I keep hearing phrases like “It’s not a good year” and “I’m either a few rains from bankruptcy or a bit more of a drought away from having a great year.” In agriculture, we often think we have it the worst.
Agriculture does face unique challenges like few other industries. But we are warriors focused on the war, not quick to be decimated by the poor outcome of a single battle.
Having worked with more than 350 companies—and more than 60 in agriculture—I know firsthand every industry experiences downturns. But as leaders in agriculture, we have the resilience to weather these storms.
Here are a few of the top strategies from great leaders who possess the turnaround mindset:
1. Cast a Vision
As a leader, you need a clear vision. Start by solidifying this vision within yourself, and validate it with a trusted colleague. Then, share it with your team. Communicate your belief in the future and your commitment to the team. Emphasize that though times are tough and profit margins may be slim or nonexistent, this doesn’t mean the company or farm is at risk of going out of business. It simply means that we need to tighten our belts and delay upgrades or luxuries for now. Your team is your most valuable asset, and engagement from team members is crucial in navigating the turbulent times.
2. Engage Your Top Talent
Now is the time to lean on your team’s strengths. Challenge the team to contribute more than ever. John Pepper, former CEO of Procter & Gamble, emphasized the importance of transparency and commitment during his turnaround of the company in the early 2000s. Pepper didn’t shy away from the company’s challenges; instead, he rallied his team by sharing the reality of the situation and demonstrating his unwavering commitment to the organization’s long-term success.
3. Focus on the Fundamentals
In tough times, getting back to basics is vital. This was a strategy used effectively by Albert Dunlap, a.k.a. Chainsaw Al, who, despite his controversial methods, understood the importance of streamlining operations and focusing on core competencies. For your business, this might mean identifying the most profitable parts and doubling down on those areas. It could also mean cutting unnecessary expenses and finding ways to optimize existing resources. You can ask me for a checklist to help with this step.
4. Foster a Culture of Resilience and Adaptability
A great turnaround mindset is grounded in resilience and adaptability. Tim Caldwell, another gifted turnaround CEO, often emphasized the importance of creating a culture where change is not only accepted but embraced. Encourage your team to be adaptable, think creatively and not fear failure. This mindset shift can lead to innovative strategies that may not have been considered under normal circumstances.
5. Open Communication
Regularly communicate with your team about where the company stands, what challenges are ahead and what steps are being taken to address them. By being open, you empower team members to take ownership of their roles in the turnaround. Remember, a motivated and informed team is far more effective than one left in the dark.
Final Thoughts
The path may be steep, but it’s not insurmountable. Current challenges aren’t a sign of inevitable decline but rather an opportunity to strengthen and refocus. Tough times don’t last forever, but strategies we start now can lay the groundwork for long-term success.
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Mark Faust
513-621-8000
mark@em1990.com
@markfaustsr
