Reflections on Quality

Quality is a subject on which we’ve spent much time and thought – both in the cattle business and in our prior businesses. Indeed, much ink has been spilled on the topic with philosophers and business people alike both writing and lecturing extensively on the subject.

The recently-deceased Robert Pirsig wrote two books on the subject of quality and still struggled mightily to define it. Pirsig made it a habit to capitalize the word “Quality” in order to represent a unique type of event that occurs between a subject and an object. Between the two, in his opinion, lies the value and hence the Quality. For Pirsig, Quality was the act of being intensely engaged in the process of something. This value, he wrote, is more immediate, more directly sensed, than any “self” or “object” to which it might later be assigned. In other words, it is more a process in and of itself and less a definable goal or object to which it might later be assigned or ascribed.

Subir Chowdhury echoes similar themes in his business writings on quality. He writes that excellence is not a chore that we undertake in order to sell something, but rather the process itself that helps restore and sustain us. In his view, it is the customer who ultimately defines quality (small “Q”) and who tells us when and if they sense it and thus profits (and hence business viability and sustainability) become a by-product of the great service provided, of great quality – not an end unto themselves.

How do we obtain Quality? How do we persuade our employees to strive for quality in their work? How can the Beef Quality Assurance program ("BQA") play a role in inspiring quality within our industry? Chowdhury argues that Quality is not some vague value we achieve simply by cheering our employees onward – we have to first ask them (and ask ourselves) what’s working and what’s not working within our business operations. And then give them the kind of tools and incentives that allow them to achieve that which works. Therefore, it follows that if we give our employees responsibility and treat them as the important parts of our business that they are – they respond and push each other far harder than we could ever push them. This is the environment in which Quality can take root and flourish. Profits through increased customer satisfaction and demand for our product will then come as a by-product or result of this endeavor.

Chowdhury has devised a so-called “LEO” plan for the development and sustainability of quality. LEO stands for Listen, Enrich and Optimize, meaning we must:

1. Listen to our customers;

2. Enrich the products or services we offer; and

3. Optimize our customers’ experience – not just improve – but optimize

Listening and talking to our customers is fairly self-explanatory if not sometimes painful. Enriching and improving our product as a result of those discussions – which would include the very specific veterinary practices and livestock-handling methodologies that BQA can assist with – requires three things:

1. A strong desire and sincere willingness to change how we do things;

2. A willingness to think outside the box to come up with the best possible solutions; and

3. An irrepressible and continuous urge to improve everything we do – down to the last detail.

After listening to their concerns first and then changing our product and/or our practices in response, then how can we not just improve but  “optimize” their experience with our product? According to Chowdhury, we must then strive for “perfection” – which has to be a tangible and achievable goal.

How to do this?

1. We have to first recognize the price of failure – lower sales, lower prices, lower profits, less demand for our product, ultimately we’ll be out of business;

2. We need to do it right the first time – no second chances or “do-overs;”

3. We need to get absolutely dogged on the details;

4. We need to develop a sense of what is called “productive paranoia” – that is, to draw on the favorite phrase of legendary Intel chairman, Andy Groves, “Only the paranoid survive.” It means constantly thinking and worrying over what else we might be able to do – about the competition, what customers might want, about opportunities we might be missing because it is those people and industries that get complacent are the ones that ultimately fail; and

5. We need to instill in everyone on our team, a passion for perfection, every minute of the day, and to be very honest with ourselves as to how we are doing in that regard and about what else remains to be done, etc.

So, it is not enough to simply “do our best” – we must strive for perfection.

A messy, dirty place is a sign of a messy, dirty operation. A clean, tidy place makes an impression on customers, visitors, and even the way our employees feel about themselves. An impression that someone is paying attention to the details.

In our operation, we make everyone on the ranch responsible for quality. We ask everyone on the ranch to pay attention to the details. To safety, cleanliness and order. To show a pride of ownership in everything.

The amazing thing we find is that most of our improvements don’t cost a lot of money. The ones that have the biggest impact are those achieved by our people (employees, contractors and owners alike) looking at how we do things and finding clever and elegantly simple ways to improve them. The “people-power” part of the equation is critical to improving our systems and processes. We don’t have the financial resources to simply throw money at problems. We have to use our heads instead of our wallets (or credit lines) to make improvements. Moreover, the improvements suggested by our people make it easier for them to “buy into” them and incorporate them into our daily regimes.

Like the philosopher Pirsig – and even through the teachings and practices of BQA – we have found that Quality exists and can flourish in the processes that occur between subject and object – in our case, between our stockmanship and our livestock. Quality then, for us, is the act of being intensely and fully engaged in this process.

