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The elements common to successful business management and mountaineering. by Geraldine Warner In any type of business, rchardist and businessman John McQuaig identified eight elements common to successful mountaineering and busi- ness management when he spoke recently before the Wash- ington State Horticultural Association's annual meeting. 1. Vision: In mountaineering, your vision is clear: to reach "You have to have a team. Build a team for your the summit. If a business owner or manager does not define what the vision is and communicate it to the company as a whole, the power of having a shared vision is lost. McQuaig recommended that things don't change overnight, he stressed. "It's like turning a steamship. You do it one degree at a time." 4. Write your own TO THE SUMMIT O Eight keys orchardists or warehouses develop a three- to five-year perspective. For example, a grower's vision might be orchard—owners, managers, bankers, accountant." —John McQ uaig that within three years, he or she will have a 300-acre orchard providing high-quality cherries and Fuji and Gala apples for the export market. Depending on how big the orchard is now, that might mean expand- ing or it could mean getting rid of the least desirable 20 percent of the orchard. A vision helps establish business goals and allows consistent decision making with- out waiting for the bank to push the business in a certain direction, he said. It helps motivate people in the business, creates a positive culture, and brings stakeholders together. "Is your business or orchard where it needs to be," he asked growers. "Where should it be in three years or five years in order to be competitive, and have the lowest costs, and be positioned for the global marketplace?" 2. SWOT analysis: Examining strengths, weaknesses, opportunities, and threats helps determine what assets are available to achieve the vision, as well as what liabilities might hamper the company's efforts. Strengths and weaknesses are typically internal factors that can be controlled. In mountain climbing, these might include your level of fit- ness, leg strength, and fortitude in the face of adversity. In business, these include products and services, marketing and sales, people, systems and processes, and financial capability. For example, which fruits and varieties do you have and which do you need toget a decent return so you can remain competitive and profitable? Do you need farmworker housing to attract people to your operation? Do you have sufficient working capital? Do you have a good relationship with your banker? Do you have the right marketing team for your operation? Growers need to be particularly proactive in terms of the varieties they produce, he said. "One of the huge issues in the horticultural business is there's a long lead up to production. Trying to predict is difficult, but you have to do the best job you can. Make sure you're not in something that's not going to work." Opportunities and threats are external factors that you have no con- trol over, which in the case of an orchard business includes competition, customers, the warehouse, laws and regulations, and the exchange rate, for example. 3. Preparation and planning: In mountain climbing, the preclimb - plan includes physical conditioning and selection of food and gear, as well as maps and emergency items. The climb plan covers the route to take, how to avoid hazards, how to take advantage of opportunities, the number of days needed to climb the mountain, and how to acclimatize to the altitude to prevent altitude sickness, which is often debilitating and sometimes lethal. A business also requires thorough planning on how to achieve the vision and to identify what stands in the way. The plan should focus on how to shore up weaknesses, exercise strengths, capitalize on opportuni- ties, and minimize exposure to threats that could damage the business. 26 MARCH 1, 2012 GOOD FRUIT GROWER story: When setting out to climb a mountain, it's common to have people coming down the moun- tain reporting sickness, injuries, and other disasters. "Don't listen to them," McQuaig advised. "You have to have a certain moxie to write your own story. That doesn't mean you're stupid and ignore people who might be giving you advice. But if you listen to the naysayers, you may ulti- mately convince yourself that you cannot succeed. You have to say, 'I have my own strategy, and I'm going to get there.'" 5. A supportive team: A team approach is critical both in mountain climbing and in business. Once, when climbing Mount Baker with a team on a rope, McQuaig felt the snow collapse under him and found himself hanging in a crevasse with his feet dangling. His backpack had wedged against the side of the crevasse and stopped his fall. As he yelled "Falling!" two of his team members dropped into a three-point stance to prevent him falling further, and McQuaig was able to climb out. "If I had been by myself I would be still up there, and they would still be searching for me," he said. "You have to have a team. Build a team for your orchard—owners, managers, bankers, accountant. Build a team of people that you can work with and that will help you achieve your goal. If they know what you're trying to achieve, they'll help you get there." 6. An experienced guide: McQuaig and a group of friends once climbed Mount St. Helen's without a guide. The weather turned bad, but they continued because they'd set aside the day for climbing. Some of the group turned back, but he and one friend made it to the summit, despite snow and 60-mile-an-hour winds. Because of poor visibility they had difficulty finding the cairns to lead them down again. "If we had had a guide, we would have been a lot smarter, and he would have said, 'This is not the day to do this. You live nearby, you could do it another day,'" he said. In business. the need for a guide, consultant, expert, or mentor is just as crucial. They can see the trail before you can, including risks, tax implications, sales issues, industry and economic trends, cash-flow issues, budgeting, and more. 7. Take it one step at a time: Each time McQuaig embarks on a major climb, he finds it daunting. Reaching the summit might seem impossible, but it can be reached by taking one step at a time and using maps, com- passes, and an altimeter to chart progress. Running a business is the same, he said. "In business, we need key performance indicators that tell us we're making progress towards our goal. What information do you have on your farm that tells you you're making progress towards your goal?" 8. Luck: Despite all you do to prepare, either for climbing or running a business, luck will always intervene, McQuaig said. "That's a fact of life." The best climbing plans in the world can't prevent a freak storm from dropping 18 inches of new snow and making passage to the summit impossible. Similarly, an orchardist has to deal with bad weather, a sud- denly shifting economy, or plummeting market demand. Being pre- pared, perhaps with crop insurance, is the best hedge against luck-driven disaster, he said. • www.goodfruit.com Mountain climbing enthusiast John McQuaig at his orchard in Entiat, Washington.