1. 16 Lesson Plans to Prepare Small and Mid-scale Farmers to Enter Food Hubs, Groceries, Restaurants and Cooperatives

2. test Unit 3.3 Assessing and Managing Human Capital This powerpoint presentation is a companion resource to the ‘Baskets to Pallets Teaching Manual’ available at smallfarms.cornell.edu Please see ‘Module 3– Business Management’ for additional teaching resources.smallfarms.cornell.edu

3. What is Human Capital Resources that are not found in financial statements (people and people related) Knowledge of staff Experience of staff Habits Social interaction between people Labor Creativity Hired or contracted services Book keepers Lawyers Produces economic value Not an asset that can be owned by a company like a tractor

4. Why is Human Capital Important: It results in positive economic value – positive dollars if managed well Additional people may be required to expand a business Additional people may be required to enter new markets It is potentially the most expensive cost center for a business Can often “Make or Break” the business It is increasingly difficult to recruit and retain (good quality) people Very often is not well managed (or mismanaged) to support the business as well as it could Very often is difficult to manage for personal or emotional reasons Personality conflicts Family relationships Lack of experience managing people

5. Assessing then managing can look like a lot of extra work but… Many of the system reviews and assessments are used in other aspects of business development and growth planning Once completed, helps to make the business more efficient – freeing up time down the road There are resources out there to help CCE trainings SBDC Farm Credit Online Trainings Private training consultants

6. Steps to assess and begin understanding Human Capital, …then what Management is needed It starts with the needs of the business: 1.Conduct a business self-assessment (see handout) 2.Identify what team member(s) is/are needed and their correlation to each other 3.Conduct a Human Resource management skill assessment (see handout) 4.Determine outside Human Capital needs (see handout) 5.Validate Human Capital processes and determine administration/management needs 6.Assess and develop a compensation plan and strategy 7.Assess, identify, and implement Controls for the business

7. Conduct a business self assessment Utilize a self assessment tool (Farm Self Assessment, FARMroots, GrowNYC) Questions to focus on: Where my/the business is Where does my/the business need to be What needs attention What are the strengths to leverage What are the weaknesses/needs to manage for

8. Identify what team is needed and their correlation to each other Develop a personnel/staffing matrix/plan/schedule Develop an organization chart Identify “informal” team members Advisors, advisory board Industry professionals Industry resources

9. Conduct a Human Resource management skill assessment Business skills needs review worksheet Assign each business skill by responsible individual Clarify any voids or areas where assistance is needed

10. Determine outside Human Capital needs Business voids/needs – what is not being done that should be? Professional Contracted, i.e. book keeping Occasional, i.e. legal advice

11. Validate Human Capital processes and determine administration/management needs Application process/protocol Orientation procedure Standard operating procedures Testing/training requirements Performance counselling Termination protocol For further reading on the topic visit: https://www.extension.iastate.edu/agdm/wholefarm/html/c1-75.html https://www.extension.iastate.edu/agdm/wholefarm/html/c1-75.html

12. Assess and develop a compensation plan and strategy Identify hours used for business operations Allocate all costs for Human Resource needs Non-cash incentive program identification/development

13. Assess, identify, and implement controls for the business SWOT Personnel safety General population (customers, general public) safety Cash control Inventory control Intellectual property management

14. What is and why intellectual property Systems developed and unique to a business Customer lists Price lists Equipment designed and specific to a business Patents Trademarks Copyrights Labels Logo’s Geographical origin (for example champagne as compared to sparkling wine)

15. Summary: Human Capital is a valuable resource that needs to be managed Management of Human Capital results in a better run and more efficient business Human Capital management tools are frequently used in other aspects of business management Human