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Kellogg Scholar Reports

Utilising transformational leadership to increase team performance.

Executive Summary

Leadership is a widely researched and analysed phenomena. Done well or poorly, it affects team members, their performance and business outcomes on many levels. Leadership theory has developed over time from a focus on the characteristics of the leader to a new perspective which highlights the relationship between leader and follower.

Having formally considered the charisma and personality of the leader paramount, theory has moved to consider the ways in which the leader-follower relationship can be strengthened and can affect team performance as a whole. Transformational leadership is an engaging, inspiring and motivational style of leadership, which can be applied with success on a dairy farm, affecting team members, leaders, daily operation, business outcomes and the wider industry as a whole.

This paper conducts a literature review and a survey of leaders on dairy farms to consider the application of transformational leadership on farm. A model of leadership developed by Kouzes and Posner (2012) is considered in particular and found to be practical, effective and worth on-farm leaders engaging with. 54 on-farm leaders completed the 17-question survey, which broadly suggested that respondents recognise the importance of their leadership on their people and performance.

Survey results also suggest that confidence in leading effectively could be improved and that while respondents understood the importance of key transformational approaches and tools, their use and application of them on-farm could be strengthened.

Respondents also highlight particular areas of challenge for leadership on dairy farms, which are addressed in this paper. Recommendations are also made for individual leaders and for the wider industry as a whole.

Big Potential. Small Blocks: A concept to unlock the production potential held in New Zealand Lifestyle Blocks

Executive Summary

The focus area for this report comprises of 32,000ha surrounding Pukekohe. 13,000ha of which is made up of blocks between 1 – 20ha in size.

How can small blocks be utilized for production without sacrificing lifestyle?

To address this topic, a literature review and a survey were conducted to understand the characteristics of New Zealand small holdings, pressures; land and social and the motivations to production v lifestyle. The key findings are summarised below:

  • Small blocks occupy 10% of New Zealand’s versatile growing land.
  • Owners value rural living, peace and quiet, privacy and a place to raise a family.
  • Small blocks do produce: two thirds produce a little to none; a quarter produce, but not meaningfully; 10% produce significantly.
  • Motivations of small block owners: 48% value lifestyle, 38% value both and production, 14% value production.
  • Small blocks on versatile land are getting smaller from a median of 8ha in 1970 to slightly under 4ha in 2018.
  • The main perception for not producing is because owners deem their block as being too small to generate meaningful income.

Understanding the above, it is suggested that small land holdings are amalgamated to be operated as a larger unit. Four case studies of operators currently doing this successfully were undertaken. These land uses include a regenerative sheep stud, cropping, sheep milking and kiwifruit. The land uses that formed this case study were assessed on the Treasury’s Living Standards Framework.

Based on the preferences of small block owners towards lifestyle and production, this report suggests that 55% of lifestyle would be suited for a split of sheep milking or regenerative sheep grazing, 27% would explore kiwifruit and 18% would explore cropping.

If these assumptions hold true, the lifestyle blocks within the focus area could produce 13 million litres of sheep milk, regeneratively graze 20,000 sheep, draw 60,000 tonnes annually of cropping produce (lettuce, broccoli, corn) and 17 million trays of green and gold kiwifruit.

 

The resilience of New Zealand dairy farm businesses – a post downturn evaluation.

Executive Summary

The NZ dairy sector has a history of innovation, success and development and has grown to support a significant portion of NZ’s total export earnings. Approximately 95% of NZ’s total dairy production is exported to overseas markets. During the 1990’s through to the later part of the 2000’s the sector experienced a significant growth phase resulting in its expansion and intensification. This led to the greater reliance of farming systems on supplementary feed inputs to boost production. This however reduced pasture utilisation and production efficiencies. At the same time, the average level of farm debt also increased, driven by continued sector growth and expansion. The result of these two elements was that NZ dairy farms became more exposed to risk. Between 2014 and 2016, the average farm gate milk price took a dramatic dive resulting in average farm incomes falling below production costs and debt servicing levels for many NZ dairy farm businesses. The downturn period provided an immediate reminder of the correlation between global dairy market volatility and farm gate milk price (i.e. the price farmers received for their milk). The result of this was a critical need for the sector to return its core fundamentals (i.e. a focus on optimising grazing management) to build resilient farm businesses.

