According to Dr. Clay Mathis, who has served as the director of the King Ranch Institute for Ranch Management since 2010, the complexity of conducting business in any arena, especially a thin-margined industry like ranching, continues to increase every day. Although many of the challenges are the same as those the industry has faced for years, the problem of finding competent, qualified managers to effectively deal with everyday decisions is still there. He spoke with Radio Oklahoma Ag Network Farm Director Ron Hays recently about the importance of properly training managers that can oversee ranching operations and keep them sustainable.
“We’ve got to have managers that can deal with and make great decisions in the face of these complexities whether it’s regulations, trying to figure out how to hire and maintain a great workforce - strategic decision making,” he said. “There’s without a doubt a need to have excellent skills in business management among the ranch managers in this country.”
Mathis defines a ranch’s success by how challenges on the operation are worked through. He says more than ever today, the need for strategic relationships is very important. As is a manager’s understanding of risk management and the impact of fixed costs on their business structure and profitability. Combined, he maintains that these principles will help those in charge of an operation to make sound decisions for the future. One way in which to measure that, is to evaluate a ranch’s internal economy. Mathis insists that low-cost production is characteristic of the most profitable ranches.
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