As part of our role as Planfarm consultants we are privy to seeing exceptional application of technical skills. The ability to turn highly variable seasons into profit is outstanding. I don’t think many would doubt the technical ability of those we are involved with. As we at Planfarm are celebrating 50 years of servicing the WA ag sector it is really interesting to look at the transition of farm business over time.
Of the roughly 18 million hectares of free hold land available in the WA cropping belt 20,000 owners were toiling the dirt in 1970, the same land area is now farmed with 4,000 owners. The gains in efficiency have been tremendous but the traditional farm model of family only running the farm has transformed to very extensive operations that require external help from all manner of support given the complexity of farm ownership and operations in 2024.

The only constant in farming now is that we are dealing with more and more people. Dealing with people has now become core to successful operations, whether it be negotiating the best deal on chemical, discussing the merit of specific fungicide applications with an agronomist or most importantly the interactions with your employees and family members (sometimes they are both). Farm business growth and people now go hand in hand, yes, we will always try to gain efficiencies in labour but if you want to continue to grow and develop, you could argue that people skills may be seen as more valuable than technical skills.

Think about the leaders that inspire you. They tend to be those that are calm in a crisis, great listeners, clear decision makers, they are happy to see credit go to others, and you just seem more hopeful after being around them – they are secure and have purpose in what they do. Notice that I didn’t mention characteristics that involve having a short fuse, full of ego, panicked when things go wrong, chopping and changing decisions, unrealistic expectations, their way or the highway, and so sick and tired of always having to give to staff. Now no one constantly operates as the first person and rarely do we operate in the latter, however we can over time shift our mentality to increase our Emotional Intelligence.

While IQ is someone’s reasoning ability measured through a series of problem-solving tests, EQ (emotional intelligence) refers to someone’s ability to problem solve through emotional awareness and reasoning. Used effectively EQ becomes a business superpower to drive growth and performance. So how can something that is based on emotions lead to any kind of impact on your business? Let’s explore…

In his book titled “Emotional Intelligence – Why It Can Matter More Than IQ”, Daniel Goleman, an American Psychologist outlined a structure of five core areas that define emotional intelligence. They include the following: –

Self-Awareness
People with high emotional intelligence understand their emotions, not letting feelings guide or rule their responses. They are very honest in what they bring to the table as strengths and weaknesses – they press into their strengths knowing that we all have weaknesses, and they are not
defined by what they lack but what they provide. People with EQ trust their intuition and operate with confidence which can be infectious, creating an atmosphere of stability. A strong understanding of self and the triggers that can set them off are understood and mitigated or channelled into a constructive outcome.

Self-Regulation
My mum and many of yours may have said “if you don’t have something nice to say don’t say anything at all.” While this is ever present in my mind, the background of this is don’t respond out of emotion or the response will not be helpful or constructive. Self-regulation is the ability to control emotions/impulses and take stock, limiting the response to triggers ensuring they don’t make impulsive, careless decisions. They think before they act and have clear boundaries. Self-regulation is characterised by clarity of thought, calmness in chaos, comfort with change, integrity, and the ability to say no.

Motivation
People with a high degree of emotional intelligence see a situation with a helicopter perspective. They are not overawed by the immediate circumstance as they are motivated by the long term. Emotionally Intelligent people forego short term gain for long term success, excelling as team builders. They invest in people knowing that those individuals will ultimately be the driving force of their business success, and that goal is a greater motivator than the short-term cost incurred.

Empathy
This is as important as self-awareness and characterises excellent people leaders. Empathy is the capacity to identify and understand the viewpoint from another’s perspective. Empathy is letting go of our own views and thoughts on a situation and recognizing the feelings of others, even if those feelings may not be clearly evident or what we may believe are valid – less of us and more of them. Listening, watching body language, observing changes in patterns of behaviour and in general really tuning into others is a superpower to leading teams effectively. Ultimately people want to be valued and the best way to understand someone is to walk in their shoes.

Social Skills
Those with EQ are very easy to talk to. They are wanting to see those around them thrive and love to see team success. Ego and jealousy take a backseat to seeing others develop and shine, never hungry for individual validation. They are strong communicators and exceptional at developing and prioritising lasting relationships.

Research from the global analytics firm Gallup outlined significant correlation between employee engagement and financial outcomes. The business’s that engaged with employees, a trademark of strong implementation of EQ leadership, outstripped the performance of their competitors by an astounding 147% in earnings per share.

Tim Cooke of Apple, who exhibits a measured, stable and collaborative, team focussed approach, has been at the helm of the first business to reach a $3 trillion valuation.

Richard Branson has been a people first focussed business and has developed a multibillion-dollar business on the back of strong empathy, a fun and friendly environment and innovation.

Warren Buffet whose Berkshire fund is nearing $1trillion valuation has said that “the stock market is a device for transferring wealth from the impatient to the patient.” He has demonstrated EQ over a long career through self-regulation, being focussed on the long term rather than an emotional response in the moment which has led to his success.

Harvard Business review delved further in research of EQ outlining businesses who have an EQ focussed culture have 340% lower turnover exhibiting excellent team retention and businesses that are innovative, adaptable and possess the competency to navigate change.

I appreciate that while your farms may not be the same scale as Apple or Virgin, they are of significant value and the principles of EQ in business remain the same.

The excellent news is that EQ are skills that we can grow and learn in. The 100-hour rule is a really helpful and realistic way of intentionally growing in any area. 18 minutes per day, each day for a year will contribute over 100 hours (109 hours) to this skill. That’s all it takes to be more effective in this skill than 95% of the population. A total commitment of 1.2% of your time to help develop a business superpower.

So have a crack and pick one of the above tools and put it into practice each day. Be intentional and consistent rolling it out in circumstances you face each day in your business. As a nice bonus you will probably be a much more understanding partner, friend and boss.

We operate in a competitive labour market and the best talent will go to the businesses that inspire and value their people. A salary may get them in the door but the way you treat someone will keep them. The very best managers of teams inspire and draw each individual up toward a collective goal. So, when you are about to hyperventilate because your worker has done the wrong thing and given you a frustrating response, consider the words attributed to Warren Buffet, as he has done ok at business along the way……

“you will continue to suffer if you have an emotional reaction to everything that is said to you. True power is sitting back and observing things with logic. True power is restraint. If words control you that means everyone else can control you. Breathe and allow things to pass”.

Viktor Frankel, who survived 4 concentration camps further reinforces the value in the way we manage our emotions. “Everything can be taken from a man but one thing: the last of the human freedoms – to choose one’s attitude in any given set of circumstances, to choose one’s own way.”

I understand that farming business is more complex than ever, and the load is more challenging, it is with this awareness that I encourage the value of adding further to your skill set of Emotional Intelligence to effectively enhance your relationships so that together you can drive the next steps of growth forward.