Professional Documents
Culture Documents
2008
Malcolm Baldrige
National Quality Award
Application
Public Version
Organizational Profile behaviors needed to accomplish our Purpose, Mission, and
P.1a Organizational Environment: Cargill Corn Milling long-term strategies. Values are guiding principles for all
North America (CCM), headquartered in Minneapolis, MN, stakeholders and are integrated throughout our business.
is a manufacturer of value-added corn- and sugar-based Core competencies are key areas of expertise providing
products serving the Food, Feed and Fermentation market sustainable advantage.
segments. CCM is a business unit of Cargill, Incorporated, Workforce Profile: CCM’s employees come primarily from
a privately-held international provider of agricultural, food, communities surrounding our facilities. We segment our
and risk management products and services. workforce into three categories. Non-Exempt Production
Cargill entered the corn milling business in 1967 with the includes all operators, Non-Exempt Support includes all
acquisition of a small plant located in Cedar Rapids, IA. administrative support positions, and Exempt includes
Over the past four decades, CCM has grown by focusing on supervisors, managers, and technical/professional personnel
our customers, developing our employees, and expanding (i.e. Engineers, Quality Assurance, R&D, Technical Service,
our product portfolio into more value-added products. Sales, Accountants, Merchants). CCM has multiple job
Plants were built in Dayton, OH, Memphis, TN, Eddyville, functions in each of these broad categories: Manufacturing,
IA, and Blair, NE. Corn Milling later leased the Wahpeton, Risk Management, Sales, Quality Assurance, R&D, Technical
ND plant and acquired the Decatur, AL plant. Cargill’s Service, Procurement, Logistics, Transportation, Finance,
Dry Corn Ingredient business unit joined CCM as a Engineering, Maintenance, Automation, Human Resources,
product line adding plants in Indianapolis, IN and Paris, and Administration.
IL. This growth has increased our complexity and diversity Technologies and Equipment: The corn milling process is
while enhancing our ability to provide distinctive value primarily a continuous process consisting of: Dry Corn
and become the partner of choice for our customers. Grinding – Preparing dry corn for sizing. Wet Corn Separation
Products & Services: Figure P.1-2 lists the product lines for – Separating corn into four basic components: germ, feed,
each market segment (Food, Feed, and Fermentation) served meal and starch. Conversion – Continuous and batch processes
by CCM. These product lines deliver over 60 products to used to convert starch slurry into dextrose and fructose.
over 3,000 customers. Product delivery mechanisms include Refining – Processes used to clean and purify product prior
pipeline connections with co-located customers, bulk truck, to shipping. Fermentation – Enzymatic transformation of
rail, and barge shipments. CCM production locations and organic compounds by microorganisms. Technologically
terminals load over a thousand product shipments each day. advanced distributed control systems are used to operate
Services provided to customers include technical service, and troubleshoot the equipment and processes at all CCM
utilities and administration service, and third party marketing facilities. CCM’s corporate functions, plants and terminals
and sales services. Technical service includes problem solving are networked together. CCM employees interface daily
and application development. Utilities and administration with computer hardware and software systems to control the
support are provided for our co-located customers. Marketing production and distribution processes or to access data and
and sales services are provided for sugar producers and information required to perform their work.
ethanol producers referred to as marketing alliances. These Significant equipment used in production facilities include
services are marketed separately to leverage our production processing and storage tanks, screening and sizing equipment,
capacity and distribution network to help these producers grind mills, high pressure steam boilers, centrifuges, rotary
find the best markets. vacuum filters, steam tube dryers, flash dryers, enzyme
Organizational Culture: CCM supports Cargill’s vision to reactors, isomerization columns, demineralization columns,
become the global leader in nourishing people. CCM’s Vision, carbon columns, check filters, pumps, evaporators, weigh
which includes our Purpose, Mission, and Values along with scales, lab and process instrumentation, fermenters, and
our core competencies as shown in Figure P.1-2, defines our sterilizers. Equipment used in terminals includes storage
culture and provides guidance, alignment, and integration tanks, product load and unload pumps, weigh scales, and lab
for all stakeholders and their activities. In 2007, the CCM equipment.
Purpose was revised to reflect Cargill’s long-term strategy. The Regulatory Environment: CCM operates under requirements
Mission was first established in 2000 and has been modified and regulations established by various regulatory agencies,
to reflect additional product line opportunities and customer including the following: U.S. Department of Agriculture
and market needs. The Values reflect the characteristics and (USDA), Food and Drug Administration (FDA), Occupational
Safety and Health Administration (OSHA), and Environmental
Figure P.1-2 CCM Vision
Protection Agency. Additionally,
PURPOSE To be partner of choice of the customers we serve. CCM follows Cargill Governance
Cargill Corn Milling delivers distinctive value to customers in: Guidelines, Food Safety and
FOOD: including High Fructose Corn Syrup (HFCS), Corn Syrup, Sugar, Corn Oil and Hazard Analysis Critical Control
MISSION Dry Corn Ingredients (DCI)
Point (HAACP) requirements,
FEED: including Gluten Feed and Gluten Meal
FERMENTATION: including Ethanol, Acidulants and Industrial Starch General Accepted Accounting
Demonstrate Integrity, Injury Free, Expand Customer Focus, Be Innovative, Develop
Principles (GAAP), Kosher and
VALUES Halal inspection guidelines, and all
Talent, Promote Collaboration, Demand Accountability, Strengthen Communities
Core Risk Management and Origination; Technical Support; Supply Chain Management;
applicable federal, state and local
Competencies Corporate Social Responsibility laws and regulations.
