Co-op Learning Opportunity: Enhancing Business Performance through Co-operative Management Practices
We’d like to draw attention to a great co-operative learning opportunity for our co-op members. Run by St Mary’s University of Halifax, Canada in conjunction with the Co-operative College and Sheffield Hallam University and hosted by the Co-operative Group, this three-day Executive Education Course takes place in Manchester in May 2017.
SAOS’ Deputy Chief Exec, Bob Yuill (who is an alumnus of St Mary’s), will be taking part in one of the panel discussions during the course.
Enhancing Business Performance through Co-operative Management Practices: How to Strengthen Identity, Loyalty and Participation
About the course:
An interactive professional development opportunity focused on leading thinking in co-operative management coupled with tangible examples of how to translate knowledge into action. We encourage senior managers, CEOs and board members to join us for this learning and networking event.
Date and Location:
May 17-19, 2017 (Manchester, UK) – in partnership with the Co-operative College and Sheffield Hallam University and hosted by the Co-operative Group
- Coffee and pastries in the morning, health breaks, and lunches are included.
- Day 1 (evening): A complimentary group dinner will be hosted at a local restaurant for all course participants.
Some course fee subsidies are available on the basis of financial need.
The course content is enriched through the partnership among Saint Mary’s University, the Co-operative College, and Sheffield Hallam University:
- Get yourself into gear with context setting including a historical perspective on the co-operative movement and model combined with how current day co-operative enterprises fits within a wider social solidarity economy.
- Learn how to manage the co-operative equilibrium. The focus is placed on a model that captures the uniqueness of co-operative organizations, building on the dual nature of a member’s usership and ownership. We will address issues of core values and their purpose, the co-operative business model, and balanced scorecard to lead into discussion of a co-operative equilibrium. Emphasis is placed on the alignment from co-op values to key performance indicators. Cases of cooperatives successfully managing partially or totally this equilibrium will be discussed.
- Move from a potential identity crisis to the New Co-operative Paradigm (NCP). The traditional co-operative model is being challenged leading to an identity crisis. A model to better understand this reality will be introduced, taking into consideration both co-operative rules and market rules. In response to this state of crisis, a NCP is being proposed, showing how the emerging market rules can be of great advantage to co-operatives. Examine case studies and deep dive into implementation success stories such as the customer orientation strategy.
- Gain exposure to emerging concepts in the field of management and governance in the context of co-operative enterprises. Explore the theory on new types of co-operative business (e.g. social and solidarity co-operatives). This course will provide you with tools to better understand the existing culture in your co-operative along with techniques that promote engaged participation by members.
- Course Facilitators/Instructors: Daniel Côté and Karen Miner in all locations and the addition of Rory Ridley-Duff, Cilla Ross, and Simon Parkinson in Manchester UK.
Executives in Residence: Guest presenters will provide additional diversity into the course content to complement the expertise of the course instructors and participants.
For more information go to www.ManagementStudies.coop or contact Erin Hancock at email@example.com
The SAOS Spring Update reports on our conference and provides members’ news and our own work. Printed copies are heading out this week, or get a sneak preview here:
You can view our other SAOS Updates here.
SAOS received positive responses from both the Scottish and UK Governments to proposals for stronger alignment of farming and supply chain policy and strategy after the UK leaves the EU. If adopted, co-operation, collaboration and innovation would be incentivised in farming and supply chains, helping to improve market responsiveness and increase competitiveness. The proposals were sent to Scottish Government ministers Fergus Ewing MSP, Cabinet Secretary for the Rural Economy and Connectivity; Mike Russell MSP, Minister for UK Negotiations on Scotland’s Place in Europe; David Mundell MP, Secretary of State for Scotland; and George Eustice MP, Minister of State at the Department for Environment, Food and Rural Affairs.
James Graham, SAOS Chief Executive, said: “The prospect of a new agriculture policy provides an excellent opportunity to correct some of the things that we feel have constrained the expansion of co-operation across more of Scotland’s farming. It is clear in the responses from government Ministers, and in follow-up discussions, that our vision of better-organised farmers working together to meet the supply chain and drive farm innovation is being fully considered, along with the policy measures that would generate the kind of changes that are required.” Some of the most important proposals are detailed below. The full text of SAOS’ submission to the Scottish Government can be viewed here: Leaving the EU – Submission of Views to Scottish Government .
Incentivising Innovation and Co-operation
SAOS has proposed that agriculture policy should provide for funding to Producer Organisations across all sectors of agriculture to support innovation programmes. This method of stimulating innovation has been used to good effect in the fruit and vegetable sectors, leading to the introduction of new farming systems and supply chain processes. Approved ‘operational programmes’ designed by each PO attract grant at a rate of either 50%, or equivalent to 4.1%, of the value of marketed produce. James Graham states: “This sets a precedent and exemplar for how to channel and target grant funds to agriculture in future.”
A Legal Right for Farmers to Negotiate Collectively
A legally-backed obligation should be introduced on large scale buyers of farm crops and livestock to recognise the right of farmers to negotiate terms collectively with them, when organised in appropriate forms of producer organisation or co-operative. The possibility of farmers collectively and co-operatively negotiating with buyers has been denied in important sectors where there is imbalance in negotiating positions, closing off opportunities for fairer terms and increased transparency. According to James Graham: “The absence of a legally-backed obligation is acting as a constraint to supply chain improvements. This might be achieved by extending the role of the Groceries Code Adjudicator to the trading relationships between farmers and large scale buyers, backed by powers to review and impose sanction where poor practice is found to be evident.”
