Determining the important management skill competencies: The case of family farm business in New Zealand

Abstract

Despite the extensive investment in developing computer based decision aids over many years, farmers have failed to utilise other than relatively simple systems, such as accounting and budgeting packages, to any great extent. Another approach to improving farming efficiency, which could well be more successful, is the development of training packages designed to improve farmers’ management skills. These skills get used every day, many on an intuitive basis. The first task in developing this approach involves determining the skills farmers believe are important, and, therefore, need developing. This study provides answers, at least in the New Zealand setting, by reporting information from a large number of randomly selected farmers, as well as professional consultants. The results show both groups believe a wide range of skills are important, and that the set is largely common across all farm types, age spectrums, educational backgrounds, as well as across the full range of ‘managerial styles’ used by the farmers. Similarly, variations in objectives do not influence the ranking of the important skills. The conclusions can be summarised by noting the farmers believe selecting and managing people is a critical skill, as are the components of information gathering and the use of the information in planning, including risk management. Effective implementation of the plans is also regarded as being critical through skills such as anticipation, ‘looking ahead’, and accurate and complete observation, resisting panic, and acting decisively. Devising automatic systems to improve these skills is the next challenge.