WHAT MAKES CO-OPS SUCCESSFUL?
by R.M. Baseman
Associate Researcher, Prout Research Institute of Venezuela
There are a number of original articles, reports and conference proceedings available on
the Internet that discuss and give opinions on what makes a cooperative successful. This
report has looked at 175 proposed success factors from a number of different separate
sources. By sifting through the various suggestions, answers and points of view, some
clear conclusions develop. But before doing that, let us first ask the question:
What Does Success Mean for a Co-Op?
How is success for a co-op different than success for any traditional business? The
answer lies in the difference between a co-op and a standard business.
Traditional businesses (Investor Owned Firms or “IOF”s) and co-ops differ in many
respects. It is far beyond the scope of this study to go into these differences in any great
detail as they are involved and complex. But from the point of view of success the
following points are important:
1) A business is governed only by laws and the oversight of the board and investors; in
addition to these, a co-op is also governed by commonly recognized “principles of
cooperation.”
2) The relationship between a co-op and its member-owners-customers is much closer
than the relationship between a traditional business and its investor owners. For example,
investors in a traditional business may not really be aware of, or care about the long-term
environmental impact of its business practices, as long as it avoids negative publicity and
provides a good return on investment. However Co-op member/owners live in the
ecosystem and community where the co-op functions, and hence are very concerned
about the effects on their families!
3) Co-ops are run democratically by member owners, while traditional businesses are run
by managers with limited oversight from a board and shareholders.
4) In traditional businesses, managers decide how profits are recognized and used “to
increase shareholder value.” Co-ops operate on a non-profit basis where members
decide how surplus funds are distributed and reinvested in growth, other cooperatives,
community service projects, etc.
5) Because the goal of a traditional business is to make continual profits and return value
to the investor-owners, the only way to measure success is by longevity and corporate
growth.
But success for a co-op lies in successfully meeting the needs of the member-owners
(both their material and quality of life needs) and promoting commonly understood
cooperative values such as this list agreed upon by the International Cooperative Alliance
(ICA)
1 - voluntary and open membership,
2 - democratic member control,
3 - member economic participation,
4 - autonomy and independence,
5 - education, training and information,
6 - cooperation among cooperatives,
7 - concern for community.
How does Co-Op Success Contrast with Traditional Business Success?
Over time, some successful traditional businesses grow into gigantic multinational
organizations primarily serving their huge amassed capital funds. Managers who seek to
remain independent constantly grow “market capitalization,” defined as number of shares
outstanding multiplied by stock price. Without any other principle to guide their actions,
these corporate automatons persist forever, -- blindly serving the cold mathematical needs
of growth.
By making decisions based only on increasing market share, corporations tend to become
“runaways,” ignoring the social and political consequences of their actions. This problem
is impossible with cooperatives, regardless of size, because of the principles of
cooperation and because of direct democratic member control.
Co-ops are designed to be beneficial (or at least harmless) to humanity and the planet,
while traditional capitalist businesses are designed to be indifferent to their effect on
society and nature.
Another way to observe the difference between a co-op and a capitalist business is after
the fact: A medium or large-size company ceases to exist if it becomes unable to earn a
profit or is bought out by a bigger company -- it is no longer economically viable. But coops disappear for many different reasons: they may have failed to accomplish their
objective, they may have been organized for a temporary specific purpose which is now
accomplished, or due to changes in time, place and person, the co-op’s objectives may
have become irrelevant and the members decide to dissolve.
Method Used in This Survey
A passive Internet survey was conducted to find worldwide consensus on the question.
Search engines were first used to find web pages and documents containing phrases like
“successful cooperative”. Then the web pages and documents were carefully reviewed,
and items which were copies, or secondary sources (i.e. referring to another primary
source) were removed -- in this process more than 50% of the material was eliminated.
Then from the remaining original items, elements of advice called “success factors” were
extracted, such as:
“It is important to avoid creating too high expectations”
“cultivates the support of both the members and the community at large”
“clear-cut national cooperative strategy”
“availability of technical training and technology”
In some cases, inverse success factors – reasons co-ops failed were used, for example:
” (neg.)Inadequate communications among the members, board, manager, and the
community.”