This research project sought to determine if NZ dairy businesses have become more resilient following the farm gate milk price downturn period. This was investigated through the analyses of a survey completed by dairy business operators and industry commentators in addition to face-to-face interviews. A total of 107 respondents participated across both surveys. Analysis of the findings showed that most surveyed dairy farmers had responded favourably to the downturn period by seeking to build greater levels of resilience into their farm operations. There has been a shift back to efficient pasture based production systems and greater awareness and understanding of farm financial performance. Despite the greatest risk to farm businesses from downward FGMP movement, there is still a low uptake of price risk management tools being used by the sector.

While this research suggests that NZ dairy farm businesses are likely to be more resilient because of the milk price downturn period, there is still a need to continue building resilience levels through increased production efficiencies (for example maximising pasture utilisation) and a reduction in farm debt. There is a need to foster greater understanding of individual resilient traits in dairy farmers as resilient farmers will be more likely to operate resilient businesses. It is also necessary to support dairy farmers with the use of price risk management tools that can be used to protect their businesses against the risk of downward farm gate milk price movement. Provided dairy farmers maintain a focus on these aspects, the resilience of the NZ dairy sector will continue to grow over time. This will ensure that dairy farmers will be far better placed to deal with any future events of downward farm gate milk price movement making their businesses less exposed to the risk of global dairy market volatility.

 

What a waste: My story

Executive Summary

Doing better with my farm waste was the initial driver for this Kellogg project. I did not like the amount of rubbish I produced, set out to find out more about what I produced and the options I had to do better.

Conducting farmer surveys, a Farmsource workshop, interviews, research, discussions with local councils and chats with rural professionals provided a picture for me about my waste.

I discovered we are in a ‘Linear’- take, make and dispose economy. A system where we take from natural resources to make items we need and then often just throwaway the end by-products.

There is another option. Where I could reduce my waste but also strive towards a “circular economy”. Where we;

  1. Regenerate natural systems
  2. Design out waste and pollution
  3. Keep products and materials in use

During the research, I have discovered options for good practice around waste management. We have the ability to return and recycle many items used on farm that create bulk waste like containers, silage wrap and plastics. However, just less than half of the farmers surveyed used recycling or returning as a way of dealing with waste.

What is not evident that is happening in our sector yet, is the movement towards the circular economy. A goal around the world and with our own Ministry for the Environment on how their countries should or plan to evolve.

However, even bigger than moving to a circular economy is the opportunity to really know ‘our’ numbers in regards to our farming system. Can ‘us – the farmer’ doing better with our use of items and striving towards a circular economy, also result in improving our overall farming system? If we buy better, sell better and make better decisions, can we improve and move towards circularity faster with added benefits like a reduction in emissions? If we develop the concept of Life Cycle Assessment on our farms, can that can help us move towards a circular economy?

My recommendations are that;

  1. Farmers get better educated about the waste hierarchy model with emphasis on the first 4 stages of the 6 stages being reduce/rethink use, keep in use (robust designed to not break/wear out), manufacturer to design out waste or take back waste and reuse/repurpose (stage 5 is to recycle and stage 6 is to dispose e.g. landfill).
  1. Farmers get better educated about the 6 Rs of waste decision making; Refuse, Reduce, Reuse/Repair, Recycle, Rehome and Rot (or compost).
  2. Conversations within the industry start to focus on the Ministry for the Environment’s vision to move towards
  3. The Waste providers better educate their clients (aka farmers throwing rubbish out) about waste and recycling. Tell us the true stories about the ‘why’ we should change our behaviour or use best
  4. The Waste Minimisation Fund targets innovation in the sector (as the number one contributor to the economy) to help deal with waste solutions and support manufacturers to better design
  5. Enforce no burning and burying of items. Almost 40% of farmers surveyed still burn or This might possibly affect our social license to farm. Make it part of on farm plans for farmers to acknowledge their rubbish disposal methods to ensure compliance/reflecting best practice within current limitations.
  6. To turn an agriculture system into a more circular economy we’d need to;
    1. Identify our own farms equivalent of the “Agrocycle” to identify our
    2. Use a minimal amount of external inputs (from the Agrocycle diagram this includes fuels, feeds, chemicals, fertilisers etc (everything around the outside of the green centre)
    3. Close the nutrient (biological and technical) loop.
    4. Reduce negative discharges to the environment (in the form of wastes and emission). 

In addition, there is a real opportunity to put ‘numbers’ on the products we use to help with decision making and The development of more work in Life Cycle Assessment modeling of agriculture use and the production of materials is a big opportunity. This model, “which is a technique to assess environmental impacts associated with all the stages of a product’s life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling” could be a game changer for farmers where we assign real numbers to our impacts, can measure these and strive to reduce these.

The overarching theme to improve in each of the recommendations is to Calculate & Educate.