ee
m
facility recognition, reinforce the Vision and Values, and
m
Engaged Employees Satisfied Customers
Co
Ex
h
pan
ngt
d
Stre
Custo
Measurement, Analysis & Strategic & opportunity for exchange of ideas, and ensure time for one-
Knowledge Management Tactical Planning
on-one or small group discussion between employees and the
mer Focus
SLT. Surveys of the SLT and plant participants are used to
ility
Be
Customer Value Profitability Sustainability
an
In
SLT requested more field time to review new capital projects
m
n ov
De
at
iv
e Corn Milling Website: The goal of this website is to provide
Systematic Processes
n
CCM with a centralized set of standard websites making data
io
orat De
v el
llab
and information readily available for all employees. Every
op
e Co Promot
Talen
t
facility and functional area has a page utilizing common
Employees, Satisfied Customers, Enriched
CCM Leadership System Communities, and formats and navigational techniques. Links are provided to
Profitable Growth. The CCM Values surround the system and common corporate and external websites. Statistics on users
drive our behaviors and interactions with all stakeholders. accessing and number of hits for each page are kept for fact-
The Senior Leadership Team (SLT), a group of twelve based improvement. The CCM home page has received an
senior leaders, sets CCM Vision and Values, which are average of over 46,500 hits per month for the past two years.
reviewed and refined, if appropriate, by the SLT during Each month in 2008, to attract more usage, a SLT member
the Strategy Review process. Major changes in the core writes a short description of their product line, function, or
sweetener market including overcapacity among producers plant for the home page. The CCM IT Manager is the owner
and the consolidation of competitors and customers were the of this website.
driving force for the 2000 refinement of our Values. At this SLT Meeting: The SLT meets monthly as a leadership team
meeting the SLT added the Values of Profitability, Enterprise to review the overall health of the business unit, evaluate
Thinking, and Competitiveness to reflect the internal strategy, discuss and decide policy issues, project future
cultural changes required to respond to the external market profitability, and make final decisions on anything impacting
challenges. Prior to these changes CCM production facilities CCM. In 2007, the SLT refined their meetings to include
operated as independent profit centers in a growing market updates from business plan owners to review progress, align
with sufficient margins to support profitability and attract resources, and remove barriers.
new capital. Without these changes in Values, CCM would SMT Meeting: The SMT holds monthly conference calls and
not be as competitive and successful as we are today. In 2008, meets face-to-face on a quarterly basis. This team reviews
the Values were updated to align with Cargill’s long-term current performance, ensures alignment, sets priorities,
vision of the future and to guide CCM’s future performance. and discusses projects and initiatives. The SMT cascades
Values of Expand Customer Focus, Be Innovative, Promote information from these meetings throughout the organization
Collaboration, Demand Accountability, and Develop Talent utilizing functional, facility, and product line meetings. In
were added. Values were also restated to reflect action (i.e. addition, regular reports and scheduled conference calls are
Demonstrate Integrity instead of Integrity). used to ensure information is being passed to all employees.
The Employee Engagement Survey is used to measure SLT Forum: The SLT sponsors a biennial process called
effectiveness of senior leaders and the CCM Leadership the SLT Forum. This process includes approximately 200
System (7.6a2-1). managers and individual contributors, providing the SLT
Deploying Organizational Vision and Values: The Senior another method to communicate strategy, reinforce Values,
Management Team (SMT) includes the SLT, Product Line increase customer knowledge, promote team building, and
Leaders, Functional Area Leaders, Commercial Managers, recognize outstanding performance. As a refinement in 2007,
and production Facility Managers (40 senior leaders). the SLT Forum attendance was expanded to include over 300
The SMT is responsible for the deployment of the CCM CCM employees with a focus on front-line supervisors.
vision and values throughout the organization including all Annual Report: The SLT produces an annual report
stakeholders. Senior leaders use a variety of mechanisms to highlighting significant events from the previous fiscal year.
deploy the Vision and Values and communicate key business This report is used to recognize employees and teams for
information for each measurement category. Examples of customer focus, innovation, and high performance. The
these mechanisms are listed below: report is distributed to all employees. In 2007, the SLT
1) Cargill will comply with the laws of all countries to which it is subject. 2) Cargill will not knowingly assist any third party to violate
any law of any country, by creating false documents or any other means. 3) Cargill will not pay or receive bribes or participate in any
other unethical, fraudulent or corrupt practice. 4) Cargill will always honor all business obligations that it undertakes with absolute
integrity. 5) Cargill will keep its business records in a manner that accurately reflects the true nature of its business transactions. 6)
Cargill managers and supervisors will be responsible that employees, consultants and contract workers under their supervision are
familiar with applicable laws and company policies and comply with them. Further, they will be responsible for preventing, detecting
and reporting any violations of laws or Cargill policies. 7) Cargill employees will not become involved in situations that create a conflict
of interest between the company and the employee.
decided to deploy this report on DVD rather than the normal milestone achievements, fund safety capital commitments,
paper report. In October 2007, the Employee Engagement involvement in major safety incident investigations, and
Mini-Survey Process was used to measure the effectiveness implementation and deployment of behavioral based safety
of this format and 74% of employees surveyed responded program.
positively. Expand Customer Focus – Meet with key customers, develop
Customer Interaction: The CCM President, Product Line strategies to create customer value, and improve line of site to
Leaders, Corporate Account Leaders, and direct Sales the customer for all employees. SLT members spend around
personnel communicate Vision and Values to customers 25% of their time meeting with customers.
during face-to-face meetings, during sales calls and Be Innovative – Promote creative thinking and problem
relationship building events. See 3.2a(1) for more information solving, utilize the tools available, and reward innovative
on customer relationship building. thinking and creation of customer value.
Supplier Interaction: SMT members and their direct reports Develop Talent – Being supportive of training initiatives such as
meet annually with suppliers (such as transportation, energy, leadership development, Root Cause Analysis, maintenance
chemical and contractors) to communicate expectations, and reliability, and valuing differences (diversity). Work with
Values, and future direction. Human Capital Strategy plan to create succession plans and
Local Community Interaction: Facility Managers represent identify emerging leaders within the organization.
CCM to the local communities, communicating the Vision Promote Collaboration – Exhibit behaviors required to be a
and Values through their involvement in local committees, good team member by operating as a team at the leadership
professional groups or organizations. level. Look at what is in the best interest of Cargill or CCM
Partner Interaction: Product Line Leaders represent CCM rather than a specific product line, function, or facility.
with partners, including marketing alliances and co-located Demand Accountability – Making timely decisions on
customers, communicating the Vision and Values. acquisitions, customers, marketing partnerships, plant
As a result of feedback from our 2004 Cargill Business expansions, plant rationalization, and building new facilities.