After reviewing the 175 success factors, they were grouped into 13 categories, and
everything was recorded in a Microsoft Access database, including
1. The category of the answer
2. The answer itself (maximum 255 characters, summary if necessary)
3. The source URL of the document or web page
4. Information about the type of co-op being referred to (consumer, producer,
single-project, financial, etc.)
Having done this, the database of success factors can be queried and sorted and
conclusions can be drawn from the overall body of knowledge. The database file is
contained in the accompanying CD and is called “success2.mdb”; in addition a version of
the data is embedded in this word document.
How Co-Ops Become Successful – The Worldwide Consensus.
The source articles reflected experience from all continents and more than 10 countries,
including articles from the International Labor Organization, the International Cooperative
Alliance and the UN. Primary geographic sources for articles were the USA, followed by
Eastern Europe, Western Europe, Australia, India and South America.
The 175 success factors found on the Internet are categorized as follows:
 7 applied to co-ops in general (the so-called “Madison Principles”)
 102 were from sources on producer co-ops; most of these were agricultural in
nature.
 47 were from consumer or financial co-op sources (including credit unions).
19 were from an ILO publication on “crisis project" co-ops – recounting success factors in
cases where a community had an immediate need, which was solved by forming a
temporary project-focused co-op. These were classified as consumer co-ops.
What Makes All Co-Ops Successful:
Answer
Category
times
occurred
percentage
of total
1. supportive environment
2. sound advance planning
3. real economic benefits for members
28
27
21
16
15.42
12
4. skilled management
5. belief in co-op concepts
6. grassroots development & leadership
7. financially self-sustaining
8. innovation & adaptation
9. effective structure & operations
10. networking with other co-ops
11. communications
12. common member interests
13. education
20
12
12
11
11
10
8
5
4
4
11.42
6.85
6.85
6.28
6.28
5.71
4.57
2.85
2.28
2.28
Answer
Category
times
occurred
percentage
of total
1. supportive environment
2. belief in co-op concepts
3. innovation & adaptation
4. real economic benefits for members
5. financially self-sustaining
6. skilled management
7. grassroots development & leadership
8. networking with other co-ops
9. sound advance planning
10. communications
11. common member interests
13
6
5
5
4
4
3
3
2
1
1
27.65
12.76
10.63
10.63
8.51
8.51
6.38
6.38
4.25
2.12
2.12
times
occurred
percentage
of total
21
14
12
11
9
8
6
5
4
4
3
3
12
8
6.85
6.28
5.14
4.57
3.42
2.85
2.28
2.28
1.71
1.71
What Makes Consumer Co-Ops Successful:
What Makes Producer Co-Ops Successful:
Answer
Category
1. sound advance planning
2. skilled management
3. supportive environment
4. real economic benefits for members
5. effective structure & operations
6. grassroots development & leadership
7. innovation & adaptation
8. networking with other co-ops
9. financially self-sustaining
10. communications
11. education
12. belief in co-op concepts
13. common member interests
2
1.14
General Observations
 There are clear differences between consumer and producer co-ops. While the top
two factors for producer co-ops are management and planning related, the top two
factors for consumer co-ops refer to a belief in the co-op concept and a supportive
environment.
 There is tremendous diversity among co-ops. For example, the AMUL co-op in
India is the huge nation’s largest producer and marketer of milk products, with millions
of producer members. The survey also includes material from small food buying coops in the USA and the Brukman factory in Argentina. Attitudes and approaches are
very different between them, and one cannot expect the same success factors to apply
in every case.
 All the basic factors for success in any business also apply to co-ops, as would be
expected. There has to be a real demand for the product, planning has to be thorough
and realistic, and the enterprise has to make money.
 Co-ops have additional success factors imposed upon them. These factors relate
to keeping the actions of the co-op aligned with the ever-changing interests of the
member/owners.
