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Cooperative Opportunities in a Global Economy
Global Involvement … Lessons Learned
Cooperative Opportunities in a Global Economy
Global Involvement … Lessons Learned
John E. GhertyImmediate Past President & CEOLand O’Lakes, Inc.
8th Annual Farmer Cooperatives Conference
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Importance of this ConferenceImportance of this Conference
Recognizes global Recognizes global nature of 21nature of 21stst century century economy/marketplaceeconomy/marketplace
Reflects our Reflects our responsibility to be responsibility to be “good global citizens”“good global citizens”
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Global ViewGlobal View
In today’s complex and In today’s complex and changing economic changing economic environment, being environment, being financially successful and financially successful and adding value for members adding value for members long term, will … long term, will … for many for many of our cooperativesof our cooperatives … … require that we be prepared require that we be prepared to pursue international to pursue international businessbusiness
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Global ViewGlobal View
The question is not The question is not
whether we will whether we will
have to operate in have to operate in
in a more unified in a more unified
global market … global market …
but rather when but rather when
and how.and how.
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TopicsTopics
The ways international business can The ways international business can
add value for cooperatives and add value for cooperatives and
membersmembers
How you build board and membership How you build board and membership
support for international effortssupport for international efforts
How Land O’Lakes has approached How Land O’Lakes has approached
these issuesthese issues
6Adding Value through International ActivityAdding Value through International Activity
HistoricHistoric cooperative focus … cooperative focus … commoditiescommodities Today access depends on being least-costToday access depends on being least-cost
on a global basison a global basis
FutureFuture opportunity will be in opportunity will be in finding ways to add value to finding ways to add value to commoditiescommodities Differentiate member productionDifferentiate member production
7Adding Value through International ActivityAdding Value through International Activity
Differentiating member productionDifferentiating member production Further processingFurther processing QualityQuality Dependability of supplyDependability of supply TraceabilityTraceability
Exporting new technologyExporting new technology Meeting global needs of domestic Meeting global needs of domestic
customerscustomers
8Adding Value through International ActivityAdding Value through International Activity
Helping generate the size and Helping generate the size and scale necessary to compete and scale necessary to compete and winwin Critical mass and economies of scale Critical mass and economies of scale
key attributes of successful companieskey attributes of successful companies
9Communicating with Board and MembersCommunicating with Board and Members
CEO develops Vision for CEO develops Vision for
international involvementinternational involvement Develop and implement detailed Develop and implement detailed
communication plancommunication plan Develop and implement specific Develop and implement specific
projects and strategiesprojects and strategies
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CEO’s RoleCEO’s Role
Be point person with the BoardBe point person with the Board Critical “point of sale”Critical “point of sale” Demands compelling message(sDemands compelling message(s))
• Based on facts and dataBased on facts and data
• Use outside resourcesUse outside resources
Also need to build broader Also need to build broader membership supportmembership support
11Ten Things to Think Aboutin Communicating Strategy Ten Things to Think Aboutin Communicating Strategy
1.1. The CEO or leader must be fully The CEO or leader must be fully committed to the Visioncommitted to the Vision
2.2. You need to craft compelling You need to craft compelling messages around the Visionmessages around the Vision
3.3. Take your messages to decision-Take your messages to decision-makers firstmakers first
4.4. Send written material ahead of any Send written material ahead of any meetingsmeetings
5.5. Have a communications plan with Have a communications plan with tasks, timing and accountabilitiestasks, timing and accountabilities
12Ten Things to Think Aboutin Communicating Strategy Ten Things to Think Aboutin Communicating Strategy
6.6. Once you go beyond the board, be Once you go beyond the board, be tactical about whom you tactical about whom you communicate with firstcommunicate with first
7.7. Use information meetings in the Use information meetings in the countrycountry
8.8. Keep other stakeholders informedKeep other stakeholders informed9.9. Be a good listener and incorporate Be a good listener and incorporate
feedbackfeedback10.10. Over-resource your communication Over-resource your communication
effortsefforts
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The Land O’Lakes ExperienceThe Land O’Lakes Experience
Early 1980s Land O’Lakes:Early 1980s Land O’Lakes: UMW regional cooperative … little UMW regional cooperative … little
international visioninternational vision
CEO Ralph Hofstad started the CEO Ralph Hofstad started the processprocess Had a vision for Land O’Lakes growth Had a vision for Land O’Lakes growth
… domestically and internationally… domestically and internationally
14Land O’Lakes Global InvolvementLand O’Lakes Global Involvement
Land O’Lakes is proud to be a Land O’Lakes is proud to be a
leaderleader in the delivery of in the delivery of
international humanitarian international humanitarian
and technical assistance.and technical assistance.