Excellence process, the effectiveness of the senior leadership’s Hold themselves and employees accountable for results and
communication mechanisms was identified as an opportunity behaviors. Develop and execute the CCM strategic plan for
for improvement. The SLT formed a team to determine the each product line.
best method to improve this communication process. The Strengthen Communities – Providing funding and budget
team utilized a formal survey process across a random guidelines for facility charitable contributions. Through
sampling of CCM employees. The survey results indicated personal involvement in local organizations, outreach
our Exempt and Non-Exempt support employees perceived programs, and leading contribution campaigns (United Way,
communication from leaders as being more effective than etc.). Requiring facilities to monitor and report potential
perceived by our Non-Exempt production employees. In environmental and regulatory incidents over and above
2005, the Engagement Strategy Team was formed and used requirements.
results of this survey to make refinements to communication 1.1a(2) Promotion of Legal and Ethical Behavior: The SLT
mechanisms and improve engagement. requires legal and ethical business conduct at all levels of the
Commitment to Values Through Personal Actions: The SLT/ organization. The Cargill Guiding Principles (Figure 1.1-2),
SMT develops, refines, and deploys the CCM Values and are a set of seven fundamental guidelines that provide Cargill
reflects their support of these Values through the way CCM: employees an ethical framework for all business. All employees
1) Segments and interacts with customers, suppliers, and receive Guiding Principles training by a CCM Manager
partners; 2) Conducts daily work and interactions; 3) Works during their orientation and all exempt employees undergo
to continuously improve business processes, services, and annual compliance certifications. Exempt employees that
products; 4) Hires and engages all employees; and 5) Fulfills fail to renew their Guiding Principles training are contacted
responsibilities to the public and communities in which we for further discussions. This training is reinforced with
live and operate. exempt employees during annual Performance Management
In addition CCM leaders support each Value as follows: Process behavioral evaluations. Violations of the Cargill
Demonstrate Integrity – Provide honest, timely information Guiding Principles will result in disciplinary action up to and
and feedback to all CCM stakeholders. including termination.
Injury Free – Involvement in recognition events for safety The CCM Controller, a member of the SLT, is responsible
2008 MBNQA – Public Version 4 Cargill Corn Milling
for ensuring that accounting practices follow Generally creates the environment for performance improvement by
Accepted Accounting Principles. Annual internal audits are establishing the purpose, mission, and strategic objectives,
conducted to verify and validate accounting practices. A and providing employees with the tools and training required
purchasing approval process is designed to prevent employees to perform their functions. Well-trained CCM employees
from intentionally or unintentionally making unethical are empowered to make decisions based on CCM Values to
decisions. CCM promotes fair practices in relationships with achieve the mission and strategic objectives of the business
all stakeholders. The SMT and finance job family employees unit. Employees, either individually or as members of teams,
receive Committee of Sponsoring Organizations (COSO) will establish goals and objectives, measure performance,
training to understand the environment and monitoring of make adjustments based on results, and communicate
internal controls. This training occurs every three years to progress toward the achievement of goals and objectives.
inform trainees of the controls that must be in place in an The SLT recognizes performance through the Performance
organization. It is each manager’s responsibility to adhere Management Process (PMP), salary increases, incentives,
to these controls, and to examine CCM’s business controls promotions, and other awards.
and identify opportunities for improvement. Cargill audits Following our Business Excellence self-assessment in 2001,
financial processes and provides a problem log measure the SLT formed a cross-functional team to study the CCM
(7.6a3-1). innovation process. CCM has a history of innovative products
1.1a(3) Creation of a Sustainable Organization: Within the and services; however, it was recognized that our approach
established limits and guidelines set forth by the Cargill Board was not systematic and we had pockets of innovation without
of Directors, the SLT has the authority to make decisions full deployment. The result of this study was the formation
regarding the day-to-day running of the business, including of a cross-functional Innovation Team with representatives
setting future goals and directions. As a Cargill business from each facility, product line, and functional area, guided
unit, CCM adheres to all corporate requirements including by the SMT. To further promote our Be Innovative Value, the
reporting lines with respect to governance requirements, Innovation Team developed processes and methods including
Cargill Guiding Principles (Figure 1.1-2), financial reporting, new innovation tools and training, rewards and recognition
and risk management processes. Internal and external audit for innovative ideas, as well as innovation metrics and an idea
teams periodically audit CCM for compliance to these capture system. In 2004, the Ideas to Innovation (i2i) process
Cargill standards. Regular communication with the Platform for capturing, recording, and evaluating innovative ideas was
Leaders is maintained to advise them of CCM activities improved, making it easier for employees to enter their ideas
and successes. A formal budgeting, planning, and capital and reducing cycle time for review of ideas. Benchmarking
investment process is fully deployed and systematically other business units and outside organizations has been a
utilized within Cargill. major source for helping design and improve the innovation
The SLT’s approach for creating a sustainable organization process. In 2008, we created a formal process to solicit
includes: 1) Maintenance of business by reinvesting capital innovative ideas from external sources such as customers and
and utilizing outside expertise for support in areas outside suppliers. See 6.2b for more explanation of the innovation
our core competencies; 2) Reinvigorating people through process.
skills training, new opportunities, and bringing in new talent Our Value of Promote Collaboration and our organizational
from the outside; and 3) Creating a winning strategy which structure allow us to pool resources for maximum flexibility.
includes: a) Identifying long-term options (10 years out); b) The SLT encourages employees to take on additional
Analyzing opportunities and various options (5-years out); responsibility, which is a key factor in our ability to be an
c) Executing on short-term objectives; and d) Balancing agile organization. For example, in 2005 the SLT decided
risk with return. This approach is used during the Strategy to restart our Dayton, OH corn sweetener plant. Multiple
Review (SR) process and the Annual Business Planning resources from every facility were required for the startup.
