Home / Knowledge / News / Textiles / Review recommends business improvements for AWI
Review recommends business improvements for AWI
01
Sep '09
An independent review of Australian Wool Innovation's performance over the last three years (1 July 2006 to June 2009) has reaffirmed what many Australian woolgrowers already knew: the wool industry's marketing, research and development organisation has room for improvement.

The review is a formal obligation under the Statutory Funding Agreement (SFA) with the Australian Government. It is part of a three-year process in the lead up to WoolPoll, where AWI shareholders decide on the company's future level of funding.

Arche Consulting conducted the review and believes AWI could be more effective in the areas of strategic planning, governance, consultation and the measurement of performance.

After conducting a comprehensive line by line assessment of the company since December last year, current AWI directors have come to many of the same conclusions. The new board and management acknowledge the governance framework of the company and its subsidiaries has been inadequate over the past three years. This has resulted in an inability to set meaningful targets and objectives and to comprehensively assess the company's performance and outcomes against those objectives.

Recognising these deficiencies, present directors have made major changes to the systems within the business this year. In January, the AWI board commissioned experienced business manager and former AWI director Ken Boundy to report on the structure of the company. This was followed by the appointment of Brenda McGahan to increase marketing activities and address the funding shortfall of AWI.

In addition to an increase in marketing activity in key markets, funded by a reduction in overhead costs, on and off farm R+D have been integrated to allow a better flow of market signals.

Under Brenda McGahan's new Strategic and Operational Plan, many of the issues raised in the Review of Performance have been or are being addressed. For example, a six-monthly review of research projects. Tendering of business to increase competition and reduce costs. Project assessments have been improved and the benefits of initiatives such as the Japanese Marketing Program are now clearly outlined. The overall result is a proactive three-year R&D and extension program at AWI which is closely aligned with Australian Government research priorities.

The risk management consultancy, Risk Management Partners, has been contracted to review and revise AWI's Fraud and Risk Plans.

The Board has engaged board performance advisors, Cameron Ralph, to work with it on key issues of corporate governance and to implement an improved governance framework.

The new board and management of AWI acknowledge that over the period of the review there had been inadequate consultation with shareholders and other key industry groups when determining strategy and direction for the company. The board has responded to this by significantly increasing AWI'scommunication with woolgrowers. So far this year the AWI CEO, chairman, directors or executives have attended close to 60 woolgrower and wool industry functions in 6 months. At these field days, shows, expos, conferences and forums AWI has listened to the views of the industry it serves.

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Courtesy: ZDHC

Textiles | On 23rd Jan 2017

Oeko-Tex joins ZDHC programme for sustainability

Oeko-Tex, an independent textile testing institute working for the...

Interviews View All

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search