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12/27/20
18 1
Taki
ng In
vent
ory
of M
anag
emen
t an
d Fi
nanc
ial P
roce
sses
Taki
ng Y
our
Bus
ines
s to
the
Nex
t Lev
elD
ick
Wit
tman
, Wit
tman
Con
sult
ing
1
Agen
da–
Putt
ing
Conc
epts
int
o Pr
acti
ce
▫R
evie
w k
ey e
lem
ents
of g
over
nanc
e &
fina
ncia
l pro
cess
es
▫Sc
ore
your
self
on p
rogr
ess
in im
plem
enta
tion
▫R
e-pr
iori
tize
com
mit
men
t and
pat
hs fo
r kn
owle
dge
build
ing
and
proc
ess
impr
ovem
ent
Rev
iew
Pro
ficie
ncy
Test
& P
roce
ss I
mpr
ovem
ent
Che
cklis
ts…
map
out
pla
n fo
r im
plem
enti
ng c
hang
es!
Fre
e D
own
load
s: w
ww
.wit
tman
con
sult
ing.
com
2
Man
agem
ent S
yste
m/P
erso
nnel
Man
agem
ent P
rofic
ienc
ies
’01
– ’1
7 Ra
nge
AVE
2018
M
issi
on, V
isio
n, V
alue
s de
fined
22
– 5
6 37
30
H
isto
ry d
ocum
ente
d 17
– 5
9 43
47
G
oals
and
Obj
ectiv
es d
ocum
ente
d 13
– 4
4 29
20
O
pera
ting
Plan
and
Cas
hflo
w B
udge
t com
pile
d an
nual
ly
38 –
63
47
44
Stra
tegi
c Pl
an in
pla
ce th
at p
erio
dica
lly a
ddre
sses
stra
tegi
c is
sues
16
– 4
1 29
36
W
ritte
n Jo
b D
escr
iptio
ns/D
ivis
ion
of R
espo
nsib
ility
in p
lace
18
– 4
4 35
38
Pe
rson
nel &
Ope
ratin
g Po
licie
s w
ritte
n &
dist
ribut
ed
18 –
46
33
28
Stan
dard
Ope
ratin
g Pr
oced
ures
doc
umen
ted-
repe
titiv
e du
ties
11 –
41
24
17
Com
pens
atio
n pr
ogra
m m
atch
ed to
mar
ket r
ates
25
– 5
1 39
45
Pe
rform
ance
App
rais
als
done
regu
larly
12
– 3
7 25
22
Pe
rform
ance
Rec
ords
sha
red
regu
larly
- ke
y m
anag
ers,
ow
ners
23
– 5
3 35
20
H
old
regu
lar m
eetin
gs o
f inv
esto
rs, o
wne
rs, s
pous
es
26 –
63
48
47
Use
tech
nolo
gy to
acc
ess
man
agem
ent i
nfor
mat
ion
31 –
79
66
65
Put C
ritic
al A
gree
men
ts in
writ
ing
(buy
outs
, pla
ns, p
olic
ies,
etc
) 24
– 4
9 36
42
Su
rvey
Res
ults
*Pe
rcen
t Ado
ptio
n of
Key
Far
m M
anag
emen
t Pro
ficie
ncie
s
*Sur
veys
adm
inist
ered
to p
artic
ipan
ts o
f TEP
AP P
rogr
am
<1/3
set
goa
ls &
stra
tegi
c pl
ans,
<1/
3% fo
rmal
ize
duty
sta
tem
ents
1/4
do p
erfo
rman
ce a
ppra
isal
s; 4
0% s
hare
reco
rds
regu
larly
20%
hav
e SO
Ps
Fina
ncia
l Man
agem
ent P
rofic
ienc
ies
TEPA
P ‘0
1-‘1
7 AV
E 20
18
Fina
ncia
l rec
ords
upd
ated
and
circ
ulat
ed m
onth
ly
44 –
68
53
45
Bala
nce
shee
ts &
inco
me
stat
emen
ts p
repa
red
annu
ally
(12/
31 b
asis
) 89
– 1
00
96
98
Bala
nce
shee
ts re
flect
cos
t and
mar
ket v
alue
s &
defe
rred
tax
liabi
lity
32 –
75
52
50
Inco
me
stat
emen
ts c
alcu
late
cas
h (ta
x) a
nd a
ccru
al n
et in
com
e 48
– 8
0 65
70
Au
dit s
yste
ms
in p
lace
to a
ssur
e fin
anci
al s
tate
men
t int
egrit
y 36
– 7
3 59
55
Pr
ofit
and
Cos
t Cen
ter p
erfo
rman
ce is
trac
ked
on a
t lea
st a
nnua
l bas
is
30 –
60
46
42
Budg
et P
roje
ctio
ns a
nd P
erfo
rman
ce re
ports
are
use
d re
gula
rly
38 –
58
50
48
Fiel
d or
live
stoc
k re
cord
s co
mpl
ete
and
acce
ssib
le to
uni
t man
ager
s 49
– 7
0 59
68
Ke
y pe
rform
ance
mea
sure
s (ra
tios)
revi
ewed
at l
east
ann
ually
13
– 4
3 28
18
Po
licie
s fo
r ow
ner i
