1

ValueandValueChains:theIntersectionofGrassrootsMobilizationandEnterpriseDevelopmentinIndiaSuriliShethandMichaelWalton

1|P a g e

ValuesandValueChains:theIntersectionofGrassrootsMobilizationandEnterpriseDevelopmentinIndia

SuriliShethandMichaelWalton1

ContentsAcronyms.....................................................................................................................................................2Abstract........................................................................................................................................................41. Introduction.........................................................................................................................................52. Scopeandmethods..............................................................................................................................6

Scope........................................................................................................................................................6Themissingmiddleofdevelopment....................................................................................................7

Methods...................................................................................................................................................83. Context...............................................................................................................................................11

SEWAandRUDI......................................................................................................................................11Values:women’sempowermentmovementsinIndia...........................................................................14ValuechainsandweakmarketlinkagesinIndia....................................................................................15

4. Conceptualizingtensionsandprinciplesforresolution.....................................................................165. DevelopingandusingIntegratedIdentity-basedActionResearchwithRUDI...................................19

ThecontextinwhichIIARwasdeveloped..............................................................................................19Theoryofchange....................................................................................................................................21Methodology..........................................................................................................................................23Aco-creativeprocess:RUDIandIMAGO................................................................................................26LessonsforIIAR......................................................................................................................................34

6. Discussion...........................................................................................................................................34WorksCited................................................................................................................................................36Appendix1.RUDI’soperations..................................................................................................................391RespectivelyIMAGOGlobalGrassroots,andHarvardKennedySchool.WethankmanymembersofSEWA,especiallyReemaNanavaty,UmaSwaminathan,SmitaBatnargar,AlpaDaveandRushiLaherifortheirinspirationandinvitationtoworktogether,andIsabelGuerreroandZacharyGreenforcollaborativework,adviceandcommentary.

2|P a g e

Appendix2.Developmentprograms,cultureandempowerment...........................................................40Appendix3.Someillustrationsofthemethodology.................................................................................41

AcronymsCBO–CommunityBasedOrganizationIIAR–IntegratedIdentity-basedActionResearchMM–MissingMiddlePDIA–Problem-DrivenIterativeAdaptationRUDI–RuralDistributionNetworkSEWA–Self-EmployedWomen’sAssociationSHG–Self-HelpGroup

3|P a g e

Theissueswefacevarywithourchangingmembership;eachnewmemberbringswithheranewsetofproblems,anewsetofsolutions,andafullsetofexpectations.Wearebetterequippedtofacesomechallengeswhilewestrugglewithothers.Theprocessitselfisourteacher.”–ElabenBhatt,WearePoorbutSoMany,(2006)Theterm“implementation”understatesthecomplexityofthetaskofcarryingoutprojectsthatareaffectedbyahighdegreeofinitialignoranceanduncertainty.Here“projectimplementation”mayoftenmeaninfactalongvoyageofdiscoveryinthemostvarieddomains,fromtechnologytopolitics.-AlbertHirschman,DevelopmentProjectsObserved(1967:35)“Developmentdiscourseisrepletewithdiscussionsofthe“policyimplications”ofparticularfindingsfromresearchandexperience–hirecontractteacher,usebiometricstoimproveattendance,introducenewprocurementsystemstoreducecorruption–butrarelyisthereafollow-updiscussiononwho,exactly,willimplementthese“implications,”orwhethertheadministrativesystemschargedwithimplementinganypolicycanactuallydoso,orwhetheragivenpolicysuccessorfailureactuallystemslessfromthequalityofits“design”andmorefromthewillingnessandabilityoftheprevailingapparatustoimplementit.”[…]“explanationsofweakimplementationseemtoooftentobeattributedto“lowcapacity”(ofindividuals),“perverseincentives,”or“lackofpoliticalwill.”Elementsoftheseexplanationsaretrue,butamorecomprehensiveanddetailedapproachisneededtoguideaction.”–Andrews,Pritchett,andWoolcock,BuildingStateCapability(2017)“Assomeoneonesaid,cultureeatsstrategyforbreakfast.”–Groysbergetal,TheLeader’sGuidetoCorporateCulture(2018)“Whycan’twemobilizetheinvestmentcapacityoflargefirmswiththeknowledgeandcommitmentofNGOsandthecommunitiesthatneedhelp?Whycan’tweco-createuniquesolutions?”–C.K.Prahalad,TheFortuneattheBottomofthePyramid(2010:xiv)“Whathumanbeingsknowcomesfrommanysources,andtodeemonlyonemethodvalidandallothersinvalidistoslowtheprocessofknowledgeacquisition.Thecatholicityofmethodscurrentlyused–fromanthropologicalnotes,analysisoflargedata-sets,everydayexperienceandrandomizedtrials–allhavearoletoplayinthisenterprise.”–KaushikBasu(2014)

4|P a g e

Abstract

Thispaperexploresaclassicdevelopmentproblem:the“missingmiddle”betweentop-downactionbytheformalgovernmentandprivatesectorsandtheactivitiesofgrassrootsorganizations.Itfocusesononeaspectofthis-thechallengesfacedbygrassrootsandcommunity-basedorganizationsinscalingup,specificallyscalingupenterpriseactivityofwomen.Scalingupwomen’senterpriseactivityischaracterizedbythetensionbetween“values”and“valuechains”—thatis,betweenthevaluesoftheoriginalsocialmobilizationandtheneedforprofitabilitywithintheenterprises.Thistensionexistswithintheseorganizations,andalsobetweenthemandmarketorcorporateactors.Thepaperisareflectiveconceptualization,basedonfouryearsofworkwithseveralremarkablegrassrootsorganizations,thatformpartofIndia’slongtraditionoforganizingandmobilizingdisadvantagedgroups.ItsspecificfocusisontheSelf-EmployedWomenAssociation(SEWA),a45-yearoldlaborunion,ownedbyits2millionmembers.Weillustratethenatureandresolutionofthesetensionsthroughacasestudyofonesocialenterprise(“RUDI”,theRuralDistributionNetwork)withinSEWAthatprocureslocalproducefromfarmers,processesandthendistributesthemtothevillages.Some3000“RUDIbens”(womenentrepreneurs),allSEWAmembers,selltheproductsoncommission,andthevaluechainislargelywithinlocalruralgeographies.Thetensionsbetweenthevalues,practicesandidentitiesofthewomenmembersandtherevenuerequirementsoftheenterprisethatexistinRUDIareillustrativeofthebroaderissues.Wearguethattheverynatureofthetensionsinscalingup—involvingbothadaptivechallengesofadeeplyvalues-basedorganizationseekingtoscaleandthebusinessandeconomicissuestheyface—requiresanapproachthatisgenuinelycollaborativeinexploringproblems,andisessentiallyintegrativeoftheadaptiveorganizationalandbusinessorganizationalchallenges.Ourmethodologicalapproachisdevelopedthroughactiveengagement,andwedrawonactionresearchtraditionsincharacterizingitas“IntegratedIdentity-basedActionResearch.”Whilethecaseweillustrateisaboutself-employedwomenentrepreneursinIndia,weseethisasanapproachthatiscriticaltoamuchwidersetofthecomplex,or“wicked”,developmentproblems,attheintersectionofgrassrootsaction,governmentalandcorporatebehavior.

5|P a g e

1. Introduction

Howcansmallholderruralproducersconnectwithlargermarkets?Howcanilliteratewomenrunandscaletheirenterprises?Theseareclassicdevelopmentproblemsthathaveprovenresistanttotop-downeffortsbythegovernmentandtheprivatesector.Theyexemplifytwocommonfeatures:first,theyreflectthe“missingmiddle”indevelopment–thegapbetweenlarge-scaleorganizations(governmentandprivate)—and“bottomofthepyramid”(BoP)actors;andsecond,theyare“complex”--therearenobestpracticesolutionsthatworkinallcontexts,owingtoawiderangeofmarket,governmentandsocietalfailures,andthebehavioralresponsesoftheactorsinvolvedarekeytofindingasolution.Thisarticleexplorestheintersectionwheregrassroots,community-basedorganizationshavemobilizedpoorproducers(oftenwomen),butneedtodevelopmechanismsforscalingup,whichinvolvesbridgingthemissingmiddletolargermarketsorlarge-scaleorganizations.Whilethespecificfocusisonenterpriseactivityandlinkstomarkets,parallelissuesapplytootherareas,notablyinthecomplexproblemsofsupportingsocialchangeandconnectingwithservicesforpoorhouseholds.

Tacklingtheseissuesinvolvesengagingwiththetensionsbetween“technical”issuesofeconomicandbusinessprocessesofBoPorganizationsandissuesoforganizationalandindividualidentities,structures,andbehaviorsthatarecentraltotheorganizationsandtheirmembers.Wecallthisthetensionbetweenvaluesandvaluechains,whichwepositnecessitatesacross-sectoral,systemic,identity-focused,andadaptiveapproach.Weconceptualizeeconomic,organizationalandpsychologicalprinciplesforresolutionandproposeamethodologicalapproachforengagement.ThisconceptualizationandmethodologiesaredevelopedthroughaprocessofcollaborativeengagementwithgrassrootsorganizationsinIndiaoverseveralyears:whatispresentedhereistheresultofareflectiveprocess,whichwillbemadebetterastheapproachistriedinothercontexts.ThispaperinparticularincludesareflectionofourworkwiththeSelfEmployedWomen’sAssociationofIndia(SEWA).Thecasestudyofourworkillustratesourapproach,whichwedescribeasanIntegratedIdentity-basedActionResearch(IIAR).Itcombineselementsofadaptiveengagementaroundidentity,organizationalcultureandvalues;businessandeconomicanalysis;participatorydiagnosisanddesign;andmeasuringresultswithintheorganizationalstructure.ThethreekeyelementsaredescribedinBox1

6|P a g e

Section2laysoutthescopeof“missingmiddle”developmentproblems,methodsusedtocreateandimplementtheIIARapproach,andthereasonsforselectingaBoPsocialenterprise-RUDI-asacasestudytoexaminetheapproach.Section3reviewsthewidersocial,economic,andpoliticalcontextinwhichRUDIandSEWAoperate,withrespecttotheIndianwomen’sempowermentmovement,farmerproducerorganizationsinIndia,andthelinksbetweencorporatesandtheBoP.Section4describesRUDIandSEWA.Section5conceptualizescross-sectoraltensionsandprincipleswhichformthebackboneoftheIIARapproach.Section6describesthedevelopmentandapplicationofIIARtoRUDI.Finally,Section6discussesimplicationsforfuturecasestofurtherdeveloptheIIARapproach.

2. ScopeandmethodsScopeEversinceC.K.PrahaladsummarizedthepromiseofpoorconsumersinTheFortuneattheBottomofthePyramid:EradicatingPovertythroughProfits,theideathatfirmshavealottogainbyengagingwiththepoorhastakenroot.However,oneofPrahalad’skeypointsisoftenoverlooked–“weshouldcommencetalkingaboutunderservedconsumersandmarkets.TheprocessmuststartwithrespectforBottomofthePyramidconsumersasindividuals.Theprocessofco-creationassumesthatconsumersareequallyimportantjointproblemsolvers”(Prahalad2010:xv).TheIIARapproachhasbeendevelopedtoaddressproblemsofpovertyatthecommunitylevelthatrequirebehavioral,normative,organizationalandadaptiveshiftsthataredeeperthanquicknudges,fastinterventions,orrapidpolicyleverpulls.Itappliestomanydomains—includinginteractionswithsocialproviders,personalandsocialbehaviorsthataffecthumanoutcomes,andlinkingBoPactorstolargermarkets,includingintegratingthemintovaluechains.Buildingscalablemodelstoaddressthe

Box1.IntegratedIdentity-BasedActionResearch

1. Integrated.Forgrassroots,community-basedorganizationstosuccessfullyscale,theyneedtoengagebothwithbusiness,economicandformalorganizationalchallengesandpsychological,culturalandbehavioralissuesthatareembeddedintheirvalues.Thisnecessitatesanapproachthatintegratesbusinessandeconomicdevelopmentwithadaptiveorganizationalchange.Human-centered(and“organization-centered”)designcanbeausefulinstrumenttobridgeandintegratethesedifferentchallenges.

