S'W'O'T'ting Your way to Meaningful Goals

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Setting the Strategy II
S.W.O.T.ting Your way to Meaningful Goals
This module originated by John Conway
PRO-DAIRY 123 Lake St.  Cooperstown, NY 
13326 jfc6_at_cornell.edu 607-547-2536
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Learning Objectives ?Answer How risky is it
setting goals in the absence of clear
vision? ?Answer What information is needed for
thorough business level SWOT analysis ?Learn the
value of and how to set long term DRIVE
goals ?Learn the value of and how to set short
term SMART goals
Approximate Time Needed ?Case Farm set up -- 15
minutes ?Rest of module 45 minutes

• AV Equipment Needed
• LCD Projector
• ?Laptop Computer running MS PowerPoint
• ?Flip chart, markers, tape that wont peel paint
• Pens/pencils

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Further Reading
The Six Sigma Way, How GE, Motorola, and Other
Top Companies Are Honing Their Performance. 2000
Peter Pande, Robert Neuman, Roland Cavanagh The
Goal A Process of Ongoing Improvement. 1992
Eliyahu Goldratt, Jeff Cox The Dancing Wu-Li
Masters -- An Overview of the New Physics. 1984
Gary Zukav
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Presenter DMAIC

• The you are here slide will show up throughout
  the curriculum. DMAIC is the managers most
  fundamental tool and it made sense to organize
  around it.
• Participants will use a Case Farm to further
  analyze on the way to setting long and short term
  goals. They will be applying measurements and
  analysis at a business level to formulate goals.
  Goals represent improvements at a strategic
  level.

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Problem Solving Cycle
Define
Control
You are here (but at a strategic level)
Measure
Improve
Analyze
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Presenter Compelling Vision

• This slide is review from the compelling vision
  module. Pasted in below are notes from earlier
  use of slide
• Living the Strategy. Some individuals make a
  connection while viewing something as a schematic
  such as this. A compelling vision is the
  beginning of a strategy and has three definable
  attributes
• ? A sense of significant purpose
• ? A clearly painted picture of success and
• ? Clear values reflecting a melding of the
  values among the business people.
• Before taking the strategy into a first tangible
  step, youve got to know where you are currently
  at. An accurate assessment of the business
  resources and financial and production condition
  is essential. Basically we are applying the DMAIC
  cycle to setting the strategy, and we need to
  measure first, then analyze before making
  improvements. The biggest, broadest improvements
  will be captured as long term DRIVE goals.
  (mention the attributes of DRIVE). Each DRIVE
  goal can be parsed into one or more short term
  SMART goals (mention attributes of SMART). SMART
  goals are at the intersection of taking the
  strategy to where something connected to it
  begins to happen.

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Presenter Foundation

• Pasted in are notes from last use of slide
• Other people see things better pictorially. Here
  is another view of setting the strategy, but with
  developing a compelling vision as the foundation.
• This is a quick review of compelling vision that
  is the foundation for goals to be written toward

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Foundation View of Planning
Tactics
SMART Goals (Short Term)
Accurate Assessment of Business Resources
plus Financial and Production Condition
DRIVE Goals (Long Term)
Compelling Vision (Purpose, Success Picture,
Values)
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Presenter Principle in Play

• So what is the principle in play for setting long
  and short term goals?
• Goals provide the motivation to move towards
  action. The bullets clarify how.
• This thought is continued on the next slide

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Principle in Play

• Goal Setting is a Particularly Motivating Tool as
  it can
• Focus energy and attention on the target
• Increase effort and intensity
• Encourage persistence and practice over time
• Promote development of problem solving skills
• Drastically increase the probability of reaching
  what you seek!

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Presenter Principle in Play continued

• More on the principle in play for setting long
  and short term goals
• Continuing with the boat analogy. Without a
  vision, you have no rudder. You may get lucky and
  drift in the right direction for awhile. But only
  with the ability to steer can you materially
  change direction.
• Goals help refine direction. Broader, long term
  or DRIVE goals help give you a direction to steer
  (Northwest). Shorter term SMART goals further
  refine direction and give a specific reading
  (3150).

