2019 – Fall | ąű¶ł´«Ă˝ Our Members Bring Choice, Value & Innovation to Agriculture Thu, 25 Feb 2021 16:58:46 +0000 en-US hourly 1 https://wordpress.org/?v=5.2.4 /wp-content/uploads/2023/09/fema-favicon-75x75.png 2019 – Fall | ąű¶ł´«Ă˝ 32 32 Use These Tools to Maximize Your Time /agi/2019-fall/use-these-tools-to-maximize-your-time/ Tue, 20 Oct 2020 15:54:13 +0000 /?post_type=agi&p=11773 by John Hall

Everyone is busy, and we carry our time-crunched schedules like badges of honor. People are moving faster than ever before, which means we’re not slowing down enough to determine whether the way we’re spending our time reflects our values.

As an entrepreneur, author, speaker, husband, and dad, I understand the value of time, and I know how we manage it is fundamentally important to our quality of life. It is why I co-founded a scheduling platform and why I am so often invited to speak on this subject.

Unfortunately, there is no catch-all cure for an overloaded schedule. Effective time management looks different for every person. The best schedule is the one that caters to your needs, so you should start by fully understanding what you most want—professionally and personally. Once you’ve identified those needs, use these tips to diminish the stress of a schedule that is frustratingly full.

1. Be smart about your calendar.

The power of the calendar is constantly underestimated. It’s easy to go through life just using your calendar as nothing more than a reference for your upcoming meetings and dates. 

Technology has transformed the potential of the calendar as it has transformed virtually every aspect of our lives. Smart calendar apps do more than just keep your schedule in one place. The right software can also give you a view into the schedules of others, making picking a date or time to connect easier than ever. Keeping an easy-to-read, dynamic schedule at your fingertips is the number one way to stay on top of your time no matter what.

2. Don’t be afraid to analyze.

In the past, time analysis has been a time-consuming task. Today, using those smart calendars, you have at your fingertips time analytics tools. At the press of a button, you can see exactly what sort of tasks are taking up most of your time. 

Though time analysis doesn’t offer any easy answer as to how you can maximize your time, it does give you a deeper sense of what your schedule looks like from a data perspective. Maybe you realize how much time you spend on the phone or how long you work in between breaks. Even small insights like these can go a long way in showing how you can make your schedule even more efficient. 

3. Prioritize your tasks.

One of the biggest enemies of time management is the abundance of small, mundane tasks that we all do every day. It’s increasingly difficult to do meaningful work when you’re bogged down with answering emails, making phone calls, and printing documents. No matter what sector you work in, you’re probably losing time moving from task to task without prioritizing.

It’s simple: Decide what work is most important for you to do first, then do it. This kind of prioritizing ensures that everything you need to do is done first, so the less critical tasks don’t interrupt your workflow in the present.

Prioritizing also prevents you from constantly moving from activity to activity, one of the biggest time drains. 

You can also take this strategy and incorporate it directly into your schedule. Divide your working day into blocks of time and assign each block a certain task. Work at each activity until fully completed before moving onto the next.

4. Focus on one thing at a time.

Though everyone seems to do it every day, multitasking remains one of the biggest drains on time and productivity. It’s impossible to complete something as quickly or as well as you would have if you had simply focused on one activity at a time. Focus is an integral part of working to your full potential, so compromising it in the name of doing more than one thing at once is a surefire recipe for wasted time.

The time-blocking strategy I mentioned before is great for staying set on one thing at a time, but there are other practical ways to go about that as well. The presence of electronics makes multitasking easier and more tempting than ever, so I like to follow a simple rule: If I’m not using a certain device specifically for whatever task I’m doing, I put it away. Simply removing the opportunity to get off track goes a long way in forcing me to completely address the task at hand before I move on at all.

I find that the principle of “one thing at a time” helps me maximize my time outside of work as well. Maintaining a healthy work/life balance leads to better work and higher productivity down the line, so it’s important to maximize your personal time as well. As easy as it can sometimes be to answer emails or check the news while you’re spending time with family, letting work creep too far into your personal sphere, or vice versa, can lead to lower returns on both your personal and professional satisfaction. Keeping things isolated, whether they’re individual tasks or entire parts of your day, is critical to getting the most out of your time and keeping your happiness level high.

5. List your time drains.

It’s simple but effective: Write down everything you feel like wastes your time. Whether it’s watching too much TV or lying in bed too long in the mornings, having your time drains written down on paper can motivate you to change things. 

