In 1991 the Canadian Wheat Board initiated a formal process to ensure it is properly structured and staffed to meet future challenges, demands, opportunities and threats. It engaged Deloitte & Touche Management Consultants to conduct a comprehensive operational review, the findings of which suggested there were considerable areas of strength in the CWB at that time. The report also recommended that management undertake and implement a number of initiatives to address the identified deficiencies and concerns.
The CWB has initiated a formal strategic planning process with a view to provide a greater focus on its long term activities and to ensure the organization is equipped to respond to change and opportunities. An external consulting firm has facilitated this annual planning process since that time.
The CWB has also developed an extensive quarterly planning and reporting process by the management of the organization's four directorates. This process is proving invaluable from both a management and performance measurement perspective.
To complement this planning process, the CWB in 1993 conducted a detailed environmental scan, which included a survey of employees, customers and producers. These activities have placed the CWB in a position to define areas needing change, particularly those pertaining to the CWB's interface with its employees, its customers, and with farmers. It has also since developed an action plan of strategic initiatives in three key areas.
The first is relationship with farmers. The pool return outlooks, estimated pool returns, farmer delivery contracts, farmer focus sessions, toll free telephone access to the CWB, and proposed flexible pricing options have all emanated from the strategic planning process.
The second is relationship with customers. The CWB has developed a number of value added, market service and market development initiatives. For example, the introduction of basis contracts for customers, for example in Japan, the U.S., the United Kingdom and Canada, resulted form the CWB strategy of increasing its focus on the customer. Infomation and findings from a comprehensive customer survey findings assisted the CWB in other customer services initiatives.
The third is relationship with employees. The CWB has established a formal human resources department and has introduced several related initiatives which focus on the employee, including a review of job descriptions at all levels.
Along with these strategic undertakings the CWB has undertaken to develop and implement a number of key corporate governance procedures and policy guidelines, some of which relulted from the Deloitte & Touche recommendations.
Since 1992 the CWB has established a formal audit committee. The audit committee's primary responsibilities are to oversee internal financial reporting and to review the objectivity of the annual external audit. The committee also determines whether management and auditors are responding appropriately to current business risks and allocating their efforts optimally. Special comprehensive auditing examinations are critical in ensuring that business practices are benchmarked against best practices of other corporations. The CWB audit committee performs a central role in strengthening communications between external auditors and CWB management responsible for the organizations's financial reporting.
The CWB has also implemented a comprehensive department by department audit process, which assesses department structure and procedures in terms of efficiency and effectiveness. Deloitte & Touche, which has previous experience with the federal auditor general's department and with government audit procedures, has assisted the CWB's internal audit department in this area. The integrity and effectiveness of the CWB audit committee is enhanced by the inclusion of the chairman of the CWB advisory committee as a member.
The CWB also developed a formal budgeting process, which is continually improved when and as necessary. This is priving to be a valuable management tool.
The CWB has historically developed an annual marketing plan which is updated throughout the crop year. In recent years this planning process has been enhanced by an expanded sales and market development division, which has an increased focus on the strategic planning aspects of grain sales. CWB sales plans, which include extensive detail pertaining to grain classes, grades, protein levels, projected selling prices and sales volume by destination, are updated on a continual basis in response to changing market conditions.
The CWB market development department has been expanded since 1992 and works closely with farmers, the CWB sales department, customers and other organizations such as the Canadian Grain Commission and the Canadian International Grains Institute. In addition to the co-ordination afforded by the above linkages, CWB market development efforts are increasingly guided by the development internally of long term grain import projections. These projections provide an indication of country specific and aggregate import requirements in terms of volume and quality, as well as the prospective Canadian share in each market. All this has enhanced the overall effectiveness of the CWB marketing effort.
In 1993 the CWB conducted a comprehensive review of its relationship with accredited exporters, which included individual exporters and the Shippers and Exporters Association. This review generated a number of recommendations and action items to improve the CWB's relationship with exporters, all of which have
been subsequently implemented. The CWB meets annually with the Shippers and Exporters Association to discuss a wide variety of subjects, including any concers. The CWB also meets annually with each accredited exporter for the same purpose.