 Some success factors, like careful planning and communications, are referred to
over and over again. But there are some interesting and unique observations found in
selected sources. For example, one article found at the University of Wisconsin
Center for Cooperatives http://www.uwcc.wisc.edu/info/uwcc_pubs/zeuli_01_03.pdf
described the tactic of a co-op buying or starting a wholly owned subsidiary organized
as a privately owned enterprise. This eliminates the problem where a sideshow
needed for short-term business reasons but not central to the co-ops’ mission can
create a problem with the collective membership.
Copies of all the original documents found on the Internet and used in this study are
included in the CD accompanying this report.
Results
From the details of the articles, reports and newsletters, a general pattern emerges. Coops, much more than corporations, closely reflect the lives and thoughts of the
member/owners. The common interests of the members are the interests of the co-op,
and if the two move apart, the co-op dies.
Consensus among people is a fragile thing, and because so much personal emotion gets
wound up in a co-op, co-ops fail if they cannot quickly follow the collective interest as
circumstances change, or if they stray from their original purpose and members become
disaffected. An excellent article that talks about this can be found at
http://www.uwcc.wisc.edu/info/uwcc_pubs/zeuli_01_03.pdf, written by members of the
University of Wisconsin Center for Cooperatives. This article discusses the uneven efforts
to build consumer cooperatives in rural areas of the USA where agricultural producer
cooperatives are popular and well established.
People like co-ops —they “believe in” them. Co-ops provide a sense of satisfaction,
belonging and accomplishment to both workers and consumers that is rarely experienced
when working for or buying from a traditional business. Plus co-ops have a good story to
tell. When price, quality of goods and distance from home are about the same, the
majority of people would choose to support a co-op with its positive principles and return
of economic benefit to the community, versus giving money to a business that enriches
outsiders who return little to the community.
This creates both an advantage and a danger for consumer co-ops. Members who need
to buy a tube of toothpaste will happily pay somewhat more for it at the cooperative than
at a Wal-Mart down the street. However, there is a limit to this: if the co-op becomes too
expensive, or if the co-op cannot provide most of the products the members need, they
will eventually quit “believing in” the co-op, shrug their shoulders, and give their money to
Wal-Mart.
Likewise producer co-ops have an advantage over private companies, but it is fragile.
Raising small amounts of capital is easier for co-ops, because all workers are personally
involved, and become both investors and enthusiastic salespeople. But the minute there
is bad blood due to a decision that members don’t like, they tend to lose faith in the
organization and consider leaving. Producer co-ops are relatively easy to start, but also
easier to fall apart.
Almost every success factor involves aligning co-op actions with members' needs. This is
why communication and training are so important, because they help to develop the
capacity of the management and members to listen well and respond appropriately to the
genuine concerns of the workers and the community. The spirit of all the answers to our
original question relate to this close alignment of the cooperative with the interests of the
member owners.
Supportive Environments
The most often cited overall reason for success across all types of co-op was a
“supportive environment.” It was the first success factor for consumer co-ops, including
credit unions and the third most popular success factor for producer co-ops. So let us try
to determine what is meant in more detail.
This success factor is a catch-all for deriving assistance from other entities, primarily the
government at various levels, but also local communities, trade unions and financial
institutions. It is not as important for producer co-ops as it is for consumer co-ops,
because in the world of producer co-ops this issue of external support is eclipsed by the
far more important factor of advance planning.
Issues of taxation, regulation, and national economic strategy are repeatedly mentioned in
the source articles. It is clear that government policies and practices really help and hurt
co-op development. The ability of local financial institutions to make loans to co-ops is
important and is affected by government rules and regulations as well.
After government support, co-ops need support from the population in general. Where the
co-op approach is similar to local traditions – for instance management by consensus at a
local level, tribal traditions of sharing, or the USA farm tradition of working together in
neighborhood teams and sharing equipment – co-ops are more likely to be accepted and
successful. Even if the community is not interested in joining the co-op, they must be
tolerant and accepting for it to survive. Once again this reflects the close embodiment in
the co-op of the ideas of the member-owners; this relationship will fall apart if everyone
around the local member-owners works against the co-op concepts.
In regard to credit unions, the availability of payroll deductions and credit union presence
at or near the workplace are repeatedly mentioned. So for credit unions, support from
traditional employers is important. State deposit insurance is also vital.