Once you have them written down, turn your list into something actionable. Take on each time drain, one at a time, until it’s gotten to a manageable place that doesn’t plague your schedule. Once that’s done, move to the next item on the list, and so on. Trying to plug all of your time drains at once is going to be too large of a shift in your daily life to be sustainable, so tackling one issue at a time is the right way to free up more of your time without delivering a shock to your normal schedule.

6. Learn to delegate.

It does not matter whether you’re a one-person business or part of a massive corporate team—if you’re overwhelmed by your work, there’s almost certainly someone who can help you. An overloaded schedule usually means that you’re taking on too much work yourself, either because you think you’re the only person who can do your work, or because you don’t know anyone who can help you. Either way, it’s important to look for new ways to delegate to get more out of your time.

Your team will understand if you need help with your professional workload, and it never hurts to ask a family member to help if you have anything overwhelming in your personal life. Managing your schedule becomes far more achievable when you enlist help. 

Time management is an important aspect of being successful, no matter what you do. No one has more than 24 hours in the day, and keeping your schedule as well-managed as possible is the only way to free more time for yourself while still covering your responsibilities. Define your own needs, take a look at what’s on your schedule, and use these tips to liberate yourself from feeling overloaded. 

Hall is an entrepreneur, author, and speaker. He co-founded a new scheduling platform, , in order to help people get as much out of their time as possible. Find it at calendar.com. Hall will speak at the Marketing & Distribution Convention in November.

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Ag Economy Forecast: Clouds with a Chance of Sun /agi/2019-fall/ag-economy-forecast-clouds-with-a-chance-of-sun/ Tue, 20 Oct 2020 15:32:42 +0000 /?post_type=agi&p=11765 by Matthew Ernst

Farm country in the United States saw historic levels of prevented planting for row crops this spring after devastating floods in some areas and excessive water elsewhere. Add to that a bumper crop of uncertainty around international trade, and it is no wonder that producer perspectives on capital investments this winter are as varied as the weather.

Are producers seeing any bright signs as the summer winds on? One measure of farmer sentiment says outlooks are improving. The Purdue/CME Group Ag Economy Barometer, which monthly surveys 400 producers to measure changes in sentiment, rebounded in June and July after capturing plenty of pessimism in its data in May.

Since crop conditions and market prices have huge impacts on whether producers will make winter investments, here’s a roundup of the outlook for major agricultural products as Ag Innovator goes to press in August.

Trade Impacts

A big reason for uncertainty in agriculture—especially in the Corn Belt—is the outlook for how soon the trade war with China will end. Three out of four farmers surveyed by Purdue/CME Group in July believed the trade dispute will eventually resolve favorably for agriculture. They just do not see the end of the dispute coming soon.

Soybeans are taking the biggest hit from China’s retaliatory tariffs, along with specialty crops like cherries and tree nuts.

The trade war is coloring meat markets, too. An outbreak of African swine fever has reduced China’s hog populations, and U.S. pork exports to China jumped in May and June.

“The industry faces opportunities to export record volumes of pork, but also faces continued trade issues with China that could restrict the level of those pork export sales and shipments,” said Chris Hurt, Purdue livestock marketing specialist.

For crop producers, USDA is repeating this year the Market Facilitation Program (MFP) payments it introduced in 2018. More than $14 billion in direct payments start in August; observers think that will only stop some of the bleeding on farm balance sheets.

“For many farmers, the MFP payments are being used to pay off operating notes and keep things going for another year. If the payments stop or decline significantly, then we could see much more stress in the farm sector,” said Mykel Taylor, Kansas State University Extension, speaking in July at the Kansas City Fed’s Agricultural Symposium.

Bankers surveyed by the St. Louis Fed said trade is the biggest risk for farm country. 

“Perhaps not surprisingly, a little less than two-thirds of the respondents indicated that an adverse trade outcome presents the most significant risk to the farm sector this year. Rising interest rates and declining land prices were generally not viewed as significant risks to the farm sector in 2019,” stated the Fed in its Agricultural Finance Monitor report.

Corn

Corn country has been stressed, especially in the early season. Illinois corn acreage was only 50 percent planted on June 1, a month behind average; Iowa plantings were three weeks behind the five-year average. Illinois corn was only 36 percent silked on July 22, compared to 96 percent last year; Iowa corn was silking a week behind the five-year average.

The markets are paying outsized attention to the corn crop.

“There is ongoing concern about how the season will end for the late-planted crop, including whether it will mature before frost,” said Emerson Nafziger, University of Illinois agronomist.

Late plantings are also prone to summer heat stress. A weather market caused some rise in corn futures earlier this summer, but the University of Illinois outlook for prospective corn yields and price shows less-than-stellar profitability projections.

