Friday, August 21, 2009

Eating to the Edge of My Bread

There is an ancient farming philosophy which states you do not harvest your field to the very edge but leave the edges for the poor and needy so they may be fed. Farmers would instruct their staff to harvest only the main sections of the fields and leave the edges alone. The harvest of the farmer would be enough to meet their needs, provide revenue from what was sold, and provide additional seed to sow for the next season. After the land owner would finish harvesting, the poor would come along and harvest the edges of the field to feed their households and provide for their needs.

In my opinion, I believe this could be a secret for having great success in the midst of troubles and prospering when everyone else is struggling especially for business owners. Yes, a business strategy that could actually move you from being in the red to being in the black.

Think about this. How are most of us trained to run our businesses today? How have we seen most corporations manage their cash flow, today? Now, what has been the end result?

Today more organizations run their businesses with a ‘me mentality’. Most believe, “I take care of me and the rest of the population can just try to make it the best way they can.” We can see from our current worldwide situation that this methodology does not work.

On the contrary, we are not supposed to set up systems in which people can sit around and just be taken care of as others produce. This system has also proven it does not work by the example of Africa. Over the years, billions of charity dollars have been poured into this nation yet it still remains one of the poorest nations in the world.


Operation of the Strategy

To implement this strategy you have to think different then you have in the past about what it means to help another. Helping others does not mean I do everything for them and thus rob them of the incentive to work. Nothing destroys a man and a culture faster then the loss of the incentive to create and produce.

To institute this strategy in a business you must first outline it in your business plan and see it as a policy for the entire organization. Set up budget line items specifically focused on developing the widows, poor, and orphans. What service or skill set can this group bring to your organization that will take care of small task (which represent the edges of the field) and how much money can be allocated to pay for these services?

Note, in the example of the farmer he has already harvested the main harvest for his livelihood and operational budget. The edges of the field have not been factored into the equation for regular operational needs. Consequently, the overall organization will not suffer if the task is not completed. In our example, if the harvest is not picked by the widows, poor, or orphans then it will simply dry up and return to the ground to nourish the soil.

A few things to notice in the illustration of the farmer: First, he has proper financial projections to know how much grain is needed for the current season (how much for personal needs, how much to sell, how much to reinvest for a future harvest). Secondly, the vision is properly planned and communicated to their entire staff for proper execution. Thirdly, he understands that as he prospers he has an obligation to take care of those who are less fortunate and give them opportunities. Fourth, he has control over where his wealth is allocated and he can define how others can be helped without putting a strain on his companies operations.

Perhaps you may feel as a business owner trying to survive that you can’t afford to give much less add one more line item into your budget to care for others. Honestly, you can’t afford not to give and take care of others who are less fortunate. Let me put it this way! You may not pay at the moment and you may not pay directly but at some point in time you are going to have to pay and it will cost you much more. Additionally, someone else will be making the decision on how you will give and how much. It’s your choice. You can control the bottom line of your company today or you can hand it over to someone else for them to control it tomorrow. Be mindful that hand may be the government.

For more information on this strategy or help implementing it into your organization please contact EDALS Consulting.