2. Identity-based.Grassroots,value-basedorganizationshaveimmensepotentialtounderstand,developandimplementinterventionsthatfocusonbehaviorsandnormsintheirowncommunities.However,theyfacetensionsbetweentheirownvaluesandprocessesofvaluechainintegration,revenue-maximizingefforts,andscale.Anidentity-basedapproachexplicitlyrecognizesthesechallengesandemphasizestheneedtoworkwiththevalues,beliefs,andunderlyingassumptionstoexamineandbringoutdeepermodelsofbehavior“resultingfromthesharedexperiencesoftheorganizationasitsolvesproblemswhicharetaughttoallitsmembers”(Taborga2011).

3. ActionResearch.Toactivelyunderstandandlearnfromareflectiveprocess,progressiveproblem-solvingisneeded.Actionresearchisinherentlynonlinear–involvingdiagnosis,planning,intervention,evaluation,andreflectionwithfeedbackloopsasneeded.Itemphasizesawareness-building,adaptivechange,anddynamicfeedbackloopstobringaboutbehavioralchangesofthetypesneededforsolving“missingmiddle”developmentproblems.

7|P a g e

“missingmiddle”ofdevelopmenttypicallyinvolvespersonalandorganizationalbehavioralchangesthatrequireshiftsinmindsetsandsocialnormsaswellasanorientationtowardsolvingmarketfailuresandbusinesschallenges.ThemissingmiddleofdevelopmentBridgingthemissingmiddlerequiresinnovativewaysforthecommunitiestocreatesolutionsforengagement,adaptation,andimprovingtheirlivelihoods—andforcorporatestoreachthegrassroots.Corporates,governmentsandaidagenciesarerichinfinancialresourcesandtechnicalcapacity;however,theyfacehighcostsandweakcapacityinthetypesofengagementrequiredforeffectivelyworkingwithgrassrootsorganizations.Thisincludesworkingwithinstructurestheyareunfamiliarwithanddroppingestablishedmethodsoffindingsolutions-thosethatsingularlyfocusonfinancialortechnologicalconstraints,orone-offinterventionssetwithinpoliticalandadministrativetimelines.Theyoftentrytofindquick“nudges,”top-downtechnicalinterventionsinprogramorproductdesign,orimplementationtweaks,insteadofasystematicfocusongenuineco-creationofsolutions.2Conversely,community-basedorganizations(CBOs)—localNGOs,grassrootsorganizationsandsocialenterprises—understandthecommunitiestheyworkin.Theirstructuresareoftendesignedtomirrorandgroworganicallyoutofthoseintheircommunities.Theyhavedecadesofexperienceengagingwithinthecomplexsocialnetworksthattheyoperatewithin.CBOsarerichinlocalknowledge,innovation,andcommunitybuy-in.However,theycanbecomestuckatlowresourceandtechnicalcapacitylevels,unabletocapitalizeonexternalopportunitiesandtakeonchallengesthatrequireadaptivestrategyforscale.Thedifferencesbetweenthestructures,capacities,resourcesandreachoftop-of-the-pyramidandbottom-of-the-pyramidorganizations,andthedearthoforganizationsthatcancombinethecharacteristicsofbothtypes,areamanifestationofthe“missingmiddle”indevelopment(seeFigure1).

2SeeAndrews,PritchettandWoolcock(2016)foracritiqueofbestpracticeapproacheswithafocusongovernmentbehaviorandaproposedalternativeroutethathasparallelstoourmethodology.

8|P a g e

Figure1.TheMissingMiddle

Source:GuerreroandWalton,2014

Thismissingmiddleisgeneratedbythreetypesoffailures-oftenexistingsimultaneouslyindevelopingcountries–markets,government,andorganizations(seeFigure2).Thesefailuresreinforceoneanother–forexample,alackofinformationcanbereinforcedbyalackofphysicalinfrastructureorlackofscalabilityoforganizationalsystemsthathelpdisseminateinformation.Anapproachthatrecognizesthenatureandinteractionbetweenthesefailuresisintegraltosolvinganymissingmiddledevelopmentproblem.

Figure2.Threefactorscontributingtotheprevalenceofthemissingmiddle

Source:GuerreroandWalton,2014

MethodTodeveloptheIIARapproach,wetracethecaseoftheRUDIsocialenterpriseinGujarat,India.TheauthorshavebeendirectlyinvolvedwithRUDIthroughthenon-profitIMAGOGlobalGrassrootsandwepresentthemotivation,derivation,andapplicationoftheIIARapproachtoRUDIasacasestudythat

9|P a g e

isstillevolving.Whiletheworkisongoing,itillustratesmanyaspectsoftheintegrated,adaptive,identity-basedandinteractiveprocessofIIAR.Italsopresentspromisingchangesinresponsetotheactioninresolvingthecentraltensions.TheorganicprocessemployedbetweenIMAGOandSEWAisdesignedwithinanactionresearchframeworkandappliedtoRUDI’smissingmiddlechallenge.WeadditionallydrawfromPaoloFreire’sprinciplesforconductingparticipatoryactionresearch,andLincolnandGuba’s(1986)criteriaforconductingrigorousnaturalisticandresponsiveevaluationstoframeourapproach.Actionresearchinvolves“activelyparticipatinginachangesituation,oftenviaanexistingorganization,whilesimultaneouslyconductingresearch.”3Wefindthistobeausefulprismfortheprocessfollowed,appropriatetosupportingandunderstandingchangeinacomplexcontextrequiringanexploratoryapproach.ItfallswithinthetraditionofKurtLewin’s(1958)method,andtheassumptionthatthemotivationtochangeisstronglyrelatedtoaction–ifpeopletakepartindecisionsthataffectthem,theyaremorelikelytofindandadoptsolutions.Figure3showsanadaptedcyclicalprocessofactionresearch:diagnosis,planning,intervention,evaluation,andreflection,eachprovidingfeedbacktothenextstepandtheonebefore,andeachinvolvingtheparticipationofthegroup.4Onthiscycle,wehavesuperimposedLewin’sthree-stageprocess:theunfreezing-changing-refreezingofbeliefs,attitudes,andvalues.Unfreezingisthepartofthecyclewherethegroupbecomesawarethatthereisaneedforchange–itinvolvesovercominginertia,dismantlingtheexistingmindsetandbypassingdefensemechanisms.Changingisthepartoftheprocesswherefulldiagnosesaremadeaboutthesituation,andnewmodelsofbehaviorareexploredandtested–itisaperiodofconfusionandtransition,asindividualsbecomeawarethatoldwaysarebeingreplacedbutwithoutaclearpictureofwhatthesearebeingreplacedwith.Refreezinghappenswhentheinterventionorapplicationofthenewbehavior(s)areevaluated,andiftheyarereinforcingfortheorganization,theyareadopted–newmindsetsarecrystallized,andcomfortlevelsreturntopreviouslevels.5

3Thisdefinitionisfrequentlycited,butweareyettofindanoriginalsource!4SeeAppendix3fordetailsoneachstep.TheactivitiesconductedbyIMAGO(andsimilarintermediaryorganizations)sometimesevolvealongtheentirecycleofactionresearchandsometimesnot,stoppingatoneoftheearlierfeedbackloopsoftheprocess.5ThereareinterestingparallelswithOttoScharmer’sformulationintermsofTheoryU,thatinvolvesaprocessoflettinggoanddeconstruction,followedbyaprototypingtoexplorethe“emergingfuture”.SeeScharmer(2009).

10|P a g e

Figure3.Theactionresearchprocess

Source:Authors(adaptedfromLewin1958)LincolnandGuba(1986)’sguidelinesonnaturalisticandresponsiveevaluationsprovideadditionalcriteriaforevaluatinghumanbehaviorsandtheirinteractionsrigorously.Thetechniquesinclude:prolongedengagement,persistent,in-depthobservation,triangulationofdata,peerdebriefing,negativecaseanalysis,andmemberchecksforcredibility;thickdescriptivedatafortransferability;andexternalauditingfordependabilityandconfirmabilitytosupportourresearchprocess.6Giventhecross-sectoral,hierarchical,andorganizationaldimensionsofRUDI’swork,webelievethatthissetoftechniquesishelpfultoconductrigorousevaluationinthiscontext.

6Thesecriteriaareparalleltocriteriaforrigorinconventionalevaluations–“credibilityasananalogtointernalvalidity,transferabilityasananalogtoexternalvalidity,dependabilityasananalogtoreliability,andconfirmabilityasananalogtoobjectivity”(LincolnandGuba1986).

11|P a g e

3. ContextThissectionprovidescontextforthemilieuinwhichwedevelopedandimplementedtheIIARapproach:describingSEWAandRUDI,andsummarizingtwotraditionsofactionthatmeetinRUDI:women’sempowermentmovementsandbuildingfarmproducercompanies.

SEWAandRUDITheRuralDistributionnetwork(RUDI)isasocialenterprisepromotinglivelihoodsforruralfemaleentrepreneursandmarketintegrationbetweenlocalproducersandconsumers,andbetweenlocalproducersandurbanmarkets.Itsmissionistoprovidedirectmarketaccessforsmallandmarginalfarmersandemploymentforthousandsofruralwomenwhoarethefront-linetradersofRUDI’sproducts.ThesocialenterpriseisembeddedwithintheSelf-EmployedWomen’sAssociation(SEWA)-oneofthelargestunionsinIndiaandrepresentswomenintheinformalsector.AsalaborunionSEWAoccupiesthemiddlespacebetweencommunity,government,andtheprivatesector.Itwasborneoutofdeepactivist,Gandhianvalues,andhasdevelopedintoalargeorganizationconsistingofsavingsgroups,abank,cooperatives,welfareinitiatives,andsocialenterpriseslaunchedinpartnershipwithexternalpublic,private,andnonprofitagentsthatbenefititsmembership.SEWAwasfoundedin1971byElaBhattbasedonherlearningsaboutwomenintheinformalsectorasalawyerfortheTextileLaborAssociation(TLA),aunionsetupbyGandhiandAnasuyaSarabhaiin1917inthecityofAhmedabad–thecenterofaflourishingtextileindustry.WhileheadingTLA’swomen’swingtoprovidewelfareservicestothewivesoftextilemillworkers,Elabenrealizedthattheinformalandhouse-basedworkofwomeninmanyothertradeswasnotacknowledgedaswork,evenbythewomenthemselves.Withthesupportofthethen-presidentofTLA,Elabenstartedtoorganizethesewomenin1971.SEWAisnowIndia’slargestinformalwomenworkers’union,whosemaingoalwastoorganizewomenworkerstoimprovetheirwelfare,withrespecttoincomes,socialconditions,agencyanddignity(Bhatt,2006).Overtime,SEWAbecameaconfluenceofthreemovements:alabormovement,awomen’smovement,andacooperativemovement.Theunionanditscollectivepowerisatthecore,whileitscooperativedimensionhastranslatedthebargainingpowerofcollectiveorganizationintoeconomicandsocialdevelopmentforitsmembersandtheircommunities.7By2017,SEWAhad11,000grassrootsproducergroups,200cooperatives,andamembershipofsome2million,spanning14statesinIndia.TheRUDIMultiTradingCompanyLtd(RUDI)wasformedintheearly2000sasthefirstfor-profitsocialenterpriseownedandoperatedbySEWA.Theagro-basedruraldistributionnetworkbringstogetherfarmerproducerorganizations(FPOs)andthewomen’smovement,withthetwinaimsofprovidingdirectmarketaccessforsmallandmarginalfarmersbyeliminatingthelayerofmiddlemenandprovidingemploymentforthousandsofwomeninruralIndiaasmarketagents–asseeninFigure4below—amoredetaileddepictionisinAppendix1.

