The Value of Professionalism to the U.S. Pork Industry

2012 Swine Educators Conference

Bill Winkelman

September 27, 2012

NPB Vision Statement

Agenda

• Value of Professionalism

– Individual

– Company

– Industry

• Measureable Costs & Benefits for Investments in Professionalism

• Checkoff Tools that Support Professionalism

– We Care

– Professional Swine Manager

Professionalism for the Individual

• Professionalism starts with Engagement

• Engagement starts with Recognition

• Investment in Employees demonstrates recognition and value

Engagement and Recognition

Engagement (en gaj’ment), n.

A combination of perceptions including satisfaction, commitment, pride, loyalty and personal responsibility. When employees are fully engaged, they are more

productive, committed and conscientious.

•73% of employees say they feel engaged when their employers offer high recognition.

•17% of employees say they feel engaged when their employers offer low recognition.

Source: Gallup

Reported on www.blr.com

Employees work harder and with greater enthusiasm when they feel engaged.

Engaged workers:

•Show up on time

•Work harder

•Accomplish more

•Do better quality work

•Are willing to sacrifice to help one another

•Work more independently

•Streamline systems by their willingness to agree and extend themselves

•Stay later and are more enjoyable to be around

Unengaged workers :

•Show up only for required hours

•Need to be re-motivated at every turn

•Are unwilling to sacrifice

•Turn in sub-par work

•Slow down processes

What do employee’s want from their jobs?

Employee Manager

Full Appreciation of Work Done 1 8

Feeling “In” On Things 2 10

Sympathetic Help With Personal Problems 3 9

Job Security 4 2

Good Wages 5 1

Interesting Work 6 5

Promotion / Growth Opportunities 7 3

Personal Loyalty to Workers 8 6

Good Working Conditions 9 4

Tactful Discipline 10 7

Research that stands the test of time! Lawrence Lindahl, 1949; Ben Kovach 1980; Bob Nelson, 1991

Some Reference Review

• “The Three Signs of a Miserable Job” by Patrick Lencioni (author of 5 Dysfunctions of a Team) identifies 3 needs of employees – Eliminate employee Anonymity – employees want their

employers to take a personal interest in their life beyond work “Value Me”

– Eliminate the feeling of Irrelevance – employees need to know specifics on why their work is important “Value My Work”

– Measurement – employees want to be able to “Measure Their Progress” and success

Professionalism for the Company

Professionalism for the Company

• Managing Costs and Profitability

• Employee Costs are Controllable

– Turnover is high and costly

• Personnel Development

– Focus has been on SOP’s

– Focus on how and not why

• What is the value of an investment in professional development?

The Cost of Turnover on a Sow Farm

The value of investment in professionalism • An Investment of $20,000 in your personnel at a

2500 sow operation – Cost is $.33/wean pig or $.13/cwt on the market hog.

– Training and Development

• Sow Farm Managers and Team Leaders

– Additional Compensation

• Wages for employee commitment to education

• Incentive programs

– Other Recognition programs

• Not all of which have to cost money

Investment in Professionalism

• Additional Wean/Litter to Break-even • .125 on wean pig costs

• .08125 on fully leveraged mkt hog

• $20K Investment in Finishing Personnel: • 1.1 PTS of Improvement in Feed Conversion

• Additional 1 lbs. of avg. sale weight

• Reduction of w-f mortality by .25 PTS

Assumes $6.50 corn, $400 SBM, 2,500 sow F-F operation

Professionalism for the Industry

Sometimes, it feels a bit uncomfortable…

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Principles + Practices + Proof = Public Trust

The Model

•Shared Values

•Ethical Principles

•PQA Plus

•TQA

•Production

Practices

•SOP’s

•Zero Tolerance

•Whistle Blower

•Certification

•Assessment

•Verification

•Corrective Actions

•Continuous Improvement

•Farm Visits

•Animal Care Review Bd

Taking Control/Response

• Establish a Culture – Minimize Risk

– Ethical Principals

– Barn Culture & Training

– Expectations and Consequences

– Documentation

• Implement Best Management Practices

– PQA Plus

• Demonstrate Transparency

– Assessment, Verification

– Farm Visits

– Whistle Blower Policy

Checkoff Tools for Professionalism

We Care Initiative

• Establishing a Culture of Humane Animal Care

– Steps to take

– Resources available

• Employee Care Toolkit

• We Care Barn Worker Kit

• We Care Open House Kit

We Care Barn Worker Kit

They’re

Counting On

YOU

Posters & Awareness Guide

• 1 poster highlighting each ethical principles

– Available in both Spanish and English

• Awareness guide for field/barn managers to help integrate messages into the barn

• Available at Porkstore.pork.org

or call 1.800.465.PORK

Professional Swine Manager Program

• Announced at World Pork Expo 2012

• Junior College Courses launched Fall 2012

– Developed with U.S. Pork Center Of Excellence

• Certified Swine Manager designation

– Independent validation of competencies in Swine production/husbandry

• A next step beyond PQA and TQA

– Education and Demonstration

Benefits of Certification

• Industry

– Means to establish and enforce an ethical code

– Means to ensure industry self-regulation

– Bring additional talent to the industry

• Employee

– Recognition Credibility

– Reputation Professional Development

– High Commitment Career Advance / Earnings

Benefits of Certification

• Employer

– Customer Satisfaction

– Increase Safety

– Use in employment decisions

– Professional Development Opportunity

– Further existing Training Programs

– Demonstrates commitment to do what is right

• Consumer

– Increased confidence in our industry

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National Pork Board Actions

• Establish standards of production knowledge and successful work experience in swine production

• Maintain core body of production knowledge

• Create a Certified Swine Manager Program

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Standards Knowledge & Skills

• Compiled all major competencies by task in pork production

• For each competency we have identified knowledge and skills required

• Reviewed and approved by group of pork producers

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Core Body of Production Knowledge

• Pork Information Gateway (PIG) Fact Sheets

– Taught through Community College Courses

– Self Study Guide for those with experience

– Potential to offer within a Company with Training resources

– Future targets of Spanish version and High School offerings

• Managed by U.S. Pork Center of Excellence

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Certified Swine Manager

• Establish nationally recognized standards of knowledge, skills and abilities required to excel as a farm manager in pork production.

• Certification targeted at the at the farm manager and department leader level.

– Existing and Promotable Employees

– Bring Additional Talent to the Industry

• Creation of on-going education opportunities (CPE) required every three years.

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Certified Swine Manager

• Certification requirements include

– Passing a test to demonstrate knowledge acquired

– Demonstrate work experience

• Must demonstrate technical and managerial competency in all production phases (7 courses): – Farm and personnel management

– Breeding and Gestation

– Farrowing

– Wean to Finish

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In Conclusion

• Professionalism in our Industry has never been more important.

• Professionalism has real payback to for pork producers.

• Industry organizations stand ready to help

– Educational Offerings in We Care, PQA and TQA

– Certified Swine Manager designation

This message funded by America’s Pork Checkoff Program.

Questions