Team:ITESM-Guadalajara/Management

MANAGEMENT

Contingency Plans.

We have developed contingency plans that could be implemented if an extraordinary situation occurs and affects directly to the production of the final product.

1. Lack of Raw Material

   

   If a lack of raw material occurs, specifically shrimp shell, we have some emergency suppliers in Jalisco that could deliver to us the raw material in an easy and fast way. These suppliers are restaurants in the city that often throw the shells as a waste. We have an agreement with them in order to obtain the shells easily and at the time we need.

2. Chitosan does not have the quality needed.

   

   If the final chitosan does not achieve the quality desired (deacetylation, molecular weight and purity), the product will repeat the production' steps needed until it demonstrates that have the required quality for the client.

3. Failure in equipment.

   

   In case that a failure of any equipment occurs, we have develop a strategic alliance with the University of Tec de Monterrey, Campus Guadalajara in order to use the necessary equipment for a brief period of time and be capable of finish the product on time. Also we are looking for the alliance with certain companies that could rent the equipment per hour or day in case that the equipment cannot be used in a long time.

4. Accidental liberation of a Genetically Modified Organism (G.M.O)

   

   If an accidental liberation of a G.M.O occurs, we will have to notify the Healthcare Commission in our country about the accident and the possible risks in: health, environment and biological diversity. The Healthcare Commission will inform to other commissions about the event and risks and they will decide the safety measures that will be implemented in order to avoid global disasters (for more information see the legal section of the wiki).

Some of the ideas mentioned above are included in the risk analysis section, with its likelihood of occurrence and additional strategies for each one.

Organization

Each of the founding members of Biophrame has a specific role according to their experience, skills and interest, in order to use the full potential of each of them, increase the commitment in the activities and allow not only the workforce development, but also the personal.

The complete duties and responsibilities of each position will be in their job description document. The following is a brief summary of the primary tasks for each position included in Biophrame organizational chart.

1. Chief Executtive Officer (C.E.O.)

   Our Chief Executive Officer is Lizeth Sánchez. Their primary tasks will be to lead the main path of the company, to make the important decisions, to manage the changes and to identify new areas of income.

2. Chief Operating Officer (C.O.O.)

   Our Chief Operating Officer is Rodolfo Valdes. Their primary tasks will be to manage the daily operations, to ensure that quality controls are implemented and to execute fast changes in the production line.

3. Chief Information Officer (C.I.O.)

   Our Chief Information Officer is Sofía Arreola. Their primary tasks will be to manage the information technology and computer systems, to ensure that there is an effective flow of information between each of the company’s areas and to contribute in the formulation of strategic goals.

4. Chief Technology Officer (C.T.O.)

   Our Chief Technology Officer is Daniel Flores. Their primary task will be to develop new technologies in order to create products that fulfill the needs of the clients.

5. Chief Science Officer (C.S.O)

   Our Chief Science Officer is Lizette Reyes. Their primary tasks will be to coordinate the research and development activities, to improve the research capabilities and to be in contact with the scientific and customer communities in order to look for new possible products.

6. Chief Financial Officer (C.F.O.)

   Our Chief Financial Officer is Carolina Salazar. Their primary tasks will be to be responsible for the financial planning, and to assist the other departments in activities related with the budget management, cost benefit analysis and forecasting needs.

7. Chief Legal Officer (C.L.O.)

   Our Chief Legal Officer is Itzel Milanés. Their primary tasks will be to be in charge of every legal aspect of the company, to analyze any changes in the laws and the way it could affect the business and to make sure that the company is in compliance with regulatory codes.

8. Chief Human Resources (C.H.R)

   Our Chief Human Resources Officer is Itzel Milanés. Their primary tasks will be to be in charge of the work force and the labor environment, prepare the job descriptions for each position, performance evaluation, and design the appropriate compensation and benefit package for the company, as well as promoting team work and organize special events.

9. Chief Creative Officer (C.C.O.)

   Our Chief Creative Officer is Sergio Nuñez. Their primary tasks will be to manage the company’s creative teams, to develop the overall look of branding and to set a standard for quality work, client interaction; etc.