7GuerreroandRangan,2017

12|P a g e

Figure4.HowRUDIworks

Source:GuerreroandRangan2017Between2004and2016,RUDIachievedaconsolidatedturnoverof₹480million,operatinginthesphereofapproximately1millionhouseholdsacross26districtsofGujarat.Asasocialenterprisewithvaluebeingcreatedatbothendsofthevaluechain,almost90%ofRUDI’ssaleswerere-circulatedbackintothevillageeconomy,andover25,000SEWAmembers,including10,000smallfarmersandruralwomenfrompoorfamilieswereemployedatvariousstagesoftheRUDIvaluechain.AfteroveradecadeoffocusingonruralGujarat,in2017,RUDIexpandedtoRajasthan–aneighboringstate.Theenterprisehada10-yearactionplan(2015-2025)aimedatachievingasalesturnoverof₹1billion,anexpansionto26states,andavisiontopositivelyimpact930,000farmersandruralwomenby2025.RUDIhasuniqueadvantagesforreachingitsvision:

1. Community-levelcollectiveactionvaluesandorganizingcapabilities.SEWAhasacultureofsolidarity,cooperation,andmobilizationthatpermeatesthroughoutitsorganizationalstructure(Bhatt,2006).Thismeansthatitsmembersareaccustomedtocomingtogetherandhavestructuresfromwhichtheyfeelandexerciseauthority.Throughdecadesofsocialinteractionsandsolidarity,SEWAmembershaveexpandedtheir“capacitytoaspire”–theircapabilitiestonavigateeconomic,socialandculturalpathwaystoabetterlife(Appadurai,2004).

2. Organizationalcommitmenttoworkingonvaluechainintegrationtosolvemarket

failures.ThroughRUDI,smallholderfarmersgetaccesstobetterinformationaboutlocalmarketdemandandmarketpricefluctuations,selltoaRUDIprocessingcenterinsteadofamiddlemanorloan-shark,gainaccesstostoragefacilitiesandaprocessorthattheyotherwisewouldnothavetakenthesmallamountthateachindividualproduces,andfinally,gainaccesstomoreoutputmarkets.RUDIaimstousetechnicalplanningtosolvemarket

13|P a g e

failuresthatsmallholderfarmersfaceinsellingtheirproduce,andisopentoincorporatingnewtechnologiesinitsoperationalprocesses(e.g.RUDUhasbeenpilotingappstocheckinventoriesandtakeordersfromthevillage).

3. Cross-sectorintegrationtoprovideanenablingenvironment.RUDIissupportedbyother

organizationswithinSEWA.TheITteamatSEWAhasdevelopedanappforproductmanagement,SEWAManagementSchool(SMS)providestrainingtosaleswomenonmarketingandaccounting,theruraluniondevelopedtheinfrastructureofcenterstoprocessproducethatcomesfromRUDIfarmers,RUDIdrawsonSEWA’sauthorityandrelationshipstogetpartners(likeVodafoneorHindustanUnilever)andmarketlinkages,andtheSEWAmembersprovidesthebasefromwhichthewomenentrepreneurs(theRUDIbens)andmanyoftheconsumersinthelocalRUDIsupplychainarerecruited.RUDI’sBoardhasmajorbusinessactors,whichitwasabletorecruitduetoSEWA’sreputation.Howeverthecross-embeddednessoftheseactorsinSEWAcanalsobeasourceoftension–manyRUDIbenshavemultipleresponsibilitiesoutsideofRUDIinotherpartsofSEWA.

4. BoPinnovations.RUDIhasdemonstrateditspotentialforinnovationtoserveitscustomer

base–ruralhouseholdswithlowincomes,livinginscatteredvillages.Throughitsorganizationalstructureofvillageanddistricthubs,processingcentersthatserveclusters,andRUDIbenswhoprocure,produceanddeliverproductsdirectlytothedoorstep,RUDIhascreatedanewoperationalsystemforitsproduct.Ininventing“householdkits,”wherebyafamilycanjustplaceanorderforthecombinationofspices,pulses,andcerealsthatitneedseachmonthandhaveapackageassembledwiththesamecombinationeverymonth,andintegratingthisconceptintoitsITsystem(phoneapplication)formanagingorders,RUDIisutilizesitsuniqueunderstandingoflocalconsumerneedstoshapeitsproductandoperationalsystem.

5. Potentialtoscale.SEWA’scurrentmembershipofsome2millionacross14states,andits

abilitytobothsustainandmultiplyintosisterorganizationstoaddresstheneedsofitsmembersformorethanfivedecadesdemonstratesitspotentialtoviablyscaleRUDI.

ButRUDIalsofaceschallengesinscaling:

1. Canmassive,profitablescaleberealizedwiththesocialdevelopmentgoalofachievingfoodsecurityforSEWA’sruralmembers?WhatkindofstakeholdersshouldRUDIengagewithhigherupthevaluechaintosupplyproducefromruralproducers?WhatkindsofstakeholderscanandshouldRUDIengagewithtogetproductsthatruralconsumersdemand?

2. HowcanRUDIbensbefaithfultotheircoreSEWAvaluesofbeinglabororganizersofinformalsectorwomen,iftheyneedtochangetheirfocustobeingentrepreneursaimingtomaximizeprofits?Howdoesthisimpacttheirgovernancestructures,operationalandbusinessplanning?Howdoesthisimpacttheirorganizationalstructureandprocesses–tobeatthefrontierofprofitabilitywhilealsoretainingsocialvalues?

ItisimportanttoprovideawidercontextforRUDIandSEWA.Theyareoperatingwithintheinternalandexternaltensionsinscalingupandincreasingrevenueswhilealsoworkingongenderedpower

14|P a g e

structures.Thisplacesthemattheintersectionoftwohistories:ofwomen’sempowermentmovements;andoffarmerproducergroupsandothermarketlinkageinitiativesinIndia.Values:women’sempowermentmovementsinIndiaIndiahasastrongtraditionofgrassrootswomen’sempowermentmovementsthataimtoimprovewelfare,socialstanding,economicagencyandrepresentationinformalinstitutions.However,inthehistoryofthemovement,akeytensionemergedbetweentwoconceptions(seeBox2).

Thechallengesandcomplementaritiesinmovingbetweenthetwoconceptionsofempowermentareespeciallyapparentinwomen’sinstitutionsthatexistbetweenformal(governmentorprivate)sectorandinformal(casteandcommunity)institutions.Asacase,MekhalaKrishnamurthydocumentsthedualrolesofnariadalats–informaldisputeresolutioninstitutionsformedbywomenwhowerealreadyorganizedthroughthestate-formedMahilaSamakhya(MS)programinGujaratin1988,butwithsupportandresourcesfromcommunityandstate.Thesenariadalatsprovidedanalternativetopatriarchalcasteaswellasstateinstitutionssuchasthecourts;simultaneously,theydrewonresourcesfromtheircommunitiesandstateto“constitutetheirownvibrantpublicarena.”Thespaceinwhichtheseinstitutionswork,andtheconfluenceofidentitiesoftheleaders,isdocumentedbyKrishnamurthy(2002):

“evenastheadalat’swomenopposebothcommunityandstateinstitutions,theyalsodrawonmultipleresourcesfromcommunityandstatetoconstitutetheirownvibrantpublicarena.Thus,theysituatethemselveswithingovernmentcompoundswhiledesigningtheirschedulearoundthedailyrhythmsoftheirvillagelives.Thewomendrawontheirexperienceascommunitymembers,relyontheirunderstandingoflocalcustoms,andusenetworksofsocialrelationstoresolvedisputes.ButtheyalsoasserttheiridentitiesasactivistsassociatedwiththeMahilaSamakhya,deployarangeofstatesymbolsinstructuringtheirprocedures,approachthepoliceforprotection,andciteformallawstoclaimbetterresultsforwomen.Thisconstantinterplaybetweencommunityandstateisbothpracticalandcreativeandisusedbytheadalat’swomentoconsiderableeffect.Intheprocess,theyarebeginningtochangethetermsoftheirrelationshipswiththestateandthecommunity,learninghowtoaccessanduseformalinstitutions,whilealsogainingrecognitionintheirvillages”(Krishnamurthy2002).

Box2.Definitionsofempowerment-competingorcomplementary?

1. Empowermentaspersonal-aprocessthatchallengestheculturallyshaped“termsofrecognition”(Appadurai,2004)anditsassociatedpowerrelations(largelyledbybottom-up,activistgroups).

2. Empowermentasexpandingthecapacitytotakeadvantageofmarketopportunitiesandgovernmentservices–aprocessthatseeksmoreeffectiveparticipationinthemarket,politicsandclaim-makingonthestate.

Thesetwodefinitionscouldbecomplementary:buildingthepersonalandgroup-based“capacitytoaspire”(Appadurai2004)canenhancecapacitiestoengageinformalstructures,expandingcapabilities,orfreedoms(asinSen1984,1999).Buttheycaninvolveconflictsinvaluesandstrategies.Sincethefirstdefinitionregardsgovernmentandmarketsasdominatedbypatriarchalstructures.

15|P a g e

Bytakingtheviewthatinformalinstitutionslikethenariadalatsarelocatedaspublicarenas“betweenthecommunityandstate,”Krishnamurthy(2002)showsthat“localcommunities[…]areneitheruniformspacesofoppressionandviolenceagainstwomen,norregionsoffreedomandsecuritywhere“grassroots”solutionsareeasilyrealized.Equally,asmanyanthropologistshavesuggested,thestateisnotamonolithicstructureor“discrete,unitary‘actor,’cleanlyseparatedfromsociety.Forwomencaughtinmultiplepositionsofsubordination,thepracticeofshuttlingbetweenthesestructuresisoftenthemosteffectivestrategyforchange,evenasthisprocessisfilledwithtensionandconstraints.”SEWAattemptstoexplicitlybridgethetwoapproaches.SEWAiscommittedbothtotransformationofwomen’spersonal,economicandpoliticalagencyandtranslatingthisintoengagingwiththemarketandincreasingtheeffectivenessofclaim-makingonthegovernment.ItisthesetypesofalliancesandtensionsthatweexploreinthecaseofRUDI.

ValuechainsandweakmarketlinkagesinIndiaTheeconomiccontextisofhighlevelsofinformalityandmuchlowerlevelsofwomen’sentrepreneurshipthanmen,evenwithintheinformalsectorinIndia.AsFigure5illustratesin2006/7thepresenceofwomenwassubstantiallylowerthanofmen,andwomen’senterprisesweremuchsmaller,indicatingproblemsofbothentryandscaling(Shetty2018).Thisdifferenceexistedinspiteofextensiveeffortstosupportwomen’senterprisesoverthepastdecades.

