bwf decisionssg 08292012final-1

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Holistic Whole Farm Planning: Putting It Into Practice 1

Key OutcomesYou will learn:

How to put the Holistic Management* principles into practiceHow to define what you manageHow to create your own holistic goalThe testing questions and how to use themHow to create monitoring criteriaWhat to do next to continue your learning and practiceHow to assess your knowledge of what youve learned so far

Holistic Whole Farm PlanningPutting It Into Practice

Key Concepts

From Principles to Practice. 2

Defining What You Manage .. 2

Creating a Holistic Goal... 5

Testing Your Decisions.... 12

Root Cause..... 14

Weak Link... 15

Comparing Options ...... 17

Gross Profit Analysis. 18

Input Analysis. 18

Vision Analysis... 20

Gut Check 20

Monitoring Your Decisions.. 22

Next Steps. 23

Questions & Exercises 24

*Holistic Management is a registered trademark of Holistic Management International


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2 Holistic Whole Farm Planning: Putting It Into Practice

From Principles toPractice

In the last sectionyou learned the 10principles forwhole farmplanning. Six ofthose principlesinclude new stepsfor many people intheir decisionmaking. In practicingthese six steps, manyresource managers havebeen able to consistently getthe results they want on theland, and in improvedprofitability and quality oflife.

The foundation of HolisticManagement is in creating andlearning to use a holistic goal,the "magnetic north" toward which you testyour decisions. The holistic goal is thedriving force in Holistic Management andwill guide every significant decision youmake. Before you can create a holistic goal,you must first define the wholeyou areresponsible for managing.

Define What You Manage

What does it mean to define the wholeIam managing and why is it an important

step in Holistic Management?

Knowing who and what your "whole"includes helps you determine who makesdecisions and who merely influences the

decisions made. It also helps putboundaries around what you can and

cannot manage through your planning anddecision making.

Defining What youManage: Management

team (decision makers) & assets (human, natu-ral, and financial resources)

By definingthe whole you are better able to manage it. Thekey is to get the right people to the table andidentify the resources (including money) youhave to work with.

What is it?

Why is it important?

Other

whole

Otherwhole

Otherwhole

State, Nation, Universe, Etc.

LocalCommunity

Grower

Farm/RanchEnterprise

Family

You

Wholes within wholes: We exist as a part of a largerwhole as well as others that overlap and interconnect

with other wholes.


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Remember, the first principle tounderstanding holistic decision making isrecognizing that the world operates inwholes. The first key insight that led to thedevelopment of the Holistic Management

framework is that a holistic perspective isessential in management.

Each of us is responsible for managing awholewhether it's a farm, a family or abusiness, or even ourselves as individuals.You need to think about the people who are

involved in making decisions, and thepeople who influence decisions. You needto clarify what resources are available toyou (land, equipment, clients, etc.), andknow what money you have access to.

Defining the whole does more than just helpyou put boundaries around your planningand decision making. It reminds you of allthe various resources available to youwhich can be utilized in your management

decisions. Lastly, this step can make youfurther aware of the various wholesinfluencing the whole you are managingand, in turn, how you influence them.

Defining the whole, then, will involvedescribing two key parts: the managementteam, and the assetsavailable to you.

The Management Team

The management team (decisionmakers)include the individuals who willcreate a holistic goal. These are the peoplewho are involved in making day-to-daydecisions that affect the whole. They arealso the people who have the power to veto

or derail any decisions that are madewithout their input.

When making decisions that affect thewhole, it is critical to include everyone whois directly involved in or affected by thatdecision. Leaving out an importantdecision makerfrom creating your holisticgoal may prevent you from moving forwardin the direction you want to go. The key is tohave the right people at the table when

creating aholistic goal. If everyone is therethat should be there, you can buildownership in the holistic goal and improvemanagement of that whole exponentially.

Management Team

Determine all the peoplemaking day-to-day man-agement decisions foryour whole so they can

participate in creating your holistic goal andhave ownership in testing management deci-sions toward it.

What is it?

Why is itimportant?


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AssetsThe Asset Inventorytakes into accountthe major physical resources from whichyou generate revenue or that support youin your life or business. This includes land,buildings, equipment and machinery, andother physical assets that you have to workwith. It also includes peopleclients andcustomers, suppliers, neighbors,

community members, communityorganizations, associations, friends,bankers, extension educators, andnetworkswho, although they do not makeyour decisions, are vital to you.

In some instances you will be unsurewhether a person belongs among themanagement team or the assetsAskyourself, does this person make day to daydecisions regarding the management of

this farm or ranch? If they do, then youwould be wise to include them in thecreation of the holistic goal and efforts tobuild ownership in it. If they are not dailydecision makers, but have considerable

Assets

By determining all thepeople and assets youinfluence or that influ-ence you, you have a list

you can easily draw from to help you in yourmanagement decisions. Defining that list alsoholds you accountable to those resources andpeople. Equally important, you will refer to thislist when you create your holistic goal. Think ofassets you have and assets you can generate(income).

What is it?

Why is itimportant?

influence over specific decisions, theybelong in the assets But, be sure to notetheir influence and to remember them whenmaking and testing a decision that will be ofconcern to them. An example of someone

who has influence and even veto power attimes, but who does not necessarily belongin the management team listing would bethe loan officer responsible for your line ofcredit at the bank.

Moneyis definitely a key part of the assetinventory. Whether you like it or not,money(financial resources) has a directimpact on your ability to create the life youwant. Be sure to consider all the sources

of money available to you. This couldinclude income, cash on hand or money insavings accounts, money available fromfriends and family, investments, line ofcredit from the bank, etc. It also includesmoney that could be generated from yourasset base.