15Land O’Lakes Global InvolvementLand O’Lakes Global Involvement
Bangladesh
Russia/Siberia
Armenia TurkmenistanAzerbaijan UkraineGeorgia Uzbekistan
AngolaEthiopiaKenyaMalawi
SudanTanzaniaUgandaZambia
AlbaniaBosnia Macedonia
Philippines
Pakistan
MaliMozambiqueNigeriaSouth Africa
ColombiaHonduras
Afghanistan
16Communicating Our International VisionCommunicating Our International Vision
Key objectives:Key objectives: Reach out and help farmers in less Reach out and help farmers in less
developed countriesdeveloped countries Use international development projects to Use international development projects to
develop relationships that could lead to develop relationships that could lead to commercial opportunitycommercial opportunity
Get board, members and employees Get board, members and employees involvedinvolved
- Make them advocatesMake them advocates
17Communicating OurInternational VisionCommunicating OurInternational Vision
Initial challenges … skepticism
Global development assistance would create new competitors
Doing business in global markets would detract from our ability to succeed at home
18Communicating OurInternational VisionCommunicating OurInternational Vision
Key messages:Key messages: International development was a reflection International development was a reflection
of who we are as an organizationof who we are as an organization Our involvement in international Our involvement in international
development had the potential to create development had the potential to create positive relationships and open the door to positive relationships and open the door to commercial opportunitiescommercial opportunities
Land O’Lakes faced a very real need to Land O’Lakes faced a very real need to expand its horizonsexpand its horizons
19Communicating Our International VisionCommunicating Our International Vision
Enlightened Self InterestEnlightened Self Interest
20Communicating OurInternational VisionCommunicating OurInternational Vision
Took these messages to:Took these messages to: BoardBoard MembershipMembership
Annual meetingAnnual meeting Country meetingsCountry meetings Member publicationsMember publications
21Communicating OurInternational VisionCommunicating OurInternational Vision
Spreading the Spreading the message:message: Getting directors, Getting directors,
members, members,
employees and employees and
retirees retirees directlydirectly
involvedinvolved in international in international
development programsdevelopment programs
You learnby doing!
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Land O’Lakes TodayLand O’Lakes Today
Directors, members and Directors, members and employees:employees: Proud of our international development Proud of our international development
effortsefforts Understand importance of the ability to Understand importance of the ability to
think, plan and globallythink, plan and globally Recognize global activities create new Recognize global activities create new
opportunities, rather than foster new opportunities, rather than foster new competitorscompetitors
23Land O’Lakes International DevelopmentLand O’Lakes International Development
International Development Division International Development Division established in 1981established in 1981 Record of achievement:Record of achievement:
137 projects in 66 countries137 projects in 66 countries Training for 2,500 cooperatives and private Training for 2,500 cooperatives and private companiescompanies Training for more than 50,000 foreign Training for more than 50,000 foreign nationalsnationals
Global school nutrition programs have fed more than 1.5 million youngsters.
24Land O’Lakes International DevelopmentLand O’Lakes International Development
Goals:Goals: Provide meaningful assistanceProvide meaningful assistance Generate a positive image in current and Generate a positive image in current and
potential marketspotential markets Develop Land O’Lakes international Develop Land O’Lakes international
experience and expertiseexperience and expertise
25Land O’Lakes Global BusinessLand O’Lakes Global Business
First exported butter to Africa First exported butter to Africa
in 1925in 1925 Late 1980s … developed staff Late 1980s … developed staff
specifically dedicated to sales in specifically dedicated to sales in
Latin America and Far EastLatin America and Far East
26Land O’Lakes Global BusinessLand O’Lakes Global Business
Dairy FoodsDairy Foods 34 countries 34 countries
FeedFeed 39 countries39 countries
Seed (alfalfa)Seed (alfalfa) 5 countries5 countries
27Cooperatives and the Global FutureCooperatives and the Global Future
Cooperatives cannot afford to ignore Cooperatives cannot afford to ignore global opportunity or global global opportunity or global competitioncompetition
Cooperatives need to focus on core Cooperatives need to focus on core businesses and competenciesbusinesses and competencies
The most significant opportunities The most significant opportunities exist in the value-added sectorexist in the value-added sector
No one organization will do it alone … No one organization will do it alone … collaboration and cooperation will be collaboration and cooperation will be keykey
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