nves
tmen
ts a
nd w
ithdr
awal
s de
fined
and
follo
wed
7
– 28
18
21
Po
licie
s fo
r div
idin
g ea
rnin
gs (o
wne
rs v
s la
bor/m
gmt)
clea
rly d
efin
ed
9 –
39
25
21
Cap
ital I
nves
tmen
t Ana
lysi
s to
ols
unde
rsto
od &
acc
essi
ble
25 –
49
34
30
Parti
al B
udge
t tec
hniq
ues
unde
rsto
od a
nd u
tiliz
ed re
gula
rly
29 –
48
38
29
ON
LY 1
/2 d
o ca
shflo
w b
udge
ts &
trac
k pr
ofit/
cost
cen
ters
…1/
4 tra
ck k
ey ra
tios
< 1/
5 ha
ve p
olic
y fo
r div
idin
g ea
rnin
gs &
with
draw
ing
capi
tal
Surv
ey R
esul
tsPe
rcen
t Ado
ptio
n of
Key
Far
m M
anag
emen
t Pro
ficie
ncie
s
12/27/20
18 2
Mar
ketin
g an
d R
isk
Man
agem
ent P
rofic
ienc
ies
TEPA
P Pa
rtici
pant
s AV
E 20
18
Inve
ntor
y to
mar
ket i
s de
fined
wel
l in
adva
nce
of
mar
ketin
g 56
– 8
5 71
53
Mar
ket T
arge
ts a
re e
stab
lishe
d ba
sed
on k
now
n Br
eak
Even
Poi
nt, C
ost o
f Pro
duct
ion,
& C
ash
Flow
requ
irem
ents
44 –
75
57
72
Forw
ard
cont
ract
s, h
edgi
ng, a
nd o
ptio
n to
ols
are
unde
rsto
od &
util
ized
regu
larly
54
– 8
2 68
62
Cro
p In
sura
nce
prov
ides
bal
ance
d pr
otec
tion-
ha
il, fi
re, a
ll ris
k 67
– 9
6 82
83
Liab
ility
insu
ranc
e co
vers
bal
ance
of r
isks
–
liabi
lity,
hea
lth, e
nviro
nmen
tal e
xpos
ures
75
– 9
7 86
85
Alm
ost 1
/2 m
arke
t pro
duct
ion
with
no
idea
of p
rodu
ctio
n co
st!
Wou
ld y
ou lo
an m
oney
or i
nves
t in
an in
dust
ry th
at g
ets
a flu
nkin
g gr
ade
in c
ore
man
agem
ent p
rofic
ienc
ies?
Surv
ey R
esul
tsPe
rcen
t Ado
ptio
n of
Key
Far
m M
anag
emen
t Pro
ficie
ncie
s
Job
Des
crip
tion
s
Str
ateg
ic P
lan
s
SO
Ps
Pol
icie
sMan
agem
ent
Sys
tem
Mis
sion
Bu
dge
ts
Per
form
ance
Eva
luat
ion
s
Con
trol
Sys
tem
s
Rat
io A
nal
ysis
Wh
at is
a M
anag
emen
t Au
dit
? (T
EP
AP
alu
m s
tory
)
Tod
ay w
e’ll
pu
t ou
r “M
anag
emen
t En
gin
e” in
the
shed
for
a ch
eck-
up
!6
Repo
rt C
ard
Scor
ing
Prot
ocol
–Se
e H
ando
ut•
Is b
est m
anag
emen
t pra
ctic
e in
pla
ce?
–Y/
N▫
If a
nsw
er is
YE
S –
H
ow a
ffec
ting
pro
fess
iona
l clim
ate
or c
ultu
re
Wha
t str
ateg
ies
help
ed y
ou g
et th
is in
pla
ce▫
If a
nsw
er is
NO
–
Obs
tacl
es k
eepi
ng y
ou fr
om fi
nish
line
O
ppor
tuni
ties
for
your
bus
ines
s if
impl
emen
ted
•To
pic
spec
ific
issu
es –
uniq
ue to
eac
h be
st
man
agem
ent p
ract
ice
7
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
8
12/27/20
18 3
Mis
sion
and
Cor
e Va
lue
Stat
emen
ts
•On
ly 3
3% o
f ag
busin
esse
s de
fine
this!
•Co
nseq
uenc
es:
Team
can
’t ag
ree/
focu
s on
:▫
Miss
ion
–bu
sines
s pr
oduc
t or s
ervi
ce, p
rimar
y cu
stom
er &
key
obj
ectiv
e▫
Visio
n–
end
poin
t if y
ou s
ucce
ed▫
Valu
es &
Phi
loso
phy
–gr
ound
rule
s
•Pu
t in
writ
ing
and
post
visi
bly
on fa
rm
9
Wit
tman
Far
ms
Mis
sion
Sta
tem
ent
Prod
uce
high
qua
lity
grai
n, li
vest
ock,
ti
mbe
r an
d re
crea
tion
for
U.S
. and
fo
reig
n cu
stom
ers
assu
ring
:
•fa
ir r
ate
of r
etur
non
inve
sted
res
ourc
es
•sa
fe a
ndfu
lfilli
ng e
nvir
onm
ent t
o w
ork
and
live
•su
stai
nabl
e in
com
efo
r fu
ture
gen
erat
ions
.