Figure5.ThedistributionofinformalfemaleandmaleheadedenterprisesinIndiain2005/06(manufacturing)and2006/07(services)

Source:NSSO,ascalculatedinShetty(2018)

First,therearemanyandgrowingexamplesofattemptsatpublicandprivatesectorsupportforself-employedandsmall-scaleentrepreneursandproducers,especiallythroughcreditprovisiontowomen’sSelfHelpGroups(SHGs).Therehavealsobeenwidespreadefforts,withsomeaccompanyingregulatoryreforms,toformandsupportfarmerproducerorganizations(FPOs),oftenfromthefoundationofSHGs.Thereislittlesystematicquantitativeevidenceonwhatworks,buttheassessmentofexpertsisthat

16|P a g e

thesehavelargelyfailedtotakeoff,withveryfewpositiveexperiencesofovercomingmissingmiddledevelopmentproblems(Shah2016).FPOswereactuallycreatedtosolvekeymarketfailures–thoseofasymmetricinformation(ontheproducerside)andofrisk(ontheprocurementside)whilealsoembeddingthemselveswithincommunity-basedvaluesystemsthatemphasizecollectiveaction.However,existingFPOshavegenerallyfailedtoresolvetheinherenttensionstheyface,withinandbetweenorganizationalstructures(e.g.cooperativeandlargermarket,membersandboard)andhavenotmanagedtoinnovateandimplementnewbusinessmodelstoreachthenextfrontier.ItisinthesesameintersectionsthatRUDI’spotentiallies.Howtoconceptualizeandmanagethetensionsistakenupinthenextsection.Second,therearesomeexamplesoftop-downinitiativesfromcorporateorganizations(likeFabIndiaandUnilever)thatlinklocalproductiontowidermarkets.FabIndiaillustrates.8Itstartedwithamodelofcommunityownedcompanies(CoCs),with16setupin2007-08,creatingamiddletierbetweenartisans(supplier)andFabIndia;25-45%equityineachCoCwasheldbyFabthroughitsownmicro-financeunit(ArtisansMicroFinancePrivateLimitedAMFPL),andtheremainingheldbyartisans(35,000).Forstreamliningsupplies,procurementhubsandfieldofficesalsosetup.ThisinitiativewasjudgedtodeliveronsocialimpactbutsqueezedFab’sprofits,and14ofthe16werewoundupbetween2013and2014withasharebuy-backbyAMFPL.Thisledtothecreationofanewsetofentrepreneurs:mostCoCswentontobecomemicro-enterprises,andFabcontinuestousethemassuppliers.Atonelevelthiswasasuccess,butillustratesthedifficultyofformingeffectivemarketlinkageswithcommunity-ownedproducercompanies.Whilethereareothercases(e.g.Unilever’sShaktiproject),thereachisalsoverylowofthistypeofstructure.

4. ConceptualizingtensionsandprinciplesforresolutionBridgingthemissingmiddleforRUDIresultsinatensionbetweenthevaluesandpracticesthatareessentialtotheidentityofgrassrootsorganizations,andthepracticalnecessitiesofengagingwithvaluechainsandthemarketneedtobemanagedandresolved.Whilewearespecificallyfocusingonvaluechainsintheeconomicsense,theissueshavepreciseparallelswithrespecttothe“valuechain”ofengagingwithgovernment,politicalandphilanthropicoraid-basedexternalworlds.Itisusefultodisentanglethisoverarchingtensionintomorespecificdimensions:Box3listsfive.

8Source:http://www.forbesindia.com/article/social-impact-special/an-inclusive-fabric-rural-artisans-stand-to-benefit-as-fabindia-weaves-an-aggressive-growth-plan/45369/1

17|P a g e

NotethatTensions1-4applywithingrassrootsorganizations(aswellaswithinmanyotherorganizations)whereasTension5occursbetweenanexternalfirmandagrassrootsorganization.Thefirst“valuesandculture”tension–discussedinprevioussectiononwomen’smovements-ismanifestinanorganization’sstrategicchoice:tochangesocietyorworkwithinthecurrentsystem.Italsorelatestothecontrastbetweenrights-andissues-basedorganizationsontheonehand,andgrassrootsorganizationsseekingtodirectlyimprovethelivesofmembersontheother.Hereweareprimarilyinterestedinorganizationsthathavemadethestrategicchoicetoengage—intheterminologyofBox2,forfurtherempowermentthroughtheuseofthemarketaswellasforactivatinglatentpersonalagency.SEWAisclearlyinthiscategory,thoughitalsocampaignsforbetterlawsandpolicies.OtherexamplesofgrassrootsorganizationsinthisspaceinIndiaincludePRADAN,TransformRuralIndia,SRIJANandSevaMandir,allofwhichwehaveworkedwiththroughIMAGO.Oncethestrategicchoiceismade,theissuebecomeshowtonavigateoften-conflictinginternalvalueswithexternalorganization—andthiscanbethoughtofasonepartofArjunAppadurai’s“capacitytoaspire”-anavigationalcapacity,tobothenvisagealternativefuturesandorganizeandengagewiththepathwaystorealizethem.9Thesecond“financialvs.socialgoalstension”istheclassicfeatureofsocialenterprises,orwhatBattilanaandLee(2014)callhybridenterprises.Thiscanapplytobothfor-profitandnot-for-profitorganizations.Itoccursinlarge-scaleorganizationssuchastheInternationalFinanceCorporation,ImpactInvestorssuchasAcumen,allthewaytograssrootsorganizationsthatneedrevenuestosurvive,suchasRUDI.

9AstrikingexampleofthisinSEWAconcernstheworkoftheirconstructionworkercooperativemembers,Rachaita,whohavetoobtaincontractsintheAhmedabadconstructionindustry.Inthisprocess,theyoftenfaceaconflictbetweentheirGandhianvalueofhonestyandsupervisorsusedtobribesorotherdeals.Foranaccountofarole-playthatworkedthroughthisconflict.Seethebloghttp://imagogg.org/2014/08/sewas-rachaita-team-building-session/.The“resolution”involved(andtypicallyinvolves)workingoutpractices,andinternalsupportmechanismsthatsustainthevaluesinexternalinteractions,evenwhenthishascosts.

Box3.TensionsTension1:betweenorganizationalvalues(e.g.labororganizers)andengagementwiththesystemthatembodiesthepatriarchal/predominantculturewithdifferentvalues.Tension2:betweenmaximizingfinancialreturnsandfurtheringsocialgains.Tensions3:betweenformalorganizationalpractices,typicallyassociatedwithformalhierarchy,andinformal,trust-basedrelations.Tension4:betweenmotivatingindividualsthroughstrongfinancial(“high-powered”)incentives,andrelyingontheirinternal(“intrinsic”)motivationsTension5:betweentheincentivesandgoalsofcorporatefirms(e.g.maximizingindividual)andthebehaviorsofthesebase-of-the-pyramidorganizations(e.g.maximizingcollective).

18|P a g e

Theresolutionofthistensioninvolvesunderstandingalignmentsandtradeoffsbetweenfinancialandsocialreturns,anddevelopingsharedprinciplesandpracticeswithintheorganization.Forexample,aprinciplemaybemaximizingsocialreturnssubjecttomeetingarequiredfinancialreturnforanorganization’sfinancialviability.10Oritmayinvolvemakingchoiceswithinthistradeoff—subjecttorespecttoanorganization’snormsandvalues.Acommonissueisthelackofcomparableinformationonfinancialandsocialreturnsinordertoeffectivelymakedecisions–anareaforfutureresearch,especiallyfororganizationswhoworkonmissingmiddlechallenges.11Thethird“hierarchicalstructurevs.informalitytension”isacommonfeatureofmanyorganizations.SEWAhasalreadyachievedsubstantialscaleintermsofreachwhilststillrelyingonpartiallyinformalmechanismsofdecision-making,humanresourcedecisions,accountinganddatamanagement.Thisuniquesituationhasbeenfeasiblebecauseofthestrengthofitsvalues—andofthealignmentbetweenvaluesandorganizationalcultureandpractices.However,forfurtherscaling,andespeciallyforitsabilitytodynamicallyengagewiththeexternalworld,whetherofbusiness,governmentorphilanthropy,thistensionneedstobemanaged.ThemanagementofinformationisonedimensionalongwhichSEWAismovingsignificantlyforward—discussedinthecaseofRUDIbelow.Theresolutionofthistensioninvolvesbothworkingoutwhatformalstructuresarerequiredforgoals—ofscaling,managingtheexternalboundaries—andthenincorporatingvaluesandculturewithinsuchformalstructures.12Thefourth“tensionbetweenextrinsicincentivesandintrinsicmotivation”isalsoaclassicissue,bothintheorganizationalpsychologicalandtheeconomicsliteratures(seeforexample,BénabouandTirole,2003).Thesecanbesubstitutes,andarelianceonmorehighpoweredfinancialincentivescanleadtoareductionintheincentivesthatflowfrominternalmotivations.TwopointsarerelevanttotheRUDIcase.First,thiscanapplyatdifferentlevels—totheincentivesfacedbymanagers,aswellasthosefacedbyfront-lineworkers,theRUDIbensinthecaseofRUDI.Second,SEWAasanorganizationembodiesboth:itplacesimmenserelianceontheintrinsicmotivationofhighlycommittedindividualswithstrongsharedvalues(andverylowlevelsofpaywithinSEWA’sownorganizationalstructure);butalsohasanimportant,explicitgoalofincreasingtheincomesitsmembers,whoaretraditionallypoor,self-employed(soenterprise-based)women.ThusstrongfinancialreturnsforRUDIbensisaclearlygoodthingwithinSEWA’svaluesystem,alongsideitsegalitarianethos.Theresolutionofthistensionagaininvolvesbothaquestionofclarity—oftherelationshipbetweenextrinsicincentivesandtheindicatorstheyarelinkedwith—andworkingthroughhowtofosterthefinancialreturnsthataredesiredwithsustaininganorganizationalculturethatalsosustainsintrinsicmotivation.Indeed,organizationalcultureisseenasasourceofeffectivefunctioningandcompetitivestrengthwithinthebusinessliteratureonfor-profitenterprises(Groysbergetal.2018).Thefifth“tensionbetweencorporatesandthegrassroots”occurswhenacorporatefirmexplicitlyseekstogototheBoPinthespiritofPrahalad,especiallywhenitinvolveslinkingoneithersideofavalue10WewouldarguethatthisshouldbethegoaloftheInternationalFinanceCorporation,thoughitisnotclearitisthepractice.11RootCapital,unusuallyamongstImpactInvestors,hasbothcalculatedandsharedinformationonboththerangeoffinancialreturnsandmeasuresofsocialimpactacrossitsprojects.McCreless(2017)12Inawork-outinanotherofSEWA’ssocialenterprises,Gitanjali,thatprocessespaperfromtheproductsofSEWA’swaste-paperpickers,itemergedthattheyoungworkerswereeffectivelyworkingasemployees,anddidn’tfullyunderstandorengagewiththeSEWA’svalues,eventhoughtheyweremembers.Whatemergedfromthework-outwastheneedtosystematicallyintroduceSEWA’svaluesasacorepartoftheorganization’scultureandpractices,paralleltotheritualizationofSEWA’svaluesingroupmeetings.

19|P a g e

chain—asforexample,inFabindia’sprocurementoflocal,orartisanalproductsforcommercialsale.Notethiscaninvolveaclashofculturesintwosenses:inthevaluesofthetwotypesoforganization,butalsoinorganizationalpractices(e.g.asmanifestedintimelinessorstandardization).Wecanagainoutlinepathstoresolutionofthistension,thatisespeciallyofinteresttothecorporatesideoftherelation.Thisinvolvesfirstofallclarityofwherethestakeholdersofthecorporatehavegenuinealignmentwiththegrassroots.Forafor-profitfirm,especiallyifpubliclylisted,thiscanparticularlyinvolveworkinginmarketnichesinwhichconsumersalsoplacevalueonpurchasing(indirectly)fromindividualsandorganizationsinthegrassroots—asisincreasinglythecase.Butitalsoinvolvescommitmentandpracticesofmanagementandthecorporate’sownfrontlineworkers.Measurementagainmatters,andthereislikelytobeaneedforadditionalresourcestosupporttheengagementwith,andpotentiallyupgradingofthegrassrootsorganization—indeedworkingwiththeothertensionsdescribedabove!Thepathstoresolutiondescribedherearenotmeanttosuggesteasy,one-offinterventionsorsolutions.Indeed,aswesaidatthebeginningofthearticle,theissuesherearetypically“complex”andhardtosolve(aswehaveseenintheabsenceofanybroadbreakthroughofIndia’sfarmerproducercooperativemovement).Theycantakeseveralyearsofinvestmenttosolve,butpotentialgainsarelarge.

5. DevelopingandusingIntegratedIdentity-basedActionResearchwithRUDI

Thissectionturnsnowtothecoreofthefocusofthisarticle:theconceptualizationofwhyadistinctapproachisneededtosupportgrassrootscommunity-basedorganizations,itstheoryofchange,andmethodologicaldesignsdevelopedthroughactiveinvolvement.