There still could be some surprises, and it may take longer than usual for those to factor into the markets because of late and prevented plantings.

“When you look at the difference between a May 15 planting and a June 1, you’re looking at a pretty rough situation, in terms of the probability of getting to full maturity before a killing frost comes,” said Dan O’Brien, Kansas State University. “We’ve got a lot of potential for great price volatility heading into fall.”

Weather concerns helped an early summer rise in U.S. corn futures prices, impacting ethanol production and corn exports, and U.S. livestock feeders will likely see pressure from higher feed costs.

Soybeans

Soybean price outlooks at Ag Innovator press time pegged profitability below breakeven for many regions.

“I ran several farm plans this year, and the result was the same for nearly everyone. Soybean prices below $9 resulted in a net loss,” said Danny Morris, University of Tennessee Extension area specialist for farm management.

Too many soybeans are available globally to push U.S. soy prices higher. “With what looks like larger crops in South America, I think export competition next year is going to be quite fierce,” said Todd Hubbs, Illinois soybean marketing specialist.

Diseases reducing numbers in China’s swine herd, and swine depopulations elsewhere in Asia and Europe, is also bad for U.S. soybean demand abroad.

“(African swine fever) looks like a multi-year event that could hurt soybean demand in general,” Hubbs said.

There are also U.S. yield worries.

“The only path to good yield potential this year will be through a turn to unusually favorable weather, with good rainfall and temperatures in August and good rainfall and above-normal temperatures in September,” Nafziger said. “If in mid-August we see fields with dark green leaves, we can have hope for good—if not great—yields.”

Soybean yield loss, although bad for profitability this year, might not be bad for market prices in the longer term.

“The soybean market needs a production loss to whittle away at the mountain of stocks,” explained Todd Davis, economist at the Western Kentucky Research and Education Center. “Otherwise, the market will muddle through lower prices to stimulate use and discourage production. Mother Nature might be providing a quicker route to lower stocks and higher soybean prices.” 

Wheat, Cotton & Specialty Crops

The National Association of Wheat Growers issued the tersest statements of the major agricultural commodity groups concerning the USDA trade assistance package: “The MFP payments will provide necessary assistance to growers impacted by low prices resulting in part from tariffs. However, this is a band-aid when we really need a long-term fix,” stated NAWG President and Texas farmer Ben Scholz. “NAWG understands holding China accountable for its WTO violations and unfair trade practices, but a trade war is not the solution, especially when farmers are the casualties.”

The wheat sector saw favorable export trends this summer, especially from the EU and markets served by Australia, where drought is impacting yields. But profitability outlooks remain slim for wheat, as for corn and soybeans.

The cotton sector also continues with surpluses; some futures contracts reached lows in July. Experts say the best cotton managers will still be profitable this year, depending on yield.

Specialty crops (perishables) experience different market forces than commodities, but some specialty sectors are feeling the same trade crunch as soybeans. 

The Northwest Horticultural Council, which represents the region’s cherry, apple and pear producers, has made its top trade priority for 2019 the removal of Section 232 (steel and aluminum) and Section 301 retaliatory tariffs. Recognizing the impact on some specialty crop producers, MFP payments will be made to producers of fresh sweet cherries, cranberries, grapes and tree nuts. 

Pork & Poultry

A bump in corn prices, combined with hog price trends, has many pork producers barely above breakeven, said Purdue’s Hurt. His latest outlook sees producers clearing $2 per hog this year—a slim margin for error, especially after a 2018 season in which pork producers lost money.

Poultry trade helped draw down frozen stocks through June, with increases to Mexico and other important markets, including South Africa and Vietnam. Egg prices were weak this summer, because of oversupply, and that also bumped up trade demand for less expensive U.S. egg products, especially shell eggs.

It is feasible that some commodity crop producers could look at poultry contracts as a way to spread out enterprise risk. Turkey prices nationally are stronger this year, with USDA predicting a modest increase for 2020. How that translates to possible expansion at the farm level is always a regional question.

Beef & Dairy

Cattle feeders are enjoying lower feed prices while the U.S. is at the top of the beef cycle. “There are a lot of cattle on feed, but that is pretty normal at the peak of the cycle,” said David Anderson, Texas A&M, writing for the Livestock Marketing Information Center. 

Hurt agreed: “Some strength in prices can be anticipated for 2020 with the small increase in beef production and potential strength in exports.”

Cow-calf profitability, especially with no shortage of hay and other feeds for the winter, appears to be holding across the Southeast and into the Plains. 

The dairy industry continues to fight tight margins, with consolidation or retirement continuing among many smaller dairies. There was some strength this summer in domestic dairy demand, especially for cheese, and that caused USDA to slightly raise its price forecast this summer.

