Community forum: Organizational Sustainabiity Framework- Discussion

Posted on 26 Apr 2007 by Marcus

I have just posted an article on the new Organizational Sustainability Framework that we have developed as a result of discussion during the BPM Workshop: http://www.adkn.org/marketing/article.asp?a=28 If would like to give feedback and comments on the article and the framework, please do so here.

Posted on 19 Aug 2007 by Enrique

Marcus:

Very interesting. I think is a good framework, but i stll feel there is a crucial issue that should be emphasised: the decision makin process.

It is particularly important to generate partnership and sense of belonging among producers, especially around their organisation.

If there is no confidence between producer and their organisation it will be too hard to progress. Information and communication is a key factor.

In Colombia, there are lots of failed rural enterprises because producer don´t feel identified with their organisation´s decision making process.

When these organisations are managed by external people, it is even more difficult to overcome this lack of confidence.

What do you think?

Posted on 6 Nov 2007 by Marcus

Thanks, Enrique. I guess that framework is mainly used for assessing sustainability and effective community participation, and it says a lot less about how you can build these up. I agree that the sense of ownership and commitment will be essential- it is surely the best defense against farmers breaking contracts/selling to traders, if not the only defense in many situations, and a big motivation for participation in quality and productivity programs.

But how to get it? That is a tough one. In the Best Practice Marketing Manual we are recommending engaging the community in the design and development of the enterprise. Some things you can’t change so much (because they are fixed by external factors) but some you can, especially when it is a matter of choosing between several equally viable possibilities. E.g. if you have 2 good locations for the packing centre, or two good candidates for General Manager, let the community design between them. There are lots of things on the cosmetic side that, e.g. name, logo and so on, that could be decided by the community. Sense of ownership partly comes from sense of control, and I think early on you get the chance to give a little of this- the community can make a decision and then see it being implemented.

With our project in Afghanistan (the Chak-Wardak project) we are also building a big packing centre using local materials and labour, which we hope will generate some sense of ownership.

At a more fundamental level, I suspect that one of the key factors is that you really need to enable the development of the governance of the business properly. It may well be that farmers start off only as suppliers, in which case it is likely they won’t feel much ownership. So you need to think how you can empower the community to carry out the other essential functions of the business, like the role of the Ultimate Authority, the Executive Group, management, and so on. You probably need to get the external people out of these positions and get community people in as quickly as possible. And it has to be meaningful, not just ceremonial or advisory, so that they see that their control is real. Maybe control is the wrong word. Each part of the governance system has a definite role, though, and the idea is to fill those parts with members of the community. If they are playing that role, and they are seen to be playing that role by everyone (including themselves) then I think you have the foundation of the sense of ownership.

The two organizations that I have seen that have the best sense of ownership are both in Bolivia- El Ceibo in Yungas and PROASPA in Chapare. What is notable about both of these is that they had plenty of time (PROASPA has been going for 13 years or so, now and El Ceibo since the sixties). It is interesting to ask why we often don’t have time.

Although part of the reason is because of donors with short-term horizons, a larger reason is because of issues with supply and contract breaking. The business is only a business if it can buy produce from farmers so that it can later sell it in a value-added form. If the level of purchasing is not consistent it is hard to do business, and if it is too low the business won’t be able to cover its fixed costs and will be in financial distress. In time the business may be able to build up strong enough relationships with its suppliers not to have this problem (e.g. by establishing that sense of ownership), but what do you do before that relationship is established? How do you get the time you need?

I don’t know the answer here, but I do think that this issue should be one of the main things on the minds of the management of the business. They need to have a comprehensive strategy for getting consistent supply which uses lots of different levers and is properly monitored and evaluated. I think this is probably absent in some of the business