“Belief in co-op concepts” is a similar success factor, which I have separated from “a
supportive environment.” This is for two reasons: 1) “Belief in co-op concepts” is personal,
and refers to people having an actual hands-on familiarity with, and liking for co-ops; 2)
“Belief in co-op concepts” is less important to producers than “a supportive environment,”
which is critical.
Sound Advance Planning
This is the second most important overall success factor, and the primary success factor
for producer co-ops.
Planning covers many aspects, but the key point about it is that it takes place before the
enterprise begins operation, and then plans are continually updated and revised to parallel
changes in time, place and person. For any business, planning is the art of seeing into
the future, and it is the most difficult and the most powerful of all business activities.
The specific kinds of planning that are critical for co-op development are a little different
from traditional IOF planning.
Market planning – projections of growth, size, sustainability and competition in the market
must be addressed as in any traditional business plan. Plus the plan should prove that
the specific market need can be effectively addressed by a cooperative effort. For
consumer co-ops, a clear statement of exactly how the co-op will make buying cheaper
and easier for the customer-owners over the long term is needed.
Feasibility study and cost analysis – a co-op has special tax, legal and financial
considerations that must be woven into this sort of analysis. Where networks of other coops can participate as partners, costs are likely to be more favorable than where possibly
unfriendly IOFs must be depended upon. Unrealistic cost assumptions are cited
repeatedly as a big factor in co-op failures.
Organizational planning – because each member-owner population is different, plans for
the co-op must include a strategy to foster continuing cooperative behavior, and a strategy
to keep the co-op in step with the thinking of the member-owners. This includes a plan to
keep the hired management closely aligned with co-op board as well.
Withdrawal strategy – co-ops are not like IOFs with a blind intent to exist forever. The
plan for the co-op should recognize the likelihood that the co-op will cease operations
under some circumstances. How to recognize these exit circumstances, and how to close
down in a positive way should be part of the plan.
Risk Analysis - like any traditional IOF, risks should be given special attention and ranked
as to impact and likelihood. Co-ops are exposed to some regulatory and financial risks
that traditional businesses do not have to worry about. Plus in every business situation, a
co-op will have some advantages and some disadvantages when in competition with
traditional IOFs.
Capital – the way in which capital will be raised is critical for a co-op. For producer co-ops
where the member-owner investment is substantial, a series of presentations of increasing
detail and seriousness should be designed for potential investors.
Monitoring operations – In the planning stage, an effort needs to be made to define Key
Process Indicators that can be used to tell how the co-op is doing. These KPIs may be
revised later after operations stabilize, but since the first months of any new operation
build the foundation for future success, it is a big advantage to have some sort of
benchmark when first starting out.
Mission Statement - A clear and simple definition of the goals of the co-op is highly
important. Unlike a traditional IOF, the co-op’s goals must match some of the personal
goals of the member-owners. Potential members will decide to join if there is a simple and
understandable expression of what the co-op is about.
Belief in Co-op Concepts
For the success (and survival) of all consumer co-ops a familiarity with, and belief in the
co-op approach among the local community is really important. If the local population does
not have a good feeling about co-ops, based on past experience, membership drives will
fail.
To detect changes and sense the feelings of the membership, Co-op workers must
understand how their enterprise operates day to day. Managers must have a good feel for
what will make the co-op succeed or fail, and must be able to recognize problems quickly
and nip them in the bud. In areas where co-ops are common, and have been successful
in the past, it is much easier to recruit well-qualified workers and experienced managers
from the local population.
Real Economic Benefits for Members
In many producer co-ops and in worker takeovers, the member-owners were already
running small businesses. In that situation, they can easily see if cooperation actually
lowers their costs, opens access to new markets and makes their individual operations
easier and more profitable.
On the other hand, it is not always so easy to tell if a consumer co-op is actually saving
you money. I know from personal experience with my large family that consumer food coops only provide a real advantage if they can provide most of the goods that you need to
buy on a regular basis. Otherwise you are forced to go to traditional stores for the rest,
and the time and trouble of doing this plus the cost of owning shares, effort of working at
the co-op, and hassle of keeping informed and voting on co-op policy quickly erode any
real savings from belonging to the co-op.
