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Strategic Planning
June 12, 2023

Six Moves to Build a More Sustainable Future For Your Co-op

During good times, it’s easy to read leadership books and get behind all the cliché quotes, methodologies, and soundbites from the experts. We can learn from case studies and cast big vision and goals. When margins are high, and rain produces abundant crops, it seems to make a hell of a lot more sense to be strategic, work on the future, and take risks. But how do we think about the future when we are just trying to survive?
When it doesn’t rain, it impacts everything, especially mindset. But there are two truths that must inform our mindsets during these times to lead well and shape the future to our advantage.

Truth #1: It will rain again.
Truth #2: What we do right now as a leadership team will build the foundation for a more sustainable future when it does rain.

We’ve all heard the stories of founders taking significant risks and building highly successful organizations that have become national icons. Many of these companies were founded during times of recession and/or turbulent times. The Co-op system is no exception. Co-ops are rooted in a rich history of risk-taking, hard work, and—quite frankly—heroism. Most Co-op leadership teams tell a similar story of their founding members taking big risks or leading in a way that paid off or paved the way. They were imperfect leaders (as we all are), but they chose to lead, and we can learn a lot from their perseverance and willingness to forge a path for their families and their members.
As we look to the future, there is an undeniable trend of consolidation resulting in larger but fewer Co-ops and producers. But one fact remains constant: Co-ops’ work to serve their members and bring their products to market is indispensable.

Here are six strategic moves to consider making now. Then, continue these with consistency to shape the future to your advantage.

1. Develop Leadership – Build a Leadership Bench / Pipeline

There are two supply pipelines which are vital to every organization for growth and long-term sustainability. The first one is your people pipeline. The greatest organizations in the world (across all sectors) recognize the need to recruit, train, and build bench depth full of leaders. There has never been a time when this has been more important. In fact, according to a survey completed by Business Insider in January, 61% of U.S. workers are considering quitting their jobs in 2023. The reality is that you are competing for talent with other industries and value propositions which are changing to meet the needs of today’s worker.
Consider consistently emphasizing the following:
Adopt a mindset that investing in the development of our people not only increases their value to the company but also their loyalty, contentment, and a sense of ownership in their work.
Expose your leaders to people and business practices outside of the industry.
Think differently about recruiting, hiring, and where you look to find talent.
Employ consistent training to develop your leaders in the following high-value areas: Enterprise leadership, achieving results through others, the role of a manager, dealing with conflict, building trust and personal ownership, effective communication, accountability and motivating others, customer service, and self-management.
Ensure your people understand the full value of their employee benefits package and the opportunities for advancement over time.

2. Grow Customer Relationships – Engage Your Members with Intentionality

The second pipeline, vital to growth and long-term sustainability, is cultivating current and new customers. This may seem obvious; however, in times of drought, we must guard against apathy and instead focus on nurturing these relationships. Yield long-term results by meeting with producers multiple times throughout the year and having conversations different from the regular day-to-day discussions. Consider meeting in group settings and/or individually to express gratitude for their business. Understand and empathize with the challenges they are facing. Engage in dialogue about what they need and value in your services, and look for strategic opportunities to evolve your value proposition for the future. Find out what is important to them and what hopes, dreams, and concerns drive their decisions. Also, consider hosting industry-relevant workshops and inviting producers to participate.

3. Increase Efficiency – Re-Think Your Structure and How You Do What You Do

Now may be the time to challenge your thinking on your current structure from the bottom-up, top-down, and cross-functionally to ensure you are operating efficiently. Make sure you have created the Org Chart of the future and are maximizing efficiencies in every functional area of the business.
Here are a few items to consider now if you haven’t already:
Elevate the role, expectations, and training of the Location Manager position. These front-line leaders represent a significant face of the Co-op to your customers and your employees, which will tremendously impact culture, efficiency, and future business. These managers hold the keys to your “Kingdom.”
Develop an organizational structure that demonstrates clear career path options for people who desire to progress within the organization, opportunities to cross-train and get experience in other functional areas of the business, and right-size leadership needs for the future.
Look for efficiencies in managing and staffing operations across multiple locations throughout the changing seasons.
Ensure employee policies are clear and understood at all levels regarding regular work hours and overtime.