Consider the following examples ofdefining what your manage

A single, employed person seeking tomanage her life holistically wouldconclude that there is only one personmaking decisionsherself. Her assetbase includes her home, her job andwork associates, her friends,neighbors, and mentors (many of thesepeople would be named). Actually, anynumber of people could be regarded asresources for her. For money, shewould have what she earns and has

saved or invested that is easilyaccessible.

A family seeking to manage a farmholistically might say that themanagement team includes the


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members of their immediate family andtheir two employees. Their asset baseincludes the land they own, plus the200 acres they lease, their home, theirextended family in town, their

customers, their suppliers, the countyextension agent, their soil testinglaboratory, and their local study group.For money, they have only what theycan earn from the farm.

A key to defining what you manageat thisearly stage is to not get bogged down intotoo many details. When you are first gettingstarted, do your best to define what you aremanaging At times it may be difficult

determining whether some people are amanagement team memberor belong inyour assets.

Don't worry that you won't "get it right." Doyour best, and if in doubt, be inclusiverather than exclusive with yourmanagement team as leaving someone outof this category who does make decisionleads to problems. You will want to redefinewhat you manage and refine yourholistic

goal as you go along. What's important is tobegin creating and using these valuablecomponents of the framework as soon aspossible.

Creating a Holistic Goal

Now that you've defined what you manage,you've taken a very important step in thedirection of creating a whole farm plan. It'slike having your management team andassets in a big rowboatyou've assembledall the important parts of your whole. Ifeveryone dips their oars in the water andstarts rowing, you might end up going in thedirection you all want to go. Or, you mightend up going in circles because everyone is

pulling their oars in opposite directions. Or,worse yet, you might all end up rowingtogether, but in a direction you don't want togo.

You and the other decision makers in yourmanagement team begin to chart thedirection you want your lives to go byforming a holistic goal. Ultimately, you willfind that the real power of this framework isfound in creating and using your holistic

goal.

Keeping what you are managing in mind,you and the other decision-makers can now

What is it? Holistic Goal:* Quality of life* Behaviors & Systems* Vision

Simplifies decisionmaking by acting as a

written guide or reference point to whichyou can refer when making decisions. Tieswhat you value and what you produce tothe environment.

Why is itimportant?


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Why Were We Formed?

Creating a Mission Statement

This statement is specifically fororganizations or entities withinorganizationsdepartments, divisions,

units, etc.that were formed for a specificpurpose. (Individuals, farm families, etc. donot need to create a statement ofpurpose.) It answers the question: "whatwere we formed to do?" This statementclarifies the purpose for which theorganization, department, or unit wasformed and records it in writing to ensurethat the decision makers don't lose sight ofit when they are creating their holistic goal.It ensures that the holistic goal speaks to

the reason for the entitys existence andcan sometimes be used to initiallydetermine what is and isnt in keeping withthat designated purpose, saving time andmoney down the road.

begin to create your holistic goaldescribing the life you want to live based onwhat you most deeply value.

The three-part holisticgoal asks decisionmakers to describe thelife they want to achieve,what they must produceto create that life, and

what needs to be in placeto sustain it far into the future. The holisticgoalis the "magnetic north" toward whichyou will make your decisions. Makingdecisions can be challenging and complex.Having a written holistic goal gives you aguide toward which you will make and testyour decisions ensuring that you movetoward the life you want.

The three parts of the holistic goal, then,

are:The quality of life you want to haveThe behaviors and systems that willhelp you produce itA description of your vision for thefuture or what the future must look liketo support that quality of life you havearticulated.

Each of the three parts build on oneanother, so it is important to consider each

in the order presented. In most instancesyou would now begin to describe the qualityof life you want to achieve. However,depending on the whole you are managingand why it was formed, you may need astatement of purpose.

What is it? MissionStatement

What was this or-ganization or entityformed to do?

Clarifies the purposefor which you were formed so when creat-ing your holistic goal, at least one of thebehaviors and systems will specify whatyou have to produce to ensure that purposeis met.

Why is itimportant?


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For example, a farm cooperative maydescribe its purpose this way: "we serve ourmembers by providing business services,access to markets, and research

information that enhances their success."

What's important in stating your purpose isto get to the heart of the matter and say, inreasonably few words, what the entity wasformed to do. The statement of purposewill be reflected in the holistic goalat leastone, if not more, of the forms of productionwill correspond to what must be produced inorder to ensure that the purpose is met.

Describing the Life You WantQuality of Life Statements

The quality of life statementof the holisticgoal begins with answering a simplequestion: How do you want your life to be?Remember, you are talking about what youwant your life to be like living or working in

the whole that you have just defined. Asyou answer this question you determinewhat you value in lifewhat gives your lifemeaning, what makes it fulfilling. If yourwhole includes more than just you as a

decision maker, the quality of lifestatementbecomes an expression of thedesires and hopes of all decision makersa reflection of your shared desires.

Quality of life statementsare usuallywritten in the present tensethey representthings you want in your life now, rather thanwishful future-oriented goals. They mightbegin with words like, we have, we are,we do; rather than we will have, wehope, we will do, etc. And they describeonly whatyou want, not howyou're going toget it.

The quality of lifestatementof your

holistic goal expresses what you value,what you're doing, what you're about, andwhat you want to ultimately be. It is areflection of what motivates you. Describingit should excite you. It speaks to needs youwant to satisfy now, but also speaks tolonger-term objectives. It is your collectivesense of what's important and why.

People have found creative ways todevelop their quality of life statements.

For example, one person used a NativeAmerican medicine wheel, with the fourdirections as guideposts. The woman who

What is it? Quality of LifeStatement:

Statements of how youwant your life to be inwhat you are managing.

You are writing downwhat you value so you can achieve that out-come. These will be statements toward whichyou test your decisions.

Why is itimportant?

WestIntellectual

NorthPhysical

South

Spiritual

East

Emotional

What do you value?