The difficulty of a consumer cooperative providing an easily apparent overall economic
benefit leads to the phenomenon of successful consumer co-ops springing up in situations
where a market or consumer segment is under-served by traditional businesses.
Attempts to start up new consumer cooperatives in markets which are already saturated
with competing traditional IOFs will be unsuccessful.
Credit Unions succeed at this factor, since they have always provided much easier access
to loans at cheap rates of interest than traditional banking institutions. This is partially
because of the surety of payroll deductions and the credit-union tie to the workplace.
As was said in the article about Maleny, Australia: “Successful co-ops are always born out
of need.”
………………………………
Bibliography
American Historical Association - The American Historical Review, “Review of Cooperative
Commonwealth: Co-ops in Rural Minnesota”, June 2001, Scholarly web site discusses a
publication about rural producer co-ops in the USA.
Amul Cooperative, “Chairman's Speech: 31st Annual General Body Meeting”, June 2005,
http://www.amul.com/kurien-annual05.html, This huge Indian agricultural producer cooperative
web site has a lot of reference articles.
Committee for the Promotion and Advancement of Cooperatives, “Successful Cooperative
Development Models in East and Central Europe”, October 1999,
http://www.copacgva.org/berlin.pdf. COPAC is a Swiss organization which held this conference in
Germany with presentations from Albania, Lithuania, Romania, Poland, Moldova, Uzbekistan,
Germany, Ukraine and Denmark. More than ten original papers are included here describing all
sorts of co-ops with much valuable information.
Dangl, Benjamin - Z Magazine Online, “Worker-Controlled Brukman”, August 30, 2005,
http://www.zmag.org/content/showarticle.cfm?ItemID=8611, This article on the progressive Zmag
site is an interview with Celia Martinez from the famous Brukman worker's cooperative in
Argentina
Gravenour, Kristian - The Montreal Mirror, “Accounting in Utopia”, August 2005,
http://www.montrealmirror.com/2005/081105/news1.html, A short article about Douglas Jack, a
co-op organizer who stresses the need to reward co-op labor with some sort of equity.
Holland, Rob - University of Tennessee Center for Profitable Agriculture, “Thoughts for Farmers
Considering Membership/Investment in a Processing Cooperative”, 2004,
http://cpa.utk.edu/pdffiles/cpa96.pdf, USA site supporting agricultural cooperatives.
International Cooperative Association -Seminario del PRICA/ACI Americas, “Denominadores
comunes de las coop argentinas, paraguayas y uruguayas en su evaluación de la estrategia delas
coop ante las TLC”, September2005, http://www.ica.coop/calendar/ga2005/silverof2.pdf,
publication from an ICA conference held in Ausuncion Paraguay on issues facing South American
co-ops.
International Labour Office – “Standing on their own: Cooperative Reform in Tanzania”, June
2006, http://www.ilo.org/public/english/bureau/inf/features/06/coop_tanzania.htm, ILO article
discussing experiences with the co-op movement in Tanzania.
International Labour Office Programme on Crisis Response and Reconstruction, “Cooperatives
Restoring Livelihoods and Communities”, May 2003,
http://www.ilo.org/public/english/employment/recon/crisis/download/coops.pdf, ILO article
discussing experiences with co-ops set up for emergency situations in times of crisis, mostly in
Africa.
Kennedy, Jermolowicz, Lambert, Reilly and Rotan - US Department of Agriculture, “Keys to
Successful Cooperative Housing in Rural Areas”, April 1995,
http://www.rurdev.usda.gov/rbs/pub/sr44.pdf, USA government publication discussing successful
housing cooperatives.
Lipinski, Bill - First Pioneer Farm Credit Co-op - Financial Partner magazine, “What Is the Future
of Cooperatives?”, Spring 2003, http://www.firstpioneer.com/about/L3/pres_future_coops.htm,
USA publication concerned with agricultural co-op governance.
Madden, Rod - United Farmers Co-operative Company Limited, “Fundamentals of a Successful
Co-Operative”, September 2003, no longer on-line, article discusses sucdcessful producer co-ops in
Australia.
