Agribusiness Productivity Improvement – Powered by the People

Is Your Agribusiness Workforce Lean Ready? 

The Permanent Workforce: The Engine of Productivity Improvement 

Sustainable competitive advantage in agribusiness hinges on productivity improvement—delivering greater customer value using fewer resources at a lower cost.   

In agribusiness, productivity improvement can only be driven and sustained by those responsible for day-to-day operations: agronomists, growers, tradespeople, farm, harvest, packing and sales supervisors, and managers. 

An agribusiness’s permanent workforce will only apply their minds and discretionary effort to driving productivity improvement when; they understand the business strategy, enjoy the workplace, feel engaged and motivated, are empowered to take initiative and have the time to monitor performance, conduct root cause analysis and make change. 

If an agribusiness’s permanent workforce is churning, there is no prospect of productivity improvement meaning such an agribusiness’s competitiveness in the marketplace is almost certainly being eroded. 

The Seasonal Workforce: A Double-Edged Sword 

In medium to large-scale agribusinesses, much of the doing is done by seasonal workforces. How the seasonal workforce performs their day-to-day tasks has a material impact on product quality, productivity, cost of goods and profitability.  

If the seasonal workforce is not suitable, stable, capable and productive the permanent workforce will become over-burdened, distracted and bogged down in micromanagement, leaving them unable to focus on their core responsibilities. 

Seasonal workforce underperformance disrupts daily operations and dampens the motivation and effectiveness of the permanent workforce.  Productivity improvement initiatives are put on hold and job satisfaction of the permanent workforce plummets, magnifying the risk of high-performing permanent employees electing to leave the business.   

The Leadership Imperative: Designing and Empowering a Winning Workforce 

Agribusiness leaders must formulate a clear business strategy, identify critical roles essential to its implementation, design, recruit and empower a workforce capable of executing the plan while driving productivity improvement.  

The permanent workforce must have the time and autonomy to manage, measure, analyse and continuously improve the processes they are responsible for. 

Agribusiness leaders must take the time to accurately forecast labour demand, carefully design the workforce composition and select high-calibre labour-hire provider partners.  Leaders must work closely will their labour-hire providers to provide their permanent workforce with a suitable, stable, capable and productive seasonal workforce year in and year out. 

Conclusion

Without strong leadership, thoughtful workforce design, and a stable seasonal workforce, the productivity improvement capacity of the permanent team will suffer. A holistic approach to workforce design, encompassing both permanent and seasonal staff, as well as frontline management, is essential for driving productivity improvement and sustainable competitive advantage in your agribusiness. 

If you want to discuss opportunities in your agribusiness contact Simon Drum +61 407 567 250 or email Simon@psvcadvisory.com.au