10
Our
Vis
ion
Our
Mis
sion
Will
Be
Acc
ompl
ishe
d W
hen…
•C
ompl
ete
care
ers
wit
h fin
anci
al s
ecur
ity
and
valu
e ou
r fa
mily
and
bus
ines
s as
soci
atio
ns
•Th
e bu
sine
ss g
row
s, a
dapt
s, a
nd r
emai
ns
finan
cial
ly v
iabl
e
•C
apab
le s
ucce
ssor
s ar
e ca
rryi
ng o
n ou
r he
rita
ge
Sh
ould
this
be
ever
ybod
y’s
goal
Stor
y: fa
ther
& 2
son
s
Wh
at’s
you
r ex
it p
lan
?11
Ope
rati
ng P
hilo
soph
y/Co
re V
alue
s St
atem
ent
(exc
erpt
s)
•St
rive
for
exce
llenc
e•
Be
earl
y ad
apte
rs•
Com
mit
ted
to p
rofe
ssio
nal
man
agem
ent
•O
pen
and
prof
essi
onal
co
mm
unic
atio
n•
Env
iron
men
tally
con
scio
us
met
hods
•Q
ualit
y re
cord
s op
enly
sha
red
12
12/27/20
18 4
Com
mon
Con
flic
ts –
Core
Val
ues
•A
lway
s be
lead
ing
edge
…▫
“If a
in’t
brok
e, d
on’t
fix it
”•
Max
imiz
e pr
ofit
s (l
ive
for
toda
y)▫
Max
imiz
e lo
ng-t
erm
eco
nom
ic a
nd e
nvir
onm
enta
l sus
tain
abili
ty
(liv
e fo
r to
mor
row
)•
God
& fa
mily
firs
t▫
Bus
ines
s fir
st; G
od a
nd fa
mily
can
wai
t•
Prof
essi
onal
ism
alw
ays
expe
cted
▫Pr
ofes
sion
alis
m O
K w
hen
I’m “
in th
e m
ood”
•E
very
body
sho
uld
be e
qual
–“E
ntit
lem
ent r
ules
!”▫
Pay
and
posi
tion
sho
uld
be b
ased
on
skill
s an
d pe
rfor
man
ce
13
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
14
Why
Far
mer
s Do
n’t
Hav
e Ti
me
to F
arm
!
•Pr
oduc
tion
Pla
nnin
g•
Mar
keti
ng P
lann
ing
–73
%•
Fina
ncia
l Pla
nnin
g•
Con
ting
ency
Pla
nnin
g•
Stra
tegi
c Pl
anni
ng -
19%
•M
anpo
wer
Pla
nnin
g•
Succ
essi
on P
lann
ing
•R
etir
emen
t Pla
nnin
g•
Fam
ily P
lann
ing
15
“Sim
plif
y” P
lann
ing
and
Und
erst
and
“Int
er-R
elat
ions
hips
”
•O
pera
tion
al o
r an
nual
pla
nnin
g▫
Prod
ucti
on P
lan
▫M
arke
ting
Pla
n▫
Cap
ital
pur
chas
es a
nd s
ales
▫D
ebt f
inan
cing
arr
ange
men
ts•
Stra
tegi
cor
long
ran
ge p
lann
ing
16
12/27/20
18 5
Oper
atin
g Pl
an -
“Wha
t We
Do”
Stra
tegi
c Pl
an“H
ow w
e do
it”
Prod
uctio
n
Mar
ketin
gFi
nanc
ing
Capi
tal P
lan
Grow
th
Succ
essio
nPl
anni
ng
Valu
e-Ad
ded Stra
tegi
cAl
lianc
es
Tilla
geSy
stem
Dive
rsifi
catio
n
Crop
Rota
tion
Busin
ess
Stru
ctur
e
Envir
onm
enta
lSt
ewar
dshi
p
WF
Vers
ion-
Mike
Boe
hlje
Stra
tegi
c Th
inkin
g M
odel
Visio
nLo
ng R
ange
Obje
ctive
sSh
ort-t
erm
Goa
ls Actio
n Pl
ans
KRAs
Evalu
ate
Budg
et
Miss
ion
Quali
ty o
f Life
Tech
nolo
gyAd
optio
n
How
man
y ot
her b
lock
s ar
e af
fect
ed?