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Compelling Vision the Rudder
Goals Refine Direction the Compass
Long Term (DRIVE) Goals Northwest
Short Term (SMART) Goals 3150
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Presenter SWOT

• SWOT Defined (as shown on slide)
• Strengths -General farm resource assessment
• PA Dairy, DFBS, DHIA
• Weaknesses General farm resource assessment
  PA Dairy, DFBS, DHIA
• Opportunities Your view of Industry direction
  
• (in light of strengths/weaknesses)
• Threats What you see looming in the
  industry/world likely to impact your business

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but before setting goals, youve got to know
where youre at!
S.W.O.T. Analysis
Strengths General farm resource assessment
PA Dairy, DFBS, DHIA
Weaknesses General farm resource assessment
PA Dairy, DFBS, DHIA
Opportunities Your view of Industry
direction
(in light of strengths/weaknesses)
Threats What you see looming
in the industry/world likely to impact your
business
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Presenter Case Farm

• After the May 7 8, 2007 Training Conference we
  agreed to develop two additional Case Farms. If
  you missed the e-mail alerting you to them,
  please check the MFS website.
• Case Farm introduction. It is a real farm. Names
  have been changed to respect anonymity.
• It is fair to say that this farm once had a sense
  of vision. Due to outside interests and a measure
  of neglect, that vision has faded and is pretty
  much non-existent.
• This is a somewhat unique situation in that the
  supporting data and information is there in an
  unbroken stream. It allows the participant to see
  what it feels like to have a sense of what is
  going on and yet no real direction to apply it
  to. Participants are free to impose their own
  vision and set goals accordingly (based on SWOT
  analysis and supporting data)
• If this were your farm what would be your
  thoughts about the vision of this farm?

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• Our Case Farm is bundled in a separate packet.
  While there is a lot of information in the
  bundle, you may find everything you need in the
  first and second sections. Accordingly we have
  put it into sections, each with a cover page.
  They run from the most general to the most
  detailed.
• You are free to speculate and draw conclusions.
  Intent is to give you something real to work
  with, but without squelching your imagination.
  You can work the farm as is in the short run,
  jump ahead a year with the son and
  daughter-in-law in the picture, or both (may
  consume a lot of time, though).
• Sections
• ? General Description
• SWOT Analysis
• PA Dairy Tool Analysis (PAs financial/production
  expert system)
• DFBS Financial Comparison (NYs Dairy Farm
  Business Summary)
• Dairy Production Records/Analysis (PCDART here
  or could be DairyComp 305)

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Presenter Be the Case Farm

• Case Farm introduction. It is a real farm. Names
  have been changed to respect anonymity.
• It is fair to say that this farm once had a sense
  of vision. Due to outside interests and a measure
  of neglect, that vision has faded and is pretty
  much non-existent.
• This is a somewhat unique situation in that the
  supporting data and information is there in an
  unbroken stream. It allows the participant to see
  what it feels like to have a sense of what is
  going on and yet no real direction to apply it
  to. Participants are free to impose their own
  vision and set goals accordingly (based on SWOT
  analysis and supporting data)
• Bear in mind that you may have these MFS sessions
  structured in a way where Case Farm use may be
  unnecessary. That would happen with a targeted
  group who all have plenty of own farm info to do
  a reliable SWOT analysis and have mostly
  developed out their compelling vision. In this
  case they would develop DRIVE and SMART goals for
  their own farm.

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Be the Case Farm
You are in the frustrating position of using
facts and data to set some goals without the
benefit of a sense of vision. Things get
increasingly more concrete as we look at the
current situation and come up with longer term
DRIVE Goals which will create the bridge to the
future. They are supported by shorter term SMART
goals which puts the stamp of specificity and due
dates on strategy. You can dig as deeply in the
supporting information as youd like to determine
which strengths can be further exploited and
which weaknesses are critical to success and need
to be shored up, maintained and continually
improved. Lets get to work! Other option if
you have accurate financial and production
information on your farm go right ahead and work
on your farms goals.
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Presenter DRIVE

• It is fair to say that this farm once had a sense
  of vision. Due to outside interests and a measure
  of neglect, that vision has faded and is pretty
  much non-existent.
• Attributes of Long Term or DRIVE Goals
• Directional
• Reasonable
• Inspirational
• Visible
• Eventual
• Focus on good DRIVE goals and remind participants
  not to be too general.