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created it used it as a starting place foridentifying her four most important valuesphysical, emotional, spiritual, andintellectual well being. Then, betweenthose guideposts, she filled in her quality of

life statements for each of those areas.

Other areas you might want to consider asbroad categories include financialwellbeing, relationships, challenge andgrowth areas, life purpose/contribution.

Some examples of simple quality of lifestatementsare:

We want meaningful

relationships with friends andfamily We want strong healthy bodies We are financially secure and

provide for our family's needs We have good communication

Some statements are simple, others moreelaborate. What matters is that theyrepresent what is most important to you andthat all decision makers in the whole see

their words reflected in the end product. Itwill be important to discuss what certainstatements mean and to be sure that thereis a collective understanding of what theymean to all the decision makers.

For example, what does it mean to befinancially secure? Are we all inagreement on this? Obviously, this processwill take time, but it will be time well spentand it will ultimately save time when making

decisions in the future. It's also important toremember that even when the quality oflife statementsare refined to where youwant them, you still have two more parts tocreate before your holistic goal is complete,and even then what you create will at first

be considered a temporary holistic goal.The reason for this is that your holistic goalis a living, dynamic, and practical documentthat grows as you grow and changes asboth you and the whole you are managing

change.

Identifying What You MustProduce to Have the Life YouWant

Behaviors & Systems

Building on the quality of life statements aretheBehaviors & Systemswhere we ask

the question of ourselves, "What must wedo to create the quality of life wedescribed?" Another way of looking at it is,what must I commit to in order to have thelife I want? Generally speaking, for eachquality of life statement, there must be abehavior or systemthat addresses whatneeds to be produced.

Writing the Behaviors & Systemsis thepart of the holistic goal in which people are

tempted to include specificsthe "howtos" of creating that fulfilling life. You willeventually get to the how-tos when youbegin testing your decisions. For now, leavethe details for later.

What is it?Behaviors & Systems:What you need to pro-

duce to create the qualityof life you have de-scribed.

These are the beliefs,behaviors, and systems necessary to producethe quality of life you want.

Why is itimportant?


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One behavior or systemmight addresstwo or three statements. Another way toask the question is this: What is it we're notdoing now, or what is blocking us from

having the quality of life we described? Iffor example your family wants to havebetter balance between work and home,you might ask yourselves, What are we notdoing to create that balance? What'skeeping us from spending more timetogether and less time working? You sighand shake your head and say out loud, "Ifwe only had more time, we could do that."You've just identified a behavior: bettertime management for those healthy bodies

or that good communication you desire.

One family had one major quality of lifestatement: "We want to be strong andhealthy in body, mind, heart, and spirit."From that they articulated a behavior orsystem for each area: body, mind, heartand spirit. Again, creativity is key,particularly when you're doing this with afamily or other closely connected groupitshould be challenging and fun, not arduous

and unpleasant!

For those of you who formed a missionstatement, now is the time to make sure atleast one of your behaviors or systemsaddress that mission statement This

statement clarifies the purpose for whichthe entity was formed by asking thequestion: What were we formed to do? Inthe case of the farm cooperative mentioned

earlier, a behavior might be: Developcreative solutions to enhance ourcustomers success.

Sustaining What You ProduceFar into The Future:

Your Vision Statement

How must your asset base be many yearsfrom now if it is to sustain what you have toproduce to create the quality of life youwant to achieve? Look back at the assetbase you described when you were defining

Quality of Life Behaviors & Systems

We want meaningful relationships with fam-ily and friends

Intentional, quality time with family andfriends

We want strong, healthy bodies A stress-free environment, a balanced, nu-tritious diet and a regular exercise program

We are financially secure and provide forour family's needs

A profitable farm enterprise and good finan-cial planning

We value good communication An open, safe, nonjudgmental environment

What is it? Vision StatementA description of how your asset base must be inthe future to sustain the quality of life you want.

These are the behaviorsand results necessary tosustain the quality of life

described for yourselves and future genera-tions.

Why is itimportant?


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your whole earlier in this study guide. Thisthird part of the holistic goal asks you tothink about how that asset base must lookin the future. It is called the visionstatement. In looking at the vision

statement there are three primary elementsto describe:1. How you have to behave. A

description of how you must behave ifthe people in your asset base(customers or clients, the people in thecommunity, etc.) are to continue tosupport you. If you want people toperceive you as honest, ethical, andcreative, then you need to behave thatway now.

2. The future landscape.A descriptionofhow thelandin your asset base mustbe 100 years from now.If you want theland to appear as you describe it, thenyou have to make decisions today thatlead you in that direction. Even whenyou arent managing land, its importantto describe the landscape surroundingyour home or community as it must bein the future. The long-term well beingof any individual, family, or community

depends on the health and productivityof the land around them.3. The future community. A description

of your community as it must be tosustain your quality of life well into thefuture. That description can also includethe services that must be available inthe future (schools, medical facilities,stable businesses, etc.) if what youproduce depends on them.

Some sample statements in your visionstatement might include:Behavior

We must be hardworking, honest, andethical.

We must be a loving, supportive familyand active members of our community.

LandscapeThe land around us will be stable,healthy, and productive. Wildlife, treesand plants will be diverse andabundant. The rivers and lakes nearbywill be clear and full of life.

CommunityWe will live in a diverse, thrivingcommunity with good schools, libraries

and other services, and a stableeconomic base.If you are managing land, you would alsodescribe the ecosystem processes on yourland, as they would have to be functioningin a healthy state to sustain what you areproducing for generations to come. Asample statement might be: We will haveeffective water and mineral cycles, highenergy flow, and rich biodiversity on theland we manage.

