Clearwater Fine Foods Inc. (CFFI): Using a Group Support System for Strategic Planning

1. Clearwater Fine Foods Inc. (CFFI): Using a Group Support System for Strategic Planning Group 2 • John Alho • Shelley Day • Tracy Gilson • Kyle Lewkowich • Christine Tellier

2. Clearwater Fine Foods Inc (CFFI) • One of the world’s leading seafood producers • World’s largest producer & exporter of live lobster • World’s largest producer of sea scallops • Major exporter of shrimp, surf clams, groundfish, tuna & shark. • Worldwide retail & wholesale business • shipping 7 days/week, year-round to North America, Europe and Asia.

3. Company History • 1976 - Founded by John Risley & Colin MacDonald, • 1986 - partnered with Hillsdown Holdings • 1986 - parted-ways with Hillsdown Holdings • 1991 - began establishing international offices • 1992 - opened Grand Bank Seafoods • 1995 - Partnership in Argentina to produce Antarctic scallops • 1996 - purchased controlling interest in Ocean Nutrition Canada

4. Organization Structure • Private & 100% owned by management • Internal Board of Directors • By 1996 • 10 processing plants, • Over 30 vessels • Sales $200 million + • Company employed approx. 3250 people

5. Corporate Strategy • CFFI’s strategy has been growth oriented • Company evolved into a decentralized, vertically-integrated organization • CFFI’s goal: to be a dominate player in each of the product species • CFFI Vision 2000 • Established by the Board of Directors in 1995 • Extensive set of 3-yr & 5-yr corporate goals

6. Corporate Strategy • CFFI Vision 2000 - continued • Specific targets: financial, product, market & operations performance • To attain these targets, each line & support function in the organization were instructed to prepare their own strategic plan outlining: • the implications of Vision 2000 goals • actions needed to succeed

7. The Organizational Problem • The 1996 annual “Vision 2000” identified problems with communication & collaboration due to the highly decentralized and vertically-integrated structure

8. The Organizational Problem • Acquisition of ships • Purchase of new businesses • Expansion into new markets • Exporting decisions

10. The Organizational Problem • IT/IS managers do not exist as part of the executive decision making stream • Organizational Culture and structure make communication between silos of the company difficult.

11. Information Aspect of the Problem • Leonard Landry, as MIS Manager, was responsible for developing & championing the implementation of the company’s long-term IS strategy • Landry thought CFFI required an information system to facilitate complex decision-making with many interdependencies

12. Information Aspect to the Problem: Lack of Organizational Communication: • Many parts to the organization • Silo-style management systems and hierarchy • Remote geographic areas to serve and connect • No concise management communications infrastructure plan • “Pie-in-the-sky” Vision 2000 set of goals are driving agenda using a top-down approach

13. Current IT/IS Technology Implemented: • A corporate intranet • Upgraded Microsoft Exchange for email • Face-to-face interactions Next step: • Search for brainstorming & consensus-building software

14. Trial with GSS at Queens Needed to find a support system to enable and promote Organizational Communication • Facilitator mediated • Brainstorming management • Ranking of discussion items • Ranking of options • Voted on priorities • Anonymous input Queens University GSS suite

15. Trial with GSS at Queens • VP Finance, Leonard Landry and 5 others from the Accounting and Finance Group trialled software at Queen’s University School of Business Executive Decision Centre (QEDC) • to draft their strategic agenda, and • review the possible uses of a GSS for CFFI

16. Results from the Queens’ GSS Trial • Case described how the GSS system worked: • GSS are “used by decision-makers in cases where a solution may not be optimal, evident or even possible.” • Intended to be used by managers meeting as a group in order to discuss and resolve problems. • A GSS met the need to get the Clearwater managers working together - but this was not only goal • Case did not describe the communication system protocol used to take the GSS conference results and do anything with them (i.e., motivate staff, create decision follow-through protocols etc)

17. IT/IS Based Alternative Not Used • Case did not describe the communication systems also investigated (maybe there were none) - it almost seems as if they found a program that sounded interesting, and decided to use it; • Did not investigate the “fit” of the program to what they wanted it to do • Rated success of initial meeting was perhaps the novelty of meeting together without interruptions - not the technology • No metric created to measure or determine success • No protocol created to follow through on decisions made in the meeting.

18. GSS software • Does NOT solve problems • Assists in creating an environment where the decision makers are supported • GSS can be seen as an enabler, not the solution

19. Problem Solving Options: • Do nothing • Improve on existing tools • Increase utilization rates • Increase penetration • Contract Queens’ GSS (out-source) • Purchase GSS for in-house use

20. Criteria for Assessment of Alternatives • Costs • Financial • Human Resource • Benefits • Improve outputs • Implementation • Feasibility of implementation

21. Alternative 1: Do nothing Pro: • Costs nothing • Easy to implement Con: • No solution to problem

22. Alternative 2:Improve existing tools Pro: • Costs effective • Staff already trained on use • Ability to maximise current investment • Easy to implement Con: • May not suffice

23. Alternative 3: Contract GSS (out source) Pro: • Cost effective – pay per use • Use only as needed Con: • May not be necessary for their needs

24. Alternative 4:Purchase GSS software Pro: • Always available • Facilitates scheduling and ensures use Con: • GSS is a tool, not in of itself a solution to problem • Cost of implementation and training • May not be required for CFFI needs

25. Alternative 5:Create organizational mechanism for internal communications Pro: • Addresses systemic communications problems • Follow-through, decision making structure should improve communication between silos Con: • Will take an organizational leader to champion • Will require breaking down the silo walls • Organizational inertia will prevent change

26. Proposed solution: Improve existing systems • Email: • Create grouplists • Develop email protocols • Intranet • Post important company policies and documents • Chatrooms • Shareware • Forums • News and upcoming changes/events

27. Proposed solution:Contract use of GSS • Strategically utilize GSS for particular projects • Large corporate initiatives • Decisions requiring input from all levels of the organization and across silos • Can mediate top-down push of ideas

28. Proposed solution:develop internal communications protocols • Regular meetings • Regular chain of command hierarchy • Issue resolution ladder • Establish decision making protocols as a regular practice

29. Questions? Arctic Endurance Clams 40 Crew 45 Sea days Atlantic Protector Scallops 30 Crew 15 Sea days

30. Thank You!

31. Clearwater Fine FoodsVessel Tracking • Thank you to Clearwater Fine Foods for sponsoring the draw. • http://www.clearwater.ca/vessel-tracking.asp?cmPageID=348