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Based upon what youve learned about the Case
Farm and your best objective assessment of where
the business is currently at, set
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Presenter DRIVE

• It is fair to say that this farm once had a sense
  of vision. Due to outside interests and a measure
  of neglect, that vision has faded and is pretty
  much non-existent.
• This is a somewhat unique situation in that the
  supporting data and information is there in an
  unbroken stream. It allows the participant to see
  what feels like to have a sense of what is going
  on and yet no real direction to apply it to.
  Participants are free to impose their own vision
  and set goals accordingly (based on SWOT analysis
  and supporting data)
• Worksheet for capturing DRIVE goals.
• Give writing DRIVE goals a spin use the case farm
  or your own situation to do this. (Have them
  spend some time jotting down some DRIVE Goals for
  either their own Farm or the Case Farm.)

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Case Farm or Your Farm Long Range DRIVE
Goals Directional, Reasonable, Inspirational,
Visible, Eventual - Goals
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Presenter Production Knowns for Case Farm

• Shrinking Pipeline diagram portraying where
  milk appears to be leaking away based on DHIA
  records. Items with minuses are those reasonably
  well quantifiable from records. This info may be
  useful in setting short term SMART goals.

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Some Production Knowns About the Case Farm
Herds Genetic Potential
lbs.
90
-1
-11.3
-2.6
47
-12.8
-4
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Presenter SMART

• Attributes of Short Term or SMART Goals.
• Specific
• Measurable
• Attainable
• Rewarding
• Timed

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Based upon Case Farms vision and objective
assessment of where the business is currently at,
and for each DRIVE goal set
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Presenter Case Farm SMART

• Worksheet for capturing SMART goals supporting a
  DRIVE goals.
• Have participants take a DRIVE goal and set 2 or
  more SMART goals for that DRIVE goal. Have them
  spend some time jotting down some SMART Goals for
  either their own Farm or the Case Farm.

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Case Farm or Your Farm Shorter Term Supporting
SMART Goals Specific, Measurable, Attainable,
Rewarding, Timed - Goals
DRIVE Goal 1
Supporting SMART Goal
Supporting SMART Goal
Supporting SMART Goal
Supporting SMART Goal
DRIVE Goal 2
Supporting SMART Goal
Supporting SMART Goal
Supporting SMART Goal
Supporting SMART Goal
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Presenter Dollars Sensible

• Yet to be determined (next two slides). Known by
  end of May, 2007 should be disposition of NECRME
  grant as well as how the Dairy Profit Monitor and
  DHI records can combine to help generate base
  information for business level SWOT analysis.

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A Dollars and Sensible Offer Some Managing for
Success Workshop Participants have excellent
information (Dairy Farm Business Summary (DFBS)
or Farm Credit Financial Summary and either Dairy
Comp 305 or PCDART Dairy Production Analysis).
These are essential to conduct a meaningful SWOT
analysis of the business as a prelude to setting
long and short term goals. If you dont have the
information you would like to have and gearing up
for a DFBS run is too big of a step at once, we
will soon have financial and production
information consultants available to get you
started with the monthly
Dairy Profit Monitor (see handout
description) Please let us know if this is
something youre interested in. We will know by
early May if we can provide this service free of
charge!
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Presenter Dairy Profit Monitor

• Yet to be determined (next slide). Known by end
  of May, 2007 should be disposition of NECRME
  grant as well as how the Dairy Profit Monitor and
  DHI records can combine to help generate base
  information for business level SWOT analysis.

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The Dairy Profit Monitor is an outreach project
that aims to provide dairy producers with a tool
that allows them to track key parameters that are
impacted by management decisions on a monthly
basis while providing the opportunity to track
these benchmarks against themselves and other
farms in the system from around the country. We
aimed to do this in a way that was simple, fast,
and convenient for the producer yet flexible and
valuable for their business at the same time.
The information provided for the Dairy Profit
Monitor is intended for use in business analysis,
monthly/quarterly management meetings, and to
serve as a guide to make operational decisions in
the business that will impact profitability. The
program was designed for easy use with
consultants to facilitate a stronger
producer-consultant relationship, as the DPM is a
value-added service they can provide their
clients with. The benchmarking capabilities will
be very informative to dairy producers as they
will be able to compare their business with
businesses from different parts of the country,
sorting by certain business characteristics like
herd size, location, housing type, and milking
system type. Although the program is in its
early stages, we plan to expand to nationwide
usage in the next three years. New features will
be added in the future that are helpful and
relevant to the end users, with feedback from
users and industry trends driving additions to
the program.