ThecontextinwhichIIARwasdevelopedTheIIARapproachwasdevelopedemergingfrompracticalengagements.ItisimportanttoplaceRUDI(andSEWA)withinthebroaderspectrumofgrassrootsorganizationsthatareseekingwomen’sempowermentandincreasedeconomicagency,asthecharacteristicsoftheorganizationmakeasubstantivedifferenceinapproachestoorganizationaltransformation.Wedistinguishthree“idealtypes”ofCBOsinthisspace,andlocateRUDIsomewhereinthemiddle(seeFigure6).

20|P a g e

Figure6.CBOsalongthemissingmiddlespectrum

Source:authors

Ontheleftsideofthespectrumare“TypeA”communitybasedorganizations(CBOs)andprograms–thosethatarealreadywell-equippedfordealingwithmissingmiddlechallenges.This,however,isveryrare.BRACisanexampleofanorganizationthatwassystematicallyfocusedonsolvingproblemsofthepoorinBangladesh,butfromthebeginningbuiltorganizationalprocessesaimedatachievingefficiencyandscale.BRAC“cracked”themissingmiddleproblembecausetheyhavestrategicallyplannedforitfromthebeginning,buildingbothcultureandsystemswithscaleinmind.Overtime,however,theseorganizationscanbecomelargeandbureaucraticandfacesomesimilarproblemstogovernmenthierarchies,lackingtheanchorofbeingownedbyitsmembers.Ontherightendofthespectrumare“TypeC”CBOsandprograms.Thesearegovernmentandaid-fundedprogramsaimedatbuildingandscalingfederatedeconomicwomen’sSHGsprimarilyassavingsandcreditgroups.Inordertobescaledupbygovernmentstheyaresystematizedandusedasgrassrootsinstitutionstochannelgovernment-designedwelfareormarketlinkageprograms.ThesearetypicallyexamplesofwhatMansuriandRao(2012)refertoas“inducedparticipation.”Theseprograms–suchasJeevikaself-helpgroups(SHGs)inBiharandSERPSHGsinAndhraPradeshandTelangana–aremobilizedfromthetop-down,havelarge,layeredandhierarchicalbureaucracies,andthoughtheyhavemembersembeddeddeepincommunities,thecentraldrivefortheiractivitiesisnotmotivatedthroughjointsocialvalues.ThefirstphaseofJeevikainBiharfallsfurthertotheleftofthis,becauseoftheroleoffacilitatorsinco-producinganalternativediscoursewithwomeninthevillage,fosteringaprocessof

21|P a g e

personalandsocialempowermentclosertotheworkofcommunity-basedorganizations.Econometricanalysisfoundsignificantimpactsonproxiesforwomen’sagency,incontrasttothesecondphaseofJeevika,thatdidnotincludethisintensiveengagementprocess(Majumdar,RaoandSanyal,2017).Inthemiddleofthespectrumare“TypeB”organizationslikeRUDI–thoseinitiatedbybottom-upmobilizationandmotivatedbystrongvaluespermeatingthroughouttheorganizationalculture,butwithlatentenergyandnascentorganizationalstructuresandsystemsforscale.Box4furtherdescribesthecharacteristicsof“TypeB”CBOspriortoengagement–thesecharacteristicsindicatethattheCBOisreadytobuildonitssystemsandhaslatentagencythatcanbeactivatedtobridgemissingmiddletensions.TheyalsoindicatethepotentialforanexternalagentlikeIMAGOtobeaco-catalyst,usingIIARwiththeCBOtosparkchange.Theseareimportantassumptionsforourtheoryofchange.

TheoryofchangeAcentralconceptinourtheoryofchangeistheactivationoflatentagency.Thiscanbethoughtofasoccurringattwolevels,bothlinkedtoquestionsofidentityandorganization,typicallyinvolvingsomeexternalactortosupporttheprocessoftransformation.Ononelevel,activatinglatentenergyappliestothepersonaltransformationofindividuals.Here,thisappliestopoorwomenatthebottomofthepyramid—invillagesandslums.Thegrassrootsorganizationsinthemiddlecategory(B)shareanexplicitorimplicittheoryofchangeinwhichacommitted,motivatedfrontlineagent—theaaghewansinruralGujarat,youngpeopleinPRADAN—mobilizeandinvitewomentojoingroups,startingatthelocallevel(village-levelSelfHelpGroups,orlocalpartnersofSEWA).Thegroupssupportacounter-culturalprocessofchangefortheindividualmembers,Lewin’sun-freezing,changingandre-freezingnormsandpractices.Thegrouporcollectiveservesadualpurpose:itprovidesacounterculturalspacethatcanfacilitatethispersonaltransformation;andincreasesthebargainingpowerofwomenthroughnewsociallinkages.(Thishasbeenexercised,forexample,ingroup-basedpressuresfromthewomentostopviolenceagainstanindividualmember.)Somewomencantravelthepathalone,butthisisharderroute,giventheentrenched,culturallytraced,powerrelationsinexistingfamilialandsocialstructures.

Box4.CharacteristicsofCBOsforwhichtheIIARapproachisrelevant

1. TheCBOhasadeep,articulatedandpracticedidentityandvaluesystem,basedinthecommunityinwhichitworks.ThesevaluesandidentitiesarefirmlyintegratedintotheorganizationalstructureandcultureoftheCBO,ratherthanjustpremisedwithinamissionstatementorpublicrelationsmaterials.

2. TheCBOvaluescross-sectoralintegrationsatmultiplelevelsofitsorganizationalstructure.Itisopentoengagingwithanoutsideactorandhashadexperiencedoingso.

3. TheCBOisworkingonsetsofbehavioralorvaluechainproblemsthatlargerdevelopmentsectororganizations(bothpublicandprivate)areeithernotworkingon,orareaddressingthroughuniform,band-aidor“nudge”approachesthatdonotsolvethedeeperissues.

4. TheCBOhasdemonstratedsustainabilityovertimeandscaledtoacertainextent,buthaspotentialformuchlargerscale.Itexhibitschallengeswithintegrationwithinvaluechainsand/orscale.

5. TheCBO’sapproachexhibitstensionsbetweentechnicalandvalue-orientedoridentity-orientedsolutions.

22|P a g e

Second,activatinglatentpotentialalsoappliestograssrootsorganizationsthathavegrownthroughcommitted,mobilizedengagement,relyingoninformalrelationsandprocesses.Thiscanbehighlyeffectiveuptoacertainlevelbutinordertogotothenextlevelofscalethereisageneralneedfororganizationaltransformation.ThefailuresofalmostallFarmerProducerOrganizationstoscalenotedaboverepresentsthefailureoforganizationaltransformation.ThechallengeoforganizationaltransformationisillustratedinFigure7bytwointersectingcircles.Businessandeconomicbaseddevelopmentisneeded,shownhereastheproductcycleofdevelopmentofideas,productdiscoveryintermsofbothmarketsandalignmentwithcapacitiesofmembers,developmentofvaluechains,definitionofMinimumViableProductsandthenfinanceandscaling.But—preciselybecauseoftheidentityoftheorganization—thesedevelopmentshavetobeintegratedwithaprocessoforganizationalchangethatworksfromtheidentityandculture,throughthetensions(seeabove),anddevelopsaneworganizationalcapacity,thatcanincorporatemoreformalsystemsthatarealignedwiththeexistingvalues.Datasystemsthatarecenteredaroundtheoperationalprocessesoftheindividualmembersarethendeveloped,bothforinternalmanagementandlearning,andforcommunicatingwithexternalactors(“managingtheexternalboundary”ofanorganization.)

Figure7.Theintersectionbetweenbusinessandorganizationalchange

Source:authors

Acentralthesis—confirmedbyfieldexperiencewiththesetypesoforganization—isthattacklingthesecirclesinanintegratedwayisfundamentaltosuccessfulchange.Justengagingwiththebusinessplanside,orjustworkingonorganizationalculture,ordata,isunlikelytowork.Forwhilerequiredshiftsaresometimeswithinoneofthecircles(asintheclassicprivatesectorproductandscalingprocess),theymorecommonlyinvolveinteractionsbetweenthetwocircles,especiallyaroundoneormoreofthefivetensionsdescribedabove.Akeycomplementaryfindingconcernsthevalueofanexternalactortofacilitateorganizationalchange.Thisparallelstheroleofthegrassrootsorganizationastheexternalactorforpersonalchange.Forwhile

Organizationaltransformation Businessdevelopment

f

Productideas

ProductdiscoveryPrototypingwithmembers

Customer/valuechainexplorationDefinitionof

Minimumviableproduct

Financeandscaling

Counterculturaltransformation

mobilization

Organizationaldiagnosis

Strategyandactions

Managementoftensions

Organizationalscaling

Newtensions

23|P a g e

suchtransformationalshiftscanbemanagedfromwithin,thisisdifficult—owingtoorganizationalinertia,andthesheerchallengeofmanagingchangewhendailyworkisall-absorbing.However,tobeeffectivetheintermediaryhastoworkinveryparticularways.Weturntothisnow.

MethodologyIfanexternalactorisinvitedtoworkwithagrassrootsorganization(asIMAGOwasinvitedtoworkwithSEWA,SRIJAN,TRI,andothers)thenatureoftherelationshipandthemethodsofsupporthavetobealignedwiththenexusofinteractionsinthistheoryofchange.Inparticular,thisimpliescapacitiesandtechniquesforbridgingbetweenthecircles.Whentheidentityofanorganizationisintimatelylinkedwithcherishedvaluesandorganizationalculture-whicharepreciselywhatmakestheorganizationsocapableofworkingdeeplyinthecommunitiesitisembedded–thesevalueshavetobeintegratedintotheengagement.Tensionshavetobeworkedthrough,andtheidentitycanbeusedasasourceofleveragefortransformation,ratherthanignoredinanattemptedwork-around.

Thesekeyprincipleslead,inturn,tothreecross-cuttingfeaturesofourmethod,andourframeworkforengagementisprovidedbyanoverallmappingofthesysteminwhichtheorganizationisoperatingaswellasamappingoftheorganizationinside.Systemmappingbeginswithvisualmethods—drawnfromdesignthinking—forparticipantstodevelopandreflectonamapoftherangeofactorsthattheyareengagedwith,theirinter-relationships,andpointsofactualorpotentialbreakdownorleverage.Thisthenformsthebasisforunderstandingthepositionoftheorganizationandindividualswithinadynamicoverallsystem.Figure8showsanexampleofthisinprocesswithSEWAwomeninavillageinGujarat.

Box6.Keyprinciplesandpracticesofintegratedengagement• Takingco-creationseriously—meetingtheorganizationwheretheyare,andjointlyexploring,

values,organizationalaspirations,internaltensionsandpotentialpathways• Usingadiagnosticframefororganizationaldiagnosisthatcanbridgeallthewayfromissuesof

identitytoaction• Extensiveuseofhuman-centereddesignapproaches(oroften“organization-centereddesign”)

fortheprocessofexploration

24|P a g e

Figure8.SystemmappinginprocessinGujarat

Source:IMAGO,fieldfiles,Ahmedabad,July2015.

Fortheorganizationitself,theorganizationalflameisusedtostructurediagnosis(Figure9).13Thisviewsanorganizationthroughfourprisms:inthedomainofaction,structure,tone,andidentity.Typically,organizationaldiagnosisfocusesprimarilyonaction(whatisbeingdone,policies,etc.),orstructure(hierarchy,systemsetc.).Bycontrast,thegreatestinfluenceandleveragecomesfromidentity(corevaluesandprinciples),andtone(theorganizationalculture,whatitfeelsliketobethere,thenatureofpersonalinteractions).Thisisrelevantforallorganizations,butiscentraltovalue-basedgrassrootsorganizations:andforSEWAitwasrelativelyeasytoworkfromthislevel—indeeditsGandhianvaluesareexplicit.Figure10illustratestheuseoftheflamemodelinthefield.

13ThisdiagnosticapproachisduetoBillIsaacs,ofDialogosandMIT.

25|P a g e

Figure9.Diagnosisanddesignthroughtheprismoftheflame

Source:adaptationfromBillIsaacsbyIMAGO

Figure10.Theflame(inEnglishandGujarati)inuseinaworkoutonRUDIinAnand,Gujarat(2014)

Source:IMAGO,fieldfiles,Ahmedabad,December2014.

