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

Background Established in 1976 Private company & 100% owned by management Board of Directors in internal One of the world’s leading seafood producers Live lobster, sea scallops, shrimp, surf clams, ground fish, tuna & shark

Background Cont’d… Operates year round in North America, Asia & Europe Several acquisitions and partnerships have helped the business grow Sales in 1996 were over $200 million Focus has been growth orientated

Issues To continue growth, the board instructed each line and support function to prepare its own strategic plan to facilitate the “CFFI Vision 2000” 1996 annual meeting identified a problem with communication and collaboration in the company

Result Technology –Corporate Intranet –Upgrade to Microsoft Exchange for –Search for brainstorming and consensus- building software for decision making

Team Meeting Agenda: Introduction – Purpose of meeting Review of background – How did we get to this point? Presentation on GSS – What is it? How does it work? Costs Discussion on how GSS functioned for our last planning session (Bob) –Pros & Cons –Cost / Benefit Decision

Team Meeting Agenda: Objectives 1. Should Clearwater continue to use a Group support System for decision making in the future? 2. If yes, should Clearwater invest in a GSS of our own? Why, why not?

Group Support Systems Definition of GSS: An information technology designed to improve group work. A GSS influences interactive processes via software tools that are used by group members to generate, organize, evaluate and communicate information

Group Support Systems 1.Reduces barriers to communication that might otherwise be present 2.Supports many different types of group activities such as: strategy planning project evaluation work-process design budgeting 3.Are social technologies: programs which allow users to interact and share data with other users 4.Comprise of a combination of computer, decision, and communications technologies (but the mix of these technologies varies substantially from system to system) Several common characteristics of group support systems are:

GSS Tools Electronic Brainstorming Vote Idea Organizer Topic Commenter Alternative Evaluation Policy Formulation Stakeholder Identification

GSS Tools Cont’d… Questionnaire Group Matrix Group Outliner Group Writer Group Dictionary

GSS Environment A single room A series of personal computer workstations A facilitator workstation A shared projection screen located at the front of the room Each workstation also has its own private display monitor

GSS Requirements A boardroom large enough to hold workstations for all participants and the facilitator A facilitator Facilitators workstation (must be a fairly powerful server unit) Individual workstations (need not be advanced) Projection unit and screen Excellent software packages are available for about $900 per workstation

The Meeting

GSS Supported Meetings – Pros User friendly – began with tutorial Structured approach – stayed focused and constructive Very effective at identifying ideas and getting them “on the table” – good information processing Meeting very well received by participants – evaluation very positive The meeting environment non-threatening, allowed for more free flow of ideas and considerations

GSS Supported Meetings – Pros Did not allow few to dominate & did assist with company problem of collaboration - Participants felt they all had equal opportunity to participate Professional & independent facilitator helpful in keeping focus and moving meeting along Resulted in good decisions along with a clear and well developed plan of action for moving forward on priority items

GSS Supported Meetings – Cons Some participants felt rushed at times Some felt that with focus so much on computer and Whiteboard, there was an element of isolation from the group Some were miffed because some important issues they had were not included – not necessarily a result of this process Three months after meeting, the follow-up session to have been done by the end of Nov is still not done – reflection of GSS?

GSS Supported Meetings – Cons This has not addressed some other company issues such as communication GSS has not clearly demonstrated it’s effectiveness, however, issue could be more cultural – i.e. lack of discipline to follow through

Cost Benefit Analysis Costs: New computer equipment costs: 10 PCs for the $1,450 each 1 server for the $3,000 Cabling & $4,600 Software for 10 $900 per workstation 1 projector and $2,000 Other costs: GSS training costs - 10 $300 per person Total cost: $36,100 Benefits: Reduced travel cost - 10 $1,000 per person Reduced facility rentals - $800 Total Benefit: $10,800 per meeting Payback time: $36,100 / $10,800 = 3.34 meetings = less then 1 year if used for each quarterly review

To proceed with GSS or pursue some other strategy? Options a)buy outright and set up fully b)outsource as required from third party c)do nothing with GSS but hire independent facilitator for strategic planning sessions. d)other Decision

Q & A