$100.00
$10,485.75
Technology
Robotics
Genetic engineering
Nanotechnology
Artificial intelligence
Precision agriculture
Virtual communications
Which two or three will be the most difficult
for you and your farm clients to successfully
transition
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.
Worker
Worker
to Operations
Manager
to
Worker Manager
to Operations
Leader
Think Like a Leader
“I had to stop ‘managing
by the seat of my
pants’”
Tom Gegax, Tires Plus
Operations Manager to
Leader
At least as difficult
a challenge as
worker to
operations manager
Management
Great
managers
excel at
turning one
person’s
talents into
perfection
Leadership
Great leaders
rally people
to a better
future
Management

Management
is efficiency
in climbing
the ladder
Leadership

Leadership
determines
whether the
ladder is
leaning
against the
right wall
Management ---- Leadership
Great managers
excel at turning
one person’s
talents into
perfection
Management is
efficiency in
climbing the
ladder
Great leaders
rally people to a
better future
Leadership
determines
whether the
ladder is leaning
against the right
wall
XLR8 – Accelerate
By John P. Kotter
Management
Planning
Budgeting
Organizing
Staffing
Measuring
Problem solving
Doing what we know
how to do
exceptionally well
Constantly producing
reusable, dependable
results
Leadership
Establishing direction
Aligning people
Motivating people
Inspiring
Mobilizing people to
achieve astonishing
results
Propelling us into the
future
Two Person Discussion
•
•
What are your thoughts
on the distinction
between management
and leadership?
Discuss with your
partner – 60 seconds
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.
WHY?
Why Strategic Leadership
The importance of a
The most important determinant of
compelling vision is
farm
business
success is moving from
magnified
with a
operational
excellence
to
larger workforce
and
strategic
leadership
the employment
of
millennials.
 Turbulence –
complexity and rapid
change - synergy
 Multiple partners –
team decision-making

WHY?
WHO?
The one quality that all
leaders have in common is
that they have a clear and
exciting vision for the future.
This is something that only
the leader can do. Only the
leader can think about the
future and plan for the future
each day.
-- Brian Tracy
WHY?
WHAT?
WHO?
Strategic Leadership
1.
2.
3.
Vision – everyone needs to know why what
we are doing is important. The motivation.
Strategy - the direction we are taking to
fulfill our vision. Our direction to success.
Farm business culture – the way we behave
as we implement our strategy to fulfill our
vision. Requires alignment of strategic
leadership, workforce passion, and
operational excellence. Drives what we do
every day.
Vision – Real World Value???
Why is vision, mission so important????
• Direction and Meaning
• Decision-making
Values:
• Tough
• Grateful
• Disciplined
• Devoted
WHY Stimulates our Emotions
WHY
HOW
WHAT
WHY Stimulates our Emotions
WHY Stimulates our Emotions
LIMBIC BRAIN
This part of the brain is responsible for all of our
feelings – trust. Loyalty, commitment. As a
result it is responsible for human behavior and
NEOCORTEX
decision-making. The WHY resonates in this
The
is responsible
rational
andno
part neocortex
of the brain.
This part offor
the
brain has
analytical
thinking
and language.
WHAT
capacity for
language.
One result The
is that
we is
understood
but it does
not drive behavior.
have troublehere,
describing
our feelings.
WHY Stimulates our Emotions
How Do What Coach Frost Did?
1.
2.
3.
Understand that meaning is derived from
something with more meaning –
emotions – than profit or productivity.
Introspection and discussion: identify
what provided meaning to the founder
and the current owners.
Create and adapt a slogan, vision/mission
or a set of values that represents the
business’ meaning to the owners.
Vision – Real World Value???
Why is vision, mission so important????
• Direction and Meaning
• Decision-making
Strategic Leadership
1.
2.
3.
Vision – everyone needs to know why what
we are doing is important. The motivation.
Strategy - the direction we are taking to
fulfill our vision. Our direction to success.
Farm business culture – the way we behave
as we implement our strategy to fulfill our
vision. Requires alignment of strategic
leadership, workforce passion, and
operational excellence. Drives what we do
every day.
"One day Alice came to a
fork in the road and saw a
Cheshire cat in a tree.
"Which road do I take?" she
asked. "Where do you want
to go?" was his response. "I
don't know," Alice answered.
"Then," said the cat, "it
doesn't matter.""
-- Lewis Carroll, author
Leadership – Developing
a Winning Strategy
The future of the
farm business
needs to be
someone’s top
priority.
The Chief Executive and
Strategy Amid Turbulence



