04/2008nucleus-international.net1 nucleus approach the ideas and strategies below the surface...
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04/2008 Nucleus-International.net 1
Nucleus Approach
The ideas and strategiesbelow the surface
Nucleus-International.netNucleus-International.net
04/2008 Nucleus-International.net 2
The Ideas of the “Nucleus Approach”
Nucleus
OrganizationalDevelopmentof Chambers
Empowerment of Entrepreneurs
SustainabilityAuto-dynamic
ProcessesLearning Platform
EconomicDevelopment
Democratizationof the Society
Development ofLeadership
Project Design
Costs & Finances
04/2008 Nucleus-International.net 4
Organisational Development is …
• A planned process to change– the behaviour, attitudes and capacities of the
actors in the organisation– the culture of the organisation– the organisation, communication and decision
structures– the strategies
• Objective: To improve the internal and external efficiency of the organisation
04/2008 Nucleus-International.net 5
Some basic elements of OD
• Organisation members’ participation– in identifying problems– in developing solutions– in implementing changes
• A moderator / consultant accompanies the process
• OD is a learning process within the organisation
04/2008 Nucleus-International.net 6
Prerequisites to start an OD process
• The will– to learn– to change the chamber
• due to– internal / external problems or– new visions
04/2008 Nucleus-International.net 7
Prerequisite to start an OD process
• A problem:negative situation, the organisation suffers
• A vision:adequate situation,but the organisation wants to improve more
desired situation
current situation
problem
vision
current situation
future situation
+
-
04/2008 Nucleus-International.net 8
Questions
• Do your chambers suffer in a way that they want to change their organisation ?
• Do they have visions? Do they have ideas where they want to be in 5 or 10 years ?
04/2008 Nucleus-International.net 9
Chambers are highly complex organisations …
• Board and staff members change frequently. – With their exit the new knowledge exits
frequently too. It is not transferred to the successors
Common rules:Every chair person has the absolute right - to start again on level zero- to repeat all the mistakes of the predecessors
04/2008 Nucleus-International.net 10
Chambers are highly complex organisations …
• The motivation of the honoraries range between
Altruism Egoism
In favour of thedevelopment ofmembers / economy /town / society
In favour of own personal, economic,political interests
We cannot - and it is also not our task - change persons
04/2008 Nucleus-International.net 11
Chambers are highly complex organisations …
• Chairperson & board members apply in the chamber the same management style which they apply in their own enterprise– Independently whether this style is appropriate
in the chamber or notThe “centraliser” does the same in the chamber
(Therefore, a MSME is often not the best chair person)
Owners of bigger enterprises have eventually a moreteam leading / decentralized style
04/2008 Nucleus-International.net 12
Chambers are highly complex organisations …
• In the enterprise the most important for success is the quality of the decision– This means often a one person decision
• In the chamber the most important for success is the feeling of board & chamber members that it is their decision– i.e.: Participation
This means compromises which can lead to second best decisions
04/2008 Nucleus-International.net 13
Chambers are highly complex organisations …
• In the enterprise exist clear responsibilities– Decisions affect the existence / the family directly– In case of crisis the entrepreneur cannot run away
• In the chamber do not exist clear responsibilities– Decisions do not affect the existence / the family
directly– In case of crisis the entrepreneur can stay away
without severe consequences
There is an element of “institutionalised irresponsibility”in organisations led by honoraries
04/2008 Nucleus-International.net 15
Development Stages of Chambers 1. Stage
Situation Entrepreneurs observe in their town problems, which have negative effects on their business (traffic, market, taxes etc.)
Activity A businessman initiates discussion of common points of interest and the foundation of an chamber
The number of members ...
is small and homogeneous
Activity of the chamber
100 % Lobby
04/2008 Nucleus-International.net 16
1. Stage
Tasks of the Board of Directors
Initiate Define opinions Decide Represent Administrate Execute
Tasks of the em-ployees
Inapplicable
The Perfor-mance of the chamber depends ...
on 100% of the engagement and quality of the honoraries
After the election of a new board ...
politic and performance of the chamber changes completely
Development Stages of Chambers
04/2008 Nucleus-International.net 17
1. Stage 2. Stage
Situation Entrepreneurs observe in their town problems, which have negative effects on their business (traffic, market, taxes etc.)