(ABP) process and during SLT meetings, as appropriate. Temporarily transferring employees to Dayton left gaps that
Priorities for performance are set in the strategic plan and were assumed by increasing responsibilities of the existing
are changed or confirmed as the result of weekly, monthly, workforce. Similarly, in 2007 and 2008, resources were needed
quarterly, semiannual, and annual performance review for an expansion and start-up at our Blair, NE facility.
processes. The SLT sets short-term goals and directions for Cargill looks to CCM as a role model for collaboration,
CCM through the ABP process, interacting with customers talent development, and profitability. CCM is a significant net
and employees to discuss their goals, reviewing internal contributor of people and talent to support major initiatives
measures, and analyzing trends. See Figure 2.2-1 for the key within the Cargill Food Ingredients and Systems Platform
performance measures (CCM Scorecard) regularly reviewed and Cargill-wide. For example, in 2004, the CCM President
by the SMT. The SLT sets long-term directions for the was 100% dedicated to leading the initial development phase
business through the SR process. of the “Go to Market” project for approximately six months.
Figure 1.1-3 illustrates the business cycle for CCM and In 2005 and 2006, “Go to Market” and another initiative,
the key processes the SLT uses to communicate Values, “Order to Cash,” were two Cargill Food Ingredient and
provide short- and long-term direction, and ensure two-way Systems platform level initiatives being implemented to
communication. Key Sustainability work processes used by provide strategic alignment and consistency while serving
CCM are outlined in Figure 6.1-3. our common customers, to improve the overall customer
Creation of Performance Improvement Environment: The SLT experience with Cargill, and to improve working capital.
CCM contributed over twenty full-time resources to these Management Process [PMP, 5.1a(3)], Corn Milling Website
strategic projects. [1.1a(1)], monthly Scorecard results, and the Annual
Creating Environment for Learning: The SLT allocates Report [1.1a(1)]. The formal processes used to encourage
resources for organizational and workforce learning by two-way communication are the SLT Tour, Performance
promoting the implementation of common processes across Management Process, and quarterly Town Hall meetings. As
the enterprise. The key deployment method includes the use a refinement to the SLT Tour process, in 2004, SLT members
of the Best Practice Model (Figure 6.1-4) to share knowledge held engagement discussions at the facilities with multiple
gained and lessons learned. Process Development Groups groups of six to twelve employees. This approach provided
(PDG) are used to identify current best practices, prioritize the SLT an opportunity to candidly discuss issues important
and reach consensus on initiatives, deploy solutions across to employees at each location. This change was made to
the enterprise, establish a follow-up process to ensure address the organizational need to clarify the underlying
compliance and effectiveness, and improve the best practices issues relative to employee engagement and to take steps to
over time. In addition, other common processes used across improve our employee engagement. Quarterly Town Hall
the enterprise to encourage organizational and workforce (employee) meetings are held at each facility to discuss
learning include Root Cause Analysis and i2i (6.2b). CCM results, review initiatives and projects, and answer employee
determines the effectiveness of the Root Cause Analysis questions. The Plant Leadership Teams, which includes an
process through system audits and performance measures. SMT member, are the owners of this process. In addition to
For i2i, CCM uses the idea ratio (7.5a2-1) and an Innovation systematic and formal communication methods, the CCM
Index (7.5a2-2) from the Employee Engagement Survey to senior leaders engage in significant informal communication,
measure effectiveness. which includes open-door policies, ad-hoc departmental
To promote individual and organizational learning, the meetings, and cross-functional problem solving teams. CCM
SLT moves key people into short- or long-term assignments verifies the effectiveness of our communication mechanisms
to take advantage of business opportunities and involve utilizing the Employee Engagement Survey results (7.4a1-5).
personnel in PDG and functional knowledge sharing groups. Role in Reward and Recognition: The SMT emphasizes our
In addition, employees are encouraged to attend internal Values of Expand Customer Focus, Promote Collaboration,
and external training classes to improve their skills and and Be Innovative using several formal recognition processes
knowledge. The Development Plan Process [5.1a(3)] is used to reinforce high performance and customer focus. The
to identify career and skill development needs. CCM Leadership Award process recognizes both teams and
Succession Planning and Development of Future Leaders: The individuals. Teams can nominate themselves for a customer
SMT emphasizes our Develop Talent Value by identifying focus, innovation, and high performance award. The
emerging organizational leaders, discussing career and winning team(s) will exhibit leadership in sharing learning,
developmental plans, and mentoring these potential leaders. transferability of results, and the success of the project.
Succession plans with key replacements identified were Individuals can win the Leadership Award, however another
created in 2003 and are reviewed and updated annually employee must nominate them. The winning individual(s)
[5.1b(4)]. are those that best exemplify the leadership capabilities of
1.1b(1) Senior Leader Communication: The SMT utilizes the Cargill Leadership Model (Figure 5.1-1). The SLT selects
formal and informal communication mechanisms to the award winners and recognizes teams and individuals
inform, empower, and engage employees. Some of the during the biennial CCM awards ceremony held at the SLT
formal processes include SLT Tours [1.1a(1)], SLT Forum Forum. The Corn Milling Innovation (CMI) Awards process
[1.1a(1)], Quarterly Town Hall meetings, Performance recognizes innovative ideas and collaborative behaviors.
Relative Importance of
Purchasing Decisions
Future Requirements
Competitive Factors
Strategic Direction
Requirements
Requirements
Requirements
Key
Delivery
Product
Service
How requirements Who uses the
Listening When? How data are used?
are deployed? data?
Methods
is demonstrated in the delivery of products, services, product line adds objectivity to the customer segmentation
and unique customer solutions in the Food, Feed, and process. This dynamic approach is used to segment and rank
Fermentation market segments. These three market segments sweetener customers. The CSM includes all existing sweetener
and ten product lines serve a diverse customer base of over customers, customers of competitors and potential customers.
3,000 customers with a thousand product shipments each Every customer and potential customer is evaluated based
day. Because of this diversity each product line’s approach on four major categories – Sweetener Portfolio, Corporate
to customer segmentation is adapted to fit their specific Culture, Complexity, and Financial. Each major category is
industry. further subdivided into subcategories.
