NucleusInternational net Nucleus Approach The ideas and strategies

Nucleus-International. net Nucleus Approach The ideas and strategies below the surface 04/2008 Nucleus-International. net 1

The Ideas of the “Nucleus Approach” Organizational Development of Chambers Empowerment of Entrepreneurs Costs & Finances Economic Development Project Design Nucleus Development of Leadership Sustainability Auto-dynamic Processes Learning Platform Democratization of the Society 04/2008 Nucleus-International. net 2

1 Organisational Development of Business Chambers & Associations 04/2008 Nucleus-International. net 3

Organisational Development is … • A planned process to change – the behaviour, attitudes and capacities of the actors in the organisation – the culture of the organisation – the organisation, communication and decision structures – the strategies • Objective: To improve the internal and external efficiency of the organisation 04/2008 Nucleus-International. net 4

Some basic elements of OD • Organisation members’ participation – in identifying problems – in developing solutions – in implementing changes • A moderator / consultant accompanies the process • OD is a learning process within the organisation 04/2008 Nucleus-International. net 5

Prerequisites to start an OD process • The will – to learn – to change the chamber • due to – internal / external problems or – new visions 04/2008 Nucleus-International. net 6

Prerequisite to start an OD process future situation • A problem: + negative situation, the organisation suffers vision desired situation - current situation • A vision: problem current situation 04/2008 adequate situation, but the organisation wants to improve more Nucleus-International. net 7

Questions • Do your chambers suffer in a way that they want to change their organisation ? • Do they have visions? Do they have ideas where they want to be in 5 or 10 years ? 04/2008 Nucleus-International. net 8

Chambers are highly complex organisations … • Board and staff members change frequently. – With their exit the new knowledge exits frequently too. It is not transferred to the successors Common rules: Every chair person has the absolute right - to start again on level zero - to repeat all the mistakes of the predecessors 04/2008 Nucleus-International. net 9

Chambers are highly complex organisations … • The motivation of the honoraries range between Altruism Egoism In favour of the development of members / economy / town / society In favour of own personal, economic, political interests We cannot - and it is also not our task - change persons 04/2008 Nucleus-International. net 10

Chambers are highly complex organisations … • Chairperson & board members apply in the chamber the same management style which they apply in their own enterprise – Independently whether this style is appropriate in the chamber or not The “centraliser” does the same in the chamber (Therefore, a MSME is often not the best chair person) Owners of bigger enterprises have eventually a more team leading / decentralized style 04/2008 Nucleus-International. net 11

Chambers are highly complex organisations … • In the enterprise the most important for success is the quality of the decision – This means often a one person decision • In the chamber the most important for success is the feeling of board & chamber members that it is their decision – i. e. : Participation This means compromises which can lead to second best decisions 04/2008 Nucleus-International. net 12

Chambers are highly complex organisations … • In the enterprise exist clear responsibilities – Decisions affect the existence / the family directly – In case of crisis the entrepreneur cannot run away • In the chamber do not exist clear responsibilities – Decisions do not affect the existence / the family directly – In case of crisis the entrepreneur can stay away without severe consequences There is an element of “institutionalised irresponsibility” in organisations led by honoraries 04/2008 Nucleus-International. net 13

Development Stages of a Business Chamber 04/2008 Nucleus-International. net 14

Development Stages of Chambers 04/2008 Nucleus-International. net 15

Development Stages of Chambers 04/2008 Nucleus-International. net 16

Development Stages of Chambers 04/2008 Nucleus-International. net 17

Development Stages of Chambers 04/2008 Nucleus-International. net 18

Development Stages of Chambers 04/2008 Nucleus-International. net 19

Development Stages of Chambers 04/2008 Nucleus-International. net 20

Development Stages of Chambers 04/2008 Nucleus-International. net 21

Development Stages of Chambers 04/2008 Nucleus-International. net 22

Development Stages of Chambers 04/2008 Nucleus-International. net 23

Development Stages of Chambers 04/2008 Nucleus-International. net 24

Organisational Development: The traditional chamber DO approach Assumption : Who knows better acts better! Chamber Board Consulting Training Instruments: - equipment / grants - administration costs / grants - consulting - training Objective: Increased - information organizational - etc. efficiency 04/2008 Nucleus-International. net Staff Members 25

