Chapter 12.1 Establish a vision
Background information
Successful businesses navigate through their challenges because they plan for success. Effective planning delivers the following benefits:
- Concentrates effort and investment on the important things – the importance of something is determined by its relevance to your objectives and its ability to deliver on those objectives.
- Avoids investment on distractions – distractions are a cost to the business and only a disciplined approach to identifying them will prevent this waste.
- Job satisfaction – through clear progress towards your goals and objectives, and confidence in your ability to adjust to new challenges.
- Avoids losses from the real risks to your business – adverse circumstances cannot be avoided but, if you are prepared, they can be managed to minimise their impact on your business.
- Avoids lost opportunities as a result of perceived risks – aversion to risk, or overestimation of individual risks, can lead to inertia, which, in turn, leads to missed opportunities.
Business planning is a challenging process for enterprises facing a high degree of operational variability. This challenge often results in overlooking important business planning processes that underpin what you do, why you do it and other important facets that shape your business.
This procedure outlines the importance of establishing a shared vision. It covers steps and tools to help make this process simple, workable, and most of all a reflection of where the business is heading. Module 1 Plan for Success also contains information and tools that can help you navigate through this process.
At a glance
- Devise a list of core values that your business and those operating it have.
- What is your vision for your business?
Before starting the business planning process, it is important to recognise the long term nature of these activities. Depending on your age and plans for the future, it is possible the next generation will see more of the benefits than you do.
Be mindful that these plans are not set in stone – they are dynamic plans, and are constantly changing to reflect the visions of those who are making them. The process is equally important as the plan itself.
Strategic planning will help you take a long-term view of your activities on the property. Use it to also account for the personal aspirations family members have for the property in the future.
Once you have developed a ‘shared vision’, move to creating an operational or business plan to determine how the resources (people, time, skills, money) will be assembled to allow you to turn it into reality. In some cases, having an external set of ‘eyes and ears’ provided by a consultant or advisor can assist in this process.
Getting the strategic planning right with your team will save you effort and time when developing the ‘how to’ part in the next step.
Developing a vision statement
The business planning process starts with creating a vision for your business. Your business vision statement is a statement which describes its aspirational goals, values and what the business stands for.
The purpose of a vision statement is best described by three main points:
- Provides direction – focuses everyone’s attention on the future of the business and determines the path the business will take to get there.
- Determines decisions – the vision influences decisions by providing the underpinning aspirations of what the business aims to do.
- Motivates people – a clear vision excites and helps spring people into action.
To give you a couple of examples:
AWI’s vision is for it to be:
...a highly valued contributor to a vibrant, profitable and sustainable Australian wool industry.
The vision of MLA is:
To be the recognised leader in delivering world-class research, development and marketing outcomes that benefit the Australian red meat and livestock industry.
Here are a couple of steps that can help you develop a vision statement for your business:
- What is your business about?
- What are your aspirations for your business, property, family, lifestyle?
- Look up some vision statements of other businesses that you find inspiring.
- Try to narrow your ideas down to one statement that sums up your vision.
SIGNPOSTS
Webinars on business management skills which improve the bottom line of sheepmeat, wool and beef producers located in the pastoral region.
This case study focuses on Andrew Dufty, a successful and motivated farmer from western Victoria. Andrew has a message and focus that can be applied to any business; including rangeland businesses.
Often producers are kept busy doing the day-to-day farm jobs, that there is little time left to plan for the future. This Bestprac Case Study shows the value of spending time setting clear goals.
The best way to formalise and communicate the vision you have for your business is to write a vision statement. A vision statement captures, in writing, the essence of where you want to take your business, and can inspire you and your staff to reach your goals.
The pastoral zone of Australia is vast and there are significant differences in farming systems, access to services, native and pest species, enterprise types and business structures. Although there are some differences, Bestprac demonstrated that all pastoral businesses have techniques, systems or innovations that can be shared across state borders to assist others to improve their skills and knowledge.
The right tool can make all the difference. If you are looking for ways to boost the performance of your business.
A two-day financial and business management training workshop for all livestock producers. The aim is to enhance producer knowledge and skills in basic financial and business management to improve business efficiency and profitability.