Like other agriculture groups, the dairy industry wants “trade not aid,” said Jim Mulhern, National Milk Producers Federation president and CEO. “Resolving the current trade impasse with China and aggressively expanding ties with other trading partners also is essential to make these aid packages unnecessary. We are also working with the administration and Congress to pass USMCA, which would immediately create new opportunities for U.S. dairy.”

Will There Be Farm Capital Spent this Winter?

Even with MFP payments, and other crop insurance payouts to mitigate losses, the outlook remains mixed on how willing producers will be to make capital investments. Some signs are positive, especially where summer rains are falling in row crop country. The Purdue/CME barometer registered a 30-point rise in producer opinion about making large investments in machinery and buildings from May to July. 

But farm financial experts remain mixed about whether producers will be more willing to make capital investments this winter. Some say more farmland sales this year show producers are selling poorer-quality land to restructure operating loans into longer-term debt; perspectives vary greatly from region to region.

“I don’t believe that either the land market, or the farm economy in general, is totally described by national statistics,” said K-State’s Taylor. “There’s heterogeneity in the land market and across farmers that is not well described by regional and national trends in farm income. We have many farmers who have lost money during this downturn and are highly vulnerable to either a drought or continued depressed market prices.”

Will the 1980s repeat? Experts say it’s unlikely, but even with new government programs that are helping relieve financial pressure, optimism in farm country does not abound. Consolidations are underway, depending on the region, and plenty of producers are more seriously considering retirement.

“Even though this may not be as bad as the 1980s, it’s still a tough time for agriculture. And the longer it lasts, the harder it will be for many farmers to bounce back,” Taylor said. 

Matthew Ernst is an agriculture writer based near St. Louis. He grew up on a commercial crop-and-livestock farm on the East Coast. His writing focuses on farm business management, marketing, and policy.

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In Your Own Words /agi/2019-fall/in-your-own-words/ Tue, 20 Oct 2020 15:27:16 +0000 /?post_type=agi&p=11763 We asked long-time attendees of the Marketing & Distribution Convention to share their thoughts on the value of the annual meeting. Here’s what they said.

Mike Kloster|Worksaver, Inc.

In a matter of three or four days, we can speak with every one of our key customers, review the past 12 months with them, and put together the start of a plan for the coming year. It would take at least a month of travel to do this. Also, our whole management team is there to speak with our distributors, something that would not take place if we had to travel. We can act quickly because the key decision-makers are there. There has not been a fall meeting that has not contributed to our business. If you participate, you will come away with something positive.


John Fisher|RhinoAg

Although some Association members are also competitors, they feel more like friends who share an interest in protecting our companies against unwanted and unwarranted civil and liability lawsuits. We have so many common business issues; our conversations are always filled with pursuing solutions to those issues. I come away with strategies for addressing product safety and liability issues. I also leave with my spirits lifted and with ideas on how to improve my work. 


Pat Meenen|Concept Sales, Inc.

The conventions allow us to meet new customer prospects and strengthen our current relationships. We also learn ways to change and improve our business. The people I’ve met over the years have taught me a lot, and many of them have become my friends.


Ron Roglis |Roglis Marketing Services

I have had the privilege to be a member of this Association for many years. As a regular member, the fall convention gave me the opportunity to make new contacts in the agriculture industry. It was an excellent place for our company to hold sales and marketing meetings with distributors.

When my encore career began five years ago, I continued with the Association as a marketing associate member. Through the Association, and through my marketing membership, I have established myself with an international company and continue to find value in the convention.


Terry Flanary|National Tube Supply Co.

I’ve been in the steel business for 34 years, and I try to learn something new every day. These conventions provide that opportunity.


Mark Lamboley|HCC, Inc., and Shaver Manufacturing Co.

The convention is a great opportunity to meet with all our distributors in one location. I am also able to share sales information and new products with our distributors in person and plan for the future. I personally enjoy the different sessions and the opportunities to tune into the industry and learn. The setting allows for meetings, dinners and maybe a few drinks in the bar.


Brad Baker| Salford Group, Inc.

The conversation and content of the conventions validate my current understanding of the marketplace and expand it, too. I come away having gained something, whether it be identifying a new supplier who can save me money, updates on a government policy or safety standard, a potential partnership with another manufacturer, or someone I can stay in touch with regarding a training issue.


Jan Faassen|Walterscheid Powertrain Group

Jan Faassen

The exposure is priceless. The contacts are at a high and relevant level. The things I learn from customers and presenters is well worth the price of admission. And, after more than 30 years of being part of the meetings, I’ve created friendships as well as business relationships. I gain so much understanding of the markets and the business climate when I connect with these colleagues.