Gene
tics17
WF
Stra
tegi
c Pl
an
Stra
tegi
c Pl
anni
ng F
ram
ewor
k -
WF
•R
evie
w m
issi
on, v
isio
n &
val
ues
•E
nvir
onm
enta
l ass
essm
ent
•Fi
nanc
ial r
evie
w•
SWO
T an
alys
is/u
pdat
e/re
-pri
orit
izat
ion
•O
pera
tion
al (S
easo
nal)
Pla
nnin
g R
evie
w▫
Cro
p, li
vest
ock
▫R
epai
rs &
Rep
lace
men
t–M
&E
, Bld
gPr
ojec
ts▫
Con
serv
atio
n•
Stra
tegi
c Is
sues
Dis
cuss
ion
18
Stra
tegi
c Is
sues
-Di
scus
sion
Tem
plat
e
•St
rate
gic
topi
c•
Cur
rent
sit
uati
on, o
ptio
ns a
nd p
oten
tial
impa
ct
on fu
ture
per
form
ance
(DuP
ont M
odel
)•
Long
ran
ge o
bjec
tive
s•
Stra
tegi
c sh
ift/f
ocus
nex
t 1-2
yea
rs•
Act
ion
plan
for
stra
tegi
c sh
ift▫
Prim
ary
part
y re
spon
sibl
e fo
r le
adin
g ac
tion
pla
n▫
Targ
et d
ates
for
impl
emen
tati
on▫
Res
ourc
e co
mm
itm
ent:
fina
ncia
l, pe
ople
, cap
ital
•Pr
ogre
ss m
onit
orin
g an
d re
port
ing
19
WF
Stra
tegi
c Is
sues
•
Gro
wth
–la
nd p
urch
ase/
leas
e pr
ospe
cts
•E
nter
pris
e m
ix a
nd r
e-di
rect
ion
•C
attl
e, h
unti
ng, t
imbe
r st
rate
gic
appr
oach
es•
Stra
tegi
c al
lianc
es, j
oint
ven
ture
s &
cus
tom
wor
k•
Stew
ards
hip,
con
serv
atio
n, w
orke
r sa
fety
•R
isk
man
agem
ent,
insu
ranc
e st
rate
gic
appr
oach
•A
dmin
istr
ativ
e/G
over
nanc
e/Tr
ansi
tion
▫O
rg c
hart
s, jo
b ro
les,
com
pens
atio
n, s
taff
ing
▫M
anag
emen
t suc
cess
ion/
lead
ersh
ip d
evel
opm
ent
▫O
wne
rshi
p tr
ansi
tion
, bus
ines
s bu
yout
s &
exi
ts▫
Qua
lity
of li
fe
20
WF
Stra
tegi
c Pl
an
12/27/20
18 6
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
21
Who
sho
uld
be o
n th
e bu
s, a
nd w
here
do
the
y si
t? G
ood
to G
reat
by
Jim
Col
lins
•H
ow a
re y
ou o
rgan
ized
toda
y?•
Wha
t will
org
aniz
atio
n lo
ok a
fter
tran
siti
on?
•C
rite
ria
be fo
r fil
ling
“vac
ant s
lots
”?▫
Skill
s, a
bilit
ies,
pas
sion
vs.
“I’m
fam
ily; I
’m o
wed
a jo
b”•
How
do
you
pass
the
bato
n?▫
Dut
y st
atem
ents
rev
iew
, tim
etab
les
for
tran
siti
on,
appr
enti
cesh
ips,
OJ
trai
ning
•H
ow d
oes
old
guar
d ge
t out
of t
he w
ay?
▫B
oard
cha
irm
an v
s. C
EO
(“bo
ss”)
22
Wha
t do
es y
our
orga
niza
tion
al s
truc
ture
look
like
?23
Hav
e yo
u tr
ied
this
at h
ome?
Specialty
En
terpris
es
Man
ager
Pres/G
en M
grFina
nce, M
ktg
Crop
s Prod
uctio
n Man
ager
Equipm
ent
Supp
ort
Man
ager
Cattle &
Hun
ting
Man
ager
Board of Dire
ctors
Policy, M
anag
emen
t Dire
ction, Owne
r ROE &
Fina
ncial Con
trol
AsstMgr
Bldg
Improvem
ents and
Re
ntals
Season
al Poo
lTo
m, D
ick, Suzie
Harry, Sam
& Glend
a
Advisory
Board*
*Adv
isory Bo
ard
Insurance Ag
ent Investmen
t Adviso
rLoan
Officer M
arketin
g Ad
visor
Crop
Scout
Accoun
tant
Attorney
Cattle Breed
ing Ad
visor
Forester W
ildlife Expe
rtPe
er Boa
rd‐Clea
rwater Dire
ct See
ders
Doe
s structure re
flect autho
rity &
accoun
tability flo
ws?