By focusing on customers, the business has grown from Each customer is ranked from one (low) to five (high)
a corn syrup business to a sophisticated corn and sugar for each subcategory based on historical data, Enterprise
processor. The Strategy Review accelerates this growth Development Team analysis, and the sales group’s experience
focusing on customers, markets, and core competencies. Key with the customer. These rankings allow us to sort, analyze,
questions in the Strategy Review are listed in Figure 2.1-2. and report the matrix information for decision-making. This
By investigating these questions, CCM identifies markets and provides direction on where to focus our resources with
customers where it can create distinctive value. regard to existing customers, competitors’ customers and
The Enterprise Development Team facilitates the Strategy potential customers.
Review process, which includes deep dives into market 3.1a(2) Listening and Learning to Determine Key Customer
segments and product lines to enhance our knowledge of Requirements: The CCM Leadership System (Figure 1.1-1)
customers for fact-based segmentation. From this analysis, addresses the delivery of Customer Value (Figure 6.1-1)
Product Line Leaders target customers and markets and through the key work process of Manage Customer Service.
develop action plans to deliver customer solutions in market Through the use of this key work process, listening and
segments that offer the greatest opportunity. The result of learning methods are closely linked to our strategy process
the Enterprise Development Team analysis and segmentation in order to effectively translate the voice of the customer
process refinements is increased knowledge of future market into strategies and actions that will create distinctive value.
trends for a more effective fact-based customer and market As input to our Strategy Review process, CCM utilizes a
segmentation. variety of methods to listen and learn and determine the
The High Fructose Corn Syrup (HFCS) and Corn Syrup relative importance of key customer requirements and
product lines are the most mature product lines with the most expectations. Sales and customer service personnel interact
cycles of improvement with respect to approach to market with our customers daily to determine the most appropriate
and customer segmentation. The Customer Segmentation approaches for listening and learning as well as ways to
Matrix (CSM) is an example of how the Corn Sweeteners improve these methods. CCM uses primary and secondary
Customer reports a
Yes Customer notified of
nonconformance
Stop Customer is satisfied with
nonconformance solution
the solution?
Yes
No
Immediate action Yes Immediate corrective
No
actions taken to Corrective Actions are/will
required? be effective?
alleviate issue
No
Problem Solving Team Review Team evaluates
Nonconformance is Corrective actions are
identifies effective RCA and corrective actions
entered into CRT System implemented
corrective actions
incident, investigate, identify, review and implement Customer Quality Index and total rejections are aggregated
correction actions. Throughout the complaint process CCM daily by facility, product line, and business unit, and compiled
contacts the customer to seek information and verify that as monthly measures on the CCM Scorecard (Figure 2.2-1)
the corrective action was effective. Complaint information, The CCM Commercial Operations Manager analyzes
corrective action investigations, and customer information business unit, product line, and facility CRT data for trends
are tracked in the CRT system. All incidents must be entered and shares the results of this analysis with product lines,
into the CRT system within 24 hours of notification to raise functional areas, and third-party terminal partners, who
awareness of potential failures within CCM. If the incident are part of the CCM supply chain. Prioritizing issues, using
is a rejection or repeat failure requiring a Root Cause Root Cause Analysis to identify causes, and implementing
Analysis, the process must be initiated within 24 hours of effective solutions enables CCM to minimize customer
notification. The CRT database enables us to perform various dissatisfaction.
deep-dive analyses to identify trends and set priorities for Since the CRT system was introduced in 1999, numerous
further actions to minimize customer dissatisfaction and improvements have been made. For example, in 2004 the CRT
promote customer loyalty. The system allows us to review system was modified to include the Carrier Rating Index to
data by time periods, types of non-conformances, product, measure and track shipment performance. In 2007, a new
customer, location, department, or functional area. Any web-based reporting system was implemented.
nonconformance is classified into one of three categories: 3.2a(4) Keeping Relationship Building Approaches Current:
customer incidents, complaints, and rejections. Customer Keeping our approaches to building relationships and
incidents occur when we proactively alert the customer of a providing customer access current with changing business
potential nonconformance (i.e. potential late delivery). needs and directions is critical. The Food, Feed, and
The data in the CRT system is used to aggregate and Fermentation market segments represent dynamic industries
analyze customer nonconformances through a key metric with growing customer needs. Product Line Leaders are
called the Customer Quality Index. This is a weighted index responsible to ensure that their approaches are effective in
based on customer incidents, complaints, rejections, and building successful customer relationships.
total shipments, and is a useful metric for trend analysis and In 1999, the SLT transformed CCM from an individual
comparison of product line and plant performance. The facility design to an enterprise design to improve service and
Financial Reporting
Str
Level
sul
Planning process.
ts
Scorecard Level: The upper level of the pyramid consists Business System
of the overall performance metrics used by CCM, product Level
Customer Nonconformance Trend and Pareto analysis; RCA review Commercial Operations Manager
Performance index; trend and comparative analysis;
Safety Performance BU Environmental Health & Safety (EHS) Managers
RCA review
are used to make operational and product quality decisions and other Cross-Functional Improvement Teams.
by operators, engineers and chemists. The Enterprise Development Team is used for project
4.1a(2) Selection of Comparative Data: The SLT identifies analysis (e.g. deep-dive study of ethanol market), growth
critical metrics to support operational and strategic decision- opportunities (e.g. grow existing business, mergers, and
making during the Annual Business Planning process. acquisitions), and strategic direction analysis. Projects in
Comparative data are used at every level of the data and these areas require comparative information to support
information pyramid. These comparative data are obtained financial models for decision-making. The data obtained
through both internal and external sources. Depending on the comes from external sources, which include; IndustryWeek
level of the data different teams are responsible for obtaining Best Plant database, customers, annual reports, Corn Refiners
comparative data. For example, at the Process Control Association, membership in professional organizations,
Level, Process Development Group teams are responsible governmental sources, and MBNQA recipients.