Craig Harthoorn|H&S Manufacturing  

I appreciate networking with my peers. We all try to help each other and achieve mutual success. Plus, we all take satisfaction in knowing our fellow peers have succeeded. I leave the meeting having gained confidence in my company’s direction based on what I’ve learned in sessions, conversations, and new opportunities I encountered.


Ben Hellbusch|Duo Lift Manufacturing

We use the meeting to find new suppliers and new customers and to meet with existing customers. Another great value is the networking. It’s an opportunity to discuss our business with others and glean ideas from others. I consider a convention a success if I leave with a solution to a problem, or a new idea, or if I find a new business opportunity. My hope is that I can help someone else solve a problem or find an opportunity, too. 

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Expand Your Presence in the Shortline Market /agi/2019-fall/expand-your-presence-in-the-shortline-market/ Tue, 20 Oct 2020 15:14:53 +0000 /?post_type=agi&p=11761 Explore New Sales Channels at Convention

You are invited to the biggest event of the year for bringing together shortline manufacturers with equipment marketers.

The 2019 Marketing and Distribution Convention in St. Louis will again provide opportunities for manufacturers to strengthen relationships and form new ones with wholesalers and independent representatives. This joint convention with the Equipment Marketing & Distribution Association connects these two links of the supply chain through social events, structured meet-and-greets, and the tools, space, and time to schedule one-on-one meetings.

Take a look at the speaker lineup, and stay on top of who’s registered from both associations at FarmEquip.org.

Building an Influential Brand

John Hall is an entrepreneur, speaker and author who has been rated by Forbes magazine as a No. 1 “must-see” speaker. He brings expertise on how to stay top-of-mind with customers, gain their trust, and influence their decisions. Hall will explore strategies for shortline manufacturers seeking to raise their visibility with farmers and farm equipment dealers.

State of the Industry: What’s Ahead for Ag?

Neil Caskey is vice president of communications for the National Corn Growers Association. Caskey’s career began on Capitol Hill, and through roles as employee or consultant, he has worked with organizations such as the American Soybean Association, Monsanto, and the USDA. Caskey will offer his assessment on the state of the agriculture industry and what lies ahead.

The Future of Digital Marketing

Dustin Johansen

Dustin Johansen and Steve Kozel with Osborn Barr will discuss what’s ahead for digital marketing specific to research tools, data analytics, content trends, and influencers. Osborn Barr focuses exclusively on marketing for agriculture and rural America. Johansen is a vice president for the firm, which he joined after 18 years guiding sales and marketing at Caterpillar Inc. Kozel brings expertise in key customer segments in equipment sales and go-to market experience with major dealers.

Ask the Lawyer: Workplace Policies on Social Media, Marijuana 

David James is a labor and employment attorney with Nilan Johnson Lewis, a partner firm to this Association. James will explore answers to frequently asked legal questions related to employees’ social media use and, as marijuana becomes legal in more states, how employers should respond.

Panel: In Pursuit of the Autonomous Farm

If the traditional tractor is sidelined on the farm of the future, what might the equipment that has been traditionally hitched behind the tractor look like? The convention brings together a panel of ag tech pros to discuss the various pathways to autonomy and offer insights into the implements of the future.

John Anderson is founder and president of JCA Electronics, which he began in his parents’ garage in 2002. He is an engineer with a background in mobile equipment design. JCA collaborates with manufacturers in developing complete control systems, from the physically installed components to software for equipment.

Cory Beaujot is managing director of marketing, sales and communications at SeedMaster Manufacturing and Dot Technology Corp. He is also an owner with the rest of the Beaujot family. SeedMaster features a line of application equipment from the Nova Cart to seeders that use metered seed flow rate, load cells, and controlled tank distribution. The Dot Power Platform is an autonomous farming apparatus designed to operate in conjunction with a variety of farm implements. Beaujot also will speak to the Tillage Council.

Colin Hurd

Colin Hurd has founded two agriculture companies. His first company developed the planting product TrackTill. He more recently founded Smart Ag, which offers plug-and-play systems for users in the field who are able to flip a switch for autonomous operation of their current tractors. Smart Ag also provides a software package to monitor and control autonomous grain carts.

Emily Smith

Moderating the discussion will be Emily Smith, a customer service and marketing manager at Art’s Way Manufacturing. She is focused on spreading the news about machinery solutions that improve farm operations. Prior to joining Art’s Way, Smith worked with her dad developing farm equipment and entering new markets. 


Bring Your Better Half!