Manitoba Agriculture, Food and Rural Initiatives - Cooperative Development Services,
“Introduction to Cooperatives”, August 2006,
http://www.gov.mb.ca/agriculture/ri/coop/ria02s03.html, Canadian site discusses all types of
cooperatives and has much useful and detailed information.
National Cooperative Business Association, “Lessons for Success”, undated,
http://www.ncba.coop/abcoop_ab_success.cfm, US site of the NCBA which promotes all sorts of
co-ops.
Patrie, William, Rural Development Director - North Dakota Association of Rural Electric and
Telephone Cooperatives, “Creating 'Co-op Fever': A Rural Developer's Guide to Forming
Cooperatives”, July 1998, http://www.rurdev.usda.gov/rbs/pub/sr54/sr54.htm, USA site focussing
on agricultural producer co-ops.
Prout Community Settlement Cooperative, “Maleny Cooperatives: Examples of Small-scale
Cooperative Enterprises”, January 2002, http://www.proutworld.org/features/maleny.htm,
Australian site discussing the different cooperative - mostly consumer oriented - set up in the town
of Maleny.
Ratchford, Noller and Mahfood - University of Missouri Extension, “Introduction to Consumer
Food Cooperatives”, October 1993, http://extension.missouri.edu/, USA site with information on
consumer co-ops.
West, Travis - Ohio Cooperative Development Center, “How To Start a Cooperative”, undated,
http://ocdc.osu.edu/pdf/startcoop.pdf, US site with general information on starting all sorts of coops.
Zeuli, Freshwater, Markley and Barkley - University of Wisconsin Center for Cooperatives, “The
Potential for Non-Agricultural Cooperatives in Rural Communities”, 2003,
http://www.uwcc.wisc.edu/info/uwcc_pubs/zeuli_01_03.pdf, USA paper discussing formation and
organization of co-ops of non-agricultural types in rural areas - has many interesting ideas.
R.M. Baseman of New York City is a computer scientist specializing in security and the
introduction of new technologies. He lives with his wife Diana, an educator, near New
York City where they have raised and home schooled 10 children. He has published
articles on a number of topics, and has started and participated in several consumer
cooperatives over the last 35 years. He can be reached at: nynarayan@yahoo.com. His website,
dedicated to freedom, spirituality and education is at http://members.verizon.net/~vze3f2cj
Success Factors for Co-ops
Description
effective structure & operations
summary
key areas to address are the
organizational structure
reference or url
category
http://www.gov.mb.ca/agriculture/ri/c all
oop/ria02s03.html
financially self-sustaining
madison principles - products and http://www.rurdev.usda.gov/rbs/pub/
services must generate sufficient
sr54/sr54.htm
revenue
grassroots development &
madison principles - enthusiastic
http://www.rurdev.usda.gov/rbs/pub/
leadership
group of local, trustworthy leaders sr54/sr54.htm
Member control
madison principles - Member control http://www.rurdev.usda.gov/rbs/pub/
through a democratic process is
sr54/sr54.htm
essential
real economic benefits for members madison principles - Success also http://www.rurdev.usda.gov/rbs/pub/
depends on the commitment of the sr54/sr54.htm
member's time and financial resourc
real economic benefits for members madison principles - economic
http://www.rurdev.usda.gov/rbs/pub/
benefits for members
sr54/sr54.htm
sound advance planning
madison principles - accurate
http://www.rurdev.usda.gov/rbs/pub/
market projections precede other
sr54/sr54.htm
development steps.
belief in coop concepts
understanding some basic coop
http://www.rurdev.usda.gov/rbs/pub/
concepts
sr44.pdf
cooperative concepts such as the
joint ownership and user-owner
nature of the
cooperative form of business,
belief in coop concepts
A critical mass of local knowledge http://www.uwcc.wisc.edu/info/uwcc
and experience with cooperatives is _pubs/zeuli_01_03.pdf
also needed
belief in coop concepts
at-cost operation and democratic
http://www.rurdev.usda.gov/rbs/pub/
control
sr44.pdf
processes.