More members and more external contacts cause more administrative and organisational workloads (meetings, calls, letters etc.)
Activity A businessman initiates discussion of common points of interest and the foundation of an chamber
The chamber rents an office
In a further step it contracts a (part time-) secretary
The number of members ...
is small and homogeneous
is small and homogeneous
Activity of the chamber
100 % Lobby 100 % Lobby
Development Stages of Chambers
04/2008 Nucleus-International.net 18
1. Stage 2. Stage
Tasks of the Board of Directors
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent Administrate Execute
Tasks of the em-ployees
Inapplicable Administrate Execute
The Perfor-mance of the chamber depends ...
on 100% of the engagement and quality of the honoraries
on 90% of the engagement and quality of the honoraries, on 10% of the secretary
After the election of a new board ...
politic and performance of the chamber changes completely
politic and performance of the chamber changes completely
Development Stages of Chambers
04/2008 Nucleus-International.net 19
1. Stage 2. Stage 3. Stage
Situation Entrepreneurs observe in their town problems, which have negative effects on their business (traffic, market, taxes etc.)
More members and more external contacts cause more administrative and organisational workloads (meetings, calls, letters etc.)
Demands of the environment on the members provoke well pre-pared / founded positions, which due to lack of time and specialisation honoraries are not able to elaborate
Activity A businessman initiates discussion of common points of interest and the foundation of an chamber
The chamber rents an office
In a further step it contracts a (part time-) secretary
Employment of a CEO
Eventually he performs services to the members (legal / business administration, consultancy)
The number of members ...
is small and homogeneous
is small and homogeneous
is larger and homogeneous / heterogeneous
Activity of the chamber
100 % Lobby 100 % Lobby 50 % Lobby 50 % Service
Development Stages of Chambers
04/2008 Nucleus-International.net 20
Development Stages of Chambers 1. Stage 2. Stage 3. Stage
Tasks of the Board of Directors
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent
Tasks of the em-ployees
Inapplicable Administrate Execute
Advise Administrate Execute
The Perfor-mance of the chamber depends ...
on 100% of the engagement and quality of the honoraries
on 90% of the engagement and quality of the honoraries, on 10% of the secretary
on 50% of the engagement and quality of the honoraries, on 50% of the Secretary General
After the election of a new board ...
politic and performance of the chamber changes completely
politic and performance of the chamber changes completely
politic and performance changes considerably
04/2008 Nucleus-International.net 21
1. Stage 2. Stage 3. Stage 4. Stage
Situation Entrepreneurs observe in their town problems, which have negative effects on their business (traffic, market, taxes etc.)
More members and more external contacts cause more administrative and organisational workloads (meetings, calls, letters etc.)
Demands of the environment on the members provoke well pre-pared / founded positions, which due to lack of time and specialisation honoraries are not able to elaborate
The environment produces pres-sure to change for the members (new laws, technologies, management). They need professionalised services
Activity A businessman initiates discussion of common points of interest and the foundation of an chamber
The chamber rents an office
In a further step it contracts a (part time-) secretary
Employment of a Secretary General
Eventually he performs services to the members (legal / business administration, consultancy)
Employment of qualified consultants in different areas
Introduction of a complex organisation
The number of members ...
is small and homogeneous
is small and homogeneous
is larger and homogeneous / heterogeneous
is large and heterogeneous
Activity of the chamber
100 % Lobby 100 % Lobby 75 % Lobby 25 % Service
50 % Lobby 50 % Service
Development Stages of Chambers
04/2008 Nucleus-International.net 22
1. Stage 2. Stage 3. Stage 4. Stage
Tasks of the Board of Directors
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent
Initiate Define opinions Decide Represent
Tasks of the em-ployees
Inapplicable Administrate Execute
Advise Administrate Execute
Initiate Define opinions Advise Administrate Execute
The Perfor-mance of the chamber depends ...
on 100% of the engagement and quality of the honoraries
on 90% of the engagement and quality of the honoraries, on 10% of the secretary
on 50% of the engagement and quality of the honoraries, on 50% of the Secretary General
on 50% of the engagement and quality of the honoraries, on 50% of the professional staff
After the election of a new board ...
politic and performance of the chamber changes completely
politic and performance of the chamber changes completely
politic and performance changes considerably
politic and performance changes few on short but more on long term
Development Stages of Chambers
04/2008 Nucleus-International.net 23
1. Stage 2. Stage 3. Stage 4. Stage 5. Stage
Situation Entrepreneurs observe in their town problems, which have negative effects on their business (trafic, market, taxes etc.)
