August 2011 Articles

Archives by Months

10 Traits of Top Managers

10 Traits of Top Managers Source: Brett Barham, U of A I recently came across a document on the web published by the University of Kentucky that discusses management skills for running an agricultural enterprise (it can be found at http://www.ca.uky.edu/agc/pubs/id/id108/10.pdf). It has a short section that talks about how top managers often share some common traits. I think that even these business-minded traits fit well to cattle production, so I would like to take these ten traits and expand on them. While this is not an inclusive list, top managers are good at most of these items. 1. They know their costs of production. This is a huge tip to cattle producers. Without knowledge of what it costs you to produce your product, you are flying blind. It is very important to understand your costs and production levels. With that information, it makes it simpler to manage your herd well. 2 They set goals based on a clearly defined mission. If you have ever heard me give a presentation, I usually start the presentation on how important is it to set goals. Without goals, you are flying without a destination in mind - you don't know which way to go or when you get there. Set goals that are specific - I would like to increase my average weaning weight by 25 pounds - and not general ones - I want to increase my weaning weights. The latter goal can be met by increasing weights by just one pound, not a big step and not one that will dramatically improve profitability. 3. They have good people skills - communication, leadership and empowerment. This one applies to cattle producers in several ways. First, in dealing with any employees, this seems like a no brainer. I think that where this trait may have the biggest impact is outside the herd. More people need to get involved in leadership roles in their local community and in professional organizations that deal with animal agriculture. Since the majority of people in the U.S. no longer have any ties to agriculture, it is very easy for them to forget about the people who produce their food. Good managers will be involved in their community and open to communicating how they produce the beef that feeds the general public. I think everyone knows the saying, "If you want something done right, better do it yourself." That applies to communication with the public. If we continue to let others tell the story of beef production, the true story will never get told. 4. They access, assess and use information (they are voracious record keepers). In case you skipped Number 1, knowing your cost of production is important. Without records, you cannot calculate your cost of production. It is also important to strive to keep up to date on the beef industry. The beef industry is dynamic, and producers need to understand the changes occurring in the industry. I hope each of you look to Extension to help with this step, after all that is what we are here for. 5. They are innovative and adapt to change. This one is tough for many producers. The beef industry is full of tradition, and change can be difficult. It is important to understand that just because something has been done in the past does not mean that it should continue to be done the same way in the future. For some, there may be a temptation to take this concept too far and be "over" innovative to the point that cost of production goes backwards. 6. They are dissatisfied with the status quo. I think this goes back to the importance of setting goals. Once a goal is reached, it needs to be re-evaluated and determined if a new one should be made to further challenge you to improve. 7. They can organize, focus and prioritize. Remember Number 2 and Number 4? Once again, goals and records are critical in planning your business (i.e., your cow herd).
8. They view the future aggressively. It is difficult to get a good handle on the future of the beef industry. Increased input prices and potential for increased regulations can sure put a damper on any positive outlooks for the future. Good managers will look beyond these negatives and look for opportunities to exploit to take advantage of a changing market. 9. They are willing to assess and take risks. Risk is something that cattle producers are used to dealing with. Feed price fluctuations and drought are common, and most producers have experience in handling this type of risk. However, on occasion there are some opportunities that involve risk that most producers fail to take advantage of. Many of these deal with marketing. Being open to changing marketing plans when there is an opportunity to take advantage of an imbalance can be one of the best opportunities for producers. If the markets indicate that keeping them 60 to 90 days past weaning and putting a few extra pounds on them will be profitable and you have the capability to do so, why not take the chance to make some extra money. Remember, without risk there is no reward. 10. They take time to recharge. This one is tough for beef producers. Beef production is a 24/7/365 business. Cows don't take holidays, and neither should you. Right? Wrong! Take some time for yourself and your family. Take a vacation, go to a conference to give you new insight on managing a cow herd, go fishing, do something that will give you a mental break - you will approach your business or cow herd with new vigor and a clear mind. If needed, form a "vacation cooperative" with your neighbors to give each of you time off while making sure the needs of your cows are met while you are off. A person who is suffering from burnout is much less likely to use tips 1 through 9. Your cows, family and mind will thank you!