4. Increase People Collisions – Keep, Start, or Increase Your Cadence of Strategic Thinking and Communication

When large tech companies build new campuses of the future, one of the critical design considerations they are very cognizant of is how they can create people collisions. This is when people cross paths and interact with one another within the flow of everyday life on campus. Why? Because they know that it is natural for people to retreat to their hard-walled offices or cubicles to do their work and send emails or start a chat to communicate, particularly in times of stress. But there is immense value in, and hunger for, face-to-face human interaction, problem-solving, and strategic thinking, which the hangover effects of COVID isolation have proven. Simply put, every organization is perfectly designed to get the results that it gets, and when we ask leaders, “What needs to improve in your organization?” Without fail, every one of them responds, “Our communication.”
It has been said that the heartbeat of every organization can be felt through its meetings, and we know this to be true. When the right conversations happen on a rigorous cadence without being canceled or re-scheduled, accountability naturally increases and is less punitive, which reduces unhealthy conflict and builds trust.
Consider implementing the following with respect to your cadence of strategic thinking and communication:
Read the book, Death by Meeting by Patrick Lencioni with your leadership team and managers.
Conduct annual offsite strategic planning retreats with your leadership teams. Make sure it operates by a structured process to bring out the best thinking in the room, evaluate strategic choices that will impact future scalability and sustainability, and develop a plan you commit to executing.
Hold structured quarterly check-ins/re-focus sessions with your leadership team to ensure you are moving the needle on strategic objectives with intentionality and accountability.
Consider adding daily huddles, weekly tactical meetings, and impromptu strategic meetings to inspire communication, collaboration, and creativity amongst your people at every functional level in the organization. These gatherings should focus on establishing priorities, creating a cadence of accountability, and sharing mission-critical information.

5. Build Culture – Now More Than Ever

Culture is the sum of what you permit and what you promote. The evidence of your culture is in the everyday work life of your people. How you interact with one another and customers, and your attitude, mindset, and commitment are all clues. What is common to your organization but uncommon everywhere else? Now may be the right time to examine your culture and define what you truly stand for. Use this clarity to inform strategic choices, hiring decisions, policy, and to build relationships.
Consider the following to better define and build culture:
Examine your current culture. What is right, wrong, confused, or missing? What words would your people use to describe what you currently permit and promote? What would the ideal future look like? What must change to move in that direction?
What is your purpose, mission, vision, and values? Why do you do what you do, and why is what you do important? Facilitate group discussions around these questions, document final outcomes, and train all employees on these truths.
Change the dialogue in your meeting cadence to shift the mindset from drought to future harvest. Outline what you need to do now to set yourselves up for future success.
Intentionally meet on a regular cadence during this time with no agenda other than to have fun, celebrate WINS, and reassure your most valuable assets – your people.

6. Take Calculated Risks – Invest in Future Profitability

Problems scream, but opportunities whisper. It is easy to focus on the negativity of the current reality. It is more challenging to focus on the strategy. But it is often during such times that we can lay the groundwork and seize opportunities for future growth.
At any given time, leaders are either planting seeds of growth or demise. When examining great successes and failures of the past, one can always go back to key decisions, mindsets, or postures which formed the genesis of the results.
Each leadership team must evaluate its current reality and make decisions based on what makes sense for its Co-op and members. But it’s worth asking the question, is it time to step out and have that conversation or build the groundwork for that big strategic move? Look at your business and think differently while drawing on learnings from the actions of founding members. Whether it is the evaluation of building greenfield assets which are more automated and less labor intensive, or diversification of revenue streams to generate more cash flow and working capital for the future, or another strategy, now is always the time to evaluate strategic choices, build a plan, and work the plan one step at a time. It is quite often while working the plan that we get smarter and find opportunities we didn’t even set out to find.

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Don’t be so damned offended – 5 ways to live a life less offended

Yep, I said it. We live in the most offended society to ever grace the planet. Political correctness has overtaken the day and in my (limited) research, I have found about 5 people that are actually in favor of political correctness. Everyone else hates it, yet they regularly participate in it. We are careful what we say so we don’t offend someone. We put up false walls and dangerous barriers so we don’t hurt others and step on their toes. In doing so we are losing the ability to be real, to be authentic, and to be vulnerable.

We can’t go a week without hearing a sound bite or seeing a video of some public figure saying and doing something stupid. We call for their job, demand their apology, and cry for the grievances to be righted. Let me ask you this: could you go one week with every thought, word, and action being taped and be shown blameless at the end of the week? Me neither.

