Succession Success with Response Consulting Australia and Systems Agriculture - Booklet

Succession SuccessFuture Proofing Your Family Business

Succession SuccessPrepared for:Jim GeltchChief Executive OfficerNuffield AustraliaPrepared by:Andrew Moore, Response Consulting Australia Roderick Glass, Systems AgricultureM: 0418 983194 M: 0418 115 793E: [email protected] E:[email protected]/1/2016© Systems AgricultureWhile reasonable care has been taken in preparing this document, the authors provide no warranties and make no representations that theinformation contained in the document is correct, complete or reliable. The authors expressly disclaim liability for any loss, however caused,whether due to negligence or otherwise arising from the use of or reliance on the information contained in this document by any person.15 Mar 15 Commercial-in-Confidence

Contents 41 VALUE PROPOSITION 52 FACILITATING SUCCESSION 6 63 UNDERPINNING SKILLS AND KNOWLEDGE 7 3.1 ADVANCED DIPLOMA OF AGRIBUSINESS 3.2 GRADUATE CERTIFICATE IN AGRIBUSINESS 84 RESPONSE CONSULTING AUSTRALIA AND SYSTEMS AGRICULTURE 9 95 COST 9 5.1 COST TO THE PARTICIPANT 9 5.2 GOVERNMENT FUNDING 5.3 WHERE TO FROM HERE 10 106 ANNEX 1 ADVANCED DIPLOMA IN AGRIBUSINESS 10 6.1 DEVELOP AND REVIEW A STRATEGIC PLAN 10 6.2 ANALYSE BUSINESS PERFORMANCE 10 6.3 DEVELOP A MONITORING, EVALUATION AND REPORTING PROGRAM 10 6.4 MANAGE RISK 10 6.5 IMPLEMENT A MONITORING, EVALUATION AND REPORTING PROGRAM 11 6.6 MANAGE HUMAN RESOURCES 11 6.7 DEVELOP EXPORT MARKETS FOR PRODUCE 6.8 WORK EFFECTIVELY WITH THE BOARD OF AN ORGANISATION 11 117 ANNEX 2 GRADUATE CERTIFICATE IN AGRIBUSINESS 11 7.1 PROVIDE STRATEGIC LEADERSHIP 12 7.2 MANAGE FINANCIAL PERFORMANCE 12 7.3 DEVELOP AND ENHANCE COLLABORATIVE PARTNERSHIPS AND RELATIONSHIPS 7.4 PREPARE FOR AND IMPLEMENT CHANGE15 Mar 15 Commercial-in-Confidence

1 Value propositionSuccession planning is a key driver of current and future farm performance in Australia with the engagement ofkey family members providing a significant effect on farm motivation, a clearer vision for the farm future andreduced uncertainty (Slaughter et al., 2015). Succession planning can shift your farm business from just anoperational focus to a whole of farm outlook that also includes a strategic focus with effective short and mediummanagement to futureproof your business. We assist the farmer to:  Create a framework to interrogate your farming systems to ensure you are maximising your personal and business potential underpinned through nationally recognised qualifications;  Use information that is developed through systems approaches to agriculture to facilitate intergenerational succession; and  Develop a whole farm approach to business management to futureproof your assets.Figure 1 The Succession ProcessThis process will enable you to:  Develop the required operational and tactical information for succession within an Advanced Diploma in Agribusiness, providing you with a recognised undergraduate qualification;  Develop the key strategic information within a Graduate Certificate in Agribusiness, also providing you with a recognised postgraduate qualification; and finally  Facilitate your family’s future and the intergenerational success of your business through a two year succession process underpinned by this high quality information.15 Mar 15 Commercial-in-Confidence