10. Chief Marketing Officer (CMO)

    Our Chief Marketing Officer is Jorge Parra. Their primary tasks will be to make market research, to design advertising and promotions, and to lead the sales management product development.

Organizational Chart

The type of organizational chart for Biophram Technologies during the first years of operations will be “functional”, this because at the beginning the company will be small, not too many personnel is required, just two products (medium-low purity quitosan and high purity quitosan) will be processed in the plant for the short-term and both have quite similar needs, also the production and sales will be done mostly at the national level (export plans after de second year).

Two main benefits we will have with this organization type are the specialization (each worker will focus on the main activities in which he/she is involved so better results could be obtained thanks to all the experience and expertise of each); and productivity (because they have a wide knowledge in a particular area and they could do their tasks in less time, increasing results speed).

Something really important for us is the teamwork; this is why a primary task for our administrative assistants will be to promote collaboration and communication between departments during office hours and after them, such as organizing special recreational activities (sports, arts, lunch time, etc.)

For the medium and long term, probably the best way to organize the company will be through a “project management organizational chart”, this because as time goes by and thanks to the research and development activities of the company, different products/projects will be developed, each one with its own particularities.

The following document is an example of the job description for the Chief Financial Officer position. This document is needed whenever a new employee occupies the position, as well for the current CFO worker is important because by this means he/she will have clear the duties and tasks that have to be done, what is expected from the job and the aspects considered for evaluating and compensating the position.

Competency-Based Job Description

1. Job Information

   

2. Summary

   

3. Expected results and duties

   

4. Relationships with other departments

   

5. Equipment required for the position

   

6. Working conditions

   

7. Competences required for the job position

   

8. Knowledge required

   

9. Other requirements

   

PERFORMANCE ASSESSMENT

EVALUATE FROM 1-4 THE FOLLOWING PERFORMANCE METRICS

MOST IMPORTANT STRENGHTS/WEAKNESSES IN HIS/HER PERFORMANCE

Compensation and Benefits

Both compensation and benefits are a crucial aspect for employee satisfaction, retention and remuneration. Today’s world is highly competitive, referring to the salary; this is why compensation could be considered as a competitive advantage for the company. Additional to the mandatory benefits, the proposed categories will be executed considering the financial liquidity of the company.

• IMSS (Mexican Institute for Social Security).

  Mandatory benefit. According to a worker salary is the fee that have to be paid by employer and employee.

• INFONAVIT (Institute of National Funds and Housing for employees).

  Mandatory benefit. According to a worker salary is the fee that have to be paid by employer and employee.

• Vacations Bonus.

  Regulated in the Federal Labor Law (article no. 80)

While there is a mandatory percentage, it is suggested to give a higher one: for example, instead of giving the 25% for the first year, begin with a 40% and increasing it according to the job seniority.
1 year – 25%
2 years – 30%
3 years – 35%
4 years – 40%
5 years -- 45%

• Worker Profit Sharing.

Mandatory benefit. The company has to share the 10% of its annual profit to the employees. The guideline for these sharing is according to the days worked during the year and the workers salary, all this with a limit amount for the salaries.

• Vacation Period.

Included in the Federal Labor Law (Chapter No. 4th)

• Job Seniority Bonus.

Mandatory benefit. Twelve days of salary has to be paid to each employee for each year worked in the company. This is established in the Federal Labor Law (Article No. 162).

• Saving Fund.

This benefit consists in that a percentage of the monthly salary of each worker is sent to a fund, in which the employer will duplicate the discounted amount (of the employees salary) and it will be given during the last month of the year.

• Sales Bonus.

Because Biophrame will begin operations and it’s a new company, it could be given to the employees the option to attract new clients. A commission (%) will be paid to the person who gets a new client, according to the financial importance of the gotten customer (pharmaceutical) and the company’s discretion.

• Performances Assessment Bonus.

There will be quarterly evaluations, with previously established objectives according to the job position and the projects they’re working on. The bonus will be given by the manager of the area in agreement with the financial officer and the general director.

• Salary Increases.

