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The Rural Voice, 1992-09, Page 62Management skills and success In the current times of economic problems, there are many stories of failure and bankruptcy. What most of us never have the opportunity to learn, are the errors committed which lead to these business failures. If we examine the reasons why a failure occurred and not the result, we have an opportunity to learn from the event. Successful management of a farm business relies on correct decisions being made in many day-to-day activities. Put bluntly, you must know your business. Most farm businesses rapidly reach a size where the manager must rely on information from outside sources about his own business, to base his decisions on. This information may come from accountants, customers, suppliers, veterinarians, builders, family, friends, employees and many other sources. It is necessary in today's business climate to know as much as you can about what you are doing to arrive at a proper decision. It is imperative that people in management roles cultivate good working relationships with and respect for all these groups of people. Managers must be able to listen to all discussions and arrive at a sound and reasonable conclusion on a subject. The next area of skill that must be developed is the area of improving what we do best. In difficult times, and even in good times, risk only what you can afford to lose completely. Do not try new or unproven ideas on a large scale. Trials must be of a size to be realistic, but do not try them on a scale that could destroy the business if the unexpected happens. It is a time to look at what you are doing and plan modest changes that are known to work, rather than to try to be innovative or creative. Cost control is another area of management skill that must be developed. In the pork industry for instance, the best of farrowing and weaner units can be slowly destroyed 58 THE RURAL VOICE Advice by the inefficiencies of poorly run feeder operations. Not only are production numbers important, but costs of producing those numbers are equally critical. The whole production unit must be looked at in terms of what were last year's costs, and how can we reduce those this year. Most of us have never really looked at cost control seriously. We feel that we can do little but pay the asked prices. True cost control measures means we locate all sources of the goods or services we need, analyze costs in terms of performance or improvements and arrive at a decision. Brand names or historical suppliers receive no preference in making these decisions. The final area of management skills that can be developed is communication. Are you, as a manager, able to reach out and share the wisdom in financial, technical and business areas that you need to make correct decisions. You must let your needs be known to the people with whom you deal. In this way you avail yourself of all their knowledge and experience, and improve your chances of making a correct decision. It is important as managers that we learn from the mistakes of others, before we make them ourselves.0 Ed Barrie Swine Specialist Dealing with pessimism on the dairy farm These days it's not difficult for dairymen to come up with a lengthy list of threatening concerns. And the longer we dwell on these concerns, the more convinced we become that farmers have lost control over their business and way of life. For some, it can be very depressing. If we stop to think about it, the long list consists mostly of "beyond the line fence" concerns. Things like government policy, quota prices, our shrinking dairy market, Free Trade, market globalization, environmental issues, animal welfare groups, consumer apathy toward farmers. And so on. It's very noble to commit oneself to battling "beyond the line fence" problems. But it's folly to do so at the expense of not getting one's own house in order first. As individuals, we can't do much about these "beyond the line fence" issues. However, we can have a great impact on two important factors that are still HOT -DIPPED GALVANIZED GATES • Constructed of 1. x 1..083 tubing • 8' -18' sizes in stock ENOS F. MARTIN MFG. R. R. 1, Wallenstein NOB 2S0 519-698-2039 WE WANT YOUR GRAIN! Corn Soybeans Feed Grains Quality Oats Damaged Grains CASH & FORWARD CONTRACTS Call us today for Quotes Dave Gordon Elizabeth Armstrong Richard Smibert lan Carter london agricultural commodities, Inc. 1112 HYDE PARK ROAD HYDE PARK, ONTARIO NOM 1ZO 519-473-9333 Toll -Free (519)1-800-265-1885 (416-705) 1-800-265-1874