The vision statement connects the shortand medium-term considerations of yourholistic goal with the long-term, futureaspects. All three elements, written in thecorrect orderquality of life statement,behaviors and systems, and visionstatementwill provide you and yourmanagement team with the foundation anddirection toward which you can beginmaking decisions and managing holistically.


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Your Holistic Goal

Now that youve read how to create aholistic goal, its your turn to create one.Using the worksheet at the end of thissection, or your own paper, work with theother decision makers on your team to pullit all together into one document that youeach can read and reflect on.

You will continue working together onrefining this document in the days, weeks,months, and even years to come. Be sureto keep in mind the important guidelines forcreating or revising your holistic goal,always remembering to be sure that allthe

decision makers are involved in andsupportive of any revisions you make. Mostimportantly, there is no getting it right orwrong. Relax and have fun with it. Now thatyou have a draft holistic goal, you are readyto begin using it to test your actions anddecisions.

Important Guidelines forCreating Your Holistic Goal

Write it down! It must be written. Writingit down confirms what you want and what

you need to do to create it.State only what you want, not how to getit. The how-tos need to be tested. Bystating what you want, you are morelikely to avoid listing problems or issuesin your holistic goal.Start with quality of life, then list behav-iors and systems, and finish with the vi-sion statement. Each of the elements ofthe holistic goal build on one another, soit's important that you don't skip ahead or

eliminate any one of them.Be open to all possibilities by avoidingany biases. If you prejudice certain ac-tions (We will only raise Beefmasters,No cows on the land, etc.), you havealready limited your creativity. Testingyour decisions will help weed things outlater on in the process.All aspects of the holistic goal are equalin importance so be careful not to quan-tify or qualify anything (i.e., We will taketwo weeks of vacation).

As you write your holistic goal, you mayfind overlap between quality of life state-ments and your behaviors and systems.Be sure that each quality of life statementis addressed by a behavior or system.Try testing some decisions toward yourholistic goal and these points will becomeclearer so you can make changes to yourholistic goal and improve the results youget from that process.Revise your holistic goal if there hasbeen any significant change in the man-agement team (like a change in the deci-sion makers due to marriage or death.)


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Where the Rubber Meets theRoad

Testing Your Decisions

For many whole farm planners, testingquestions is where the rubber meets theroad. These seven testing questions helpus sift through the many factors andcomplex variables to the heart of thematterdoes this action or decision meetthe triple bottom linetoward yourholistic goal?

It is difficult for us to make decisions that

consider all three aspects, the social,financial and environmentalall the time.Some decisions may be economicallysound, but are implemented at the expenseof the environment or the wellbeing of thepeople. Others may be environmentallysound, but economically unfeasible orharmful to human welfare. Many of ourdecisions can have undesirable orsometimes even disastrous results becausewe are unable to consider and manage for

all three aspects and concerns

Fast & SimpleGetting Started with Testing

The seven testing questions, when askedin quick succession will enable you to seethe likely effect of the decision on the wholeyou are managing. These tests are notused until you have exhausted all other

What is it? Testing Questions:Seven questions for testing to ensure yourdecisions are socially, environmentally, andeconomically sound.

These seven testssupplement all theother considerationsyou have when mak-

ing a decision (research, gut feelings, intui-tion, cash flow, etc.). The testing is a checkafter all the work is complete.

Why is itimportant?


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means for making the best decision such asresearch, legal concerns, cash flow, peerinfluence, advice from a variety of people,past experience, even gut instinct. All theseconsiderations are important and should be

part of that earlyinformation gatheringyou do whenattempting to make adecision. The testingquestionsprovideanother filter after yourinformation gathering iscomplete. Now that youhave a clear picture ofwhere you want to be

your holistic goalyouwill begin to weigh yourdecisions with that picture and its outcomesin mind.

At times, making decisions can be verycomplex and difficultparticularly when youare making them in crisis or in a stressfulsituation. These seven testing questionscombine thinking/logical questions withfeeling questions, as well as questions that

focus on financial, biological and socialconcerns. Moreover, these questions alsohelp you consider short-term and long-termconsequences, helping you address thecomplexity and ensure that your finaldecisions and actions are the best they canbe in terms of your holistic goal and the lifeyou want to live.

In testing, there are a few things to keep inmind. First, you should only spend minutes,

not hours, going through the testingquestions. The root cause testshould beasked first and gut checklast. Other thanthese two, it does not matter what order youask the testing questionsin, but the ideais to move through them quickly. The Gross

Profit Analysis and Comparing Optionstests may require some financialcalculations and thus more time, but youcan use rough estimates when you initiallytest a decision. You can then go back and

do those calculations if they areneeded to make a finaldecision.Second, you will find that not alldecisions require that you gothrough all seven tests. If youfind you get stuck as you gothrough them, it's likely that youdon't have enough informationabout the issue you're trying toaddress and need to do more

research. At times you will findthere is information or claritymissing from your holistic goal, making itdifficult and even impossible to be clearabout what is the right thing to do. Whenthis happens it is time to revisit your holisticgoal and dig deeper into how you want yourlife to be, what you must do to live that life,and what will need to sustain it far into thefuture.

How to Use The TestingQuestions

In using theseven testing questions, youask a series of questions that will helpensure that the decision you make issimultaneously socially, economically, andenvironmentally sound, and will lead youtoward your holistic goal. If the situation is amajor one, and/or complicated, you mightwant to have your holistic goal in front ofyou as you think through the testingquestions. If the decision passes most orall of the testing questionsand it is clearthat it moves you toward your holistic goal,you will have added confidence.

These seven testing questionshelp us sift through the manyfactors and complex variablesto the heart of the matterdoes this action or decisionmeet the triple bottom linetoward your holistic goal?


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If it fails one or more of the testingquestions, it can mean a number of things:1. It won't work, so you abandon the

decision2. The decision/action needs to be

modified3. You go ahead with the decision or

action knowing that sooner or later youwill have to deal with the reasons itdidn't pass the testing questions.