The increases are established each year according to the inflation. Nevertheless through different criteria, related to the workers performance and the achievement of the established objectives, Biophrame could offer an extra percentage to its salary increase. This increase will be within the pay band assigned by the company and related to the job position they are applying.

• The Employee of the Month.

Establish some performance criteria to select each month the employee with the best performance within the organization, based in its work objectives, attitude, innovation, and commitment with the company. We will give her/him a special recognition/award as an incentive.

• Health Insurance.

An agreement with different insurance companies for a health coverage plan, the one that gives biggest stability and wellness to the employees.

• Life Insurance.

Benefit granted through an insurance company, offering protection and a patrimony to the employees in case of unexpected events.

• Snack Inside the Office.

Offer different types of drinks (coffee, water, sodas, juices), and food (fruit, oat and wheat bars, candies, little appetizers) in the company, this with the objective to pamper the employees, promote a warm working environment, and giving a plus to the benefit plan.

• “Biophrame Space”.

This will be a special area of the company where the employee could be there to relax, have a break, spend some time with other workers, and avoid work overloads. In this area there will be:

• Comfortable furniture (easy-chairs, tables, cushions, etc.)
• Television with cable, dvd and videogames.
• Books and magazines.
• Fridge with drinks and food for employees or to keep their foodstuff.
• Coffee maker with the needed supplies
• Board games

• Permissions.

The company could give certain flexibility to their employees through the special permissions use if they have an important event. Those permissions will be given according to the company criteria.

• Biophrame Day.

Biophrame, with the idea to promote a good working environment and a better team work, will promote one day per month (or each two months), where the workers could go out to have lunch to some restaurant or practice recreational activities. Once the company reach a medium size (based in employee number), each department could organize this type of activities additionally to the general meeting.

• Little Recognitions.

A way to compensate employees and to motivate them, without spending too much, is through the use of little recognitions just to thank them for a specific activity done or by the given support in diverse activities. This little recognitions include post-its and customized post/cards. For more information see:

• Ley Federal del Trabajo
• Reparto de utilidades
  http://www.profedet.gob.mx/profedet/info/reparto-utilidades.html
  ftp://ftp2.sat.gob.mx/asistencia_ftp/publicaciones/folletos12/manual_PTU2012.pdf

Ownership

The associates of Biophrame will have the majority of the shares (at least a 51 percent), this to have a better control and management of the company’s operation. To be an attractive option for external investors, the proportion of ownership that could be offered would be 30%(investors)-70%(Biophrame founders).

The division of the ownership percentage of Biophrame between the founders haven’t been defined clearly, this because we don’t know surely how much money does each of us would invest, nevertheless, if a 70% is owned by us, the division of shares will be fairly distributed, like in the following list:

Lizette Sánchez López 7.77%
Rodolfo Valdés 7.77%
Lizette A. Reyes 7.77%
Itzel Milanés 7.77%
Ana Sofia Arreola 7.77%
Carolina Salazar 7.77%
Jorge Parra 7.77%
Sergio Nuñez 7.77%
Daniel Flores 7.77%

Board of directors.

Because it is crucial to have a good control of the daily operations, as well as clear future plans and detailed strategies for the company, the members of the board of directors play an important role in Biophrame. All these people will be giving a global perspective of the issues that will happen and how to act in advance.

At the beginning, because it will be a small company, with few employees, the board of directors will be made up of 10 people maximum (this won´t be a problem because for the first year we will be nine workers),but as soon as Biophrame starts growing we will try to remain a small group (mostly 15 people). That way it will be easier to agree meeting in a particular date, and decision taking could be done efficiently and effectively.

The nine people that will be in the board during the first years will be the functional officers of the company (CEO, CFI, CMO, CTO, etc.), this means that just internal members will be part of it.

For the medium-term, and with the purpose to have impartiality over the topics and decisions, some external members will be included, for example: business/engineer consultants, an important client such as pharmaceutical, investors, maim supplier. As it is mentioned above, 15 will be the maximum number of members for the board, probably not all of the company officers could be part of it, so this is why the same managers will nominee to the ten officers that will be there.

We will try to have meetings every two weeks or once a month during the first year (more often), and as Biophrame grows these could be done every two or three months.