Murray Irrigation needs to be more aligned to its customers’ requirements and mindful of the changes to farm business drivers under varying water allocation conditions.
That was the key message from Murray Irrigation’s chief executive officer Michael Renehan at a staff business plan update in Deniliquin recently.
Mr Renehan updated all Murray Irrigation employees on where the business was headed and outlined the strategic objectives set by the board.
He also unveiled a new-look corporate structure with strategic and operational teams.
‘‘Murray Irrigation, as a business, is undergoing significant cultural change,’’ Mr Renehan said.
‘‘We need to be more aligned to our customer requirements and mindful of issues that impact them, such as the difficult trading environment with low water allocation.
‘‘As a consequence, a number of initiatives are now under way.’’
Some of the cost-saving initiatives include extended staff annual and long service leave, and restricted staff in offices over Christmas.
Longer term changes include reviewing the lease/purchase arrangements for motor vehicles, plant and equipment; the renegotiation of supply contracts; utilisation of Murray Irrigation works staff on projects; and the cancellation of non-essential services.
‘‘The business has already saved $1.25million over the first five months and is aiming to take out another $1.75million by (financial) year end,’’ Mr Renehan said.
He said Murray Irrigation’s organisational structure had been realigned to a number of key outcomes, including: being more customer focused, sharing resources, working together as one Murray Irrigation team, eliminating waste, becoming a lean organisation and assets modernisation.