Agricultural Research Council

TRANSFORMING RESEARCH AND TRANSFORMING RESEARCH AND TECHNOLOGY SYSTEMS OF THE TECHNOLOGY SYSTEMS OF THE

AGRICULTURE SCIENCE COUNCIL FOR AGRICULTURE SCIENCE COUNCIL FOR FUTURE BENEFIT OF ALL STAKEHOLDERSFUTURE BENEFIT OF ALL STAKEHOLDERS

Presentation by the ARC to the Parliamentary Presentation by the ARC to the Parliamentary Portfolio Committee on Agriculture and Land Portfolio Committee on Agriculture and Land

AffairsAffairs

Cape Town - 9Cape Town - 9THTH SEPTEMBER 2003 SEPTEMBER 2003

Agricultural Research CouncilAgricultural Research Council

The Context (in Brief)The Context (in Brief)

• ARC Governing Council Road Show in 2001 – Council outlined to staff some of the challenges for the ARC and the urgent need to address them – Reference points were (a) the results of the Science Engineering & Technology Institutions Review conducted and completed in the mid 1990s and (b) the Existential realities in 2001

• Subsequently executive management continued road shows to all staff to articulate further the message and the need to respond

• Other electronic and hard copy and direct divisional communications to researchers and all other staff to further articulate challenges and responses and processes.

• Other engagements via the NBF mechanisms over the two years since 2001

Outcomes of the Science, Outcomes of the Science, Engineering & Technology Engineering & Technology

Institutions’ Review (mid 1990s)Institutions’ Review (mid 1990s)Generic Summary Report – ARC SpecificGeneric Summary Report – ARC Specific

• Recommendation No. 72. “…bringing about a change in senior management, a change in research philosophy, a change in programme structure, and any necessary changes in internal organisation to transform ARC into a modern agricultural research organisation capable of responding to the needs of BOTH commercial and resource poor farmers”.

Mid 1990s SETI REVIEW Mid 1990s SETI REVIEW OUTCOMES (cont.)OUTCOMES (cont.)

Significant Challenges identified for ARC – (1)Significant Challenges identified for ARC – (1)

• Insufficient urgency in change management• Lack of clarity about future role• High turnover of personnel• Significant loss of capacity w.r.t. research and facilities• Erosion of strategic science in favour of adaptive

technology• Lack of diversity of staff• Lack of strategic research planning – agenda dominated

by commercial research interests

Mid 1990s SETI REVIEW Mid 1990s SETI REVIEW OUTCOMES (cont.)OUTCOMES (cont.)

Significant Challenges identified for ARC – (2)Significant Challenges identified for ARC – (2)

• Use of parliamentary grant to maintain total capacity rather than maintain strategic focus

• Weak links to national agricultural policy and the rest of NARS

• Insufficient attention to addressing the needs of small scale and resource poor farmers

• Confused technology transfer relationships• Social science inputs weak and not institutionalised• Funding arrangements which do not encourage

competition.

2001 Strategic response by the

ARC’s Governing Board to the

SETI Review and to all other

shareholders’ legislation and

policies intended to improve the

quality of life of all South

Africans.


Sustainable Rural LivelihoodsSustainable Rural Livelihoods Business Development and International Business Development and International

RelationsRelations Grain and Industrial CropsGrain and Industrial Crops HorticultureHorticulture Livestock Livestock Public Support ServicesPublic Support Services Financial ManagementFinancial Management Human Resources & AdministrationHuman Resources & Administration

CHANGE 1 - ORGANISATIONAL STRUCTURECHANGE 1 - ORGANISATIONAL STRUCTURE

Stabilize the unacceptable financial situation Stabilize the unacceptable financial situation in the ARC – within the then available in the ARC – within the then available financial resources.financial resources.

Establish and grow a culture of compliance Establish and grow a culture of compliance with the laws of South Africa with respect to with the laws of South Africa with respect to financial governance.financial governance.

Strategically engage the shareholder Strategically engage the shareholder (Government) towards increased investments (Government) towards increased investments

Strategically engage all other investors - Strategically engage all other investors - including organized agriculture - to move including organized agriculture - to move towards MTEF or longer term approach to towards MTEF or longer term approach to investments to enable better planning and investments to enable better planning and greater stability in ARC ‘s research systems.greater stability in ARC ‘s research systems.

