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R EACHING BEYOND...... TOGETHER ! Patrice Carle, Agronomist Executive Director, CEGA Thanks to my associates ! Claude, Claudine, Line, Nadia, Patrick,

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Presentation on theme: "R EACHING BEYOND...... TOGETHER ! Patrice Carle, Agronomist Executive Director, CEGA Thanks to my associates ! Claude, Claudine, Line, Nadia, Patrick,"— Presentation transcript:

1 R EACHING BEYOND TOGETHER ! Patrice Carle, Agronomist Executive Director, CEGA Thanks to my associates ! Claude, Claudine, Line, Nadia, Patrick, & Robert 1

2 2 Think outside the box ! A little exercise to start… 6 sticks = 4 equilateral triangles?

3  Overview : Centre d’expertise en gestion agricole  What do we need to reach beyond ?  Why reach beyond ?  How do we reach beyond ?  CEGA's game plan Plan of the presentation 3

4 The Centre d’expertise en gestion agricole We are a second line organization. Target audience Management professionals and professionnals in business transfer, launch, recovery and consolidation. Professionals farmers : funding, accounting, manufacturing process, agri-environment, veterinarians, development officers. We work to promote and develop farm management practices for all agricultural producers. CEGA : an overview 4

5 Fields of intervention Organization, training and promotion : Lectures, day-long training Monitoring, research and analysis : Current issues, Bulletin de veille print : Methodology and working tools : Improvement of processes and better integration of tools CEGA : an overview 5

6 Privileged partner Partners of the PADEA program CEGA was appointed lead of strategic priority # 4 of the Programme d’appui au développement des entreprises agricoles. CEGA : an overview 6

7 Board of Directors CEGA : an overview 7 CEGA is an organization that brings together all stakeholders in the fields of farm business and human ressources management. CENTRES OF EXPERTISE FINANCIAL INSTITUTIONS SUCCESSION AND PREPARATION

8 What do we need to reach beyond ? 8 R EACHING BEYOND TOGETHER

9 Several studies, one conclusion ! 9 W HAT DO WE NEED TO REACH BEYOND ?

10 T HE 20 % 10 Innovators 2.5 % Early adopters 13.5 % Early majority 34 % Early majority 34 % Refractory 16 % Management programs and consulting services only reach about 20 %of producers!

11 11 R EACHING BEYOND TOGETHER Why reach beyond ? Because of the environment in which agriculture evolves !

12 12 The global economy has been out of breath since The effects are still very present, even in the agriculture industry ! W HY REACH BEYOND ?

13 In the world of today, efficiency is no longer a choice...  The global economy narrowly avoided the collapse of its banking system.  Saving the banks, along with the recession that followed in 2009, reportedly cost the US and Europe $4,600 billion and 40 million jobs. 13 W HY REACH BEYOND ?

14 I spend, you invest... We owe too much money ! Any stimulation of the economy requires public consumption and indebtedness : lower interest rates, buy now, pay later ! 14 W HY REACH BEYOND ?

15 Interest rates can only go up Animal welfare standards: Horizon 2017 W HY REACH BEYOND ? Source : Financial Market Update, Farm Credit Canada, May 2013

16  Investment funds are looking for business opportunities : The stock market is unstable, blue chips are becoming scarce The returns on savings and bond yields are very weak  Agriculture is an interesting industry for investors ! 16 W HY REACH BEYOND ? Food demand is sharply rising : 9 billion humans in 2050 ! Land has become a gilt-edged security... for some speculators

17 Grain prices are high and unstable 17 Source : CME W HY REACH BEYOND ? Corn Soybeans

18 Land prices are higher than ever 18 Source : FCC, 2013 W HY REACH BEYOND ?

19 Indebtedness is becoming an issue ! 19 Source : Farm Financial Survey, Statistics Canada W HY REACH BEYOND ? Source : Farm Financial Survey, Statistics Canada, 2013

20 Indebtedness is becoming an issue ! 20 Source : Farm Financial Survey, Statistics Canada W HY REACH BEYOND ? Source : Farm Financial Survey, Statistics Canada, 2013

21 21 R EACHING BEYOND TOGETHER How do we reach beyond ? There are at least two methods possible...

22 1.T HE TRADITIONAL '' RECIPE '' 22 H OW DO WE REACH BEYOND ? Focus on management consulting services and traditional financial support. Group method  Closure of accounting  Benchmarking results  Budgets Specific deliverables (2005)  Business diagnostic / business plan & budgets / succession plan

23 23 H OW DO WE REACH BEYOND ? It's how things have been done in Quebec for the last 30 years...  Global field presence of consulting services.  Highest ratio of management counsellors per business in Canada  Analysis are primarily focused on the past. but... After 30 years, we still have not reached beyond those 20 %... So why would it be any different today ? 1.T HE TRADITIONAL '' RECIPE ''

24 2.S WITCH '' RECIPE '' ! 24 H OW DO WE REACH BEYOND ? To modify our approach, we need to know what consumers want... We asked the other 80 %... and here is what they told us ! Like they say : ''Same recipe, same cake !''

25 W HAT THE OTHER 80 % TOLD US H OW DO WE REACH BEYOND ? Think of one of the major decisions you made during the last 3 years. Have you sought information from... Source : Survey of non-users of management consulting services, by AGÉCO, for CEGA, 2012 A majority of producers answered : '' I have not made an important decision for the last 3 years. ''

26 26 H OW DO WE REACH BEYOND ? Source : Survey of non-users of management consulting services, by AGÉCO, for CEGA, 2012 Here is what they have done... W HAT THE OTHER 80 % TOLD US...