Action

Structure

Tone

Applying the organizational flame

IdentityDeep values, why you are here

Identify symptoms

Map existing structures

Organizational Culture

Co-creation and Adaptive Approach

Traditional focus

DIAGNOSIS

DESIGN

Example:Flame

Analysis

26|P a g e

Second,therearethenconceptuallyparallelmethodsforworkingwiththetwofirstcirclesinFigure7—aroundbusinessstrategyandorganizationalbehavior.Forbusinessstrategy,therealreadyexistsasequenceofrelativelywell-knowntechniques–examplescanbeseeninthefirstcolumnofTable1.Intherealmoforganizationalbehavior,however,thereisaparallelsetoftechniques.Thesearedesignedtocollaborativelyunderstandtensions,behaviors,andpotential.ExamplesofthesecanbeseeninthesecondcolumnofTable1.Inpractice,thesetechniquesareoftenusedinsilos.However,thecruxofourtheoryofchangeisthattheycan,andinfactmust,beusedinconjunctionwithoneanother-withtheorganizationalcontextinmind,andinanoverlappingwaytobringouttensionsandworkthroughthembothtechnicallyandpsychologically.SomeillustrationsoftheiruseinthefieldareprovidedinAppendix3.Table1Techniquesofanintegratedapproach:businessstrategyandorganizationaladaptation

Businessstrategy Organizationaltechniques• Economicanalysis,

especiallywithrespecttounderstandingmarketfailures,economiccreditandotherservices,householdincentives,riskmanagementetc

• Diagnosisofbusinessconditions,withrespecttobusinesscanvas,products,productionprocesses,finance,markettesting,andbusinessstrategyforscaling

• Formalorganizationalscanwithrespecttohumanresource,accounting,auditing,procurement,datasystemsetc.

• Workoutsoncorevalues• Definitionofstrategic

tensions,andexplorationoftheirpatternthroughanonymouspollinginfocusgroups

• Roleplayaroundhiddenandcomplexissues

• Explorationofthepersonalitycharacteristicsofmembersofteams,andhowthismapsontooverallorganizationalfunctioning

• Teameffectivenesswork• Conflictandstress

managementprocesses.

TheseparallelprocesseshaveimplicationsforthelayersofstructureandactionintheflameanalysisseeninFigure9–notably,theypointtodesigningincentivesandprocessesthatarealignedwiththevisionofscaleaswellaswithcorevalues.Additionally,theyhaveimplicationsforthedesignandimplementationofinformationsystems,bothforinternaltrackingandlearning,andformanagingthe(quasi-)externalactorssuchasboards,donors,andgovernment.

Aco-creativeprocess:RUDIandIMAGOIMAGO’sworkwithRUDIbeganin2014,andhascontinuedthrough2017.TheprocessofinteractionsbetweenIMAGOandRUDItookplaceorganically,andcanbeseenillustratedonatimelinewithinthecyclicalactionresearchframeworkhighlightedpreviously,inFigure11.

27|P a g e

Figure11.IMAGO-RUDIstakeholdertrust-buildingandactionresearchtimeline

Source:authors.

Stage 0 (2006-2013) – Initial trust-building – creating foundations for a co-creative partnership IMAGOandSEWAleadershipmetmanytimes,mainlyinGujarat,andbuiltrelationshipoftrustoveraperiodofsevenyearsbetween2006and2013.Thisprovidedthefoundationfromwhichtolaunchatrulyco-creativepartnershipbetweentheexternalagent(IMAGO)andaCBOwithstrongGandhianandwomenempowermentvalues(RUDI/SEWA).DifferentmembersofIMAGOstaffvisitedSEWA,allowingtheIMAGOtobecometrustedasawhole,ratherthanjustoneortwomembers.

Stage 1 (2014) – Creating new business strategies

In2014,IMAGObeganformallyworkingwithSEWAinGujarat.Inparticular,ReemabenNanavaty,theheadofSEWA’sRuralUnion,identifiedachallengethatSEWA’ssocialenterprise,RUDI,hadbeenfacingforsevenyears:aninabilitytobecomelessdependentonSEWA’ssubsidiesandincreaseitsownrevenuesenoughtoscale.Inparticular,RUDI’shadchallengesintheareasofcredit,supplychainissues,salestargets,marketingstrategy,sellingtechniques,promotionalmaterials,

28|P a g e

deliverysystems,workingcapital,improvedcommunicationbetweenRUDIbensbetweendistricts,technologyadoptions,andM&E.IMAGOwasaskedtoworkwithRUDI.Theinitialworkfocusedonestablishinganationalbrand,increasingtherangeofprocessedcommoditiestoachievereturns,andachievingtargetsalesgoalsoverafive-yearperiod,alongwithdevelopingformalpartnershipswithlargeretailers.Inthecourseofco-creatingstrategiestomeetthesegoals,IMAGOheldaseriesofmeetingswithSEWA’sleadershipandRUDI’sleadership,workingjointlyonfinancialstrategy,marketanalysis,projections,andbusinesscanvassing.AsimportantasthisworkwasforRUDI,wefoundthatitwasnotconnectedwithunderlyingissues–byfocusingpurelyonframingthechallengesintherealmofbusinessstrategy,wehadbeendealingwithonlythesymptoms.AkeytensionemergedinthecourseofaninteractivesessionbetweenRUDIbensandRUDI’smanagement.Thesessionwasageneralexplorationofissuesandtensionsusingtheclickermethodology,whichquicklytransitedtothearticulationofaspecifictensionaroundtargets.RUDI’sBoardhadpushedforambitioussalestargets,whichweretranslatedthroughtheRUDIhierarchytotheRUDIbens,whoweresimplyexpectedtofollowthem.TheRUDIbensstatedthatthesetargetswere,infact,notdoableforthemandhadbeensetinawaythatwascontrarytotheconsultativewaytheyworkinSEWA.Theidentificationofthistensionbecameakeyturningpointintheco-creativeprocessastheRUDIbensidentifieditandIMAGOrecognizedit,leadingtoanewdiagnosisofidentity,toneandrolesbeingcoreissuesoffocus.

Figure12RUDI’sCEOUmaSwaminathaninasessionwithRUDIbensinAnand,Gujarat

Source:IMAGO,fieldfilesAnand,December2014

Stage 2 (2015-ongoing) – Integrating a focus on identity, tone, and roles into business practice

29|P a g e

WorkonidentitywithRUDIbensbeganinparallelin2014,revealingalackofpersonalidentificationwiththeRUDIhierarchy.Assoonastheunderlyingtensionsbecameclear,thisidentityandtoneworkbecamecentraltothework.TeaminterventionsalsoshowedthatRUDIwasusedtofire-fightingtoattempttoreachgoals,oftencontributingtothelackofcamaraderieandvisionbringthemabout.Mostimportantly,workshopsdrewoutaninherentdissociationbetweenRUDImembers’stricthierarchiesandtop-downsystems(forexample,forsalestarget-setting)andSEWA’slargermovementvalues,whichstresspartnershipandsupport.HowcouldthetensionsbetweenRUDI’sbottom-linehighersalesgoalsforgrowthandincreasedrevenueversusitscollectivebenefitsofsupportingeachotherandSEWA’swiderGandhianvaluesofinterdependenceberesolved?Aflameanalysis–involvingaseriesofin-depthinterviewsoverthreeweeks-helpedIMAGOtocompleteacomprehensiveorganizationalassessment(seeFigure13).TheFlameModelhelpedtodiagnosetherootcausesoforganizationalfailuresbyanalyzingobservables(actionandstructure)andunobservables(toneandidentity).

30|P a g e

Figure13.Flamemodelassessment:tornidentity,stiflingtone,andweakstructureaskeyconstraints

Source:IMAGO/RUDIcase

IMAGOnowfocusedonstrengtheningRUDI’scapacitytodriveandsustainitsowntransformation,firstworkingwithidentityandtone(thedeepestpartsoftheflame)throughorganization-wideteam-building,leadershipcoaching,andboardmanagement(seeFigure16).SEWAManagementSchool(SMS),whichrunsworkshopsforcapacitybuildingandleadershipthroughoutSEWA,andRUDIbens–playedanimportantrolebyrollingoutadaptiveleadershipexercisesinworkshopstotacklethebedrockmindsetandbehavioralissueswithintheiridentity.ThisprocessresultedinarecognitionandunderstandingbetweenmultiplelevelsofSEWA–Board,managingdirector,andRUDIbens-thattop-downtargetswereagainstthecorevaluesofSEWA,andthatthecollectiveidentityasRUDIpermeatingthroughouttheRUDIbenscouldenablethemtosetbottom-uptargetsbasedontheirownplanning,tobeproposedtotheBoard.ThiswassupportedbyparallelworkondeepeningthepersonalidentificationofRUDIbenswithRUDIitself—illustratedbytheemergenceofthemotto“IamRUDI”beingcentraltotheidentityRUDIbensthemselves.IntermsofTension4,thissupportedtheintegrationofintrinsicandextrinsic(commission-based)motivationsofRUDIbens–thekeyimplementerson-the-ground.Inparalleltothiswork,leadershipcoachingprovidedtothemanagingdirectoraidedboththeteam-buildingandtheownershipneededattheRUDIbenlevelbydecentralizingauthority.Forexample,theMDredefinedherrole,whereshewasabletoworkmoreonstrategicissuesandvisionratherthanindaytodayimplementationissueswhichweredelegatedtoaCOO.Finally,moreinstitutionalizedboardmanagementsupporthelpedrestructurethewaysthatthemanagementcouldleveragetheboard’sexpertise.

31|P a g e

Figure14.Identityandtoneinterventions–institutingaplatformforchangebytacklingissuesstartingfromwithin

Source:IMAGO2017

Howwelldidthiscombinationofprocedureswork?Wedonothaveacausalestimatefortheexactimpactofthisapproachthusfar;however,Figure15showsthatRUDIbensalesduringthetimeperiodoftop-downtargets(before2015),centralizedauthority,andtensionsinindividual,profit-orientedidentityversuscollectiveidentityincreasedslightly,butremainedmostlystagnant.EvenwhileIMAGOworkedwithRUDIleadershiponbusinessstrategyandmodelingin2014,thisbottomlineremainedlargelystagnant.However,therewasalargepickupin2015-2016,duringthetimeinwhichidentityandtone-basedworkwasintegratedwiththebusinessprocesswork.Whilethisdoesnotdemonstrateacausallink–moreinformationonotherreasonsthattheannualsalesmayhavechangedisneeded-thedocumentationofIMAGO’sworkoverlaidonthesalesnumbersprovidesapotentialpositiveindicationofthework.Figure15.AnnualsalesbyRUDIbens(INR)withphasesofIMAGO-RUDIinteractions

Source:RUDIaccountinginformationandIMAGO,aggregatedbyauthors.

Diggingindeepertothe2015-16changes,weobservedhowtheidentityandtoneworkmanifestedinchangesinstructureandaction(seeFigure16).Forexample,initialstepsweretakentorecruitanewCOO,changeincentivestoalignwiththeRUDIbens’motivations,co-createamodelforanewdatasystem,businessmodel,andaccountingsystemandmarketingstrategy.Thesestepsweretakenthistimeafterthe“IamRUDI”collectiveidentitywasbroughtout–leadingtodeeperco-creationbetweendifferentlevelsoftheRUDIandSEWAhierarchy.Mostimportantly,theRUDIbensbandedtogethertoproposeandhavetheBoardapprovenewtargetsthatweremoremanageableandlessstressfulforthem–ratherthansalesturnover,theysuccessfullyshiftedthetargetstothenumberofRUDIbens,whichmademoresensegivenwhereRUDIinitsimplementationandgiventheRUDIbens’otherresponsibilitieswithinSEWA.