CHANGE 2 – BUSINESS SYSTEMS CHANGE 2 – BUSINESS SYSTEMS

Move towards stabilizing the outflow of Move towards stabilizing the outflow of researchers as reported in SETI process of researchers as reported in SETI process of 1996-1997 1996-1997

Move towards non-discriminatory and Move towards non-discriminatory and internationally well benchmarked human internationally well benchmarked human resource management systems and strategic resource management systems and strategic reward and benefit systemsreward and benefit systems

Find means to improve the extent of Find means to improve the extent of development of skills of existing ARC staffdevelopment of skills of existing ARC staff

Move towards making the human capacity in Move towards making the human capacity in the ARC to be representative of the population the ARC to be representative of the population in South Africa.in South Africa.

CHANGE 2 cont – BUSINESS SYSTEMS CHANGE 2 cont – BUSINESS SYSTEMS

Move towards enhancing research and Move towards enhancing research and technology development output by the ARC technology development output by the ARC research system research system

Move towards enhancing the role of ARC in Move towards enhancing the role of ARC in developing research thrusts that respond to developing research thrusts that respond to and positively impact on the resource poor and positively impact on the resource poor and emerging commercial subsectors of and emerging commercial subsectors of agriculture whilst continuing to also serve the agriculture whilst continuing to also serve the commercial subsector commercial subsector

Grow viable partnerships with higher Grow viable partnerships with higher education institutions (Universities & education institutions (Universities & Technikons) to grow human resource Technikons) to grow human resource capacities required by the ARC and other capacities required by the ARC and other Science and Technology need areas.Science and Technology need areas.

CHANGE 2 cont. – BUSINESS SYSTEMS CHANGE 2 cont. – BUSINESS SYSTEMS

R21 million injection (ring-fenced fund) from R21 million injection (ring-fenced fund) from the Ministry of Agriculture in 2002/2003 to the Ministry of Agriculture in 2002/2003 to enable ARC to correct some of the historical enable ARC to correct some of the historical human resource systems that had the potential human resource systems that had the potential for inefficient use of public finances.for inefficient use of public finances.

R30 million injection (ring-fenced) from the R30 million injection (ring-fenced) from the Ministry of Science and Technology in Ministry of Science and Technology in 2003/2004 to enable additions to and proper 2003/2004 to enable additions to and proper management of the nations biological wealth management of the nations biological wealth that includes banks of biological materials, that includes banks of biological materials, AND banks of time related information on our AND banks of time related information on our natural resources (soils, water, land cover etc.natural resources (soils, water, land cover etc.

ARC continues to engage the shareholder on ARC continues to engage the shareholder on the issue of improved funding.the issue of improved funding.

Success 1 – Increased funding from shareholderSuccess 1 – Increased funding from shareholder

Improvements in financial management Improvements in financial management systems of and compliance by the ARC. – systems of and compliance by the ARC. – Changes in the audit process comments and Changes in the audit process comments and qualifications received by the ARC. qualifications received by the ARC.

Reduction in the historically under-funded Reduction in the historically under-funded future liabilities of the ARC from over R200 future liabilities of the ARC from over R200 million to just over R100 million; thus million to just over R100 million; thus reversing uncertainties about the future.reversing uncertainties about the future.

Integrated strategic research planning and Integrated strategic research planning and delivery within divisions bringing about delivery within divisions bringing about potential substantial savings from historical potential substantial savings from historical patterns and enabling investments in new patterns and enabling investments in new research areas in the future.research areas in the future.

Success 2 – Changes in business systemsSuccess 2 – Changes in business systems

Movement towards more equitable reward Movement towards more equitable reward systems for researchers and all staff in the systems for researchers and all staff in the organisation – Phasing out historical organisation – Phasing out historical discriminatory reward systems. discriminatory reward systems.

Movement (with time and within affordability) Movement (with time and within affordability) towards more market related reward systems towards more market related reward systems that will attract and also retain requisite that will attract and also retain requisite people within the ARC.people within the ARC.