If you find yourself uncertain as to whetheror not a decision passes one or more of thetesting questions, it means one or more ofthe following things:1. You need more information

2. You are unclear on what you are testing3. A particular testing questiondoesn'tapply in this situation

4. You need to revisit your holistic goal.

The seven tests include:

1. Root Cause2. Weak Link: social, biological, and

financial3. Comparing Options

4. Gross Profit Analysis5. Investment Analysis6. Vision Analysis7. Gut Check

Let's take a look at each of these seventests and what they are asking.

Root Cause TestWith root causeyou are asking thequestion: Does this action address the root

cause of the problem?

While it seems like a simple question, it's avery important one. It is a good idea to askthis testing question before all others since

if it fails this test, you might want to rethinkthe decision altogether. If you arent dealingwith a problem, you can move on quickly tothe next question. If you are dealing with aproblem, this test forces you to define the

problem and determine the root cause.Often we end up treating a symptom of aproblem rather than dealing with the realproblem at its origin. In real life situations,particularly involving biological systems, itcan be very difficult to immediately figureout the root cause of a problem. Because itis difficult to determine the root cause andoften the symptoms are all too visible andeven sometimes uncomfortable, ourtendency is to go for a quick fixspot a

symptom and apply a solution, only to havethe problem recur, developing a wastefuland unproductive cycle.

Sometimes a great deal of time, money,and effort is spent dealing with symptomswhen correct diagnosis of the root cause ofthe problem would lead to a moreappropriate and long-term solution.

What is it? Root Cause

Forces you to definethe problem and theroot cause. If its a re-

source problem look at which ecosystem ismost affected. If its a human issue look tostructure and leadership.

Why is itimportant?


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Weak Link Test

The weak linktest refers to the old adage:a chain is only as strong as its weakest link.Every chain has a weak link when it isstretched to the breaking point. If you spendtime and energy trying to strengthen a chainbut don't address the weak link, the chainwill still be weak at that point and you willhave wasted resources. It's important that,once you've identified the weak link in thechain that you commit some resources toaddressing it. The weak link test allows usto check our actions to ensure that theyaddress the link that is weakest at anygiven moment. This test applies in three

major areas: social, biological, andfinancial.

Social Weak Link

Thesocial weak linkasks:Are there anysocial concerns regarding this action?

In other words, is it possible that thedecision you are trying to make will offend

or confuse people whose support you neednow and/or in the future? It doesn't matter ifyour decision is right if you don't havesupport from the other decision makers orthe people in your asset base, and if it will

ultimately cause conflict. This question isnot really a pass or fail, but it sends up anyred flags you need to know about andshould address before you go ahead. Youcan then figure out how to make sure you

don't create misunderstandings, orultimately worse, obstacles to getting whereyou want to go.

When you suspect that taking a particularaction will result in a reaction that blocksprogress toward your holistic goal, thenmake a mental note to return to this matterif the action being tested passes the overalltesting. You will need some ideas to defusethe situation before you proceed rather than

cause conflict. It's easier to have a plan andbe prepared for resistance than to have tolater undo damage caused by a poorlythought out decision.

Biological Weak Link

Thebiological weak linkconsiders thequestion: Does this action address theweakest point in the life cycle of this

organism?

You'll often use this test when you aredealing with populations of plants or animalorganisms that have become a problem.

What is it? Social Weak Link:

It doesnt matter if yourdecision is right if youdont have support

from others or cause conflict. This questionhelps you win friends and influence people.

Why is itimportant?

What is it? Biological WeakLink:

By determining theweakest link in the life

cycle you increase your ability to effectivelyimprove the ability of the organism to sur-vive or to remove or reduce its numbers if itis a problem organism.

Why is itimportant?


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This may be because the organisms are toomany in number: the parasites infesting arancher's cattle, the leafy spurge that'sinvaded a grassland, the cockroaches thatinvade a family's kitchen. It might also apply

to organisms that are too few in number: arare aloe plant that needs protection, or thenumerous species of animal life that arethreatened or in danger of extinction.

Every organism has a point of greatestvulnerability during its life cyclea weaklink. By recognizing the weak link youincrease your ability to effectively (and oftenless expensively) reduce the numbers of a"problem" organism, or increase the

numbers of populations you want toenhance. When the tool or action you takeaddresses the weak link, then it passesthis test.

Financial Weak Link

The financial weak linkasks you toconsider: Does this action address theweakest link in the chain of production?In an enterprise, what is the one investmentthat will have the greatest positive impact

on the chain of production?

With the Holistic Management FinancialPlanning process you determine yourfinancial weak linkclarifying whether

resource conversion, product conversion, ormarketing is your weakest link. Then, as

you test decisions throughout the year, youcan determine the effect they will have onyour financial situation based on this test.Determining where the weakest link is inyour chain of production will help you get

the most return for any money or time youinvest in strengthening the entire chain.When you invest funds in addressing aweak link it is considered to be a wealthgenerating expense.

The three links in the chain of productionare: resource conversion, productconversion, and marketing. You have aresource conversion weak link when youhave insufficient ability to convert sunlight

into raw resources (grass, trees, corn, etc.)and/or lack sufficient raw resources(including money, capacity, talent, etc.).

Or, you may have more than enough rawresources, but you lack the capacity toconvert them to a marketable form. In thatcase, you have a product conversionweak link. If you've created a greatproduct or service, but are having difficultyselling it, then there is a marketing (money

conversion)weak link. The financialweak link testis explored in great detail inthe Holistic Management Handbook.

The weak link testing questionwhethersocial, biological, or financialcauses us to

What is it? Financial WeakLink:

By determining where

the weakest link is youwill get the most return for any money ortime invested in strengthening the wholechain.