Strategy today is not
a road map.
Strategy needs to be
a compass/direction
prepared to capitalize
on opportunities and
avoid threats.
Continuous
observation of the
external world
followed by careful
analysis and thought
A great strategy is the
synergistic intersection of:
• The unique and specific
business direction
of the business
• The resources – physical
and human – available
to the business
• The available markets
for the business’ products
and services
External focus – observe, analyze,
understand, network, learn
Strategic Leadership
1.
2.
3.
Vision – everyone needs to know why what
we are doing is important. The motivation.
Strategy - the direction we are taking to
fulfill our vision. Our direction to success.
Farm business culture – the way we
behave as we implement our strategy to
fulfill our vision. Requires alignment of
strategic leadership, workforce passion, and
operational excellence. Drives what we do
every day.
WHY?
WHAT?
WHO?
HOW
Bob, I involved
everyone!!!!!
(exasperated)
Farm Business Leadership
Senior generation
grew with the Farm
Junior generation
must grow
within the Farm
Outstanding Leader
Outstanding Leader
without experience
leading a team
Senior generation –
single owner
Today –
Multiple owners
An Effective Strategic Leadership Team
• Strategic leadership team – my term for the
owners – partners – and key decision-makers
in a multi-owner small or family business = a
farm
• Leading a leadership
team is very different
than running a sole
proprietorship – a
very difficult
transition for many
Team Decision-Making
Common
Vision
Diverging
Gathering
Information
Converging
Reaching a
Decision
Learning from
Experience
Team Decision-Making
Common
Vision
Diverging
Gathering
Information
Converging
Reaching a
Decision
Learning from
Experience
Decision-Making
Common
Vision
Diverging
Gathering
Information
Different Visions
Different Optional Solutions
Every decision is a battle
Converging
Reaching a
Decision
Learning from
Experience
Synergy


Definition: The interaction of two or more agents or
forces so that their combined effect is greater than
the sum of their individual effects.
1+1>2
Decision-Making
Common
Vision
Diverging
Gathering
Information
Reaching a
Decision
Learning from
Experience
Individual Leader Decides
Common
Vision
Diverging
Gathering
Information
Coming to
Conclusions
.
Learning from
Experience
Team Decision-Making
Common
Vision
Diverging
Gathering
Information
Converging
Reaching a
Decision
Learning from
Experience
Bob, I involved
everyone!!!!!
(exasperated)
Bob, I involved everyone!!!!!
Individual(exasperated)
Leader Decides
He consulted
Common
Vision
Diverging
Gathering
Information
Coming to
Conclusions
.
Learning from
Experience
Team
Common
Vision
P. 5
Bob, I involved everyone!!!!!
(exasperated)
Decision-Making
Partners wanted to be included
in “Reaching a Decision”
Diverging
Gathering
Information
Converging
Reaching a
Decision
Learning from
Experience
Example -- Family Team Meeting
Formality vs. Structure
WHY?
WHAT?
WHO?
HOW
Two Person Discussion
•
•
What are your thoughts
concerning strategic
leadership?
Discuss with your
partner – 60 seconds
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.
Strategic Leadership
1.
2.
3.
Vision – everyone needs to know why what
we are doing is important. The motivation.
Strategy - the direction we are taking to
fulfill our vision. Our direction to success.
Farm business culture – the way we
behave as we implement our strategy to
fulfill our vision. Requires alignment of
strategic leadership, workforce passion, and
operational excellence. Drives what we do
every day.
Unique Attributes of People
• People can think and make
decisions.
• People can speak so they can ask
questions and provide input.
• People can feel and thus have
emotional responses.
The Role of the Supervisor
Three Questions
Question 1 - How feel
Question 2 - How feel
Question 3 - How feel
Autonomy

Autonomy: Our
human need to
perceive we have
choices. It is our need
to feel that what we
are doing is of our
own volition. It is our
perception that we are
the source of our own
actions.
Relatedness
Relatedness: Our need
to care about and be
cared about. It is our
need to feel connected
to others without
concerns about ulterior
motives. It is our need
to feel that we are
contributing to soothing
greater than ourselves
Competence
Competence: Our
need to feel effective
at meeting everyday
challenges and
opportunities. It is
demonstrating skill
over time. It is
feeling a sense of
growth and
flourishing
What has been the greatest
advance in bank management?
Human Psychological Needs
• Autonomy
• Relatedness
• Competence
• Referred to as ARC
Why Motivating People Doesn’t
Work … and What Does
Susan Fowler
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.
Ideas for Bankers


Continuous improvement
– Have a professional development
requirement at least with long term loans
– Offer educational programs and encourage
attendance at educational programs
– Help owners understand they need to
learn leadership and strategic leadership
and that they may need assistance
Long term loan applications requirements
Ideas for Bankers


Continuous improvement
Long term loan applications requirements
– Must provide the meaning hook for their
workforce – slogan, vision, mission, values
– how it is articulated to have meaning
– Require they specify their leadership team
framework and roles on the team
– Require a management and leadership
succession plan
Our Agenda
The setting: What do we mean by turbulent
times?
II. Twenty-first century success driver #1:
Leadership
III. A twenty-first century farm business
framework
IV. Twenty-first century success driver #2:
Strategic leadership
V. Twenty-first century success driver #3:
Employee passion
VI. Bob’s ideas for lenders
VII. Questions, challenges, and discussion
I.