for identifying best practices and measures associated with PDG identify improvement targets and performance
these practices. Process steps used to select comparative data comparisons by identifying internal and/or external
include: 1) identify metric, 2) identify world-class comparison, comparative metrics. The best performance level becomes
and 3) start using metric and world-class comparison to the benchmark for the process being improved. To ensure
support improvement and innovation. Approaches used by effectiveness of comparative information each PDG develops
CCM in steps 1 and 2 to identify world class comparisons scorecards to measure performance.
include working with the Cargill Information Center to obtain 4.1a(3) Keeping Performance Measurement System Current:
information from public domain, other Cargill business The Data and Information Pyramid (Figure 4.1-1) provides
units, use of trade journals, surveys, independent market a framework for all levels of the organization to engage in
analysis, industry and professional organizations, Enterprise the process of keeping the performance measurement system
Development Team, Process Development Groups (PDG) current with business needs. The Annual Business Planning
{
PLAN
Collect Information/Communication We prevent defects, service errors, minimize warranty
Identify Opportunity New innovative ideas, technology, or approaches
Identify key stakeholders requirements
costs, and customer productivity losses primarily through
Organizational knowledge our process design and process refinements made using the
Data/Information accurancy BPM (Figure 6.1-4), through standard operating procedures
{
Focus on Customer/Operational as well as prevention-based processes including:
Identify Key Measure Excellence
Must address opportunity • Use of predictive maintenance technologies to identify
Must be measurable potential equipment problems and to plan and schedule
Must be realistic
maintenance activities.
Standardize Measurement Consistent • Monthly or quarterly (as appropriate) performance
Systems { Must be documented-measurement process
reviews are performed for our major road and rail
carriers.
{
Broad participation in process including
Evaluate & Identify customers, suppliers, partners, & consultants • Annual utility outages at facilities to inspect boilers,
Best Practices Build consensus to identify Best Practice motors, circuits and install new equipment.
Benchmark (internal and external)
Determine internal or external resources • Daily calibration and preventive maintenance for lab
EVALUATE
instrumentation.
Document Best Practices { Capture all elements of Best Practice
Standardize across Business Unit (CMO)
• Daily, weekly and monthly required control points
monitoring, verification and validation for food safety.
{
Communication & Training Done • Behavioral–based safety observations are used to
Clear timelines
Resource allocated/available
prevent potential accidents caused by unsafe employee
Implement Best Practices Broad participation behaviors.
Repetition • Use of railcar pre-load checklists by operators to prevent
MOC process completed
accidental filling of contaminated vessels or use of non-
{
ANALYZE Accurate food safe cars.
Measure & Communicate Timely
Best Practices Routine & ongoing • Annual audits of truck wash stations and terminals
Broadcast to “right” audience (Cargill owned and third party) for compliance to food
{
Document audit process safety regulations.
Audit Best
Internal & external auditors • Annual third party inspections for housekeeping,
Audit training program
Practice Compliance Gap analysis sanitation and food safety.
Corrective action plan • Annual PDG and Corn Milling Operation audits for
Formal follow-up process
REFINE
compliance to best practices.
900
Excellent Range See 7.1a1-4 for more information.
800
Satisfactory Range 7.1a1-4 Complaints per Shipment Better
700 0.8%
2003 2004 2005 2006 2007 2008
0.6%
CCM Goal (Superior Range) CCM
0.4%
0.2%
7.1a1-1 Food safety is a key market requirement for our
HFCS, Corn Syrup, Dry Corn Ingredient, and Acidulant 0.0%
FY05 FY06 FY07 FY08 FY09-YTD
customers. We utilize an independent third-party auditor to
Complaints/Shipment 4-Sigma Level 5-Sigma Level
perform annual inspections of all facilities producing these
products. The audit results and reports validate our HACCP
(food safety), GMP (sanitation), and quality processes. To 7.1a1-4 As indicated in 7.1a1-3, Customer Incidents make
achieve a score of 900 or more requires a superior rating for up most of the 1% gap in Error Free Deliveries. The other two
all five categories evaluated during the audit. Many customers broad categories are Customer Rejections and Complaints,
use the results of this audit in lieu of performing their own which are indictors of product and service performance
quality audits. problems with our customers. This chart indicates a decline
in complaints even as the number of shipments is rising. Our
7.1a1-2 Carrier Rating Index Better continuous improvement goal is to reach zero complaints.
1.1
The next chart, 7.1a1-5, looks at rejections in more detail.
Weighted Index
1.0
7.1a1-5 Rejections per Million Shipments Better
0.9
0.8 600
Rejections/Million
0.7 500
400
0.6
300
FY05 FY06 FY07 FY08-YTD
200
CRI Goal 100
0
7.1a1-2 The Carrier Rating Index (CRI) is a unique metric FY05 FY06 FY07 FY08 FY09-Proj FY10-Proj FY11-Proj FY12-Proj
for CCM used to measure the service quality of our external CCM-Median IW-Median 5-Sigma Level
carriers. The CRI is calculated based on total points assigned
to a truck carrier based on the severity of a service quality 7.1a1-5 Rejections are tracked as a CCM Scorecard
non-conformance and then divided by the total shipments (Figure 2.2-1) measure. The benchmark on this chart is from
for this carrier. The goal is based on previous performance the IndustryWeek Best Plants Benchmarking Data. CCM
of multiple carriers and is used to improve individual carrier rejections are converted to parts per million to compare. We
performance. are comparing ourselves to the median of the IndustryWeek’s
Top 10 plants. Our Wahpeton, ND plant was selected as an
7.1a1-3 Error Free Deliveries Better IndustryWeek Best Plant in 2007 based on comprehensive
100%
excellence in all metrics. Therefore in FY07 the Wahpeton
data appears in both the benchmark and actual CCM data.
99%
This chart contains projection for the next five fiscal years.
98%
97%
7.2 - Customer-Focused Outcomes
96% 7.2 Customer Focused Outcomes
FY05 FY06 FY07 FY08 FY09-YTD
7.2a1-1 The Customer Quality Index (CQI) reflects
CCM - Error Free % Food - Error Free % Feed - Error Free % CCM’s value to Expand Customer Focus. CQI is a unique
Fermentation - Error Free % BAR - Error Free %
customer dissatisfaction metric used in conjunction with
our Customer Relationship Tracking system (Figure 3.2-
7.1a1-3 Error Free Deliveries are a key market requirement 3). This index is a weighted ratio of rejections, complaints,
and expectation of customers in each market segment – Food, and customer incidents to total shipments. Total CCM
Feed, and Fermentation. This metric consists of meeting shipments have increased by 18.0% since FY03. This increase
our customer’s requirements around product specifications, plus operating plants at near capacity (see 7.5a1-2) during
0.0
30
25 plants.
