““Management, not size Management, not size determines profits . . . “determines profits . . . “

• John Lawrence - Director, IBC

Beef Resource Beef Resource Management and Management and PlanningPlanning

Objectives: Identify resource categories Define action planning steps. Define National IRM programs.

Reference . . Reference . .

Hewlett, John P. Integrated Management and Setting Goals. From Managing for Today’s Cattle Market and Beyond at http://ag.arizona.edu/arec/wemc/TodaysCattlePub.html

Some characteristics of successful Some characteristics of successful beef managers.beef managers. Is profit-oriented, not maximum minded.

• Allocates resources bioeconomically (per unit of resource)

Identifies goals, conducts efforts from written plan.

Manages time effectively (the 80-20 dilemma).

• Attends to self needs & others involved. Manages information.

Successful Plans ala Successful Plans ala W. Edward Deming (TQM)W. Edward Deming (TQM)

• Involve all critical participants

–(Who is critical to a beef enterprise?)

• Start with written mission, then action steps to achieve mission.

• Are communicated to all involved.

• Are critically evaluated routinely.

Mission Statement: Statement of Mission Statement: Statement of shared vision for the enterpriseshared vision for the enterprise

Mission StatementsMission Statements

Developed from provoking questions like: What do I want my cattle to do for me? Are we using the resources that are available to

us? If I weren’t raising cattle, I would like to . . . ?

Beef Enterprise Mission Statements Beef Enterprise Mission Statements could consider . . could consider . .

What could enterprise be? low cost producer in

region reputation for product

What could enterprise do? provide for living costs

or retirement provide a lifestyle

Mission StatementMission Statement

Functional or not? Example: “The mission of our operation is to be the number 1 seedstock operation in Iowa”

Example: “The mission of our operation is to be the number 1 seedstock operation in Iowa”

A functional mission statement answers . . .

• Who are we?

• What do we do?

• For whom do we do it?

• Why do we do it?

ExampleExample “The Lazy Y Ranch will use its available resources to maximize

continuing net profit, while conserving and improving those resources by producing feeder calves that meet feedlot demand (Taylor, 94).”

• Who are we?

• What do we do?

• For whom do we do it?

• Why do we do it?

ExampleExample

“The mission of the High Plains Feedlot is to produce low cost/high profit cattle that produce consistent, palatable retail products for US consumers of beef.”

Example:Example:The Mission of our enterprise is The Mission of our enterprise is __________?__________?

Action Plans: Road map to achieve Action Plans: Road map to achieve the missionthe mission

Goals and Outcomes

Evaluation

Implementation

Resource Needs

Beef Enterprise Goals (Outcomes)Beef Enterprise Goals (Outcomes)

Goal statements answer question: “ Our mission has been achieved when what has happened?

Examples: Examples: This beef enterprise will have This beef enterprise will have achieved its mission when what has achieved its mission when what has happened?happened? paid off 50% of debt load on facilities by 2002

(problem). reduced feed costs 15% by using local crop

residues (opportunity). expanded bull sales 10% into Eastern

Nebraska (aspiration).

Examples: Examples: Long and Short Term GoalsLong and Short Term Goals

Extend grazing system by 30 days from present this next year (short term)

Reduce feed costs by 10% in next 5 years (long term) gifted $19,000 worth of cows to son before end of tax

year (short term) pass ranch on to daughter and her family (long term)

Goal Statements Goal Statements (from Hewlett, JP. (from Hewlett, JP. Integrated Management and Goal Integrated Management and Goal SettingSetting))

S Specific M measurable, quantified A attainable, reasonable R Related, + correlated T tractable, humane, consistent with family or

human resource needs

Taylor: “set goals for . . .Taylor: “set goals for . . . knowing costs, becoming a minimum cost

producer.” maintaining financial control.” distinguishing product for focused markets.” integrating vertically or functionally.” mastering market tools.” participating in organizations.”

WarningWarning

Focus on a few most important goals. Goals could be negatively related . . require

toward mission focus Not all important goals focus on profit or

cows . . Remember 80-20 rule:

Manage TIME effectively Manage TIME effectively The 80-20 Dilemma

“trivial

many”situations

20% of

results

“critical few”

problems

80% of

efforts

20% of

effort

80% of

results

20% of

results

Input Output

Action Plan To Achieve MissionAction Plan To Achieve Mission

Goals/Outcomes

Evaluation

Implementation

Resource Needs

Implementation StrategiesImplementation Strategies

“How will we get the job done?” e.g. go to AI School e.g. increase energy to cows in last 1/3 gestation e.g. participate in Smith’s heifer development

pgm.

AP: ID Resource/Support NeedsAP: ID Resource/Support Needs

“What do I need to get the job done”? e.g. need more funds to purchase concentrates. e.g. need time to attend school may lead to priority assigning.• care for health• etc.

EvaluationEvaluation “You can’t change what you don’t measure”. e.g. will utilize CHAPS calving distribution program. e.g. will compare to Iowa SPA standards for feed

costs per cow for last year by collecting and recording weekly feed bills.

Go To PPT: “SPA Introduction”

RANCH check on good goal RANCH check on good goal statements . . .statements . . .

R relevant to mission A achievable, realistic N numerical, definable C clear to all involved H humane, consistent with family or human

resource needs