Several years ago a good friend of mine said “One of the kindest things you can do to someone is to be willing to offend them.” The truth is, how much would you have to dislike someone to not share something that may offend them. Likely you are doing this because you care for them. Because you love them. Because you want them to be better. Your intention isn’t bad, it’s quite opposite.

If I have a huge stem of broccoli hanging between my teeth, I want to know that. If I am saying things or doing things that are hurtful or ignorant of others’ feelings, I need to know that. Me not wanting to hear these things doesn’t mean that you shouldn’t share them.

Now, don’t get me wrong. I don’t think we should be hurtful and mean, but we should be willing to say something that could possibly offend the other party because it is the best, most kind thing to do at the time.

I’m also not equating being offended with being sensitive. My family members are sensitive. My friends are sensitive, my clients are sensitive. Heck, even I am sensitive. Being sensitive shows your care and your compassion. Being sensitive is a natural response to what matters to you. Being personally offended shows a lack of personal resilience and strength. Being offended shifts blame and responsibility from you to someone else.

When you are constantly personally offended, you are in essence saying “I give you power over my feelings and I don’t care to take responsibility for my life.” It shows just how willing you are to let others affect how you feel and to determine your level of self-worth.

To be offended is to be baited or trapped into a situation where you are held captive by another and where bitterness and unforgiveness can thrive.

In order to live a life less offended here are a few suggestions:

  1. Start putting others first. By focusing on others first, you’ll have less energy to be consumed with how others are letting you down.
  2. Start being grateful and thankful. If you look for things to be grateful for, you will find them. Change your outlook and you will have less to be offended about.
  3. Start believing the best in others. Give them the benefit of the doubt and assume their intentions are good.
  4. Stop controlling others. Focus on controlling yourself and giving others more freedom, which will lead to healthier relationships.
  5. Stop holding grudges. You can still be frustrated, sensitive, and even angry but you can’t continue to hold these emotions over time. Experience the pain but don’t hold on to it.

Lead well, lead often, LEAD STRONG!

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Blame is the game & everyone is playing

Where have all of the responsible people gone? We are living in a society where blame and finger pointing have overtaken ownership and accountability. Not a day goes by where we don’t see evidence of someone blaming someone else for the problems in their life. Personal ownership is an old fashioned value and one that doesn’t seem to be encouraged or embraced.

Parents blame their kids teachers because they are not learning manners or getting the grades they expect. Sales people blame market conditions or busy decision maker’s schedules for not making a sale. Citizens blame too much taxation or not enough for why our economy isn’t flourishing like we think it should.

Blame is the game, and everyone seems to be playing it.

I didn’t grow up in this environment. My mom was a tough-love mom, and she challenged me to be my best and to own my life. My dad encouraged me to pursue my passion and to be the best me that I could be. They weren’t perfect, but they instilled a sense of responsibility and ownership. “It’s not my fault” was not an acceptable phrase nor one that we were often tempted to utter in our home.

Today, as I look at the news and watch the landscape of society, it seems this little idea of being personally responsible for your life has little value. People seem to be looking for ways to express frustration and hurt and are rarely encouraged to be the best me that they can be.

I mentioned in the post “Stop being so Damned Offended” (link to post) we are living in the most offended society ever. I began to wonder why this is. Why is it so easy and so accepted to be offended? The following certainly isn’t a complete list but I do think it speaks to where offense lives and where it grows. Consider these areas and determine if you are affected by any of them.

  1. You don’t know how to disagree with someone, and also respect them

A simple disagreement today has become equivalent to hate. In an effort to show value to others and live a life that is tolerant of others we have lost the art of simply disagreeing.

  1. You care more about yourself than others. Your focus is always on how things affect you

If your life is all about me how can it ever be about we? This self-centeredness only sets you up for disappointment. In the words of Zig Ziglar…

“You can have everything in life you want if you will just help enough other people get what they want”
  1. You believe in free speech (for you but not for others)

This goes in hand with #1 and is usually masked by passion and position. Too many people fight for their right to be heard and to speak up and out, but they don’t value it in others. Leaders shut down their team members when they are challenged. Team members lose the respect of their teammates when they steal the air in meetings and don’t allow room for others to contribute.

  1. You have unspoken expectations

If my expectation is that you stand up for me in a meeting and fight for funding for our project and you don’t, it is easy to be offended. Have you ever had an expectation of a friend, family member, or spouse that was very clear to you but not to them? Unless you share your expectations, you should forfeit your right to be offended.