My project title – ‘What a Waste’ ends with me knowing that if farmers don’t get credit for all their numbers and measure the improvement in their behaviours and practices – that would be a waste.

 

Identifying innovative approaches to succession planning to retain the family farm

Executive Summary

There are too many horror stories out there where family farms have been sold unnecessarily because the succession process becomes too hard. The objective of this project was to find non-standard or innovative ways that people had managed to achieve succession on the family farm and to try to identify common themes or methods that enabled that succession to occur. To get a deeper understanding of this over 20 interviews were completed with farmers and professionals on innovative succession plans they’d been involved with or done.

There are many ways succession can be carried out successfully. From the literature review and interviews, the succession process is a journey which requires flexibility and resilience. There are three key building blocks for a viable succession plan. The parents’ needs are met, there is fairness amongst all children (succeeding and non- succeeding) and there is a business that has long-term viability for the succeeding generation to buy. The key findings were the re-occurring themes that came through from interviews. This is that there are three succession “pillars” which, when added to the key building blocks, can enable innovative solutions. These pillars are communication, clarity and capability. When there is a desire and vision to have an inter-generational business and there is good communication, clarity and capability, over time a family business can progress to where a viable succession plan which has the three building blocks can be enacted.

Recommendations from the findings are as follows:

-Start early. Succession is a journey and the transition of the business assets may take ten or more years. Starting early and thinking about potential future succession will have a positive influence on the business. Setting a framework, working to incorporate skills and having the right structures in place will be hugely beneficial when it is appropriate to start a more formalised and structured succession plan.

-Practice open communication. Where open communication that is respectful is part of everyday life, everyone is aware and informed of the process and knows what is going on.

-Establish clear values. When it is clear how the parents and other family members would like things to be, then common ground can be found. What people want out of life and answering the ‘why’ is key.

-Have clarity of vision. Being clear on the vision for the business and what you are trying to achieve allows everyone involved to commit towards a common goal. The vision may change but having a goal in mind is crucial as it sets the tone and direction of the business.

-Have a clear structure that is fit for purpose. Everyone involved in the succession process needs to understand the ownership structure of the business. It must be fit for purpose in carrying out the succession plan and have flexibility to accommodate any changes in family needs while transferring ownership to the children.

-Build up the capability in the business. The skills needed for operations and management, finances and strategic planning need to be identified. Plans need to be put in place to develop those skills within the business or to fill them with third parties. Having strategic capability and working on the business will help drive performance.

-Engage quality professionals to assist in the succession process. Professionals can get the ball rolling and help formulate the appropriate succession plans for farming families. They can help navigate families through the process and assist in monitoring and tweaking the plan, so it meets the families’ needs.

-Have an open mind. Having an open mind to opportunities and the ability to critically evaluate them is a valuable skill.

Regaining Control of Our Narrative

Executive summary

This research and affiliated report asks the question:

Can New Zealand Dairy farmers re-gain control of their narrative from inside the farm gate?

The dairy industry is New Zealand’s largest good exports sector, contributing 20% of total exports while bringing in $17.1 billion dollars into the New Zealand economy (NZIER, 2018). As dairy has grown in scale, the sector has increasingly become the brunt of social discontent. The current social climate places media platforms in misplaced control of narratives with the growing apprehension stemming mainly from questions around the sustainability and historical poor practice highlighted in the media. The New Zealand Ministry for Primary Industries conducted a study to explore urban and rural New Zealanders’ views of the primary sector and rural New Zealand.

The study, consisting of 1,245 New Zealanders, suggested both groups of respondents, urban and rural, showed a decline in positivity toward farming in general. Since 2008, positive perception of the dairy industry from urban respondents has dropped from 78% to 47%, with rural outlook on the industry dropping from 83% to 50% (Ministry for Primary Industries, 2017). These numbers highlight that collective trust is shifting. This decrease in trust and increase in negative public perception is having huge impacts on our industry inside farm gates filtering into mental health and wellbeing and staff attraction and retention.

Throughout my research, I have utilised cross-industry resources and publications which I have compiled into a literature review and broken down in to main themes. I have compiled information from marketing literature and social media research regarding consumer and market trends with support from psychology and philosophical theories. I have also utilised research from social licence experts which I have followed with case studies. I have used case studies to demonstrate how companies have dealt with consumer trust and the results of individual responses on the associated market. Throughout this research I have dissected two main themes, why consumer demands on New Zealand dairy farms are changing, and how.

My report aims to cover the effect changing values are having on trust in the rural sector and the impact it has on company and industry, it will break down the relationship between narrative and consumer trust and discuss why having control of your narrative is important, and discuss recommendations on how farmers can build trust and empathy; re-gaining control of their narrative from the ground up.