Future human capacity plans that are Future human capacity plans that are conscious of national strategic agriculture conscious of national strategic agriculture Research for Development needs within the Research for Development needs within the MTEF limitationsMTEF limitations

Success 2 cont. – Changes in business systems Success 2 cont. – Changes in business systems

0%

10%

20%

30%

40%

50%

60%

1992 1994 1996 1998 2000 2002

PhDMScBSc

Research Research

Capacity Capacity

Trends over ten years since the ARC Trends over ten years since the ARC was establishedwas established

Success 3-HR CAPACITY ENVIRONMENTSuccess 3-HR CAPACITY ENVIRONMENT

Success 3 cont. – The 2003 human environment within which changes need to

be planned for and implementedPhD MSc Honours

> 60 16 4 6

55 - 60 32 4 19

50 - 54 20 4 14

45 - 49 26 9 21

40 - 44 24 11 51

35 - 39 17 12 66

30 - 34 7 18 53

< 30 1 25 30

0

10

20

30

40

50

60

70

80

Number ofCandidates

19961997199819992000200120022003

Growth in Growth in Professional Professional

Development Development ProgrammeProgramme

Development of Knowledge CapitalDevelopment of Knowledge Capital

Success 4 – Developing and Success 4 – Developing and growing diversity within the ARCgrowing diversity within the ARC

Message has not changed since 2001 when Message has not changed since 2001 when council decided to fasttrack transformation in council decided to fasttrack transformation in ARC and that is:ARC and that is:

The ARC is the national asset; an asset that The ARC is the national asset; an asset that should benefit every South Africanshould benefit every South African

Some past developments and business Some past developments and business approaches were undermining the business approaches were undermining the business stability of the ARC. These have been stability of the ARC. These have been identified by both our organisation and other identified by both our organisation and other expertise external to the ARC.expertise external to the ARC.

Key Message regarding transformation and Key Message regarding transformation and currently topical salary issues in the ARC (1 of 4)currently topical salary issues in the ARC (1 of 4)

With support from various quarters With support from various quarters particularly the investors in ARC and the staff particularly the investors in ARC and the staff within the ARC we can resolutely and within the ARC we can resolutely and confidently move towards minimizing past confidently move towards minimizing past uncertainties around rewards and benefits.uncertainties around rewards and benefits.

We are moving away from uncertainties of We are moving away from uncertainties of under funded liabilities thus creating an under funded liabilities thus creating an opportunity for better rewards and research opportunity for better rewards and research investment environments in the futureinvestment environments in the future

We are moving away from uncertainties of We are moving away from uncertainties of non-MTEF related planning thus creating non-MTEF related planning thus creating opportunities for appropriate strengthening of opportunities for appropriate strengthening of research capacity in the ARCresearch capacity in the ARC


With support from various quarters With support from various quarters particularly the investors in ARC and the staff particularly the investors in ARC and the staff within the ARC we have now moved away within the ARC we have now moved away from the undesirable situation of 0% from the undesirable situation of 0% increases last year to reasonable increase in increases last year to reasonable increase in this year.this year.

We are moving away from uncertainties of We are moving away from uncertainties of under funded liabilities thus creating an under funded liabilities thus creating an opportunity for better rewards environments opportunity for better rewards environments in the futurein the future

We are moving away from uncertainties of We are moving away from uncertainties of non-MTEF related planning thus creating non-MTEF related planning thus creating opportunities for appropriate strengthening of opportunities for appropriate strengthening of research capacity in the ARCresearch capacity in the ARC


With continuing understanding of the With continuing understanding of the historical and future challenges by the public, historical and future challenges by the public, ARC researchers and all other staff and with ARC researchers and all other staff and with their collective effort to address the challenges their collective effort to address the challenges we will continue to increasingly register we will continue to increasingly register successes in research and related business successes in research and related business systems thus unlocking even better reward systems thus unlocking even better reward systems and research performance impact in systems and research performance impact in the futurethe future

THANK YOUTHANK YOU


Your ally in Agriculture !!!Your ally in Agriculture !!!

Getrou aan Landbou !!!Getrou aan Landbou !!!

Tsala ya gago mo temong !!!Tsala ya gago mo temong !!!


Umhlobo wakho kwezolimo !!!Umhlobo wakho kwezolimo !!!

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Agricultural Research Council