20
15 Better
7.2a2-7 Ethanol-Growth with Key Customers
10
5
0
FY03 FY04 FY05 FY06 FY07 FY08 FY09-YTD
Million Gallons
Food Feed Fermentation CCM BU #1
90
Quarterly Solutions
15 80
Total Solutions
70
60
10 50
40
5 30
20
10
FY02 FY03 FY04 FY05 FY06 FY07 FY08 0 0
Q1-FY07 Q2 Q3 Q4 Q1-FY08 Q2 Q3 Q4 Q1-FY09
7.2a2-2 This chart demonstrates growth with our largest key Solutions Total Solutions
sugar customers.
7.2a2-11 CCM’s mission is to create distinctive value for our
7.2a2-3 Corn Oil – Growth with Key Customer (Proprietary
customers. This chart displays the number of implemented
information – chart not shown)
innovative solutions by quarter with a cumulative total.
7.2a2-4 Dry Corn Ing-Growth with Key Customers Better Technical Support is a core competency and we have
provided this service to our customers for many years. We
have just started to measure this important aspect of building
relationships.
000’s CWT
Food Feed Fermentation Budget more by increasing cost of goods sold rather than a decline
in net sales. SG&A is a CCM Scorecard measure and can be
years actual earnings after tax have exceeded the annual
found in Figure 2.2-1. We divide SG&A by gross profit to
budget, which is described in 4.1a(3). These results reflect
allow a comparison to competitors.
CCM’s ability to anticipate changes in a dynamic market
7.3a2-1 HFCS Market Share (Proprietary information –
while meeting customer needs in our three market segments.
chart not shown)
For example, FY07 reflects strong performance in the
7.3a2-2 Corn Syrup Market Share (Proprietary information
fermentation segment, specifically the ethanol product line.
– chart not shown)
Ethanol profits were driven by higher pricing and increased
7.3a2-3 Sugar Market Share (Proprietary information –
fee income from ethanol marketing partners. In FY08 ethanol
chart not shown)
margins decreased as corn prices increased and market prices
7.3a2-4 Corn Oil Market Share (Proprietary information –
were not able to hold marginal revenue. At the same time,
chart not shown)
we were able to increase selling prices for food based corn
7.3a2-5 DCI Market Share (Proprietary information –
products to keep pace with rising corn and manufacturing
chart not shown)
costs. Higher corn prices also increased revenue in our Feed
7.3a2-6 Branded Feed Market (Proprietary information –
segment where margins held steady in FY08. Earnings after
chart not shown)
tax is a CCM Scorecard measure (Figure 2.2-1).
7.3a2-7 Ethanol Market Share (Proprietary information –
7.3a1-2 Return on Gross Investment (ROGI) Better chart not shown)
7.3a2-8 Acidulants Market Share (Proprietary information
– chart not shown)
7.3a2-9 Industrial Starch Market Share (Proprietary
ROGI %
60 80
% Satisfied
40 60
20 40
0 20
FY04 FY05 FY06 FY07
0
Exempt NE-Production NE-Support CCM FY04 FY05 FY06 FY07
BU #1 Hewitt Benchmark Cargill
Exempt NE-Production NE-Support CCM
and personal commitments” as measured by the Employee BU #1 Hewitt Benchmark Cargill
Engagement Survey. Our internal benchmarks are from measured by the Employee Engagement Survey. See 7.4a1-2
Cargill overall and another Cargill business unit with similar for an explanation of the benchmarks. The SLT and SMT
24/7 operations and geography. The external benchmark use this information as an indicator of the effectiveness of
is from the Hewitt database using only companies with an the communication processes identified in 1.1a(1).
engagement score over 60%, which Hewitt considers the “Best
Company” category. The Hewitt benchmark is an average 7.4a1-6 Development and Growth Opportunities Better
of over 300 highly engaged organizations with over 100,000
employee responses. Quality of work/life is a key requirement 100
% Satisfied
60
7.4a1-3 Work Activities Better
40
100
20
80
0
% Satisfied
100 100
80 80
% Satisfied
% Satisfied
60 60
40 40
20 20
0 0
FY04 FY05 FY06 FY07 FY04 FY05 FY06 FY07
Exempt NE-Production NE-Support CCM
Exempt NE-Production NE-Support CCM
BU #1 Hewitt Benchmark Cargill
BU #1 Cargill
7.4a1-4 The CCM value Develop Talent requires hiring the 7.4a2-2 This chart indicates the employee satisfaction
right people and then providing skill improvement (7.4a2- scores for the statement “Development opportunities are
2) and advancement opportunities. This chart indicates available to help me build valuable skills” as measured by the
employee satisfaction scores to the statement, “My future Employee Engagement Survey. A Hewitt Benchmark is not
opportunities here look good” as measured by the Employee available for this measure. This chart and 7.4a1-6 are used to
Engagement Survey. See 7.4a1-2 for an explanation of measure our value of Develop Talent.