Board
Man
agem
ent
Respon
sibility Cen
ter M
grs
The Missing
Pieces
Office Staff
24
12/27/20
18 7
Is c
aree
r p
ath
ap
par
ent?25
Role
of
Boar
d of
Dir
ecto
rs•
Sett
ing
Polic
ies
•D
eter
min
ing
stra
tegi
c di
rect
ion
•H
irin
g, d
irec
ting
, eva
luat
ion
& c
ompe
nsat
ing
man
agem
ent
•M
aint
aini
ng fi
nanc
ial c
ontr
ol▫
Rev
iew
ing
perf
orm
ance
▫E
xerc
isin
g “d
ue d
ilige
nce”
26
Job
Desc
ript
ion
–Bo
ard
Chai
rman
•Po
licy
revi
ew a
nd r
efin
emen
t•
Inve
stm
ent a
naly
sis
•St
rate
gic
plan
ning
•H
irin
g, c
oach
ing,
gro
omin
g su
cces
sors
•Pe
rfor
man
ce r
evie
w a
nd fe
edba
ck•
“Ass
isti
ng”
and
“ad
visi
ng”
succ
esso
rs in
day
-to-
day
oper
atio
ns w
itho
ut te
lling
them
wha
t to
do
27
Advi
sors
Can
Pla
y U
sefu
l Rol
es•
Def
inin
g bo
ard
rol
es•
Sett
ing
com
pen
sati
on–
boar
d, C
EO
, “B
lood
fam
ily”
•S
trat
egic
pla
nn
ing
•O
wn
ersh
ip tr
ansf
ers
(cap
ital
inje
ctio
ns/w
ithd
raw
als)
•G
etti
ng in
com
pat
ible
pla
yers
“off
the
bus”
•C
ham
pio
n fo
r “d
isen
fran
chis
ed”
owne
rs•
Gu
idin
g fi
nan
cial
an
alys
isdi
scus
sion
s•
Ru
nn
ing
effe
ctiv
e m
eeti
ngs
—bo
ard,
fam
ily c
ounc
il•
Tra
nsi
tion
ing
man
agem
entd
utie
s•
Soun
ding
boa
rd fo
r fa
mil
y co
nfl
ict i
ssu
es
28
12/27/20
18 8
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
29
Are
Polic
ies
Wri
tten
Dow
n?…
Com
mon
“La
nd M
ines
”
•H
ousi
ng
•C
ompa
ny v
ehic
les
•R
oom
and
boa
rd
•E
xpen
se a
ccou
nts
•Se
ttin
g co
mpe
nsat
ion
•W
ithd
raw
als
of c
apit
al
•In
side
r/in
ter-
enti
ty
tran
sact
ions
•Fa
mily
Em
ploy
men
t Pol
icy
•M
edic
al b
enef
its
•R
etir
emen
t pla
ns/p
ensi
ons
•B
usin
ess
bene
fit c
onti
nuat
ion
•W
orkd
ays
and
holid
ays
•V
acat
ions
, sic
k, b
usin
ess
leav
e
•B
uyou
t Und
erst
andi
ngs
•O
utsi
de a
ctiv
itie
s
36%
do!
Ask ea
ch m
embe
r of farm m
anagem
ent tea
m to
write do
wn
unde
rstand
ings…then
com
pare notes. (see Que
stionn
aire)
Ask ea
ch m
embe
r of farm m
anagem
ent tea
m to
write do
wn
unde
rstand
ings…then
com
pare notes. (see Que
stionn
aire) 30
Why
Doc
umen
t Po
licie
s•
Form
s co
nsen
sus
on p
ract
ices
to b
e fo
llow
ed•
Com
mun
icat
ion
vehi
cle
for
part
ners
& e
xten
ded
fam
ilies
•Im
prov
esjo
b sa
tisf
acti
on &
team
wor
k•
Prov
ides
bas
is fo
r pr
ofes
sion
al r
evie
w &
en
hanc
emen
t rev
isio
ns
31
Com
pens
atio
n Su
mm
ary
Nam
e:Jo
e O
wner
-Ope
rato
rYe
ar:
2000
Perio
d R
ate/
Mo
No
Mos
.Ye
arly
Tot
alSa
lary
Nov
-Feb
$2,0
00B
ase
12$2
4,00
0.00
Rat
e/H
rH
rs/M
oW
ages
Mar
-Oct
$0.0
025
00
$0.0
0
Cas
h Sa
lary
& W
ages
Sub
tota
l:$2
4,00
0.00
Soci
al S
ecur
ity B
enef
it - %
Rat
e:7.
65%
$1,8
36.0
0R
ate/
Mo
Hou
sing
$1,0
00.0
012
$12,
000.
00U
tiliti
es -
Pow
er, P
hone
,etc
$300
.00
12$3
,600
.00
Mea
l Allo
wan
ce, G
roce
ries
270
days
@ $
6.00
/day
$1,6
20.0
0B
eef,
Farm
Pro
duce
1/2
beef
- 35
0# @
$1.4
0/lb
$490
.00
Oth
er-
$0.0
012
$0.0
0M
edic
al In
sura
nce
$450
.00
12$5
,400
.00
Unc
over
ed M
edic
al R
eim
burs
emen
t$4
,000
.00
Oth
er-
Com
mut
ing
Pick
up$3
,000
.00
Oth
er- A
uto
Insu
ranc
e, g
as, m
aint
.- S
pous
e &
chi
ldre
n$4
,000
.00
Oth
er-
____
____
_
T
otal
Wag
e an
d B
enef
its V
alue
$55,
946.