belief in coop concepts
Local support provides the
http://www.uwcc.wisc.edu/info/uwcc
cooperative with an advantage over _pubs/zeuli_01_03.pdf
external firms
belief in coop concepts
community support for the
http://www.uwcc.wisc.edu/info/uwcc
cooperative and/or its new venture _pubs/zeuli_01_03.pdf
is key
community support for the
cooperative and/or its new venture
is key
belief in coop concepts
sound background in management, http://www.rurdev.usda.gov/rbs/pub/
operational, and financial aspects
sr44.pdf
and financial aspects of
cooperatives
common member interests
http://www.uwcc.wisc.edu/info/uwcc
small, stable and homogeneous
_pubs/zeuli_01_03.pdf
membership
communications
Excellent communication among
http://www.uwcc.wisc.edu/info/uwcc
members and between members
_pubs/zeuli_01_03.pdf
and management
financially self-sustaining
regularly makes a profit
http://www.proutworld.org/features/
maleny.htm
financially self-sustaining
commercially-oriented products and http://www.copacgva.org/berlin.pdf
services
financially self-sustaining
attain financial sustainability
http://www.copacgva.org/berlin.pdf
financially self-sustaining
solid cooperative business activities http://www.copacgva.org/berlin.pdf
grassroots development &
the project was built from bottom up http://www.copacgva.org/berlin.pdf
leadership
grassroots development &
they have to grow from the energy http://www.proutworld.org/features/
leadership
and commitment of the local people maleny.htm
themselves
grassroots development &
involving young people and women http://www.copacgva.org/berlin.pdf
leadership
in CU development and
management
innovation & adaptation
new ways of thinking and tackling
http://www.copacgva.org/berlin.pdf
problems
innovation & adaptation
Successful ventures either exit or
http://www.uwcc.wisc.edu/info/uwcc
find a way to adapt to market
_pubs/zeuli_01_03.pdf
evolution
all
all
all
all
all
all
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
consumer
innovation & adaptation
innovation & adaptation
innovation & adaptation
networking with other coops
networking with other coops
networking with other coops
real economic benefits for members
real economic benefits for members
real economic benefits for members
real economic benefits for members
real economic benefits for members
skilled management
skilled management
skilled management
skilled management
sound advance planning
sound advance planning
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
belief in coop concepts
belief in coop concepts
successful cooperative spin-offs
created as wholly owned noncooperative subsidiarie
availability of technical training and
technology
introduction and use of modern
technology
cooperation between cooperatives
implementation of a network
approach
international credit union network
and volunteer partnership
agreements
Successful coops are always born
out of need
Some of the most successful co-ops
were organized to provide goods or
services that were not readily
available.
People were not able to access
loans at affordable prices
Keeping share capital low
Jack says that the lack of direct
reward leads to the persistent
demise of cooperatives
ensures that the staff and
management are honest, dedicated
and competent
regular evaluation of the project
allowed adjustments to be made
that enabled progress
presence of visionary and strong
leadership is a necessary condition
good management
sound strategic and financial plan
http://www.uwcc.wisc.edu/info/uwcc consumer
_pubs/zeuli_01_03.pdf
http://www.copacgva.org/berlin.pdf
consumer
http://www.copacgva.org/berlin.pdf
consumer
http://www.copacgva.org/berlin.pdf
http://www.copacgva.org/berlin.pdf
consumer
consumer
http://www.copacgva.org/berlin.pdf
consumer
http://www.proutworld.org/features/ consumer
maleny.htm
http://muextension.missouri.edu/expl consumer
ore/extcirc/ec0941.htm
http://www.copacgva.org/berlin.pdf
consumer
http://www.copacgva.org/berlin.pdf consumer
http://www.montrealmirror.com/2005 consumer
/081105/news1.html
http://www.proutworld.org/features/ consumer
maleny.htm
http://www.copacgva.org/berlin.pdf
consumer
http://www.uwcc.wisc.edu/info/uwcc consumer
_pubs/zeuli_01_03.pdf
http://www.copacgva.org/berlin.pdf consumer
http://www.proutworld.org/features/ consumer
maleny.htm