Moreover, Quality in terms of our livelihood can be found in historical references as well. A key tenet of “The Code of the West” is that a cowboy should “Take Pride in Your Work” and to embrace the philosophy and operational values of your employer in “Ride for the Brand.” These are not simply suggested guidelines but instead are to be studied, adopted and followed as rules of life, the way we live our lives, etc. While the ten principles of the Code don’t specifically cite Quality, the Code incorporates virtually identical concepts into the western way of life, the western way of doing things.

As an academic philosopher, Pirsig is not the only one to have struggled in defining Quality. Avedis Donabedian is considered the founding father of the study of (lowercase “q”) quality in health care, an academic field that has spawned entire government agencies. And yet even he couldn’t quite get his arms around it. Perhaps the closest he came was on his deathbed in 2001, when he told a journalist that, “Perhaps we’ll never really be able to define or measure the essence of quality.”  He added, “It is the ethical dimension of individuals that is essential to a system’s success.  Ultimately, the secret of quality is love.”  Maybe that’s what Pirsig – with his Quality – was saying, too. And also BQA with its focus on what essentially comes down to respect, care and yes, love for the animals involved in this business.

Indeed, Donabedian, Pirsig (and dare I say BQA?) speak with one voice on this – the so-called “ethical dimension” of the individual involved. Pirsig writes that, “Programs of a political nature are important end products of social quality that can be effective only if the underlying structure of social values is right. The social values are right only if the individual values are right. The place to improve the world is first in one’s own heart and head and hands, and then work outward from there.”

A 4-H leader and county extension agent could not have said it better his or herself. Neither could a rancher, shepherd or other caretaker with ultimate responsibility for the health, safety and general welfare of his or her flock.

A STATEMENT ON PURPOSE

In 2018, the Eagle Rock Ranch celebrates its sesquicentennial – 150 years of continuous existence. The Eagle Rock Ranch currently is one of but a handful of working hay and cattle operations still existing in South Park. Why is that and how did that happen? Is it simply by chance? Are there any lessons that can be gathered from 150 years of continuous operation that can be applied going forward? 

We believe that one lesson that can be learned has to do with a clearly-defined purpose of the ranch. An organization’s core purpose is a statement of why it exists. We believe our ranch exists to keep us (as ranchers) in business for multiple generations. Connecting consumers with our product as ranchers is our mission – what we do – but not at all why we exist.

I was recently made aware of a 1960 speech by David Packard, co-founder of Hewlett Packard, who said, “I want to discuss why a company exists in the first place. In other words, why are we here? I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being… Purpose (which should last at least a hundred years) should not be confused with specific goals or business strategies (which should change many times in 100 years). Whereas you might achieve a goal or complete a strategy, you cannot fulfill a purpose; it’s like a guiding star on the horizon – forever pursued but never reached.  Yet although purpose itself does not change, it does inspire change. The very fact that purpose can never be fully realized means that an organization can never stop stimulating change and progress.”

I believe our purpose – why we exist – is to provide an enduring, profitable means for us (as family ranchers together with our production partners) to raise, produce and market cattle in order to stay in business for generations. As a family, we ought to discuss and argue about that. Knowing why we are in business is a critical part of our long-term decision making.

The mission of Eagle Rock Ranch – what we do – is to connect consumers with ourselves (as ranchers) by establishing innovative, respectful, mutually beneficial, and profitable relationships.

Our purpose and our mission are upheld by our core values – which should never change:

1. Long term, mutually beneficial and transparent relationships amongst ourselves, our production partners and our ultimate customers; and

2. Product attributes that are good for our land, our livestock and our family, our employees, and our communities and which are desired by our customers.

Getting our Purpose, Mission and Values right is critically important. If we don’t have them right at some point we’re apt to make wrong decisions.  If we do have them right we can forge ahead in an uncertain, unmapped, ever-changing world knowing we have a guiding star on the horizon to direct us and create at least a chance of this enterprise continuing for another 150 years and beyond.

Ultimately, the Eagle Rock Ranch is essentially a grass farm and we are grass farmers. Our climate, our elevation, and our short growing season cannot sustain a viable agricultural operation in the traditional sense of growing crops. This land has always produced grass for ruminants and likely always will so long as we take care of it. The native grasses have evolved over thousands of years of grazing to their present form. Cattle, as ruminants, are thus the best way to take this resource and convert it into a nutritious, usable, salable product. For us, the need to maximize – on a long-term, sustainable basis – the level of healthy grass production on this ranch is Job 1. We simply grow grass eaters.

As a result, our purpose here is to manage grass, livestock and people in a way that is good for the environment, good for the livestock, and good for the people here on this ranch and in our community. If we can do that in a way that (i) sustains the land and water and even improves upon them, (ii) is good for the cattle and treats them with care and respect, and (iii) is good for the people involved in such a way that it gives us all meaning and purpose beyond the day-to-day chores on the ranch – then that’s the “win-win-win” that we’re all after and a purpose that can sustain a ranch for 150 years and more.