32|P a g e

Figure16.Structureandactionshifts

Source:IMAGO/RUDIcase

Figure17showsthatbetween2014-15and2015-16,enterprisewidesalesturnoverdoubled,paralleledbyadramaticincreaseinaveragesalesperRUDIben.ItisnotablethatsalesperRUDIbenactuallyrosesubstantiallywhentherewasashiftfromtop-downtargetsofsalesturnovertothebottom-uptargetsofnumbersofRUDIbens.

Figure17.Diggingintotheincreaseinsalesfrom2014-15to2015-16

Source:IMAGO/RUDIcase

Inworkingthroughthisfirsttension,akeysecondtensionemerged:theM&E,technical,andlearningsystemswithinRUDIandSEWAwerestillnascent–makinggettingrigorousinformationabouteachprocessanditsimpactdifficultforbothRUDItolearnfrom,andIMAGOtoevaluate.Hence,wecouldnotdiginfurtherintothestructureandaction,norintofullyrigorousevaluationandreflectionontheidentityandtonework,withoutmoreorganization-widedataabouttheentireRUDIplanningandoperationalprocesseseachmonth.

33|P a g e

Stage3(2016-ongoing)–Supporting M&E, technical, and learning systems

AreRUDIbensrespondingtobothsupplyanddemandwhenprocuringtheproduceforlocalcustomersefficiently?Istheprocessingcenterprocessingordersefficiently–ontime,accordingtosupplyanddemand,usingthesamemethodforpackagingeachtypeoforderandgeneratingpayslips?DoRUDIbensincertainareasachievehighersalesthaninothers?Isproducebeingsoldatpeakpriceformarketlinkages?By2017,SEWA’sInformationandTechnology(IT)teamwasalreadyexperimentingwithtrainingRUDIbenstousecellphonestocollectinformationonorders,andprocessingcenterbenstousethisinformation.TheITteamhadalreadyworkedwithasoftwaredevelopertocreateamoreuser-friendlyandhuman-centeredphoneapplicationforcollectinginformationbasedonampleinteractionswithRUDIbens.However,penetrationwasstilllowandtechnicalproblems(suchasconnectivity),capacitychallenges(suchasreadinganddigitalliteracy),andimportantly,entrenchedplanningmethods(anunderstandingofhowtousedataaboutsupplyanddemandtochangeplansormakepositivedeviations)hinderedthepermeationofadvancedbottom-uplearningsystemsforgrowth.

Inparticular,thoughtrainingsforroll-outhadbeendoneacrossRUDI,saturationofthetechnologywasstillaroundlessthan30percent,withhighvariabilityacrossdistrictteams.Withthisinmind,IMAGObegantoinvolvetheexpertiseoftheSEWAManagementSchool(SMS)andtheknowledgeoftheRUDIbensandprocessingcenterbensabouthowtheygoabouttheirdailywork,andwhatcouldmakeitbetter.Wethesetwostakeholderstogetherinpilotworkshopsonhowtechnologyanddatasystemscouldcascadedownandcreateorganizational-widetransformation–whichwillthenbeheldineachRUDIdistrictandisongoing.TheprocessofeffectivelyleveraginginternalteamswithinSEWAandthegrassrootsexpertiseoftheRUDIbensthemselvestomeasureandexchangeinformationisongoinginitsplanningandintervention.

Source:PhotoofRUDI’sRSVapplicationforinputtingorders,co-developedbySEWA’sITteamandanexternalcontractor;Ahmedabad,2017.

34|P a g e

LessonsforIIARSomeofthemainlessonsfromtheworkwithRUDIfortheapproacharedistilledinBox5.Box5.LessonsfromtheRUDIworkforIntegratedIdentity-basedActionResearch

Source:IMAGO/RUDIcase

6. DiscussionThisarticleisaninitialexplorationoftheissuesaroundacentralsetofdevelopmentproblems:howtotacklethepersistentchallengeofthe“missingmiddle”betweentheBoPandlarge-scaleformalmarketsandorganizations.Thespecificfocushasbeenontheroleofgrassrootsvalue-basedorganizationsinsupportingtheeconomicactivitiesoftheirmembersthroughcommunity-basedenterprises,inthedomainofself-employedwomenentrepreneurs.However,webelievethestructureoftheapproachemployedherecanapplytoothermissingmiddles,includingbetweengrassrootsactivityandgovernmentactioninvariousdomainsofsocialandeconomicdevelopment.Below,werevisittheinsightsoftheworkandoutlinesomeimplicationsforbothinterpretation,andforthepracticeofdevelopmentengagementbydifferentactors.TheworkhereisareflectionofanengagedparticipationwithSEWAandRUDI.Atthisstageweseethisasacontributionontwofronts:aconceptualizationoftheissues;andanaccountofamethodologicalapproachforeffectiveandprincipleengagement—whatwehavecalledIntegratedIdentity-basedAppliedResearch.Thecaseprovidesillustrativematerial,butisnotyetanempirical“testing”orevidenceoftheimpactofthismulti-layeredapproach.Withrespecttothebroadquestionofinterpretingdevelopment,IIARsharessomeofthespiritofotherworkonhowtoexploreandinterpretcomplex/wickeddevelopmentproblemse.g.theinvestigativepartofProblemDrivenIterativeAdaptation(Andrews,PritchettandWoolcock,2017).Othershave

35|P a g e

emphasizedtheroleofidentityinsocialorganizations(e.g.SeelosandMair,2017).IIARgoesfurtherthantheseinbyarticulatingtheexplicitsystematicintegrationofmethodsfromorganizationalpsychologyandadaptiveleadershipwitheconomicandbusinessanalysis,andtherecognitionthatthetechnicalwithoutthepsychological,orviceversa,oftenfailsexplicitlybecauseofthelackofworkacrosssectors.Forthemethodologyitself,theprocessoffurtherdevelopmentthroughfieldworkanddocumentationisongoing.Akeylearningfromthiscaseistheimportanceofworkingouthowto(collaboratively)developmonitoringmechanismstotrackchangeearlyintheprocess.Theempirical“weakness”ofthecase,byconventionalstandards,reflectsthis,thoughwebelievethatitispreciselybecausemanyorganizationsfacethisissuethatthetensionsdiscussedherearevastlyunderstudiedandthusunderrepresentedinthecurrentdiscussionsandliteratureaboutdevelopmentprojectsbetweengrassrootsorganizationsandgovernmentsorothertop-of-the-pyramidactors.Wealsoarguethatforthistypeofproblemandorganization,startingwithatightlyfocusedRCTorsimilarapproachwouldderailpotentiallyimportantsolutionsgeneratedpreciselythroughmorecomplexhuman-centeredprocessesthatthedevelopmentindustryhasnotyetdevelopedgoodinstrumentstomeasure.However,thereisnodoubtthatthereisneedtomakeuseofsuch“rigorous”techniquesastheprocessunfolds,andspecificissuesemergethatareappropriatetosuchmethods.ThisrecommendationistosomedegreealignedwithshiftswithinthecoremovementtoseeingRCTsaspartofaprocessofexploration(Banerjeeetal2017),andabridgebetweenPauloFreireandthecontemporaryevidencebasedmovementindevelopment.Finally,italsolendssupporttoJeanDreze’snote(Dreze2018)emphasizingtheimportanceofbothaudienceandinterpretation–IMAGO’sapproachisfirstandforemostBoP-centric,ratherthantop-of-the-pyramidcentric,meaningthatweco-createditwhileworkingexplicitlyinthefieldwithagrassrootsorganizationanditsimplementers,withtheaimofsupportingtheirgoals.Theinterpretationsandprocessesmentionedhere,then,comefromthatperspective.Webelievethattheseoftenaremissingfromtheliteratureanddiscussionsindevelopment,givenadifferenceinaudienceandtheaforementioneddifficultyinwritingquantitativelyaboutcommunity-based,human-centered,oftenpsychologicalelementsoftheseprocesses.Wethenseetheapproachdevelopedhereashavingimplicationsforthecastofdevelopmentactors:Forgrassrootscivilsocietyorganizations,itiscriticaltorecognizethecentralityofmethodologicalintegration--theneedtoexplicitlycombinebusiness-styleapproachestoscalingsystemsfindingmarketsandsecuringrevenues,withdeepattentiontohowtosustainvaluesandadaptorganizationalcultureswithoutundercuttingtheircoreprinciples.However,webelievethatthiscanrarelybedonealone—thatthistransformativeprocesstypicallyneedsexternalcatalysts–analogoustotheirroleinprovidingcatalystsforpersonaltransformationsoftheirmembers.Theroleforintermediaryorganizationsisunder-appreciatedinthedevelopmentcommunity(GuerreroandCooley,2016),andthiscaseandapproachhighlightsaclearspaceforthem.Fortheaidandphilanthropiccommunity,thiscaseunderscoresathemeofmanyobservers(includingAndrewsetal)—thatcomplexproblemsrequireanexploratory,interactiveandoftenlongertermapproach.Wehaveaddedtothisinarticulatingtheneedtoengagewiththeidentityandcultureoforganizations—andespeciallysowithgrassrootscommunitybasedorganizations.Thisprocessinvolvesdiagnosisofthecharacteroforganizations—wheretheylieonthespectrumfromonesdeeplybasedonvaluesandmobilizationtothosethatprimarilytransactional.Thisdiagnosiscaninvolveprovidingsupportfortheintermediationfunctionthatisoftenakeyelementoforganizationaltransformation.For

36|P a g e

thissamecommunity,recognizingthatimportanceofhuman-centered,identity-basedandpsychologicalelementsofmanydevelopmentprocessesalsoleadstoanotherimportantconclusion–theseneedtobeengagedwith,writtenabout,discussed,andstudiedmore–bothfromtheperspectiveofdevelopingmorerigoroustoolstomeasuretheseprocesses,butalsofromthatofcontinuingtocollectanddiscusslearningsfromtheseprocessesqualitativelyratherthanglossingoverthemorskippingthementirelyindiscussionsofprogramdesign,implementationandimpact.Itisonlyoncefundsareallocatedtostudyingtheseprocessesthatotheractorswillbegintoinvestigateandimplementthem.Forgovernments,ouranalysisisacomplementtotheworkofMansuriandRao(2012)onthedifficultyofinducingparticipation,bringingbackintheissueofhowtoengagewithgrassrootsorganizationthathavebeenmobilizedfromthebottomup.Thisisacentralcrux:governmentsonlyrarelypursueanapproachthathassimilaritiestothatdescribedhere(JEEViKA1,ortheKecamatanDevelopmentPrograminIndonesia).Yetgovernmentshaveordersofmagnitudemorereach.ThegovernmentinducedSHGmovementinIndiaisagoodexample.Itraisesaquestion:canmobilizedgrassrootsorganizationsplayaroleinsupportingthedevelopmentoftheirmoretransformativefeaturesingovernment-createdlocalorganizations?ForprivatesectoractorswhowanttogotheBoP,theanalysissupportsPrahalad’svision,providesinsightsandwhyithasbeenhardtoimplementanddirectionsforthefuture.Thiswillrequireclarityonwhetherthereisgenuinealignment(fromthecorporate’sstakeholders)oninvestingindevelopmentoffairreturnstoproducersinthevaluechain.Thenitiscriticaltorecognizethattodothiseffectivelyneedtounderstandandprovideresourcestoworkingwithgrassroots.

