Management Systems in Agriculture

Management Systems is the framework that any formal business can use to ensure that the organization is able to fulfill all tasks required to achieve its objectives.

In reading this definition it clearly tells us that there is work involved (tasks) and that it should deliver a result (achieve its objectives). The good news is that we should be able to deliver on our promise as a business if we follow a systematic approach through an effective management system when managing our business.

But why is it a foreign or new concept for so many agri-businesses?

Management systems are not really new – it has been around in its current form for probably half a century or more. What did change is that around the 1980’s businesses became more dependent on the supply chains (business – to – business), and the demand chains (business – to – customers) became a lot shorter due to technology development and social media development since 21st century. Consumers is much more aware of production processes, where the product comes from and how it was produced. This again leads to questions about safety, legality and quality of products and processes from customers and consumers. Hence the expectation from primary agribusinesses to prove that they are in control of identified risks in the business and is managing such risks.

Management systems allow you to run a business where we are able to account for all activities in the production process and ultimately deliver a product that is –

• in line with company objectives
• low in risk (Food-Safety, Worker Welfare, Environmental and Quality, etc)
• consistent

ultimately  increasing the value to your customers and other stakeholders

The key aspect of an effective management system to follow as a systematic approach when developing the management system. By this, we mean that the business should have a clear vision of the company objectives and have a good understanding of all the processes involved.

Management systems essentially can be viewed as a connector between the business objectives and operational control.

Management systems are always

• in line with company objectives
• documented and regularly reviewed
• and Monitored

What business owners need to understand that the first aim is always conformance. Conformance to business objectives, conformance to legal requirements, conformance to company procedures and conformance to customer specifications. Conformance results in safer business and safer products.

Unfortunately, most agricultural businesses in South Africa is first introduced to management systems through customer specification and industry standards. A few examples of these specifications or standards include ISO standards, BRC, SIZA, GlobalG.A.P, etc. Most of these are aimed at risk management based on external opinion and not risk management based on a structured internal process that was followed. These are also mostly reactive management of risks. One should be careful to implement or develop management systems based on customer specifications in isolation. Do not neglect the critical part to include business objectives and follow an internal approach to evaluate risks in the business internally before including the customer specifications. Where customer specifications are more than current business objectives, management will have to review business objectives and decide how they will include such additional requirements.

To conclude – Management systems can offer tremendous value to every organization and each function within the organization. It is advisable that an integrated approach be followed when dealing with customers, suppliers and clients. If your business has not yet experienced the value from management systems – a key aspect is missing, and you should probably go through a review process to determine the structure and motivation for the systems in place.

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