12/9/2016 12:00:00 AM
Strategic and Scenario Planning in Ranching to Weather the Storm
S.D. - Current markets have many
South Dakota cattle producers asking, "How do we prepare for 2017 and
weather this storm?"
planning is one answer given by Sean Kelly, SDSU Extension Range Management
planning is an often-used buzzword in the industry, that contains tools ranch
managers can use to navigate through this time of uncertainty and market
volatility," Kelly explained.
and scenario planning in ranching is a 10-step process, said Kelly referencing
the handbook "Strategic Scenario Planning in Ranching: Managing Risk in
challenges face the ranching industry at this time and many more are on the
horizon, however, by implementing a strategic plan, a ranch manager will be
better positioned to manage risk and meet those challenges today and into the
future," Kelly said.
outlined the 10 steps below:
Assess current situation and inventory of ranch resources;
Conduct SWOT (strengths, weaknesses, opportunities, and threats) analysis;
Establish a vision for the ranch;
analysis - a GAP analysis determines if there are any "gaps" between
the current situation on the ranch and the desired outcome or vision for the
Strategies to close the gap;
Describe multiple scenarios;
Select and evaluate the most-probable scenarios;
Determining Strategies with the highest likelihood of success;
Implementation of the strategic plan; and
Monitor performance with the Balanced Scorecard.
the 10-step process may look daunting, it is an excellent opportunity to take a
hard in-depth look at your operation," Kelly said. "The process may
reveal unforeseen opportunities and unlock the potential of the operation while
better positioning the ranch when conditions and markets improve."
added that the strategic and scenario planning process works very effectively regardless
the size of the ranch operation. "Small family farms to large corporate
operations have taken advantage of this process," he said.