WorksCitedAndrews,Matt,LantPritchett,andMichaelWoolcock.Buildingstatecapability:Evidence,analysis,action.OxfordUniversityPress,2017.Appadurai,Arjun."Thecapacitytoaspire."Cultureandpublicaction:59-84.InVijayendraRaoandMichaelWalton(eds)CultureandPublicAction.StanfordUniversityPress.2004Banerjee,Abhijit,RukminiBanerji,JamesBerry,EstherDuflo,HariniKannan,ShobhiniMukerji,MarcShotland,andMichaelWalton."Fromproofofconcepttoscalablepolicies:Challengesandsolutions,withanapplication."JournalofEconomicPerspectives31.4(2017):73-102.Basu,Amrita,Ed.TheChallengeofLocalFeminism:Women’sMovementsinGlobalPerspective.WestviewPress:Boulder,1995.Battilana,Julie,andMatthewLee."Advancingresearchonhybridorganizing–Insightsfromthestudyofsocialenterprises."TheAcademyofManagementAnnals8.1(2014):397-441.Bénabou,Roland,andJeanTirole."Intrinsicandextrinsicmotivation."Thereviewofeconomicstudies70.3(2003):489-520.Bhatt,Ela.WearePoorbutSoMany:TheStoryofSelf-EmployedWomeninIndia.OxfordUniversityPress.2006

37|P a g e

Bridges,Kate,andMichaelWoolcock."How(Not)toFixProblemsthatMatter."PolicyResearchWorkingPaper;No.8289.WorldBank,Washington,DC.Brody,C,DeHoop,T,Vojtkova,M,Warnock,R,Dunbar,M,Murthy,PandDworkin,SL,2016.Economicself-helpgroupprogrammesforimprovingwomen’sempowerment:asystematicreview,3ieSystematicReview23.London:InternationalInitiativeforImpactEvaluation(3ie).Chakravarti,Uma."Beyondthemantraofempowerment:Timetoreturntopoverty,violenceandstruggle."(2008).Cooley,LarryandIsabelGuerrero.“TheBrokenPartoftheBusinessModelinTakingDevelopmentOutcomestoScale.”http://www.msiworldwide.com/wp-content/uploads/BrokenPart_final.pdf(2016).Dreze,John.“Evidence,Policy,andPolitics.”http://www.ideasforindia.in/topics/miscellany/evidence-policy-and-politics.html(2018).Fox,JonathanA."Socialaccountability:whatdoestheevidencereallysay?."WorldDevelopment72(2015):346-361.Groysberg,Boris,etal."TheLeader'sGuideToCorporateCultureHowToManageTheEightCriticalElementsOfOrganizationalLife."HarvardBusinessReview96.1(2018):44-52.Guerrero,IsabelandMichaelWalton.“WhyisitsoHardforOrganizationsattheBaseofthePyramidtoGotoScale?TheMissingMiddle”.http://imagogg.org/wp-content/uploads/2016/01/Why-Is-It-so-Hard-for-BoP-Organizations-to-Scale.pdf(2014)Kumar,Radha."FromChipkotoSati:ThecontemporaryIndianwomen'smovement."Boulder(1995).Menon,Nivedita,ed.GenderandpoliticsinIndia.OxfordUniversityPress,1999.Krishnamurthy,Mekhala.IntheShadowoftheState,intheShadeofaTree:ThePoliticsofthePossibleinRuralGujarat.HarvardUniversity,2002.Lincoln,YvonnaS.,andEgonG.Guba."Butisitrigorous?Trustworthinessandauthenticityinnaturalisticevaluation."Newdirectionsforevaluation1986.30(1986):73-84.McCreless,Michael.“TowardtheEfficientImpactFrontier”StanfordSocialInnovationReview.Winter2017Majumdar, Shruti; Rao, Vijayendra; Sanyal, Paromita. On the frontlines of scaling-up : a qualitative analysis of implementation challenges in a CDD project in rural India. Policy Research working paper 8039. World Bank Group, 2017 Mansuri,Ghazala,andVijayendraRao.Localizingdevelopment:Doesparticipationwork?WorldBankPublications,2012.Moore,ErinP.Gender,law,andresistanceinIndia.UniversityofArizonaPress,2001.

38|P a g e

Parthasarathy,Ramya,VijayendraRao,andNethraPalaniswamy.“Deliberativeinequality:atext-as-datastudyofTamilNadu'svillageassemblies.”PolicyResearchReport8119.TheWorldBank,2017.Parthasarathy,Ramya,VijayendraRao,andNethraPalaniswamy.“Unheardvoices:thechallengeofinducingwomen'scivicspeech.”PolicyResearchReport8120.TheWorldBank,2017.Rai,ShirinM."GenderandGlobalisationandWomen'sActivism:CriticalEngagements."Law,SocialJusticeandGlobalDevelopment1(2001):2001-1.Rangan,V.Kasturi,andRohithariRajan.UnileverinIndia:HindustanLever'sProjectShakti-MarketingFMCGtotheRuralConsumer.Boston,MA:HarvardBusinessSchool,2007.Sanyal,Paromita,VijayendraRao,andUmangPrabhakar."OralDemocracyandWomen'sOratoryCompetencyinIndianVillageAssemblies:AQualitativeAnalysis."(2015).Satterly,Amanda."TheSimpleInterventionThatIncreasesWomen'sEmpowerment."Technoserve,29Mar.2016.Web.17Aug.2016.<http://www.technoserve.org/blog/the-simple-intervention-that-increases-womens-empowerment?utm_&&&>.Scharmer,C.Otto.TheoryU:Learningfromthefutureasitemerges.Berrett-KoehlerPublishers,2009.Seelos,ChristianandJohannaMair.InnovationandScalingforImpact.StanfordUniversityPress.2017Sen,Amartya.CommoditiesandCapabilities.OxfordUniversityPress,1985_____DevelopmentasFreedom.OxfordUniversityPress.1999Shah,Tushaar."FarmerProducerCompanies."Economic&PoliticalWeekly51.8(2016):15.Shetty,Niriksha.“ExploringBarrierstoScaleforWomenEntrepreneursinIndia.”HarvardKennedySchool,2018.Singh,Sukhpal,andTarunvirSingh."ProducercompaniesinIndia:astudyoforganisationandperformance."DraftreportsubmittedtoMoA,GoI.IEG,Delhi(2012).Taborga,Jorge."LearnerPapers:HoworganizationalarchetypesmanifestateachleveloftheGravesianvaluesystems."(2011).

39|P a g e

Appendix1.RUDI’soperationsAsitscoreactivity,RUDIsourcesandsellsgoodsprocuredbySEWA’smembersbacktoruralhouseholds.FigureA1illustratestheprocessbywhichRUDIoperatesindetail.

FigureA1.RUDI’soperationalprocess

40|P a g e

Appendix2.Developmentprograms,cultureandempowermentHow,then,candevelopmentprogramsimproveempowermentinculturalcontextswithdeeplyembeddednorms,values,andhabitus?Sanyal,RaoandPrabhakar(2015)documenthownew“culturalconfigurations”werecreatedbyJEEViKA–aWorldBank-assistedpovertyalleviationprojecttargetedatwomeninruralBihar,beginninginsixdistrictsin2006andprojectedtocoverall38districtsofthestateand12.5millionhouseholdsby2022.Atamid-pointintheprogram’simplementation,Jeevikagaveeconomicallyandsociallydisadvantagedwomenboth“accesstoawell-definednetworkofpeopleandnewsystemsknowledge,whichchangedwomen’shabitusandbrokedownnormativerestrictionsconstitutiveofthesymbolicboundaryofgender”(Sanyal,RaoandPrabakhar2015).Inparticular,by“givingwomenprivilegedaccesstoa)symbolicresources(thatfacilitateformationofanewidentityanchoredintheSHG,ratherthancasteorkinship,”–similartoKrishnamurthy’sdocumentationofwomenfindinganalternativeidentityinbeingnariadalatsaathins,andcreatingaparallelinstitutiontocaste-basedkhappanchayatsinruralGujarat–“b)physicalresources(suchasgroupmoney,accesstocreditandpassbooks),andc)anassociatedinstitutionalenvironment(SHGs,VOs,CLFs,etc),Jeevikacultivatednewculturalcompetenciesandcapabilitiesthatdefiedthetraditionalconventionsofgender”(Raoetal2015).Itispreciselybyusinganintegrativeviewofculture,andatheoryofchangethatgoesbeyond“figuringouttheoptimalmixofcosts,incentivesandinformationthatcannudgeindividualstobehaveindesiredways”–inparticularastrategythatincludes“anefforttounderstandthesociologicalunderpinningsofbehaviorsandthenegotiatedrelationalprocessesatthehouseholdandcommunitylevelsthatareanintegralpartofsuchchanges,”thatJeevikahasflourishedasbothadevelopmentprogramandsocialempowermentmechanismforwomen.Mixingtheeconomicandtheempowerment.However,therehavealsobeenmanysuccessesinformingandpromotingwomen’sinstitutions–andevidenceshowsthatinstitutionsformedthroughthewomen’smovementcanhavepowerfulimpactsdueverymuchtoitscontextualunderstanding,solidarity,andsocialnetworks.Today,women’sgroups(oftenbeginningasclustersofSelf-HelpGroups,orSHGs)acrossIndiaareincreasinglybeingformed,fundedandscaled,partneredwithandincorporatedintoprogramming,bymultilaterals,governments,NGOsandtheprivatesectorforavarietyofsocialandeconomicoutcomes.Insomestates,theyarealsobeingusedasformalinstitutionsthroughwhichtoincreasepoliticalparticipationanddecentralizedwelfareprogrammingforwomen.Asystematicreviewofeconomicwomen’sself-helpgroups(fromstudiesbetween1980and2014)showspositiveeffectsonvariousdimensionsofeconomic,social,andpoliticalempowerment;italsopointsoutimportantvariationsintheimpactsofSHGsonempowermentassociatedwithprogramdesignandcontextualcharacteristics(Brodyetal2016).Themainchannelsassociatedwiththepositiveeffectsincludefamiliaritywithhandlingmoneyandindependenceinfinancialdecisionmaking,solidarity,improvedsocialnetworks,andrespectfromthehouseholdandothercommunitymembers.Importantly,though,qualitativeevidencealsoindicatesthatwomenperceivetheretobelowparticipationofthepoorestofthepoorinSHGs,ascomparedtolesspoorwomen–theauthorspositthatthissuggestspotentiallyevenhigherbarrierstojoiningbasedonclassorcaste,financial/socialbarrierstobenefittingfromthetypesofservicesprovidedthroughSHGs,and/orlowerfeelingsofbeingacceptedbygroupsmadeupofwealthierormorewell-connectedcommunitymembers.Notably,theyfindnoevidenceforpositiveeffectsonpsychologicalempowerment.Theauthorsstatethat“thisreviewhasshownthatone-sizedoesnotfitall,andwhileitisimportanttotakebestpracticesacrossprogramsforimplementation,thismeansthatflexibilityisrequiredtoadaptprogramssuccessfullyforthegreatestimpactinwomen’slives”(Brodyetal2016).

41|P a g e

Appendix3.SomeillustrationsofthemethodologyThisappendixprovidessomephotosfromthefieldtogiveasenseofthemethodologyinaction.Strategictensionsareidentifiedthroughanonymouspollingandthendiscussed(FigureA2).Issuesaroundaspirationsandtensionsaredevelopedthroughdiscussionswithfocusgroups,includingtheleadership.FigureA2.PollingwithclickersonstrategictensionsinruralGujarat

Source:IMAGO,fieldfiles.

FigureA3thenshowsaworkoutinwhichthewomenwereexploringtheirindividualarchetypes(Indianversionsof“warrior”,“sovereign”,“lover”,“magician”)mappedspatially,sothatitbecamepossibletoseetheoverallcompositionoftheteam.Thisisanentrypointtoexploreteamfunctioning,andareasofimbalancewithinateam.

42|P a g e

FigureA3SEWAwomenexploringpersonalitycharacteristicsintheirorganization

Source:IMAGO,fieldfiles.

FigureA4illustratesaroleplay—infactthisistheonereferredtointhediscussionoftensions,inwhichabribe-seekingsupervisorofaprivatecontractorwascreatingacutetensionswithinSEWA’sconstructionworkerscoop.Theroleplay(withvividportrayalsofthesupervisor)couldnotresolvetheexternalsituation,butbothallowedinternaltensionstobeworkedthrough,andprovidedthebasisforprovisionofmutualsupportinmanagingthecontract.

43|P a g e

FigureA4.RoleplaywithwomenfromSEWA’surbanconstructioncooperative

Source:IMAGO,fieldfiles.