My main findings throughout my report have been:

  1. Change in industry Trust is driven by changing consumer values.
  2. Unconscious decisions affect the uptake of brand strategic narratives.
  3. Misinformation is a key contributor to dairy farmers loss of control over their narrative.

On the basis of my research, my recommendations are as follows

  1. Farmers to develop credibility and authenticity built on results, history and consistency.
  2. Step out of our echo chambers.
  3. Render authentically by humanising the industry.

Support credible, trusted social media platforms.

How can you influence shareholder engagement

Executive Summary

Co-operatives have existed in New Zealand since 1864. Farmers purchase shares in these co-operatives and become shareholders. For many farmers and shareholders this could be the last time that they interact with this co-operative. I have often wondered why shareholders don’t engage with their co-operative when they have invested some of their hard earned money into it. For some shareholders this is a large sum of money invested, yet they have little to know engagement with the co-operative. This led me to thinking, How can you influence shareholder engagement?

Agricultural co-operatives have been operating in New Zealand for nearly 150 years, they are a business model that has lasted. Why are engagement levels decreasing? Where will the next governors of these co-operatives come from if shareholders are not engaged?

With these issues at the fore front of mind I attended the Co-operative Business New Zealand forum and met Directors, Chief Executive Officers and Senior Management from a number of leading New Zealand co-operatives. I then interviewed 4 different co-operatives ranging from less than 500 shareholders through to 10000 plus shareholders to try and gain a greater understanding of how you can influence shareholder engagement.

The key findings that came out of my interviews were

  1. All employees need to understand the co-operatives vision and purpose
  2. Regular communication is required, minimum of monthly newsletters.
  3. Written communication needs to be authentic, not formal speech.
  4. Have the close of election date after the 20th of the month.

Having staff that are highly engaged and understand the vision and purpose of the co-operative is essential as these people are usually the shareholders first interaction with the co-operative. This allows for a base level of engagement to be set.

The recommendations that have come out of my report are that all co-operatives are trying to engage with shareholders. Some are doing well and some are still trying to find the correct methods of engagement. Keep sending out regular newsletters and emails as some form of engagement is better than none.  Be proactive in your approach to engagement, little and often communication is better than sending out a two page document for shareholders to read.

Every co-operative is different and all shareholders have different needs and requirements from their co-operative. “Not one box fits all” works for co-operatives. Shareholder engagement is a long term process. Co-operatives need to keep trying and shareholders need to remain engaged. The key is to keep engaging with shareholders during good times and bad, find innovative ways to engage with shareholders through the use of modern technology and to make the engagement as easy as possible for shareholders to complete.

Can we make stone soup for rural wellbeing

Executive Summary

The fable of Stone Soup tells the tale of a weary stranger arriving at a village.  He convinces the villagers to each contribute an ingredient in order to make a meal for everyone to enjoy.  The weary stranger elaborately makes use of a simple stone as the key ingredient, to start creating the soup, as a catalyst for the village coming together.   As the stranger leaves, the villagers plead for the soup recipe.  It is at this point the stranger reveals they have always had the recipe.  Simply put, it took each of them making a small contribution which ultimately provided a significant result.  The moral of the story is that there is value in collaboration to achieve a better outcome.

The question is – can we make Stone Soup for Rural Wellbeing?

Mental health and wellbeing is a wicked problem for New Zealand.  This report serves to explore if there is sufficient interest within the agricultural sector to pursue a working arrangement, commercial interest’s aside, in collaborating for the betterment of rural wellbeing.

Twenty three interviews were conducted with employees of organisations that have either a retail store presence, mobile employees visiting farmers and growers, or provide membership or professional services to the rural sector.  The discussions identified that the sector is acutely aware of an increasingly poor state of mental wellbeing within our rural communities, and acknowledges this is a growing concern.

Many within the sector are working individually to make a difference by way of providing educational opportunities for their staff and customers, introduction to wellbeing training programmes, providing links to various mental health and wellbeing online resources and inviting different speakers to events and workshops.

By taking a collaborative approach the sector could improve wellbeing within our rural communities.  Working in unison to simplify, standardise and share scientifically proven advice and techniques which are effective for self-wellbeing management, would achieve a much better result.

Farmstrong, as a reputable and established rural wellbeing programme, is proposed as the unifying force bringing the sector together for the purpose of promoting wellbeing in our rural communities.

The main recommendation from this study is that the agricultural sector should unite to agree a framework of working together, with Farmstrong, to effect social change.