00B
onus
- Bas
ed o
n Ye
aren
d R
esul
ts$2
,500
.00
Ret
irem
ent C
ontri
butio
n @
7%$1
,680
.00
Tot
al C
ompe
nsat
ion:
$60,
126.
00
32
12/27/20
18 9
Surv
ey R
esul
ts –
TEPA
P 20
16M
edia
n‘0
3-’1
520
16
Tota
l Val
ue o
f Com
pens
atio
n$7
2,81
6$1
12,5
10
Tota
l Non
-Tax
able
Com
pens
atio
n$1
7,21
1$2
4,46
0
Est
# D
ays
Wor
ked
Per
Year
299
300
Est
# H
ours
Wor
ked
Per
Year
2,92
128
00
Tota
l Pre
-Tax
Sal
ary/
Wag
eE
quiv
*$8
4,07
1$1
26,2
69
Per
Day
Per
Hou
r
Tota
l Far
m P
acka
ge V
alue
$249
$375
$25.
57$4
0.18
Pre-
Tax
Wag
e E
quiv
alen
t$2
84$4
21$2
9.11
$45.
10
*At 3
6% ta
x ra
te
Fam
ily E
mpl
oym
ent
Polic
y•
Com
pone
nts
to k
eep
prof
essi
onal
ism
in th
e fa
mily
bus
ines
s▫
Vac
ancy
req
uire
men
t & s
kills
req
uire
d be
fore
hir
ing
▫E
cono
mic
cap
acit
y an
alys
is to
sup
port
hir
e▫
Prio
r ex
peri
ence
/tra
inin
g re
quir
ed; a
ppre
ntic
eshi
ps▫
Supe
rvis
ion
and
repo
rtin
g re
lati
onsh
ips/
nepo
tism
rul
es▫
Con
sult
atio
n of
sta
keho
lder
s re
quir
ed b
efor
e hi
re▫
Cor
rela
ting
com
pens
atio
n/bo
nuse
s w
ith
resp
onsi
bilit
y an
d pe
rfor
man
ce▫
Mer
it v
s. p
ater
nalis
m a
s cr
iter
ia fo
r hi
ring
and
adv
ance
men
t▫
Avo
idin
g di
scri
min
atio
n -f
amily
vs.
non
-fam
ily
empl
oyee
s/ow
ners
▫Po
licie
s on
pre
-nup
tial
s
“…Po
licy
befo
reth
e ne
ed”
34
Fam
ily B
usin
ess
Inve
stm
ent
and
Equi
ty
Wit
hdra
wal
Pol
icy
Com
pone
nts
of P
olic
y▫
Who
is w
elco
me
to in
vest
in fa
rm/r
anch
?▫
Wai
ting
per
iod
to b
ecom
e an
inve
stor
?▫
Shou
ld e
very
one
be e
qual
?▫
Min
imum
cap
ital
to le
ave
inve
sted
?“C
an
I e
ver
get
m
y m
oney
ou
t?”
▫Is
rev
enue
sha
ring
tied
to o
wne
rshi
p ra
tios
?▫
Com
pens
atio
n fo
r ex
cess
bal
ance
s?▫
Who
mon
itor
s ca
pita
l bal
ance
com
plia
nce
wit
h le
gal
agre
emen
ts?
Stor
ies…
Aus
tral
ian
& M
onta
na p
artn
ersh
ips
(See
Wit
tman
Gui
debo
ok –
Cha
pter
6 –
Sam
ple
Tem
plat
es)
35
Disc
ussi
on:
Role
of
Prof
essi
onal
Adv
isor
in
Inte
rpre
ting
K-1
s
•C
riti
cal i
ssue
in g
ener
al p
artn
ersh
ips
•W
hat i
s SO
P fo
r re
view
ing
K-1
cap
ital
acc
ount
s w
ith
clie
nts?
•Si
gnifi
canc
e of
cap
ital
acc
ount
bal
ance
?▫
Wit
h ac
crua
l bas
ed in
com
e ta
x sy
stem
s?▫
Wit
h ca
sh b
ased
sys
tem
s w
ith
sign
ifica
nt d
efer
red
inco
me?
36
12/27/20
18 10
Sam
ple
Polic
y -
Capi
tal I
nves
tmen
t (or
Ret
aine
d Ea
rnin
gs)
and
Capi
tal
With
draw
als
–(P
artn
ersh
ips
and
Sub
S Co
rpor
atio
ns)
The
amou
nt o
f cap
ital p
rovi
ded
by e
ach
capi
tal p
rovi
der i
s a
key
com
pone
nt in
det
erm
inin
g ho
w n
et re
venu
e of
the
busin
ess
will
be s
hare
d am
ong
owne
rs o
r risk
take
rs.
The
partn
ers,
join
t mem
bers
, or s
tock
hold
ers
prov
idin
g ca
pita
l sha
ll es
tabl
ish a
t lea
st a
nnua
lly
a co
mm
on a
gree
men
t on
the
base
leve
l of c
apita
l eac
h ca
pita
l pro
vide
r is
expe
cted
to
keep
inve
sted
in th
e jo
int o
pera
tion.