Spouses and guests who register for the convention are invited to join the speaker sessions, receptions, breakfasts, and meet-and-greet marketing sessions. The convention hosts have planned a little something extra as well. These optional tours cost $75.

Forest Park/History Museum (Wednesday)

Forest Park, the “heart of St. Louis,” claims nearly 1,400 acres and is home to some of the region’s highest-profile cultural attractions.

Participants will tour the park by bus, then stop at the Missouri History Museum for a tour of “Pulitzer Prize Photographs.” The group then will lunch at the Gamlin Whiskey House in the trendy Central West End. Gamlin is a steakhouse that offers an extensive collection of whiskey, bourbon and scotch. It has been named one of USA Today’s best bars for whiskey lovers and has been listed in Zagat’s 2016 list of “50 States, 50 Steaks.”

 St. Louis Zoo (Thursday)

This docent-led tour promises an up-close-and-personal experience with wildlife from around the world and conversations with the staff who care for them. Beyond this small-group tour, participants will be able to explore the zoo on their own by train. This tour is expected to sell out quickly.

Register at FarmEquip.org. 

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Clues You’re Falling Short on Succession Planning /agi/2019-fall/clues-youre-falling-short-on-succession-planning/ Tue, 20 Oct 2020 14:56:40 +0000 /?post_type=agi&p=11759 by Rebecca Brinkley

Did you just spend the last 40 years building a company to hand it over to the highest bidder? That question may seem harsh, but the lack of succession planning threatens manufacturing’s future.

As the last of the baby boomers round their way up to 60, companies are slowly realizing that their retiring leadership is leaving gaps in intelligence and historical knowledge that threaten the future. 

When you have someone who is good at their job, and she or he has done it for 30 years without sharing information to the next person in line, you risk losing everything tied to that one “irreplaceable” person. You risk your business.

Consider these indicators that your succession planning needs more attention.

You Don’t Delegate Enough    

Have you written down your job description recently? It seems silly to think about doing that when you know you aren’t leaving your own company. However, sometimes business leaders don’t realize that they are taking on more than they should. 

They either have made a habit of doing the work themselves—micromanaging—or they genuinely don’t have confidence in their employees. Regardless of the reason, you will one, burn out faster that way, and two, find yourself without a successor.

Jeffrey Pfeffer, Stanford University’s professor of organization behavior, says it best in a recent Harvard Business Review: “If you asked most managers how they spent their day, they are not going to be able to recall it accurately,” said Pfeffer. “You’re likely to find that a lot of time is spent on low-leverage activities that can be delegated.”

You Haven’t Hired the Right People

Part of micromanaging extends into having trust in your workforce. With manufacturing companies of all sizes, recruiting employees is a top-level concern; there is a real skills gap that contributes to taking in people out of necessity and not being careful with hiring the right people for a long-term fit.

If you have not sat in on a recent interview, it might be time. Making sure that your HR team or hiring manager is asking the right questions can improve your bottom line and help you prevent turnover. This will also allow you to see the pool of candidates for a future succession plan and develop a culture that sees your vision.

You Are Not Developing Your Successor

Consider this shocking statistic shared by Forbes: 58 percent of managers say they did not receive management training. The magazine said that “most managers in the workforce were promoted because they were good at what they did, and not necessarily good at making the people around them better.”

This tells us our workforce is made up of leaders who cannot lead.

If you want a successful succession, you need to teach your employees how to lead your business and the people who work for you. Bring them to board meetings, have them go to the conferences you attend, and introduce them to the right people so they can cultivate their own relationships. 

Make it possible for your potential successors to build their own foundations. This kind of development is not beneficial for just you; the employees feel valued and naturally take ownership.

There is No Clear Company Vision

This might seem like a basic concept for a larger company, but smaller manufacturers often don’t have long-range plans. With technology changes, automation, 3D printing, IIoT and blockchain, your factory floor is having a bit of an identity crisis, and your employee profiles are changing.

Planning for the future is about more than hiring the right person. It is about preserving your vision for the company, which requires defining strategies that are understood and supported at all levels of the organization. You can bring up the right person, but if your actual business plan is not properly put into place, there is no roadmap to keep everyone on track after you’re gone. 

If you find yourself stuck here, bring in a consultant—someone less wrapped up in the current structure—to help you outline the future.

You Are Afraid to Talk About it 

Discussing succession planning is just as important as having a plan. Many leaders say they are the face of their business and their company is one of the most important things in their lives, yet they are afraid to ensure the company lives on beyond them. Whether that stems from an ego issue or fear, being transparent in the succession process can help.