Why is itimportant?

ProductConversion

Marketing(Money

Conversion)

ResourceConversion


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examine very carefully where the weak linkis and ensure that our decisions and/orpotential actions are addressing that weaklink. Attention paid to the weak linkandresources invested in addressing them will

in the long run prevent blockages andbreakdowns, and ensure that our humanand financial resources are leading ustoward our holistic goal.

Comparing OptionsThe comparing test is used whencomparing two or more possible actions. Itasks the question: Which action gives thebiggest bang for your buck toward yourholistic goal? Where is your highest return?

You are essentially asking yourself which oftwo or more actions will result in each dollaror hour of labor being invested where itprovides the highest return in terms of yourholistic goal. No two actions you take aregoing to give exactly the same return foreach unit of effort (time, money, or physicalenergy exerted) you invest at that moment.So, when resources are limited, you want toselect from the one that gives you the best

return.

You can use the comparing optionstesting questionto determine what yourreturn is per dollar invested, as well as

return for every hour of effort you invest. Inthe Holistic Financial Planningprocess,you can use this test in conjunction with theweak link testit helps you prioritize whatactions you will take to strengthen the

weakest link in your chain of production, asmentioned earlier. It also helps you thinkabout how you prioritize the amount of timeyou spend on any endeavor. Time is a finiteresource. You want to make sure youmaximize the return on every hour youspend.

Gross Profit Analysis

The gross profit analysis testis usedwhen you are comparing two or moreenterprises. It asks the question: Whichenterprises contribute the most to coveringthe fixed costs (or overheads) of thebusiness?

After all the income and expenses directlyassociated with each enterprise have been

determined, which enterprise is likely toproduce the most income for the leastadditional cost? The income generated hasto cover your overhead and generate someexcess if the business is going to be

What is it? ComparingOptions

It helps you prioritizeyour efforts and ex-

penditures so you can maximize progresstoward your holistic goal.

Why is it

important?What is it? Gross Profit

Analysis:

You want to see whichenterprises, after the

direct costs and risks associated with themhave been factored in, produce the mostincome for the least additional cost. In thisway you assess the financial risk of theseenterprises.

Why is itimportant?


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profitable. In a grossprofit analysis, yousimply look at theincome likely to bederived from each

enterprise and deductthe additional money you will have to spendto bring it in. The difference between moneyin and money out is the gross profit.

Gross profit analysisis used primarily aspart of the Holistic Financial Planning

process. While this test tells you whatenterprise contributes most toward fixedcosts and possible profit, only doing a fullfinancial plan will tell you if the enterprise(s)

you've selected will together cover all thefixed costs and return a profit. It's importantto remember that enterprises that pass thistest still need to pass other testingquestions as well to be considered.

Gross profit analysisis one of theseventesting questions that requires the use ofpencil and paper, and is somewhat moretime consuming than the others. But whenconsidering new enterprises for your whole

under management, it is time well spent.

Input Analysis

The Input Analysis testcompels you toconsider if the means by which you willachieve the action or decision is holisticallysound. So what about the secondary inputswe use in our enterprises? These must alsopass the seven testing questions.

The energy/money source and use testasks two questions:

Is the energy or money to be used in

this action derived from the mostappropriate source in terms of yourholistic goal?Will the way the energy or money is tobe used lead you toward your holisticgoal?

With this testing question you consider bothenergy and money because any actionyou're contemplating will require one ofthese or both.

What is it? Input Analysis

Energy and moneythat are used to buildinfrastructure are pref-erable, as are uses for

a one-time investment that will then sustainitself. You want to avoid consumptive usesof energy or money that become addictive.

Why is itimportant?


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Energy Sources: When it comes to energysource and looking at the decision or actionyoure considering taking, you want to favorrenewableor environmentally benignsources of energy and avoid nonrenewable

or environmentally damaging sources ofenergy. In terms of availability, energysources fall into two categories: those thatare abundant or unlimited, and those thatare limited in supply. Solar energy that'sused to grow the farmer's crops is unlimitedand virtually inexhaustible; however the gasor other petroleum-based fuels that areused to fuel the farm machinery are not.Supplies of oil and other fossil fuels arelimited and we will eventually run out of

secure and affordable supplies.

In terms of the effects on the environment,energy sources also fall into two categories:benign sources or those that are potentiallydamaging. The environmental impact ofvarious energy sources depends on the rateat which they are consumed, and themethods used to harness and distributethem. When you choose to walk or ride abike instead of driving your car, you are

choosing a benign source of energy ratherthan a potentially damaging one. So is afarmer who uses livestock to break downcorn stubble in a field rather than usingsome type of machinery. Keeping in mindyour holistic goal, you need to determine ifthe source of energyyou plan to use intaking any action is an appropriate one foryour present situation.

Money Sources. The moneyused toimplement any action can be derived fromeither internal or external sources. Internalmoney comes from what you earn or havein savings and/or what your business or

land can generate. Any time you can rely onan internal source, you are likely to bebetter off; though there will be occasionswhen you'll need money external to yourwhole in order for you to move forward.

When the money to be invested is derivedfrom an outside source, you need to bewary of any strings attached to it. Moneyfrom a bank or other lending institution hasinterest associated with it, and in most

cases that interest is compound interest.External money can also be derived fromgovernment programs, such as subsidiesand grants. A danger to receiving thesefunds is that over time you can becomedependent on that source of money, andwhen it is suddenly cut off or withdrawn, itcan end in financial disaster.

In the second part of the Input Analysistest you are looking at the way energy and

money are used and whether or not theiruse takes you in the direction of yourholistic goal. Energy and money that areused to build infrastructure (buildings,machinery, fencing, transport, trained staff,a specific knowledge base, etc.) arepreferable, as are uses for a one-timeinvestment that will sustain itself. What youwant to avoid are uses that have no lastingeffect, or that left unmonitored can becomeaddictivebecause they put you at risk of

becoming dependent on them.