27 27 H OW DO WE REACH BEYOND ? Think of one of the major decisions you made during the last 3 years. Have you sought information from... Source : Survey of non-users of management consulting services, by AGÉCO, for CEGA, 2012

28 28 H OW DO WE REACH BEYOND ? Source : Survey of non-users of management consulting services, by AGÉCO, for CEGA, 2012 W HAT THE OTHER 80 % TOLD US... Think of one of the major decisions you made during the last 3 years. Why have you not met with a management counsellor ?

29 29 H OW DO WE REACH BEYOND ? Source : Survey of non-users of management consulting services, by AGÉCO, for CEGA, 2012 Yes No Do you keep an annual budget? Is it on paper? ''95% of business owners keep budgets''* *Source : Survey of financial institutions, 2011 W HAT THE OTHER 80 % TOLD US...

30 T HE BOTTOM LINE : →T HERE IS A GAP BETWEEN THE PERCEPTIONS OF '' MANAGEMENT '' 30 H OW DO WE REACH BEYOND ? For a management counsellor, management is... o Data coming from ''good accounting'' o A balance sheet, a complete and up to date income statement, detailed budgets o Comparables, credible references o ''Rewarding'' and ''reasonable'' decisions o Investing: a major decision

31 31 H OW DO WE REACH BEYOND ? Source : Survey of non-usersof management consulting services, by AGÉCO, for CEGA, 2012 For 80 % of producers, management is... o Paperwork (actual paper or virtual) o Meeting requirements (regulations, standards, programs) o Meeting the demands of financial backers (5 Year Business Plan...) o Helpful when making major decisions : reversal transfer o Investing is part of the routine ! o Technical performance = Economical performance... A GAP BETWEEN THE PERCEPTIONS OF WHAT '' MANAGEMENT '' IS

32 32 The traditional approach : ''Let's do some real management!'' 80 % of producers : ''I'm crushed under paperwork!'' ''I'm tired of this; I don't have time anymore; I quit!'' In management, ''The sky is the limit!'' Gap between perceptions...or attitude ?Management; is it a matter of altitude ?

33 33 H OW DO WE REACH BEYOND ? We must adapt to the customers we cannot reach ! At the moment, our message primarily reaches planners ! How can we reach all other groups ? Source : Baseline Study on Farm Business Management Planning, Agricultural Management Institute, 2011 Segmentation of producers based on business planning/management

34 34 H OW DO WE REACH BEYOND ? Understand what is stopping them!!! We must adapt to the customers we cannot reach ! The quantity of time spent sorting paperwork! The amount of details required to ''manage''! The amount of tasks that need to be done! The lack of qualified labour!

35 H OW DO WE REACH BEYOND ? Organized businesses are leading the way... CEO Finances Human Ressources Research and Development Production Taxation Accounting Succession and Training Profitability Staff Retirement New techniques New products Inputs Tasks Maintenance and Purchases Marketing and Distribution Transport Market position Market analysis Environment 35

36 36 H OW DO WE REACH BEYOND ? Less organized businesses run out of time... Animal health Feeding of the herd Accounting Daily work Taxation Staff Animal transport Purchase of machinery Strategic vision Market position New techniques Growth Market risk Building and machinery maintenance Succession and Retirement Financial planning Genetics Environment Training Management $$$ ''Management'' ranks very low on priority lists... far behind paperwork !

37 37 H OW DO WE REACH BEYOND ? Understand what interests them ! Get started, even if modestly ; but get started ! Track the main points of income/expenditure ? Provide assistance in human ressources management ? Track the line of credit? Provide assistance towards marketing efforts? We must adapt to the customers we cannot reach !

38 38 CEGA' S GAME PLAN Our 4 strategic priorities and The project under development R EACHING BEYOND TOGETHER

39 1.Promote and use management information in decision- making for all businesses 2.Develop core knowledge in the field of management for all counsellors and focus on :  networking  interprofessionality  economical screening  referencing customers CEGA' S GAME PLAN Our 4 strategic priorities 39

40 3.Promote the adoption of best management practices and entrepreneurial mindsets to future farmers 4.Develop management knowledge, new approaches and new concepts CEGA' S GAME PLAN Our 4 strategic priorities 40

41 The vision 41 ''Management tools that use the accounting, financial and production data of a farm business, that offer basic functionalities... to all producers who wish to improve the day-to-day management of their business......that promote interaction between accounting and agricultural counsellors in Quebec, that improve their consulting capacity, and that standardize data analysis and reporting methods......in order to improve profitability and competitiveness of farm businesses in Quebec.'' CEGA' S GAME PLAN The project under development

42 Overview 42  Simplify management processes  Help producers manage and categorize their information.  Link the information (technical, accounting, human ressources) of the business.  Quickly make that information usable.  Involve producers in management processes  Tools available to producers  Tools tailored to their needs  A unique work platform CEGA' S GAME PLAN The project under development

43 Overview 43  Facilitate business tracking  Supply producers with a portrait of their business that is as close to real-time as possible.  Make the short term advantages of management tangible.  Common workplace for stakeholders  Facilitate communications between professionals involved in the business.  Improve the quality of recommendations. CEGA' S GAME PLAN The project under development

44 44 CEGA' S GAME PLAN In conclusion...  From coast to coast, our challenges are the same !  Management programs and consulting services only reach about 20% of producers;  The ''traditional'' approach does not meet the needs of the other producers.  In order to reach as many as possible, we need to modify our approach !  Understand the concerns of producers that are part of the 80 % ;  Leave paradigms behind ;  Adjust services to the real needs of producers.

45 45 We face the same challenges ! Let's work together ! T O REACH BEYOND THE 20 %, WE HAVE TO PULL TOGETHER ! R EACHING BEYOND TOGETHER

46 46 Agriculture is... ''the planet's life insurance''... And management is ''the life insurance to a family farm business''


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