2 Facilitating successionPreviously, family farms have passed through generations relatively simply. Today, however, new legalframeworks have complicated farm family succession and you and your family are required to seek out newways to ensure your business continues. Farmers also have a deep attachment to the land, as well as location,and this contrasts with other types of businesses and the mobility of modern society. In response, we havedevised a new way of thinking about succession that is family focused and involves both skilling-up to enableyour family to undertake succession and improving productivity to instill family confidence and meet the needsof a growing business.Response Consulting Australia in partnership with Systems Agriculture have developed a unique three stagegenerational succession process to underpin your most valuable assets. This is achieved by working with thenext generation (the participant) to create a farming framework that brings together information from a rangeof specialists, as well as the different perspectives of family members. Participants work in consultation with ourspecialists who provide the information required to deliver a whole of farm succession strategy to the family.This process ensures a number of important outcomes are achieved:  Information that is developed and adapted for your farm (context) that is used through the two year process to underpin succession and facilitate your family’s future and the intergenerational success of your business; and  A program to underpin business development and be a catalyst for the participant to become the farm consultant – upskilling the current generation, mentored by some of the best agribusiness minds in the country.The program relies on the participant negotiating with the family unit throughout the entire process, with thesupport of our team and other participants. The family unit will attend meetings with all other farm family unitsfor 4 to 8 days over the two years. Individual family meetings will also be facilitated by the mentors for a further4 days over the program life.You may be eligible for up to a 75% subsidy for the cost of this program as the program is focused on farmproductivity and profitability while achieving farm succession.15 Mar 15 Commercial-in-Confidence

3 Underpinning skills and knowledge3.1 Advanced Diploma of AgribusinessThe learning from this program underpins the core tactical and operational knowledge to underpin succession.This is a demonstration by family group to underpin the continued growth of the business in light of uncertainty.The program will commence with:  An initial analysis of the current direction and the current business performance;  The development of a management system in the light of risks within the farm business;  The implementation of the management system including the building of relationship skills; and  The development of an export opportunity and skills in managing a family board.Benefits include: • Gain a nationally accredited, prestigious Advanced Diploma of Agribusiness award • Become a skilled senior leader who can contribute to addressing industry-wide challenges such as workforce retention, extensive regulation and demand-driven markets • Innovative managers who can identify opportunities and create solutions • Develop exceptional self-management and self-improvement capability • Learn valuable mentoring and leadership skills • Develop your networks in workshops with other industry leadersThe training program subjects include: o Develop and review a strategic plan (AHCBUS603A) o Analyse business performance (AHCAGB604A) o Develop a monitoring, evaluation and reporting program (AHCBUS606A) o Manage risk (AHCBUS608A) o Implement a monitoring, evaluation and reporting program (AHCBUS607A) o Manage human resources (AHCBUS605A) o Develop export markets for produce (AHCAGB601A) o Work effectively with the Board of an organisation (SRXGOV004B)15 Mar 15 Commercial-in-Confidence

3.2 Graduate Certificate in AgribusinessThis course is designed to allow you (the participant) to engage with the family unit to facilitate the changesrequired for succession. The program focus is on strategic leadership underpinned with high level farm financialmanagement. The second phase of the program focuses on the development of relationship and the processesassociated with succession as a change process. During this process our mentors will assist the participant withthe succession implementation.This qualification provides a general vocational outcome inagribusiness. It reflects the role of individuals who apply substantialspecialised knowledge and skills to the managerial role in anorganisation or business area. In these roles they make significanthigh-level independent judgements in major planning, research,design, operational, compliance and management functions withinhighly varied or specialised agribusiness contexts. The AgriFoodindustry strongly affirms that training and assessment leading torecognition of skills must be undertaken in a real or very closelysimulated workplace environment and this qualification requires allunits of competency to be delivered in this context.The Graduate Certificate of Agribusiness is a post-graduate vocational qualification developed for seniormanagers of AgriFood industries. This means that it aims to create a similar depth and breadth of skills andknowledge as a Masters of Business Administration (MBA) however as it is delivered as a vocational, rather thana tertiary qualification. The learning is research based and is focused on the challenges specific to businessesin the AgriFood Industries. As a postgraduate qualification, the research you undertake will be directly relevantto your business.The subjects include:  Provide strategic leadership (MTMBUS702A)  Manage financial performance (MTMBUS701A)  Develop and enhance collaborative partnerships and relationships (MTMBUS704A)  Prepare for and implement change (MSS407001A)A total of 26 days in face to face workshops, including a 2-day induction and research skills workshop to start.As this is a national program, you will meet senior managers from AgriFood businesses across Australia andhave the opportunity to undertake workshops in four different capital cities.15 Mar 15 Commercial-in-Confidence