Thi
s ba
se le
vel w
ill be
est
ablis
hed
givi
ng
cons
ider
atio
n to
:
Min
imum
fina
ncia
l con
stra
ints
or o
bjec
tives
(i.e
. tar
gets
for w
orki
ng c
apita
l lev
el, d
ebt t
o eq
uity
ratio
, and
bor
row
ing
rese
rves
)Ne
eds
of th
e bu
sines
s to
fund
futu
re g
row
thRa
tio o
f ow
ners
hip
each
cap
ital p
rovi
der w
ishes
to m
aint
ain
for f
utur
e re
venu
e sh
arin
g.
An a
naly
sis o
f cap
ital a
ccou
nt b
alan
ces
will
be d
one
follo
win
g fin
al d
raw
s fo
r tax
pur
pose
s on
Apr
il 15
ann
ually
. Ca
pita
l pro
vide
rs c
an w
ithdr
aw e
xces
s ca
pita
l for
per
sona
l liv
ing
and
tax
paym
ents
, out
side
inve
stm
ents
, or o
ther
nee
ds.
Exce
ss fu
nds
can
also
be
loan
ed to
th
e jo
int o
pera
tion
at a
mar
ket r
ate
of in
tere
st.
If a
capi
tal p
rovi
der c
anno
t mai
ntai
n a
targ
et c
apita
l sha
re le
vel a
fter a
n ex
tend
ed s
horta
ge
situa
tion,
the
partn
ers
will
re-e
valu
ate
the
at-ri
sk c
apita
l res
ourc
es p
rovi
ded
and
adju
st
the
reve
nue
shar
ing
arra
ngem
ent t
o re
flect
the
chan
ge in
cap
ital c
ontri
butio
n le
vel.
37
SOPs
and
GAP
s30
% ha
ve t
hese
•N
ot s
omet
hing
new
! •
Purp
ose:
guid
ance
doc
umen
ts fo
r re
peti
tiou
s or
ro
utin
e jo
bs▫
Trai
ning
tool
–ne
w h
ires
▫Le
vera
ges
com
mun
icat
ion
for
mul
tipl
e em
ploy
ees
▫A
ssur
es jo
bs a
re d
one
follo
win
g B
MPs
, GA
Ps▫
Incr
ease
s sa
fety
& lo
wer
s co
st o
f pro
duct
ion
▫B
asel
ine
for
mea
suri
ng jo
b pe
rfor
man
ce, a
udit
ing
▫B
ON
US:
Val
ue A
dded
Rev
enue
(ISO
9000
, Foo
d A
llian
ce)38
Com
mon
App
licat
ions
of
SOPs
•E
quip
men
t ser
vici
ng a
nd o
pera
ting
inst
ruct
ions
•C
rop
agro
nom
ic a
nd h
arve
st p
roce
dure
s•
Farm
saf
ety
guid
elin
es•
Food
saf
ety
prac
tice
s•
Her
d he
alth
pro
cedu
res
•O
ffic
e fu
ncti
ons
•St
ock
hand
ling
proc
edur
es
39
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
40
12/27/20
18 11
Com
mun
icat
ion
Syst
ems
Do
you:
•A
gree
on
rule
s fo
r co
mm
unic
atin
g pr
ofes
sion
ally
?
•In
vest
in u
nder
stan
ding
pe
rson
alit
y st
yles
? P
oll G
rou
p
•Sh
are
reco
rds
open
ly?
40
%•
Hol
d R
egul
ar M
eeti
ngs
–St
aff,
Mgm
t, O
wne
rs, F
amily
? 4
2%
•D
ocum
enta
tion
key
un
ders
tand
ings
? 31
%
41
Wha
t’s
your
DiS
Cdi
men
sion
?
42
Com
mun
icat
ion
& L
eade
rshi
p St
yle
Tool
s
•M
yers
-Bri
ggs
•D
iSC
•K
olbe
•St
reng
thsF
inde
r2.
0•
Col
orC
ode
“Mee
ting
cul
ture
” in
you
r bu
sine
ss?
•St
aff m
eeti
ngs
•M
anag
emen
t mee
ting
s•
Ow
ner
boar
d m
eeti
ngs
•A
dvis
ory
boar
d m
eeti
ngs
•Fa
mily
mee
ting
s•
Fam
ily c
ounc
il m
eeti
ngs
44
12/27/20
18 12
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
45
Man
agem
ent
Cont
rol S
yste
m
Key
Elem
ents
•C
ompr
ehen
sive
Fina
ncia
l Rec
ord
Rev
iew
Pr
oces
s•
Reg
ular
Perf
orm
ance
Rev
iew
s –
Indi
vidu
al &
Fa
rm B
usin
ess
•O
ngoi
ngTr
aini
ng &
Pro
fess
iona
l Dev
elop
men
t•
Use
of O
utsi
de A
dvis
ers
•G
ood
audi
t and
inte
rnal
con
trol
sys
tem
s
46
“We
man
age
wha
t we
mea
sure
.”“P
eopl
e do
wha
t is
INSP
ECTE
D, n
ot w
hat i
s EX
PECT
ED!”