Actions resulting from the recommendations include connecting to cement commitment, collating and connecting key contacts, and a program of continuous coaching for regional champions.

A paper is going to the Farmstrong Governance Group as a next step.

Aims & Objectives

The project sought to understand how a selection of the sector currently share wellbeing resources and messaging internally with their employees and externally with their customers, shareholders and industry, as well as the desire to collaborate in order to optimise reach and impact.  Furthermore, the research tested the appetite for a collaborative and consistent development and sharing of Farmstrong materials, research and community engagement as a collective approach to promoting rural wellbeing.

Ultimately, I want this project to be a catalyst for mobilising the sector in a collaborative effort to simplify and standardise messaging to rural communities and reduce duplication, by adopting the Farmstrong voice.  I also want to challenge the sector to truly work together in making a difference for rural wellbeing.

“Alone we can do so little; together we can do so much”
Helen Keller

What is the future for farm compliance in New Zealand

Executive Summary

Compliance and regulation are the two words that make many farmers roll their eyes. The shed-load of rules and regulations to be aware of and act in accordance with are vast and cover aspects such as staff recruitment and employment, health and safety, animal welfare, water and effluent management and more recently, greenhouse gasses.

Many land owners, lessors or managers feel there is more “red tape” attached to farming nowadays which causes a large amount of confusion and general uncertainty around long term production, productivity and profit (Soper, 2019; Stretton 2019). Farming is a multi-facet job with physical and academic requirements, the sheer level of knowledge required to farm at a high level is astounding.

We can be the champion of farm compliance enhancing our competitive advantage and cementing our brand on the world stage. Nutrient management has been the first mover when it comes to recording on farm practices and mitigation, however, there are many more facets to farm compliance and long term success for our agricultural nation. Encompassing all facets of a farm management system while connecting a specific business to a value chain has significant benefits with transparency and traceability. When it comes to market access, compliance can be a powerful tool in terms of retaining our social licence to operate.

“In the future, imagine compliance being easy, valuable, and simply part of everyone’s mindset. The benefits for our loyal and esteemed customers widely recognized and synonymous with brand New Zealand. Farmers leading the regulatory discussion, fulfilling market requirements and supporting economic, social and environmental sustainability for our entire country”.

 In twenty years’ time New Zealand will be a markedly different place. It may still be rich in natural resources, but as a society, we will probably be using these resources in very different ways. Our demographics, population and economy will all have changed markedly. We will continue to face complex issues and trade-offs between conservation of our natural environment and using our natural resources to support our society’s health, well-being and economy.

The focus of this study is on understanding the current compliance challenge for farmers in New Zealand and looking out to the future of farm compliance. The appetite and ambition for a change in compliance is among us as we look to a more holistic view of sustainability and what it means for our future production systems.

Opening gates: Staff attraction and retention on New Zealand’s meat and fibre farms

Executive Summary

This is a research paper into how future employees, current employees and the employers of both, feel about their current situations in their in today’s tight labour market. It is concentrated on the meat and fibre production sector.

The process used for the research below initially involves a literature review from previous Kellogg papers investigating the lack of interest in the primary sectors at a secondary education level. The three papers reviewed present information around the lack of promotion by schools and some misconceptions around the primary industries. It is generally accepted that there needs to be more done to attract people towards the primary industries.

The second part of this research revolves around three surveys. The first is presented to students studying at Lincoln University and as combined with semi-structured interviews with cadets from the Coleridge Downs Cadet School. The second of the surveys targets

employees on New Zealand’s sheep and beef farms. This is circulated via social media along with the third survey, which is directed at employers. The employer survey is also circulated through Beef and Lamb NZ. The employee survey has a large uptake with the other two being disappointing. As with the student survey employee and employer survey were combined with informal interviews to gain greater understanding.

The employee survey results unearth some underlying issues of farm, with an over whelming amount or respondents indicating they have given serious consideration towards leaving the sector. The underlying cause of these thoughts are directed at attaining better work-life balance.

The key conclusions from this report are as follows:

That there is some discontentment from senior management employees as they are considering leaving the sector in search of better work-life balance and in some cases greater financial reward.

Future and present employees have a very good understanding of their career paths along with a short time frame to reach management. This may contribute to reaching a ceiling at an early stage in their careers which may contribute to the above- mentioned discontentment.

Key recommendations from this research are:

Industry bodies need to build and promote an appropriate and current template that is relevantly shaped where processes can be implemented that will assist employers when attracting and retaining staff.

There needs to be more research done into why farm staff are considering leaving the sector.