More members and more external contacts cause more administrative and organisational workloads (meetings, calls, letters etc.)
Demands of the environment on the members provoke well pre-pared / founded positions, which due to lack of time and specialisation honoraries are not able to elaborate
The environment produces pres-sure to change for the members (new laws, technologies, management). They need professionalised services
A complex and dynamic environ-ment causes high pressure onto the members to change. The chamber has to act and lobby on all political and business levels
Activity A businessman initiates discussion of common points of interest and the foundation of an chamber
The chamber rents an office
In a further step it contracts a (part time-) secretary
Employment of a Secretary General
Eventually he performs services to the members (legal / business administration, consultancy)
Employment of qualified consultants in different areas
Introduction of a complex organisation
A large number of qualified staff form an organisation with differentiated functions and hierarchies
Creation of a service network
The number of members ...
is small and homogeneous
is small and homogeneous
is larger and homogeneous / heterogeneous
is large and heterogeneous
is very large and heterogeneous
Activity of the chamber
100 % Lobby 100 % Lobby 75 % Lobby 25 % Service
50 % Lobby 50 % Service
25 % Lobby 75 % Service
Development Stages of Chambers
04/2008 Nucleus-International.net 24
1. Stage 2. Stage 3. Stage 4. Stage 5. Stage
Tasks of the Board of Directors
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent Administrate Execute
Initiate Define opinions Decide Represent
Initiate Define opinions Decide Represent
Initiate Define opinions Decide Represent
Tasks of the em-ployees
Inapplicable Administrate Execute
Advise Administrate Execute
Initiate Define opinions Advise Administrate Execute
Represent Initiate Define opinions Advise Administrate Execute
The Perfor-mance of the chamber depends ...
on 100% of the engagement and quality of the honoraries
on 90% of the engagement and quality of the honoraries, on 10% of the secretary
on 50% of the engagement and quality of the honoraries, on 50% of the Secretary General
on 50% of the engagement and quality of the honoraries, on 50% of the professional staff
on 25% of the engagement and quality of the honoraries, on 75% of the professional staff
After the election of a new board ...
politic and performance of the chamber changes completely
politic and performance of the chamber changes completely
politic and performance changes considerably
politic and performance changes few on short but more on long term
politic and performance changes few on short and long term
Development Stages of Chambers
04/2008 Nucleus-International.net 25
Organisational Development: The traditional chamber DO approach
Board
Staff
Members
ConsultingTraining
Instruments:- equipment / grants- administration costs / grants- consulting- training- information- etc.
Assumption : Who knows better acts better!
Chamber
Objective: Increasedorganizationalefficiency
04/2008 Nucleus-International.net 26
But ...