An XpertHR survey of more than 500 executives said that 40 percent of organizations have no formal succession planning process, and another 20 percent don’t have adequate talent to back up critical positions. 

As a manufacturer, can you afford to have down time on the plant floor? No. The same should be said with leadership positions; customers will not wait while you figure out the sustainability of your company. Talking about the plan with your HR department, employees and even your industry peers can ease the transition for the entire company.

The biggest takeaway regarding succession planning is that you need to think about it now, years before you plan on leaving or retiring. If you care about the business or want to be a steward for the industry, worry less about your legacy and more about the health of the organization without you. 

Rebecca Brinkley is director of marketing and communications at the . Copyrighted 2019. Informa.

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Lean: Solve Problems by Clearly Defining Them /agi/2019-fall/lean-solve-problems-by-clearly-defining-them/ Tue, 20 Oct 2020 14:53:07 +0000 /?post_type=agi&p=11757 by Jamie Flinchbaugh

“A problem well put is half-solved.” 
— John Dewey

John Dewey was a philosopher, psychologist, and educational reformer, yet these words he gave us in 1938 capture perfectly the value of a good problem statement in manufacturing. 

A problem statement is like a compass. It helps you set the direction in which your endeavors will follow. If you set the direction inaccurately, your efforts will take you in the wrong direction. Even if you’re not using a structured problem-solving method, the time invested in framing the problem is rarely wasted effort.     

Refine your problem statement with these tips.

Define what type of problem it is. In my experience, most problems fit into one of three categories.

You don’t have a standard. If that’s the case, then create one. Almost every process has two primary ingredients: Who is going to do it and how to do it.

You didn’t follow the standard. Most of the time, there is a barrier to following the standard. Maybe there wasn’t the required time, or resources, or skill, or information. The point is, you must solve why the standard wasn’t followed.

The standard isn’t effective. You have a standard and you follow it, but you still don’t achieve the result desired. Then you must work to improve the standard itself. Most problem-solving training focuses on this type of problem, and even assumes that this is the situation, but for many organizations, it is the least common of the three types.

View the problem from multiple perspectives. Most problems are experienced by more than one person or function. There is usually an assumption that when everyone agrees there is a problem, we also experience it in the same way. One party often proceeds under the assumption that everyone sees the problem as they do, but that is a false assumption.

It is important to socialize a problem statement and incorporate other perspectives. As you add perspectives, the picture of the problem becomes more complete.

I believe all perspectives on problems are two things. First, they are valid. Second, they are incomplete. Even if someone presents a perspective that lacks validity, determining which views are invalid is less productive than working to combine multiple perspectives into a more comprehensive view.

Consider how you will validate. One of the most frequent failure modes in problem-solving is assuming that the solution we determine is correct. Effective problem-solving validates that the solution created truly solves the problem. If done at all, this is usually not considered until the end of the process, after the solution is implemented. Validation of the solution can prove difficult, and since there is so much cost sunk into creating the solution, the desire to declare success can be overwhelming.

Instead, determine how you will validate the effectiveness of the solution while developing the problem statement. This provides two benefits. First, it allows you to create an effective means of validation before you’ve invested your energy. Second, by considering how you would validate the solution, you often clarify the problem statement. Vague problem statements, and imagined problems, start to fade way.

Almost every time I coach a team on their problem statement, we spend quadruple the amount of time on it than they expected, and the problem statement always changes by the time we’re done.

I worked with a leader of a large organization who believed this was the single most important behavior to adopt. No discussion could occur without first defining the problem. It was so well understood that it was joked about, yet behavior changed, and it transformed the organization. 

Jamie Flinchbaugh is an author, speaker and consultant on lean principles. He is best known for helping to change how manufacturers think about lean from a tools-centric model to one based on behaviors. Copyright 2019. Informa.

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Beyond Salary Threshold: What Duties Qualify for Exemption? /agi/2019-fall/beyond-salary-threshold-what-duties-qualify-for-exemption/ Tue, 20 Oct 2020 14:34:56 +0000 /?post_type=agi&p=11751 by David James and Joe Schmitt

In the summer issue of Ag Innovator, we discussed the Department of Labor’s latest attempt to raise the salary threshold for exemption from overtime. The DOL is aspiring for a Jan. 1 effective date on the rule. We will keep you apprised of developments.

In the meantime, now is a good time to remember that paying employees on a salary basis and meeting the applicable salary threshold is not enough to conclude that an employee is exempt from receiving overtime. Employees must also perform certain job duties to be exempt. While there are a variety of exemptions available, the two most common are the executive and administrative.  