But. . . • The assumption is wrong: – Who knows better does not automatically act better! – One needs always a supportive environment which motivates to use the new know how. Otherwise it will not be applied 04/2008 Nucleus-International. net 26

Results • The project contributes to some repairs under the existing paradigm – This means: The “Business Club” remains a “Business Club” and does not change into a “Professional Service and Lobby Institution” • Effect : No sustainability – I do not know one Chamber-OD-Project where this traditional approach caused successfully long time sustainable effects … 04/2008 Nucleus-International. net 27

Organisational Development: The Nucleus Approach • The first objective of the “Nucleus” Approach is not the promotion of SMEs but the organizational development of business chambers and associations 04/2008 Nucleus-International. net 28

Chamber-OD under the Nucleus Approach Change of the relationship between the actors In ter ve nt ion Board of Directors n e v er t n I Members / Nuclei Employees 04/2008 n o ti I n t Nucleus-International. net 29

The goal • Change of the relationship – creation of a positive, constructive “tension” between the Chamber’s actors Members start to request, propose, participate, press Ø Employees start to orientate towards the members Ø The chairperson / board of directors start to negotiate with members / Nuclei and employees Ø 04/2008 Nucleus-International. net 30

Society / Government A Business Chamber Lobby Chairman Board CEO Employees Public Relations Administration Services Members 04/2008 Nucleus-International. net 31

Society / Government Start of Nuclei Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net 32

Society / Government New employee: counsellor Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net 33

Society / Government New tasks for the CEO Lobby Chairman Board CEO Public Relations Employees Administration Services 04/2008 N Members Nucleus-International. net 34

Society / Government New services: counselling training information support Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net 35

Society / Government New type of relationship among members Lobby Chairman Board CEO Employees 04/2008 N NN N Members Nucleus-International. net Public Relations Administration Services N 36

Society / Government More members: more tasks for the administration Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net N 37

Society / Government New tasks regarding Public Relations Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net 38

Society / Government New tasks for chairperson and board Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net 39

Society / Government New goals and tasks in terms of lobbying Lobby Chairman Board CEO Employees Public Relations Administration Services 04/2008 N Members Nucleus-International. net 40

Society / Government At the end: everything is changing! Lobby Chairman Board CEO Employees 04/2008 N NN N Members Nucleus-International. net Public Relations Administration Services N 41

Result : Ownership • Members / Nuclei start to understand the chamber more as their organisation – They are the owners, not the board and the employees – They pay membership fee and therefore can complain and request services and quality When the chamber changes into a “Service Organisation” – a new paradigm – there are more chances for sustainability 04/2008 Nucleus-International. net 42

Logic of the Development of Chambers of Entrepreneurs Law of great number: the more members, the more influence Lobby in front of Government and other groups of the society Chamber Services Information / Consultation Training / Support More means to finance more and better services Higher attractiveness for Entrepreneurs More members pay more membership fees More Entrepreneurs apply for membership 04/2008 Nucleus-International. net 43

Chamber DO • Possible fields for interventions – Lobby - whom, in what, how to influence - planning of objectives and goals - public relations – Services - training - individual & group counselling in technology, business administration, legal affairs - information - other income generating services 04/2008 Nucleus-International. net 44

– Organisation & administration - management of organs, staff etc. - membership fees - member administration – Networking - other chambers - chamber – federation – confederation - public & private institutions 04/2008 Nucleus-International. net 45

2. The Nucleus: Learning Platform • We do not bother what the entrepreneur learns … • We only bother that the entrepreneur starts to learn … 04/2008 Nucleus-International. net 46

3. Sustainability • An unsustainable project Ar epa ir p SME level roje ct after g n ri du Project: SME improvement through interventions before Time 04/2008 Nucleus-International. net 47

Sustainability • An sustainable project SME level before after the process keeps going by itself g n i r Project: Creation of a learning du environment, start of an autodynamic development process Time 04/2008 Nucleus-International. net 48

This correspondents with concepts about the development of organisations • The institution as learning organisation continual improvement Know how traditional step by step improvement 04/2008 Nucleus-International. net 49