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Vision Analysis

The Vision Analysistest asks you toanswer the question: If you take this action

will it lead toward or away from the visionarticulated in your holistic goal?This question helps you keep in mind thelong-term consequences of your actionsand behavior, and is one of the few teststhat asks you to focus on a specific aspectof your holistic goal. In every decision thereis the potential of influencing one or more ofthe aspects youve listed in your visionstatement including the people, land, andcommunity.

The Vision Analysis test insists that youlook at what you have said must be in placefar into the future to sustain what you aremanaging and think about whether thisdecision/action will move you in thedirection of that description or away from it.

Gut Check

Where the other tests ask what you think,

the Gut Check test asks how you feelabout the action or decision you're runningthrough all the other tests. In pursuit of"progress," no question carries more weightthan this one. An action or decision mayhave passed all other tests, but you maychoose not to do it because it just doesntfeel right. Or, the opposite could occur andalthough the decision/action did not passthe majority of the seven testing questionsthat applied, you still feel it is the right thing

to do. Whats important in this lattersituation is that because of the questionsyou have asked, and all you now know, youcan work to mitigate at least some if not allof the consequences. You can also betteridentify what to monitor. This test asks thequestion: Considering all the testingquestions and your holistic goal, how doyou feel about this action or decision now?The Gut Check question, more than anyother, can be done only by the decision

makers who formed and have ownership inachieving the holistic goal. You are nowconsidering the decision based on your owncultural and social values and traditions.

What is it? Vision AnalysisHelps you keep inmind the long-termconsequences of your

actions in the context of your holistic goal.

Why is itimportant?

What is it? Gut Check

This is the feelingquestion that proc-esses all the informa-

tion you have analyzed in the other six testsbearing in mind the quality of life youvedescribed in your holistic goal.

Why is itimportant?


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A Last Word on the SevenTesting Questions

Using the seven testing questionswithyour holistic goal might feel a little awkwardat first, but with practice testing will becomealmost automatic. At the end of this guideis a worksheet you can use to testdecisions. Some people find it worthwhileto create their own format for asking theseven testing questions. With practice,these questions will become an integral partof your decision-making process and helpyou create the results you want.

Ultimately there is no tyranny in testingbecause the questions merely support youin your decision-making process. You maydecide to implement a decision that merelyaddresses a symptom because you need tostop the bleeding and take some sort ofimmediate action. But while doing so youknow the results of the decision will betemporary and wont lead you towards yourholistic goal. You at least know that thedecision is not in line with what you hope toachieve in the long run and that eventuallyyou are going to have to do somethingabout it.

You may also choose to implement adecision even though it failed to pass all butthe Gut Check testing question. Or, youmay decide not to do something eventhough it passed all seven tests, but it justdoesnt feel right at this time. Even aftermaking your very best effort to do the rightthing and even when a decision has passed

all seven testing questions, it could stillprove to be the wrong thing to do. This iswhy the feedback loopand monitoringyourdecisions is critical.

Helpful Hints for Using the SevenTesting Questions

All actions must be tested toward yourholistic goal. Be aware of any tendencyto revert to prior ways and means fortaking action and forgetting to use theaspects of this framework that enhanceyour decision making, especially duringa crisis or situation that is stressful. Takeactions to deal with the emergency, buttest all actions toward your holistic goal,not toward the present problem.

When you're dealing with a problem, go

to the root cause test first. If an actiondoesn't address the underlying cause ofthe problem, you will not solve it. Realiz-ing this will help you to be more creativein moving forward.

The gross profit analysisapplies onlywhen two or more enterprisesare beingcompared. The comparing optionstestapplies only when two or more actionsare being compared.

The weak link test applies in three differ-

ent contexts: social, biological, and fi-nancial. Look for the financial weak link(in the chain of production) when en-gaged in Holistic Financial Planning thentest subsequent decisions in light of thatweak link. Consider a biological weaklinkonly when an action is taken to in-crease or decrease a population of or-ganisms. Look for a social weak link anytime an action is contemplated that couldaffect people whose support you will

need.The gut check test is based on the pic-ture that emerges after passing throughall other tests that apply, and thus isasked last.


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The Feedback Loop

Monitoring Your Decisions

Once you have made a decision or have

decided on an action, youll proceed withthat course of action. The decision mayeven be part of your Holistic Financial Plan,your Holistic Grazing Plan, or some otherplan. Before you actually implement thedecision, it is important to determine whatthe earliest warning signs or indicatorsmight be that youre going off track. Then,monitor those indicators carefully, and asyou implement the decision, take actionquickly if things start to go wrong.

You do this by considering any unintendedconsequences that may arise from youractions, recognizing the complexity of allliving systems.

If your decision involves the land (forexample, controlling an insect pest), it iseven more critical to develop monitoringcriteria because of natures complexity. Infact, some people suggest it is best to justassume you're wrong and monitorthe earlywarning indicators closely for the first signsthat your plan is off track.

If you find you're headed someplace you

didn't want to go, you can either adjust(control) your plan or re-plan entirely. You'renot monitoring to see what happens; youare monitoring to make happen what youwant to happento bring about the desiredchanges in line with your holistic goal. Inthis regard the word plan is actually a 26-letter word:plan-implement-monitor-control, with positive action following eachstep.

What is it? The Feedback Loop:

You must monitor toproduce the result youdesire, not to see what

happens. The feedback loop is essential tocreating a responsive plan.

Why is itimportant?


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Next Steps

Learn By Doing

Now that you understand the basic steps of Holistic Whole Farm Planning, you can begin to use it

in all your decision-making and management. At the end of this section are worksheets for you tofill out with your management inventory and your holistic goal.