The executive exemption applies to an employee who meets the following job requirements:

The employee’s “primary duty” is managing the business or a recognized department;

The employee “customarily and regularly” directs the work of at least two or more full-time employees (or the equivalent of 2.0 FTEs); and

The employee has the authority to hire or fire other employees, or the employee’s suggestions regarding such personnel decisions are given greater weight.

A “primary duty” is the most important part of the job. It ought to be a part of the job without which the job would not exist. Generally, it does not have to occupy a majority of the employee’s time, although that would be strong evidence that it is primary. 

To “customarily and regularly” direct other employees means more than occasional but less than constant. If directing employees is accomplished every workweek, this requirement is likely met.

The administrative exemption applies to an employee who meets the following job requirements:

The employee’s “primary duty” is the performance of office or non-manual work directly related to the management or general business operations of the organization; and

The employee’s primary duty includes the exercise of discretion and independent judgment regarding matters of significance.

The same concept of “primary duty” applies here, but in the context of an administrative department. Typical administrative departments that may have exempt employees include finance, accounting, purchasing, marketing, human resources, compliance, and safety. Notably, departments related to production and sales generally do not qualify for the administrative exemption.

The most challenging component of the administrative exemption (and indeed, all exemption tests) is the concept of “exercising discretion and independent judgment.” To meet this requirement, an employee generally must have the authority to evaluate possibilities and make a decision without immediate direction or supervision. If a leader occasionally reverses the decision, an employee can still be exempt, as long as this is not the norm. Additionally, “discretion and independent” judgment does not include applying existing protocols or guidelines; an employee should regularly be operating in the gray. If the decision-making could be reduced to a manual (in practice or theory), it does not include sufficient discretion to meet the test.

We will keep you apprised of the DOL’s efforts to raise the salary threshold for exempt status. As you are evaluating these developments, also keep in mind the job-duty requirements for the executive and administrative exemptions, and consider whether your salaried employees are appropriately classified. As always, let us know if we can help with this review or any other legal issues associated with your workforce. 

David James (left) and Joe Schmitt are shareholders in the labor and employment group at Nilan Johnson Lewis. Association members are entitled to no-cost, confidential, 60-minute consultations with James and Schmitt. Call the firm at (612) 305-7500. James will lead a session at the fall convention.

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Association Membership: Services, Advocacy, Relationships /agi/2019-fall/association-membership-services-advocacy-relationships/ Tue, 20 Oct 2020 14:18:29 +0000 /?post_type=agi&p=11749 At the Board of Directors meeting in June, we dedicated a portion of our time to discussing which of the Association’s services to members we most value and how the Association might expand what it offers.

I don’t want to speak prematurely about what may be offered, but directors and Association staff are pursuing services that will add value for member companies. I’m excited to see what takes shape.

We also discussed at the meeting that perhaps members are not fully aware of what membership offers or have not optimized use of benefits. I would like to use this space to tell you which services I find most valuable.

First, the website. If you haven’t visited FarmEquip.org recently, it has a new look! The home page is more dynamic. Navigation is more intuitive. And, the industry resources are unmatched because they focus on the needs of shortline manufacturers. The membership directory also looks different. I have transitioned almost entirely from the printed directory to the online directory because I find it to be faster and more convenient.

Another service I often use is the state statute section on the website, which offers, among other things, buyback and warranty laws from throughout the U.S. That, coupled with the exceptional opportunity for no-cost consultations with a distribution attorney, bring to an unparalleled level the resources the Association offers on distribution law.

Another benefit that cannot be overstated is the result in large part of members’ loyalty and longevity. The Association has become an influential voice in the machinery manufacturing industry, and it is the only player in the U.S. that exclusively advocates on behalf of shortline interests. Because of savvy leadership at the Association, and because of the strength we have in numbers, we are represented in discussions among lawmakers, for example, regulators, and standards writers. This is why membership matters, and it is why I encourage you to prioritize membership in this Association.

I also encourage you to explore what’s available to members. See a complete roster of services at FarmEquip.org.

If you have suggestions for adding value to membership, please get in touch. You can reach me at President@FarmEquip.org. You are also invited to call me. If you’re not yet acquainted with the online directory, this is the perfect opportunity to check it out. You can find my phone number there. The staff is also ready to hear your suggestions. Call the Association office at (314) 878-2304.

I cannot conclude this column without saying that in my experience of the Association, at the top of the list of benefits are the relationships I’ve formed. These are professional and personal friendships that are irreplaceable. The differences these friends and colleagues have made in my career cannot be captured on paper.

Join us in St. Louis in November to connect, reconnect, and get a sense of the power of the shortline industry network.

Nick Jensen
Association President
njensen@thurstonmfgco.com

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