• The assumption is wrong:– Who knows better does not automatically act
better!– One needs always a supportive environment
which motivates to use the new know how.Otherwise it will not be applied
04/2008 Nucleus-International.net 27
Results
• The project contributes to some repairs under the existing paradigm– This means:
The “Business Club” remains a “Business Club”and does not change into a “Professional Service and Lobby Institution”
• Effect : No sustainability– I do not know one Chamber-OD-Project where
this traditional approach caused successfully long time sustainable effects …
04/2008 Nucleus-International.net 28
Organisational Development: The Nucleus Approach
• The first objective of the “Nucleus” Approach
is not the promotion of SMEs
but the organizational development of business chambers and associations
04/2008 Nucleus-International.net 29
Chamber-OD under the Nucleus Approach
Board ofDirectors
EmployeesMembers /
Nuclei
Intervention
Int
Inte
rven
tio
n
Change of the relationship between the actors
04/2008 Nucleus-International.net 30
The goal
• Change of the relationship – creation of a positive, constructive “tension” between the Chamber’s actors
Members start to request, propose, participate, press
Employees start to orientate towards the members
The chairperson / board of directors start to negotiate with members / Nuclei and employees
04/2008 Nucleus-International.net 31
Society / Government
Members
Employees
CEO
ChairmanBoard
Public Relations
Services
Lobby
Administration
A BusinessChamber
04/2008 Nucleus-International.net 32
Members
Employees
ChairmanBoard
N
Public Relations
Lobby
Services
Administration
Society / Government
Start of Nuclei
CEO
04/2008 Nucleus-International.net 33
Members
Employees
CEO
ChairmanBoard
Public Relations
Lobby
N
New employee:counsellor
Services
Administration
Society / Government
04/2008 Nucleus-International.net 34
Members
Employees
ChairmanBoard
Public Relations
Lobby
N
New tasksfor the
CEO
Services
Administration
Society / Government
CEO
04/2008 Nucleus-International.net 35
Members
Employees
ChairmanBoard
Public Relations
Lobby
N
New services:counselling
traininginformation
support
Services
Administration
Society / Government
CEO
04/2008 Nucleus-International.net 36
Members
Employees
Chairman Board
N
Public Relations
Lobby
Services
N
New type ofrelationship
among members
Administration
N NN
Society / Government
CEO
04/2008 Nucleus-International.net 37
Members
Employees
ChairmanBoard
Public Relations
Lobby
Services
N
More members:more tasks
for theadministration
Administration
N
Society / Government
CEO
04/2008 Nucleus-International.net 38
Members
Employees
ChairmanBoard
N
Public Relations
Lobby
Services
Administration
New tasks regarding
Public Relations
Society / Government
CEO
04/2008 Nucleus-International.net 39
Members
Employees
ChairmanBoard
N
Public Relations
Lobby
Services
Administration
New tasksfor chairperson
and board
Society / Government
CEO
04/2008 Nucleus-International.net 40
Members
Employees
ChairmanBoard
Public Relations
Lobby
Services
Administration
New goals andtasks in terms
of lobbying
N
Society / Government
CEO
04/2008 Nucleus-International.net 41
Members
Employees
ChairmanBoard
Public Relations
Lobby
Services
Administration
At the end:everything
is changing!
NN N NN
Society / Government
CEO
04/2008 Nucleus-International.net 42
Result : Ownership
• Members / Nuclei start to understand the chamber more as their organisation – They are the owners,
not the board and the employees– They pay membership fee and therefore can
complain and request services and quality
When the chamber changes into a “Service Organisation” – a new paradigm –
there are more chances for sustainability
04/2008 Nucleus-International.net 43
Logic of the Development of Chambers of Entrepreneurs
ServicesInformation / Consultation
Training / Support
Lobby in front of Government and other groups of the
society
Higher attractiveness for Entrepreneurs
Law of great number:the more members, the more influence
Chamber
More Entrepreneurs apply for membership
More members pay more membership fees
More means to finance more and
better services
04/2008 Nucleus-International.net 44
Chamber DO
• Possible fields for interventions– Lobby
- whom, in what, how to influence- planning of objectives and goals- public relations
– Services- training- individual & group counselling in technology, business administration, legal affairs- information - other income generating services
04/2008 Nucleus-International.net 45
– Organisation & administration- management of organs, staff etc.- membership fees - member administration
– Networking- other chambers- chamber – federation – confederation - public & private institutions
04/2008 Nucleus-International.net 46
2. The Nucleus: Learning Platform
• We do not botherwhat the entrepreneur learns …
• We only bother
that the entrepreneurstarts to learn …
04/2008 Nucleus-International.net 47
3. Sustainability
• An unsustainable project
SME level
Time
Project: SME improvementthrough interventions
before
after
durin
g
A repair project
04/2008 Nucleus-International.net 48
Sustainability
• An sustainable project
before
SME level
Time
Project: Creation of a learning environment,
start of an auto-dynamic development process
the process keeps going by itself
after
durin
g
04/2008 Nucleus-International.net 49
This correspondents with concepts about the development of organisations
• The institution as learning organisation
traditional step by step improvement
continual improvement
Know how
04/2008 Nucleus-International.net 50
4. The Nucleus: Costs & Finances
Instruments which the chambers and SMEs are not able to auto-finance one day
are ineffective and do not lead to sustainable impact
Chamber
IndividualConsulting
of SMEs
GroupConsulting
of SMEs
Effective but extremely expensive
Less effective per SMEbut the costs can be
financed by them
Costs
04/2008 Nucleus-International.net 51
5. The Nucleus: Economic Development
• Many projects try to influence the development of the economy through the intense promotion of a small number of enterprises so that they prosper and grow
• The Nucleus Approach tries to reach as many as possible enterprises through a “Nucleus Movement”– The individual enterprise may grow less– But changes of the total amount of enterprises
may have a considerable impact on the economy, while using the auto-dynamic of the process
04/2008 Nucleus-International.net 52
The Nucleus: Economic Development
SMEQuantity
SME Growth
General Rule:In order to reach a visible and sustainable impact
> do few things !
