Your business. Your success.

Backswath Balanced Management Tool

How would you rate the overall “balance” of your farm management?

Poor? Moderate? Optimal?

Backswath Management Inc. designed a diagnostic tool to illustrate the balance that exists within and between the primary management functions (Marketing, Human Resources, Marketing, and Operations) on your farm.

It will help you pinpoint areas that require attention and will provide information relevant to the development and implementation of growth and intergenerational transition plans. Improperly balanced management, especially in growing and transitioning farms, can result in significant business challenges that have an undesirable impact on your financial performance.

This management tool illustrates that any management area where:

• <4.0 – Shows performance is less than desired and management attention should be a priority. It should be attended to before proceeding with growth or transition plans.
• <4.1 to 7.2 – Shows performance is adequate but management attention is required. Farm management can proceed with growth or transition plans cautiously.
• >7.2 – Shows performance that illustrates management strength. Growth or transition plans should not experience difficulty in this management area.

Real Farm Example

In order to analyze their farm management practices, family members of a farm independently completed the assessment.

Their scores showed similar patterns of relative management strengths and weaknesses. One family member’s scores were more positive than the others but not to an extent that would require further analysis and understanding. Variability in answers is expected and can be helpful as family members are able to visualize what each person thinks about the management functions on the farm. There was an apparent need to address challenges in the human resource management area, as was reflected in the lower scores by each person.

Independently, each family member identified three areas of their operation where some enhanced management focus was required. After comparing and discussing these management priorities, they agreed on two operations priorities and one human resources priority. Action plans were developed, implemented, and monitored for each of the three management priorities.

Backswath Retirement Calculator

How does the Backswath Management Retirement Calculator work? What are the results?

Using the data you will enter in the Calculator, and applying some projections and assumptions, the BMRC is a tool that provides a ‘peek’ at your financial picture in your retirement years. More specifically, it answers the following questions:

• Am I saving enough money for retirement?
• If not, what is my shortfall?
• What if (scenario X) happens?

It tells you if you are saving enough for the kind and length of retirement you desire. If it anticipates that you might fall short of those goals, it can tell you by how much (displayed as ‘underfunded years’, not a dollar amount).

It also provides the opportunity to analyze some ‘what-if scenarios’ where significant events can be taken into account, and their potential effect on your retirement finances. The results are presented in a yearly format. For example, you may find your retirement funding falls short of your life expectancy by a few years. Alternately, you may find you have more than enough savings to finance your retirement, so you might want to use some of that extra money to invest, spend, donate, etc. This is valuable insight.