4 Response Consulting Australia and Systems AgricultureResponse Learning is the training arm of Response commitment that is now being focused on theConsulting Australia, specialising in the delivery of other agricultural value chains.accredited and non-accredited courses. Response Systems Agriculture led by Roderick Glass is aLearning is led by Andrew Moore and designs group of specialised Agribusiness professionals withtraining programs to meet the specific needs of a long history in assisting farming families reachclient organisations. All our programs are custom their potential. The group is facilitated by Roderickdesigned to embed the culture of the family Glass, a Vice Chancellor’s Research Fellow in thebusiness into the succession process. field of agricultural business and sustainableResponse Learning use adult learning business.methodologies, experiential and neuroscienceprinciples to give people strategies to grow theirself-esteem and confidence and they leave trainingstronger and more capable at work as a whole. Andrew Moore - Director Roderick Glass - DirectorWithin the agricultural supply chains the focus of The group has a balanced approach to successionResponse Consulting Australia has been the meat and whole farm planning through our significantprocessing industry with the organisation providing research and on farm experience. Our groupthe development for over 75% of the senior includes Dr John Rochecouste, Dr Christine Kingmanagers in this $16b industry. This commitment and Mr Rod Saal, who all have a rich history inhas been a 15 year commitment to the industry, a assisting farming families reach their potential. Our succession experience has led us to this program; a program that underpins intergenerational success.15 Mar 15 Commercial-in-Confidence

5 Cost5.1 Cost to the participant • Micro Business – $10,553 • Small Business – $14,352 • Medium Business – $21,106 • Large Business – $31,6595.2 Government FundingIf successful in applying for an Industry Skills Fund Training Grant, the amount you will have to co-contributewill depend on how many Full Time Equivalent (FTE) employees you have.You’ll be required to pay the following percentage of the total project cost:  Micro Business (0 – 4 FTE employees) – 25%  Small Business (5 – 19 FTE employees) – 34%  Medium Business (20 – 199 FTE employees) – 50%  Large Business (200+ FTE employees) – 75%Co-contribution amounts for businesses operating in or seeking to expand into Northern Australia are reducedfrom 1 September 2015. By reducing co-contributions, the Australian Government is lowering the costs tobusinesses in or expanding into the north by investing in the skills of the workforce.  Micro, Small and Medium Businesses (0-199 FTE employees) – 25%  Large Business (200+ FTE employees) – 50%  Co-contributions must be in cash. In-kind contributions will not be accepted.5.3 Where to from hereWe are here to assist you through this process, please contact Roderick or Andrew on: Phone: +61 (7) 3357 4400 Fax: +61 (7) 3357 4403 Address: PO Box 359 Lutwyche Qld 4030 Street Address: 35 Kedron Park Rd Wooloowin, QLD, 4030 Email us: [email protected] Website: www.responseaust.com.au15 Mar 15 Commercial-in-Confidence

6 Annex 1 Advanced Diploma in Agribusiness6.1 Develop and review a strategic planThis unit covers the process of developing and reviewing a strategic plan and defines the standard required to:determine the scope and desired business outcomes of the strategic plan; analyse the competitive environment;document performance measures to address all key aspects of enterprise performance; evaluate opportunitiesand the viability and feasibility of the production, business and marketing plans; document, monitor and reviewthe strategic plan.6.2 Analyse business performanceThis unit covers the process of analysing business performance for an agricultural or horticultural enterprise anddefines the standard required to: analyse financial reports; use financial analysis tools; identify profit drivers forthe enterprise; benchmark business performance against other businesses; and develop strategies for improvingbusiness performance.6.3 Develop a monitoring, evaluation and reporting programThis unit covers the process of developing a monitoring, evaluation and reporting program for an organisationand defines the standard required to: define terms of reference and context; identify key stages and outcomes;assess and define data management requirements; identify the resources needed to undertake the program.6.4 Manage riskThis unit covers the performance outcomes, skills and knowledge required to manage risks in a range of contextsacross the organisation or for a specific business unit or area.6.5 Implement a monitoring, evaluation and reporting programThis unit covers the process of implementing a monitoring, evaluation and reporting program for an organisationand defines the standard required to: implement a monitoring and evaluation strategy; collect and managedata; analyse complex information; prepare reports and information products.6.6 Manage human resourcesThis unit covers the process of managing human resources in an agricultural, horticultural or land managemententerprise and describes the standard required to: implement strategies for personal development andappropriate self-management; identify skill requirements and prepare task descriptions and person specifications;arrange employment of workforce members; support career and professional development of workforcemembers; implement Occupational Health and Safety (OHS) priorities and procedures; review labour productivity.15 FEB 16 Commercial-in-Confidence