the benchmarks. Advancement Opportunities are a key 7.4a3-1 CCM’s value of Injury Free (Figure P.1-2) reflects
requirement of our Exempt employee segment. our commitment to excellence in safety performance. Total
7.4a1-5 This chart shows employee satisfaction scores to Injuries is a CCM Scorecard measure (Figure 2.2-1). We use
the statement, “Communication within Cargill is effective” as Injury Frequency Rate (IFR) to compare ourselves with the
2008 MBNQA – Public Version 43 Cargill Corn Milling
7.4a3-1 Total Injuries & Injury Frequency Rate Better 7.5a1-1 PDG Savings Better
100 5
Cumulative Savings
Annual Savings
Frequency Rate
80 4
Total Injuries
60 3
40 2
20 1
0 0
FY04 FY05 FY06 FY07 FY08 FY03 FY04 FY05 FY06 FY07 FY08
OpRER %
100 96%
95 94%
Process Index
90 92%
85
90%
80 FY06 FY07 FY08 FY09-YTD FY10 FY11
75 CCM CCM Goal World Class
70
FY07-Q1 Q2 Q3 Q4 FY08-Q1 Q2 Q3 Q4 FY09-Q1
6 0.9
Million $
2 0.3
100
80 0 0.0
% Satisfied
% of Plan
innovation culture and environment and look at your
96.0%
levels of creativity and risk taking. The Innovation Index is
calculated using the responses to the following statements: 94.0%
FY05 FY06 FY07 FY08
1) My unique talents and views are maximized at work. 2) I
am encouraged to share ideas and carry out solutions. 3) My CCM Goal
BU has a process to move ideas into action. 4) We provide 7.5a2-8 The plan versus actual production measure is the
solutions that add unique value to Cargill and our customers. result of reliable operations, well-trained employees, and
We benchmark Cargill and another Cargill business unit with understanding customer demands. The operational goal is to
similar 24/7 operations and geography. A Hewitt benchmark achieve 100% +/- 1% of the production plan every month.
is not available because this is a unique measure for Cargill. There is a direct correlation between asset health (reliability,
7.5a2-3 Manufacturing Cost (Proprietary information – see 7.5a2-6) and meeting the production plan. Actual vs. Plan
chart not shown) is a CCM Scorecard measure (Figure 2.2-1).
7.5a2-4 Manufacturing Cost Components (Proprietary
information – chart not shown) 7.5a2-9 Core Router Availability Better
99.9
99.8
BTU/Bushel
99.7
99.6
99.5
FY06 FY07 FY08
Average Availability Goal
FY05 FY06 FY07 FY08 Proj.
7.5a2-9 Core Router Availability (or uptime) measures our
7.5a2-5 Energy usage is a key focus area for CCM due to key Sustainability work process Manage IT Services (Figure
the cost volatility and the environmental impact. CCM has 6.1-3). Core routers are integral to our data and network
implemented capital and non-capital improvements to reduce communication systems in order to keep all locations
fuel usage at its facilities. The Energy Process Development connected and provide nearly 100% around the clock access
Group coordinates these improvements at an enterprise level. to our information.
In 2007, CCM received the Cargill Environmental, Health
and Safety Achievement Award for Resource Conservation
and Energy Management. CCM delivered Cargill leading
7.6 Leadership Outcomes
7.6a1-1 Key Measures of Organizational Strategy
results through global collaboration, connectivity, and best
(Proprietary information – chart not shown)
practice implementation.
12,000 75% 60
40
8,000 50%
20
4,000 25%
0
FY04 FY05 FY06 FY07
0 0%
FY04 FY05 FY06 FY07 FY08 FY09-YTD Exempt NE-Production NE-Support CCM
BU #1 Hewitt Benchmark Cargill
Total # Assets Monitored Healthy Assets World Class
60
Contribution $
0.9%
40
20 0.6%
0 0.3%
FY04 FY05 FY06 FY07
Exempt NE-Production NE-Support CCM 0.0%
BU #1 Cargill FY04 FY05 FY06 FY07 FY08
CCM Contributions CCM % of EAT BU #1 % of EAT
7.6a2-2 Demonstrate Integrity is a CCM value and the
Employee Engagement Survey is used to measure employee 7.6a5-3 CCM’s value of Strengthen Communities (Figure
perceptions of management integrity. This chart indicates the P.1-2) is reflected in its financial support of the communities
satisfaction scores to the statement, “My supervisor acts with where facilities are located. Contribution dollars is a CCM
integrity and in an ethical manner.” We benchmark both Cargill Scorecard measure (Figure 2.2-1) measure and includes
and another Cargill business unit with a similar geography and United Way contributions and other charitable giving. A
24/7 environment. A Hewitt benchmark is not available. similar sized Cargill BU with the same geography is used as
7.6a2-3 Guiding Principles Training (Proprietary a comparison.
information – chart not shown)
7.6a5-4 United Way Contributions per Employee Better
7.6a3-1 Corporate Financial Problem Log Better
1000
$ per Employee
30 800
Weighted Score
25 600
20 400
15
200
10
0
5 2003 2004 2005 2006 2007 2008
0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 CCM Competitor #1 Competitor #2
Customer #1 Other Company
CCM BU #1
7.6a3-1 The Corporate Financial Reporting problem 7.6a5-4 CCM’s value of Strengthen Communities (Figure
log is a unique weighted measure of the errors found on P.1-2) is reflected in our support of local United Way (UW)
each business unit’s quarterly financial report. More severe campaigns. CCM compares favorably against benchmarks
errors are assigned a higher point value than less severe from competitors, customers, and other companies.
errors. CCM has not had any severe issues identified from
these audits. This is intended to be a communication tool 7.6a5-5 Community and Society Support Better
to highlight areas where each business unit can improve 100
60
and implements corrective actions to refine processes. The
40
comparative Cargill BU is of similar size and geography. 20
7.6a4-1 EHS 101’s (ppm) (Proprietary information – chart 0
not shown) FY04 FY05 FY06 FY07
7.6a5-1 Water Usage (Proprietary information – chart not Exempt NE-Production NE-Support CCM
BU #1 Cargill
shown)
7.6a5-5 As an indicator of corporate citizenship and
7.6a5-2 Supplier Diversity Spend Better supporting our value of Strengthen Communities, CCM
7.0% uses the EES to measure employee perceptions. This chart
6.0% indicates satisfaction scores to the statement, “Overall Cargill
% of Core Spend
5.0%
4.0%
is the kind of company that helps the community and society
3.0% by contributing things like time, volunteers, and money.”
2.0% We benchmark both Cargill and another Cargill business
1.0%
0.0%
unit with similar geography and 24/7 operations. A Hewitt
FY05 FY06 FY08 FY09 YTD benchmark is not available.
CCM BU #1 BU #2 Cargill Goal