Some people are daunted by the idea of including the other decision makers in their managementteam in this process, much like Andy Sulco was in the example in the first section of this guide.But, you may be surprised at how those same people will actually welcome the kinds ofconversations that arise from this level of management.

If the other decision makers in your management team arent interested in joining you in thislearning process, you might try to just practice yourself, writing a temporary holistic goal foryourself and one for the management inventory with those other decision makers in mind. In time,

they will see the merit of your process or gain ownership in the collective decision-makingprocess that is creating results for everyone.

The key is to keep practicing and not assume that because you havent gotten everyone onboard, you cant use these tools.


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Questions, Exercises, Resources

Quick QuizAnswers to this quiz are at the end of this section

1. What are the three main parts of your holistic goal?

_______________________________

_______________________________

2. True or false: It is critical that all the decision makers in your management team involved increating the holistic goal.

3. Answering the question, "How do we want our lives to be?" helps you create which part of theholistic goal? _______________________________

4. True or false: the first step in creating a holistic goal is writing your vision statement.

5. When you are creating a holistic goal, which of the following statements are true?

a. It is important that it be written down.

b. You write the quality of life statements first.c. You dont include any specific "how-to's."d. You include all the decision makers in its creation.e. All of the above are true.

6. True or false: using the seven testing questions helps us make decisions that aresimultaneously socially, environmentally and economically sound in terms of our holistic goal.This is known as meeting the triple bottom line.

7. Match the name of the testing questions with the correct question on the next page.

8. Which test question builds on all the other questions?

9. True or false: A farm family should write a mission statement


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___ Social weak link 1. Which action provides the greatest

return, in terms of your holistic

goal?

___ Root cause 2. If you take this action, will it lead

toward or away from the visionstatement described in your holistic

goal?

___ Input Analysis 3. Considering all the questions andyour holistic goal, how do you feel

about this action or decision now?

___ Gross profit analysis 4. Does this action address the weakestpoint in the life cycle of this organ-

ism?

___ Financial weak link 5. Does this action address the root

cause of the problem?

___ Vision Analysis 6. Is the energy or money to be used inthis action derived from the most

appropriate source in terms of your

holistic goal? Will the way the en-ergy or money is to be used lead

toward your holistic goal?

___ Comparing Options 7. Are there any social concerns re-

garding this action?

___ Gut Check 8. Does this action strengthen the

weakest link in the chain of produc-

tion?

___ Biological weak link 9. Which of these enterprises contrib-

utes most to covering the fixed costs(or overheads) of the business?


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10. Which of the following statements are true about the seven testing questions?

a. The gut check test is generally done last.b. All actions must be tested toward a holistic goal.c. The gross profit analysis applies only when two or more enterprises are being compared.

d. When you're dealing with a problem, go to the root cause test first.e. All of the above is true.

11.What are the three links in the chain of production associated with the financial weak link?___________________________________

___________________________________

___________________________________

Questions for Deeper Thought

1. As you consider the whole you are managing, how can you engage the decision makersin managing holistically with you? What would motivate them to try this approach?

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

2. List some of the various ways in which incorporating what youve learned will help you

manage your resources better.

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________


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__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

3. Think about the products you produce as part of your operation. Based on what you'velearned about the financial weak link, pick an enterprise you are currently managing anddetermine where its weakest link is.

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

__________________________________________________________________________

Answers: 1) Quality of l ife, behaviors & systems, & vision statement 2) T, 3) Quality of life; 4) F; 5)E; 6) T; 7) 7, 5, 6, 9, 8, 2, 1, 3, 4; 8) Gut check; 9) F; 10) E; 11) Resource Conversion, ProductConversion, & Marketing (Money Conversion.


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Worksheet for Defining YourWhole Under Management

Who are the decision makers now? Who makes the decisions? Who has veto power?

What assets do you have now? People- Land- Equipment & Assets- Skills & Networks

What money is available?

Management Team

Assets


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A Worksheet for Writing Your Holistic Goal

There are three key parts of a holistic goal: quality of life, behaviors & systems and vision(described below.) Key points to consider in writing your holistic goal:

The holistic goal is generally written in the above order because each component buildson the previous one.

It is also very important that you have completed your management inventory, inparticular that youve identified who the chief decision makers are. They must beinvolved in creating your holistic goal.

Quality of Life: Basically asks the question, "How do I want my life to be?"

It connects to our values systemswhy are we doing what we're doing? What motivatesus?

Quality of life statements are usually written in the present tense: "We are, we value, wewant" versus, "we will, we hope."

Behaviors & Systems:Once youve identified the quality of life you want to have, you need todetermine what you are willing to commit to doing to create the quality of life you just described.

The question here includes: "What do I have to produce to live a life like that?"

Generally speaking, for each quality of life statement written, there is a correspondingbehavior or system to produce it.

Vision Statement:The Vision Statement asks you to think about what needs to be in place to sustain the quality oflife far into the future. Take a look at the asset base you described when you completed yourmanagement inventorypeople, land, money.

1. How you have to behave. A description of how you must behave if the people inyour resource base (customers or clients, the people in the community, etc.) are tocontinue to support you.

2. The future landscape. A description of how thelandin your asset base must be inthe future to sustain what you produce .If you are managing land, describe how theecosystem processes must function to create that future landscape.

3. Thefuture community.A descriptionof your communityand the services that mustbe available (schools, medical facilities, stable businesses, etc.) to sustain yourquality of life well into the future.


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Your Quality of Life and Behaviors & Systems

Quality of Life Behaviors & Systems

.

.


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Your Vision Statement

How You Want to Be Seen By Neighbors, Customers,

Community Members

The Characteristics of the Land Surrounding Your Community

What Your Community Needs to Be Like


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