4. The Nucleus: Costs & Finances Instruments which the chambers and SMEs are not able to auto-finance one day are ineffective and do not lead to sustainable impact Chamber Individual Consulting of SMEs Effective but extremely expensive 04/2008 Group Consulting of SMEs Costs Less effective per SME but the costs can be financed by them Nucleus-International. net 50

5. The Nucleus: Economic Development • Many projects try to influence the development of the economy through the intense promotion of a small number of enterprises so that they prosper and grow • The Nucleus Approach tries to reach as many as possible enterprises through a “Nucleus Movement” – The individual enterprise may grow less – But changes of the total amount of enterprises may have a considerable impact on the economy, while using the auto-dynamic of the process 04/2008 Nucleus-International. net 51

The Nucleus: Economic Development SME Growth General Rule: In order to reach a visible and sustainable impact > do few things ! > but do them very intensively !!! Nucleus Approach 04/2008 Nucleus-International. net SME Quantity 52

6. The Nucleus: SME Empowerment Many people in the economy … Producer 04/2008 Businesspeople Nucleus-International. net Entrepreneur ? 53

The Nucleus: SME Empowerment • The Nucleus environment stimulates the economic actor – To gain more courage and self-confidence – To design and develop pro-actively his / her company – To develop ideas and visions … “I learned through my Nucleus that I am not only a producer of machines but also an entrepreneur!” D. Chandararatne, Dharshana Iron Works, Galewela, Sri Lanka. 04/2008 Nucleus-International. net 54

7. The Nucleus: Leadership Development • Chairpersons / board members are often not prepared to run the chamber when elected • In the Nucleus members and elected speakers /Nucleus presidents can learn how to deal with – Groups of entrepreneurs on the same level – All chamber businesses “The Nucleus, that is our school for future chamber leaders!” A Brazilian chamber president 04/2008 Nucleus-International. net 55

8. The Nucleus: Project Design • The traditional way of planning and implementing a project: – – Definition of a goal Elaboration of a set of instruments and activities Calculation of costs and financing Definition of necessary staff (donor, counterpart organisation, other participating institutions) and their qualifications – Start of the implementation. . . 04/2008 Nucleus-International. net 56

The Nucleus: Project Design • … followed often by frustrations that the actors – Counterpart staff – Chamber honorary and professional staff is not sufficient qualified for the application of the instruments and the implementation of the project “The project is good, but with these people … impossible …” 04/2008 Nucleus-International. net 57

The Nucleus: Project Design Development of the project design Instrument s Goal Staff Definition of the goal & selection of instruments under consideration of the capacities of the staff 04/2008 Nucleus-International. net 58

The Nucleus: Project Design • Results: The counterpart staff is after a short time – capable to disseminate the messages, – train others and – accompany the implementation of activities 04/2008 Nucleus-International. net 59

The Nucleus: Project Design • Results: Newly contracted chamber counsellors – – – 04/2008 with a certain personality but with limited professional capacities, whose salaries the chambers are able to finance, trained very fast in moderation and group working, can Ø organise the Nuclei, Ø learn and Ø step-by-step grow with them Nucleus-International. net 60

9. The Nucleus: Democratization • Raul, Fundasol, Uruguay: “This means you want to democratise business chambers? “ – Democratisation: participation, actively decision taking, influence the social / economic environment, bottom-up movement • Answer: “Yes …. But pssst, do not talk about it!” 04/2008 Nucleus-International. net 61

10. The Nucleus “What you are doing there with these SME-Nuclei, in reality, is very simple … … but very difficult to understand!” Vininius Lummertz, Director SEBRAE, Brazil 04/2008 Nucleus-International. net 62

Nucleus-International. net • This file is part of our material to present and illustrate our activities to professional and elected officials of business associations, personnel from technical cooperation projects, and other people with an interest in this field. We are involved in a constant process of elaborating and improving this material, and targeting it to the demands of specific groups. • You may use, copy, and change this file as you like (we do not insist on a copyright). • We would, however, like to ask you for the following: please send us a copy (as a file or printout) and additional information if you use the file or parts of it. • Thank you! • The Nucleus-International. net team 04/2008 Nucleus-International. net 63