Presentacin de PowerPoint

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15th World Food Agribusiness Forum, Symposium
and Case Conference International Food and Agribu
siness Management Association Reinventing the
Food Chain New products, consumers and markets
Chicago, USA. 25-28 June 2005.
AGRIBUSINESS ORGANIZATIONAL DESIGN Second order
economies achieved as of ISO 9001/2000
implementation. The case of Bioceres SA.
Authors , Napolitano, G. Ordoñez, H. Senesi,
S. Palau, H. Food and Agribusiness Program. Co
mmerce Chair. School of Agronomy. Buenos Aires Un
iversity.
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1) INTRODUCTION

• According to transaction cost economy, there are
  three levels of waste or dis-economies in the
  agribusiness
  
• First order economies,related to the formal model
  and business culture within the system take
  between 10 and 100 years to change,
  
• Second order economies, characterized by
  inter-company relationships redesigned 1 to 10
  years
  
• Third order economies, or technological
  adaptation economies, evolve constantly and their
  redesign has to do with process and/or product
  technological evolution.

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1) INTRODUCTION (cont.)

• The problem organizations have is flexible
  adjustment to turmoil, and for this reason,
  organizational culture must allow the creation of
  innovative solutions and this cultural condition
  must be necessarily supported by flexible
  structures (communication, influence,
  information, control and authority allow and
  promote fluency, flexibility and uniqueness, all
  of which generate innovation)
• These structural designs give birth to second
  order economies, improving competitiveness and
  generating revenues sustained in time.
  
• Culture and structure must be supported by a
  consistent organizational strategy.

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1) INTRODUCTION (cont.)

• Objectives
• Reviewing progress made in connection with
  redesign, and consequently- progress regarding
  the competitiveness achieved by Bioceres SA after
  ISO Standard 9001/2000 implementation.
• Identifying organizational redesign from the
  overall perspective of culture, structure,
  strategy as an appropriate approach to achieve
  second order economies.
• Discussing structural flexibility as the promoter
  of agribusiness innovation and competitiveness

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2) PROCEDURES.

• The implementation of ISO Standard 9001/2000 by
  the company under study has been considered a
  tool to achieve a higher end, related to strong
  cultural change aimed at obtaining quality
  applied to all company relationships.
• The methodology applied is based on the case
  study method.
  
• To implement the Quality Management System at
  Bioceres SA pursuant to ISO Standard 9001/2000,
  the methodology presented by Moreno-Luzón, M. and
  others was used.

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3) CASES ANALYSIS

• Bioceres SA is a young and innovative Argentine
  company organized in 2002 by a group of
  successful businessmen of the agribusiness
  sector.
• The strategy of the company is the developing of
  biotech projects.
  
• Bioceres coordinates a network of agreements
  with public agencies, applying private funds to
  the development of biotechnology with a view to
  improving competitiveness in the system.
• Project-applied funds come from private
  investors who contribute risk capital, venturing
  it on the development of Argentine agriculture.

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3) CASES ANALYSIS
Projects currently underway are
a-   BioInta Agreement with the National
Institute of Agriculture and Livestock Technology
(INTA) to produce and market under license all
the commercial seeds of the bread wheat (Triticum
aestivum) varieties to be developed in the next
10 years. b-   Applied research Genetic trans
formation of soybean with antifungal genes,
Obtaining transgenic corn plants expressing
areas derived from the viral genome of the Río
Cuarto MRCV disease and Generating drought
tolerant transgenic plants.
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4) DISCUSSION

• The 2000 version of ISO Standard 9001 is
  characterized by its approach to process quality
  management.
  
• The technological innovations not only impact
  what must be done, but also how it must be
  done, which clearly redefines who must do it.
  This organizational design promotes a
  redefinition of relationships between people as
  it aims to breaking up influence or power
  centers
• Third order economies help define and solve
  second order economies or organizational design
  economies, which contribute to productivity/compet
  itiveness based on promoting innovation inside
  the firm.

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4) DISCUSSION

• The Quality Management System (SGC) promotes
  deep cultural changes among organization members,
  and, since culture results from adding up the
  behaviors of all member behaviors, effective
  implementation of ISO Standard 9001/2000 has
  promoted indispensable culture building within
  Bioceres.
• This shift in how things are done implied
  adjusting structure, which is considered the
  system of authority, the management of
  communication, influences, information, and
  control.
• The planned hierarchical structure, is
  essentially oriented towards low vertical
  differentiation (little hierarchy) and horizontal
  differentiation (not highly differentiated
  areas).

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4) DISCUSSION
QualityManagement System by Moreno-Luzón,
M.(SGC) First Phase Awareness, organization and
directors commitment. This Phase is vital to the
success of the project, as it is impossible to
redesign if Directors are not clearly committed
to the SGC and to the need for change.
Second Phase Designing a system of goals. At
that time, the General Manager of the firm,
commented for the directors of Bioceres it was
very important to define a Strategic Plan
oriented towards clients and quality, and an
organizational chart to identify personal
responsibilities in keeping with the strategic
model to be followed.
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4) DISCUSSION
Third Phase Planning, organizing and controlling
the SGC. As a result, the company design is under
construction. The persons responsible for each
area have been appointed while business is being
conducted. This dynamic design has proved
extremely useful for the development and training
of Bioceres human resources because it has
facilitated a realistic job description, helping
to clearly identify the gaps between the required
profile and the real one in each case.
It is expected to certify ISO 9001/2000 for Dece
mber 2005.
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4) DISCUSSION

• Main problems and constraints.
• lack of strong leadership by the General Manager.
  
  
• lassitude of the General Manager led to apathy,
  lack of commitment and involvement of team
  members in some cases.
  
• opportunism has played a negative role on
  implementation, since several job positions or
  responsibilities may have been prey to the
  lukewarm reaction of some of the original members
  of the company.
• path dependence related to old business and
  management schemes have played some bad turns
  against innovation and competitiveness.

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5) CONCLUSION

• The implementation of ISO 9001/2000 facilitated
  the strategic, structural and cultural design of
  Bioceres SA. The whole undertaking focused on
  innovation as the source of competitiveness.
• Regarding the firms organizational structure, an
  organizational chart was designed aimed at
  solving the problem of centers of power that
  often threaten innovation sources of company
  employees.
• Moreover, multidisciplinary teamwork throughout
  the process helped build a culture oriented
  towards flexibility and adaptability of company
  employees and, consequently, of the company
  itself, promoting innovation.

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5) CONCLUSION

• an innovative business strategy supports the
  above by advancing systems of communication,
  influence, information, authority and control in
  line with the strategy.
• The three phases set forth by Moreno-Luzón et al
  in 2001 were completed in the process. That
  enables an orderly methodology aimed at
  addressing complex processes. in which people
  generate unforeseen events that seriously
  threaten the success of redesign and must
  therefore be solved.

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5) CONCLUSION
6 Such economies of organizational design have
turned Bioceres into a recognized and respected
company in the Argentine wheat seed market.
Bioceres has also become the benchmark for
current and future biotechnology in the country.
Focusing on the market and on its customers the
company appears to be the major reference point
in gene and seed agribusiness. Bioceres
implemented ISO 9001/2000 as a strategic tool to
achieve a superior goal building a
quality-driven business culture with an adequate
structural design (strategy), and competitiveness
as the conceptual framework of that design.

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• THANK YOU