> but do them very intensively !!!
Nucleus Approach
04/2008 Nucleus-International.net 53
6. The Nucleus: SME Empowerment
Producer Businesspeople Entrepreneur?Many people in the economy …
04/2008 Nucleus-International.net 54
The Nucleus: SME Empowerment
• The Nucleus environment stimulates the economic actor– To gain more courage and self-confidence– To design and develop pro-actively his / her
company– To develop ideas and visions …
“I learned through my Nucleus that I am not only a producer of machines but also an entrepreneur!” D. Chandararatne, Dharshana Iron Works, Galewela, Sri Lanka.
04/2008 Nucleus-International.net 55
7. The Nucleus: Leadership Development
• Chairpersons / board members are often not prepared to run the chamber when elected
• In the Nucleus members and elected speakers /Nucleus presidents can learn how to deal with – Groups of entrepreneurs on the same level– All chamber businesses
“The Nucleus, that is our school for future chamber leaders!” A Brazilian chamber president
04/2008 Nucleus-International.net 56
8. The Nucleus: Project Design
• The traditional way of planning and implementing a project:– Definition of a goal– Elaboration of a set of instruments and
activities– Calculation of costs and financing– Definition of necessary staff (donor,
counterpart organisation, other participating institutions) and their qualifications
– Start of the implementation ...
04/2008 Nucleus-International.net 57
The Nucleus: Project Design
• … followed often by frustrations that the actors– Counterpart staff– Chamber honorary and professional staff
is not sufficient qualified for the application of the instruments and the implementation of the project
“The project is good, but with these people … impossible …”
04/2008 Nucleus-International.net 58
The Nucleus: Project Design
GoalInstrumen
ts
Development of the project design
Staff
Definition of the goal & selection of instruments underconsideration of the capacities of the staff
04/2008 Nucleus-International.net 59
The Nucleus: Project Design
• Results:The counterpart staff is after a short time – capable to disseminate the messages, – train others and – accompany the implementation of activities
04/2008 Nucleus-International.net 60
The Nucleus: Project Design
• Results:Newly contracted chamber counsellors – with a certain personality – but with limited professional capacities, – whose salaries the chambers are able to finance,– trained very fast in moderation and group
working,– can
organise the Nuclei, learn and step-by-step grow with them
04/2008 Nucleus-International.net 61
9. The Nucleus: Democratization
• Raul, Fundasol, Uruguay:“This means you want to democratise business chambers? “– Democratisation:
participation, actively decision taking, influence the social / economic environment,bottom-up movement
• Answer:“Yes …. But pssst, do not talk about it!”
04/2008 Nucleus-International.net 62
10. The Nucleus
“What you are doing there with these SME-Nuclei,in reality, is very simple …
… but very difficult to understand!”
Vininius Lummertz, Director SEBRAE, Brazil
04/2008 Nucleus-International.net 63
Nucleus-International.net
• This file is part of our material to present and illustrate our activities to professional and elected officials of business associations, personnel from technical cooperation projects, and other people with an interest in this field. We are involved in a constant process of elaborating and improving this material, and targeting it to the demands of specific groups.
• You may use, copy, and change this file as you like (we do not insist on a copyright).
• We would, however, like to ask you for the following: please send us a copy (as a file or printout) and additional information if you use the file or parts of it.
• Thank you!• The Nucleus-International.net team
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