LIAP #13: REPLANTING 10,000 ACRES OF OIL PALM
Replanting 10,000 acres of oil palm trees may sound ambitious, but for a plantation company with 25 years of experience, it’s not entirely new terrain. The company has seasoned managers and skilled staff to handle the operational aspects of such a project. What truly concerns the Board of Directors (BOD), however, are the financial implications and the business risks—both during the replanting phase and in the years that follow. In this case, replanting was not just an operational task, but a full-fledged business project. The first step was to prepare a comprehensive project brief to seek the formal approval of the CEO and the BOD. A well-prepared project brief answers three critical questions: the why, the how, and the what of the project. Why replant now? The trees in question were over 15 years old—well past their peak production years. Ideally, replanting should have been done in phases (e.g., 3,000 to 5,000 acres at a time) to minimize disruptions to cash flow and sales rev...