6.7 Develop export markets for produceThis unit covers the processes of evaluating a product for export, developing an export market and implementingan export strategy and defines the standard to: research and analyse product knowledge; establish marketpotential; and develop the export market strategy.6.8 Work effectively with the Board of an organisationThis unit covers the skills required for senior staff of an organisation to work effectively with the Board ormanagement committee of a recreation organisation or facility. Your learning will: identify the roles ofgovernance and management; facilitate the development of an effective Board; provide detailed information forthe Board to deal with the right matters; ensure that Board decisions are implemented properly; ensure regularcommunication with the Board.7 Annex 2 Graduate Certificate in Agribusiness7.1 Provide strategic leadershipThis unit covers the skills and knowledge required to analyse and improve personal leadership style andprofessional competence, and to lead organisational strategic development and deployment. The unit also coversleading transformational practices, cultivating collaborative practices, and providing strategic leadership in adynamic context.This unit applies to leaders or managers wishing to develop strategic capabilities. Their effectiveness is based onprofessional expertise and personal integrity, and they act as a role model for others. Leaders must be able torespond strategically and act as leaders of change. They seek to improve competitive advantage throughtransformation of individual, team and operational capabilities.7.2 Manage financial performanceThis unit covers the skills and knowledge required to manage financial performance in an organisation orbusiness unit. Leaders in agri-business are typically required to forecast future financial resource needs, analysecurrent asset performance and capacity to a standard expected in a commercial environment, and to set businesstargets.There will be a requirement to manage compliance mechanisms, to manage financial risk within agreed plansand mechanisms, and to monitor compliance with financial projections. This unit will have specific relevance forleaders or managers working in a competitive commercial environment and typically those working towardssuccession.15 FEB 16 Commercial-in-Confidence

7.3 Develop and enhance collaborative partnerships and relationshipsThis unit covers the skills and knowledge required to develop and enhance collaborative partnerships andrelationships with business, community and industry stakeholders. The unit also covers communicating toinfluence others, enhancing new and existing partnerships, establishing positive collaborative relationships,leading the establishment of a partnership program and establishing reporting mechanisms.This unit applies to leaders or managers working in an enterprise where collaborative partnerships andrelationships are used to build capabilities. It includes forming partnerships or other collaborative arrangementsto achieve improved product, marketing, workforce development, business outcomes or community relationships.Enterprise leaders gain the respect of colleagues, contacts, clients and the community through demonstratingprofessionalism in all aspects of their work. This professionalism is underpinned by their management expertiseand effective interpersonal and communication skills.7.4 Prepare for and implement changeThis unit of competency covers the skills and knowledge required to establish the preconditions for theimplementation of a change, such as a ‘step change’ or a change resulting from a problem solving exercise, suchas a kaizen blitz. The unit can be applied to subsections of an organisation, such as a team, area or department,or a small or medium sized enterprise (SME).This unit is intended for team leaders and people with a similar sphere of influence/scope of authority andresponsibility. It applies to individuals who are already familiar with change leadership in a competitive systemsand practices environment through either previous study or industry experience. Where this is not the case,MSS403010A Facilitate change in an organisation implementing competitive systems and practices, may becompleted to supply the necessary skills.Skills covered by this unit are applied in an organisation after a desired change has already been identified. Thisunit may also be applied in service organisations applying competitive systems and practices principles. “Holism puts the study of wholes before that of the parts. It does not try to break down organizations into parts in order to understand them and intervene in them. It concentrates its attention instead at the organizational level and on ensuring that the parts are functioning and are related properly together so that they serve the purposes of the whole (Jackson 2007)”.15 FEB 16 Commercial-in-Confidence