Link Capital Grants with Supply Chain Improvement
An obligation to engage in supply chain improvement programmes including the primary sector should be a condition of all grant awards where Scottish primary produce is to be used in the resulting plant and processes. James Graham continues: “This would enhance the alignment of strategy amongst the primary and food manufacturing sectors. Every supply chain improvement programme we have facilitated has yielded commercial benefits for all involved. We need to encourage more.” The current SRDP Food Processing, Marketing and Co-operation Grant scheme enables critically important investment to proceed, helping to mitigate investment risk and reduce investment pay-back times.
Co-operate for Farm Resilience
Expert knowledge and facilitation should be available to continue innovation for greater farming resilience through co-operation. According to James Graham: “Agricultural co-operation delivers opportunities for risk management and enhanced farm resilience in a wide variety of ways. Within a single co-op, farmers may currently access ‘futures’ contracts (in some products), participate in long-term customer contracts, accumulate mutually held funds to use in volatile price cycles, participate in supply chain improvement programmes, identify and develop new markets, manage harvest risks, introduce innovation on farm, forward purchase inputs and diversify. Through co-operation, we have the foundations on which to build more sophisticated risk management systems.”
James Withers, Scotland Food & Drink
“We are in control of more than we think” according to James Withers, speaking at the SAOS conference on 26th January. “We are in control of our ambition, our vision and our strategy. We control our brand and our market development activities. And we control the way we work together to achieve our aims.” James added that: “Every positive development that happens in food and drink stems from collaboration and co-operation.”
Speaking to more than 100 directors of Scotland’s agri co-ops, James pointed out that the provenance credentials and integrity of the Scottish brand is what distinguishes Scotland’s products from competitors and generates demand and value: “Scotland’s brand – our reputation and behaviour as a food and drink producer – is extraordinary. Others would beg for our asset”. However, with the exception of Scotch whisky, Scotland currently depends on too few markets around the world, with 80% of food exports destined for Europe, and only 7% each to Asia and North America.
Suggested “building blocks” for the future included a strategic “three market approach” (UK, EU, global) formulated from market intelligence, and aided by investment in supply chain collaboration, innovation and skills.
Tom Hind, AHDB
“The landing zone is clearer, but there is still massive uncertainty” was Tom Hind’s observation following the Prime Minister’s January speech on Brexit negotiating objectives. However, seeking a free trade agreement outside the single market or the customs union would take more than two years, and an interim agreement would be necessary to avoid a ‘cliff edge’ exit from the EU. This matters because of the level of tariffs that the EU levies on imports from third countries. However in the event of a ‘hard Brexit’, farm prices could rise in the short term, as UK products displace EU products in the UK.
Tom pointed to “significant global opportunities, if we can compete” in areas of the world where there is a growing, prosperous middle class. This meant predominantly Asia-Pacific countries.
In considering future agriculture policy, Tom emphasised the need to build resilience in the face of greater competition and declining financial support, suggesting that there could be a greater role for co-operation and co-ops. Other issues to resolve include the extent to which there will be a common UK-wide policy framework, and the level of budget priority afforded to agriculture.
James Graham, SAOS
“To connect Scotland’s farmers with food and drink manufacturers more effectively, we need much closer alignment in future policies, strategies and resources”, was the message from James Graham. SAOS has submitted a series of proposals to the Scottish and UK Governments that suggest how this might be achieved. The key points included:
- Deepen policy alignment and action via Scotland Food & Drink
- A legal right for farmers to negotiate collectively with scale buyers
- Remove competition law ambiguities relating to the legality of co-operative selling
- Access to grants for innovation via POs and co-ops across all sectors
- Link capital grants with supply chain improvement back to farms
- Farmer Co-operation – invest in expert knowledge and facilitation
- Supply Chain Improvement – invest in expert knowledge and facilitation
- Invest in rural infrastructure, connectivity and communities.
The full text of SAOS’ submission to the Scottish Government can be viewed here: Leaving the EU – Submission of Views to Scottish Government .
SAOS Conference 2017 was focussed on Brexit and Co-op Priorities for the Next Five Years.
We heard fascinating insights from Tom Hind, Chief Strategy Officer at AHDB on ‘Brexit Implications for Agriculture and Trade, and then from James Withers, Chief Executive of Scotland Food and Drink, on ‘Opportunities for Scotland’s Food and Drink Industry’. Their presentations are below.
We also heard from one of our panel session members, Trevor Lockhart, Chief Executive of Fane Valley, on ‘Motivating Staff Through a Time of Change’.
Morning Forum sessions
One of the morning forums was run by SAOS’ Head of Co-op Development Team, Jim Booth who looked at ‘Validating the benefits of Co-op Membership’ along with Mark McBrearty of NFU Mutual.
The other morning forum was hosted by Alan Stevenson, SAOS’ Supply Chain Development Director, together with Ian Watson of Farm Stock Scotland Ltd, and Stephen Cameron of Scottish Shellfish.