Elem
ents
of
Goo
d Re
cord
s•
Ope
n to
all
(…ar
e yo
u ki
ddin
g”)
•C
ircu
late
d to
key
mem
bers
mon
thly
•Ye
ar e
nd s
tate
men
ts (5
yrs
)go
bey
ond
tax
info
:▫
Cas
h vs
. acc
rual
66
% a
dop
tion
▫C
ost a
nd m
arke
t val
ue b
alan
ce s
heet
s; d
efer
red
taxe
s6
1%▫
Prof
it &
cos
t cen
ter
anal
ysis
–M
anag
eria
l Acc
ount
ing
Rep
orts
46%
▫K
ey r
atio
cal
cula
tion
s -“
swee
t 16”
( FF
SC)
27%
47
Liqu
idity
-WC
Solv
ency
-D/A
Deb
t Ser
vice
Capa
city
ATR,
OPM
ROE,
RO
A
48
12/27/20
18 13
Shar
ing
Fina
ncia
ls w
ith
Succ
esso
rs
•D
o yo
u un
ders
tand
you
r w
ealt
h po
siti
on?
▫C
ost a
nd m
arke
t bas
is; d
efer
red
tax,
etc
.
•H
ave
you
shar
ed y
our
posi
tion
wit
h su
cces
sors
?
▫If
yes
, how
did
it g
o?
▫If
no,
wha
t are
you
r fe
ars?
•St
orie
s of
suc
cess
ful a
ttem
pts…
49
Shar
ing
His
tory
wit
h Su
cces
sors
•D
o yo
u ha
ve th
is w
ritt
en?
▫K
ey e
vent
s an
d ti
mel
ines
that
sha
ped
your
bus
ines
s jo
urne
y▫
Ow
ners
hip
evol
utio
n▫
Key
pla
yers
that
hav
e co
me
and
gone
▫“S
kele
tons
”•
Val
ue in
suc
cess
ion
plan
ning
pro
cess
▫D
efin
ing
your
“le
gacy
”▫
Bri
efin
g do
cum
ent f
or o
utsi
ders
50
Are
Key
Prin
cipa
ls E
valu
ated
?Ca
n pr
ofes
sion
al f
eedb
ack
chan
ge b
ehav
ior?
??
•D
evel
op in
nova
tive
sys
tem
that
fits
you
r bu
sine
ss
•Se
t per
form
ance
sta
ndar
ds ti
ed to
job
desc
ript
ion
•U
se d
isci
plin
ed p
roce
ss o
n re
gula
r ba
sis
▫A
nybo
dy e
xem
pt?
(Bos
s, fa
mily
?)
•B
alan
ce p
rais
e &
cri
tici
sm
•Su
cces
sion
cha
lleng
e:
▫Tr
ansf
er fr
om P
AR
EN
TIN
G
▫To
men
tor,
coa
ch, s
uper
viso
r
51
The
‘5 L
ists
’ Te
chni
que
Adap
ted
from
Dr.
Greg
ory
Billik
opfm
odel
Labo
r Man
agem
ent F
arm
Adv
isor,
Univ.
of C
alif
Em
ploy
ee a
nd S
uper
viso
r ea
ch m
ake
a lis
t:
•W
hat s
tren
gths
do
you
brin
g to
this
ope
rati
on?
•In
wha
t are
as d
o yo
une
ed to
impr
ove?
•W
hat c
an I
(sup
ervi
sor)
do
to h
elp
you
do a
be
tter
job?
(Em
ploy
ee &
sup
ervi
sor
com
pare
list
) •
Wha
t per
sona
l dev
elop
ste
ps w
ill y
outa
ke to
im
prov
e pe
rfor
man
ce a
nd s
kills
?•
Wha
t are
you
r ke
y go
als
for
the
com
ing
year
?
52
12/27/20
18 14
Establish
Miss
ion, Vision
, Core Va
lues
Organ
ize/D
ivide
Respon
sibility
Commun
icate &
Coordina
te Effo
rts
Mea
sure
Performan
ce
Plan
Implem
ent
Plan
Establish
Con
trols
Adjust Plan
Man
agem
ent
System
Mod
elSet P
olicies
& SOPs
Doe
s go
vern
ance
pro
cess
nee
d “
pro
fess
ion
aliz
ing”
?53
Our
Fut
ure
54
Succ
essi
on P
lann
ing
is a
jour
ney…
.not
a d
esti
nati
on!
Tim
e fo
r Q
uest
ions
Furth
er In
form
atio
n: w
ww.
witt
man
cons
ultin
g.co
m
Free
reso
urce
dow
nloa
ds
Gui
debo
ok/D
VD o
rder
form
Se
min
ars
& C
onsu
ltant
Tra
inin
g in
form
atio
n
55