  1. You beat yourself up long before anyone else gets a chance to

Self-doubt, fear, and lack of confidence will all do a good job of beating you up. After you have beaten yourself up for whatever reason, it won’t take much for someone else to come along with a comment, suggestion, or expressed frustration to bring some offense to you.

  1. You live in a constant state of pain, frustration, or anger

This leaves your nerves exposed so when someone slightly bumps into you, this hurts more than it should. As someone living out of sorts, you don’t regularly experience your best so therefore you are more offended by little issues and challenges because you are starting at a bad place to begin with.

In order to live a life of high accountability and personal responsibility you must seek peace and unity in your relationships. Both your personal and professional ones. Care and concern for others can’t thrive in a narcissistic society. When I can place blame and avoid responsibility why would I ever be motivated to change?

The best way to make sure the blame game stops is to stop playing it. It’s no fun to play a game when no one else is interested.

Lead well, lead often & LEAD STRONG.

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The BIG lie about TRUST – 5 reasons why trust is not earned

Nobody comes to the discussion on trust empty handed. We all have strong feelings about it. We know how it feels when trust is misused, betrayed, or withheld. Our perspectives are real and have been informed by a lifetime of experiences, pain and broken relationships. Sometimes these conclusions are helpful and sometimes they hold us hostage.

Over the years I’ve come to a surprising conclusion: our most popular theories about trust are often untrue and almost always unhelpful.

What I’m going to share will likely go against everything you’ve ever heard or thought about trust. Of all the flawed theories flying around about trust, there is one that is more prevalent and also more damaging than any other:

Trust’s Big Lie: Trust is something that is earned.

The Truth on Trust: Trust can’t be earned. It can only be given.

I know, I know. This is a lie that even I have believed for most of my life. The problem with it is that it just doesn’t make sense.

When we’re deciding how much to trust someone, we usually ask ourselves whether they have earned our trust. That seems like the smart thing to do. Until they earn it, we withhold trust to protect ourselves. We put protective policies in place. We micromanage to maintain control and create limits and boundaries to our relationships.

But the truth is, trust can never be earned. Trust can only be given.

Trust is the responsibility of the person who wants high trust. If you want others to trust you – it’s your responsibility. If you want to be able to trust others – it’s your responsibility. If you are committed to giving and building trust, and determined to overcome any obstacles that stand in your way, you will win high trust. If you work patiently and with perseverance to lead your team towards a high-trust, high-performance culture, you can see it happen. Ten of the most powerful two-letter words in the English language are: If it is to be, it is up to me. If you are to have high trust in your relationships, it starts and ends with you.

I fully realize that this line of thinking might make you squirm. When I’m working with my clients or speaking on this topic, this is where everyone starts to jump out of their seats.

Over the next few posts, I will outline why this lie is damaging, how you can better approach trust and give you a vocabulary for making this thinking stick.

For now, ponder these 5 reasons why trust cannot be earned:

DISCLAIMER: (as requested to provide to readers by my wife)

This line of thinking isn’t for those people in your life that will take great advantage (or who have) of you. This line of thinking isn’t for casual encounters, and it certainly doesn’t mean you post your banking information on the bumper of your car. This line of thinking is for people that you are in personal relationship with, that you care to have high trust with, and where winning the relationship game is key. We will talk about the crazies in another post.

  1. Earning trust requires keeping score. Every time you keep score you create a winner and a loser. In the game of relationships, this only leaves losers.
  2. When you wait for people to earn your trust, you are not sharing your scoring system. Nobody knows how to win and therefore can’t meet your unspoken needs.
  3. It is impossible to be good enough, long enough, and consistent enough to keep in high standings. Everyone falls short and the journey to earn trust has no end in sight.
  4. Earning trust is me-focused and you-focused. The more I focus on me and what I need, want and desire in a relationship, the less room there is for me to give you what you need, want and desire. In essence, making people earn trust is a selfish act.
  5. Relationships and teams are messy. There are challenges and struggles with most all of them. A you-must-earn-trust model does not incentivize you to be a better you, to offer the benefit of the doubt, and to serve those around you.

I realize you may not totally agree, but stay with me awhile. Dig into the principles and ideas around trust with me and let’s create a new way of thinking and more importantly, a new way of doing together.

Lead Well, Lead Often and LEAD STRONG!

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