Tom

16-person team
<8%
17% margin
regional nz

before

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.

the shift

operational knowledge was extracted from Tom's head and codified into the business for the first time. seasonal planning rhythm built and formally owned by the operations lead. machinery and maintenance schedule transferred, documented, systematised, owned by the operations lead. contractor relationships documented and handed over with a structured introduction process. decision rights defined for the operations lead within each function.

the contracting arm pricing was reviewed. a back-costing process across each service type showed two categories running at under 8% margin. both were repriced at the start of the following season. no partners left.

after

Tom took three weeks away during a non-peak period. the first absence of more than a weekend in eleven years. operations ran. one issue arose and was resolved by the operations lead without contact. Tom came back to a business that had run without him and knew it. the following season the operations lead managed the entire planning cycle independently. contracting arm margin improved from under 8% to 17% on the repriced service types. Tom was working on a land acquisition conversation he had never had the capacity to pursue.

the lesson

the knowledge was in Tom's head. getting it out was the install. everything else followed from that one structural change. and the margin problem that had been sitting in the contracting arm for three years took one season to fix once someone had the time to look at it properly.

Transformation metrics

Hrs per week in operations

55–60

Under 20
Consecutive days off

0 in 3 years

42 across 9 weeks
Revenue

$1.5m

$8m in 15 months
Below-margin work

Regularly accepted

Eliminated
days off in prior 11 years

weekends only

21 consecutive
operational knowledge documented

none

fully codified
contracting arm margin on repriced services

under 8%

17%
land acquisition conversation

no capacity

actively in progress
time to first structural shift

8 weeks

ready to stop being
the bottleneck?

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