Tom had been farming in the south island of new zealand for eleven years. a mixed operation: cropping, livestock, and a contracting arm that serviced neighbouring properties. sixteen people including seasonal workers. Tom was the knowledge holder for every aspect of the operation. machinery maintenance schedules, contractor relationships, seasonal planning, partner contracts for the contracting arm. nothing was documented.
nothing was transferable. if Tom was unavailable the operation stuttered because the knowledge lived in his head and nowhere else. he had been running this way for eleven years. it had worked because Tom had never stopped.
the contracting arm had a pricing problem Tom was aware of but hadn't acted on. rates for several service types had not been reviewed in three years. input costs (fuel, parts, labour) had moved materially. Tom was delivering services at rates that no longer reflected what it cost him to deliver them. he knew the margin was thin. he hadn't quantified exactly how thin because there was no reporting structure that would show him clearly.