compensating for the disadvantages http://www.uwcc.wisc.edu/info/uwcc consumer
of the cooperative model in the
_pubs/zeuli_01_03.pdf
unique business environment
economic and social underpinnings http://www.copacgva.org/berlin.pdf consumer
starting in the workplace
http://www.copacgva.org/berlin.pdf consumer
favourable credit union legislation
http://www.copacgva.org/berlin.pdf consumer
macroeconomic reform
http://www.copacgva.org/berlin.pdf consumer
establishing state deposit insurance http://www.copacgva.org/berlin.pdf consumer
state authorities were positive to
http://www.copacgva.org/berlin.pdf consumer
dialogue
development of good relations with http://www.copacgva.org/berlin.pdf consumer
government
first drafting and putting in place
http://www.copacgva.org/berlin.pdf consumer
legislation on credit unions
market situation was favourable to http://www.copacgva.org/berlin.pdf consumer
credit union development
able to gain support for the activities http://www.copacgva.org/berlin.pdf consumer
from the community
local culture
http://www.copacgva.org/berlin.pdf consumer
clear-cut national cooperative
http://www.copacgva.org/berlin.pdf consumer
strategy
cultivates the support of both the
http://www.proutworld.org/features/ consumer
members and the community at
maleny.htm
large
a lot of democracy and class
http://www.zmag.org/content/showar producer
consciousness (worker controlled
ticle.cfm?ItemID=8611
brukman)
collective consciousness and a
http://www.amul.com/kurienproducer
shared vision towards the domain annual05.html
belief in coop concepts
common member interests
common member interests
communications
communications
communications
communications
education
education
education
effective structure & operations
effective structure & operations
effective structure & operations
effective structure & operations
effective structure & operations
effective structure & operations
effective structure & operations
effective structure & operations
effective structure & operations
financially self-sustaining
financially self-sustaining
centrality of milk and the need for
cooperation in dairying
members sharing a tradition of
http://www.historycooperative.org/jo producer
jointly running an organization such urnals/ahr//106.3/br_86.html
as a church or a voluntary
association
an absence of factions or
http://www.historycooperative.org/jo producer
contradictory economic interests
urnals/ahr//106.3/br_86.html
among members
members having similar racial,
http://www.historycooperative.org/jo producer
religious, political, occupational, and urnals/ahr//106.3/br_86.html
linguistic characteristics
Keeping the members informed and http://ocdc.osu.edu/pdf/startcoop.pdf producer
involved
maintaining an open line of
http://www.ncba.coop/abcoop_ab_s producer
communication with members
uccess.cfm
CONTINUALY COMMUNICATE
http://www.australia.coop/cs_united. producer
WITH MEMBERS; WHAT DO THEY htm
WANT & WHAT ARE THE
DANGERS AND OPORTUNITIES
(neg.)Inadequate communications http://ocdc.osu.edu/pdf/startcoop.pdf producer
among the members, board,
manager, and the
community.
DIRECTOR AND MEMBER
http://www.australia.coop/cs_united. producer
EDUCATION IS ESSENTIAL
htm
implementing a systematic method http://www.ncba.coop/abcoop_ab_s producer
of cooperative education for
uccess.cfm
members, employees, directors and
paid
management
placing more emphasis on electing
business-oriented directors
members and directors receive
adequate education
Maintaining good board-manager
relations
Conducting businesslike meetings.
Advisers and committees must be
used effectively
benefit of the cooperative.
Following sound business practices
in its operations.
unwieldy structures
http://www.rurdev.usda.gov/rbs/
producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
http://www.ilo.org/public/english/bur
eau/inf/features
low administrative and overhead
http://www.ncba.coop/abcoop_ab_s
costs
uccess.cfm
Cost-efficiency strategy Costhttp://www.ica.coop/calendar/ga200
efficiency of activities
5/neilimof1.pdf
using all major fixed assets at the 75 http://www.ncba.coop/abcoop_ab_s
percent level
uccess.cfm
teamwork between members,
http://www.amul.com/kurienemployees, the board, the CEO and annual05.htm
customers/suppliers in the
marketplace
The institutional infrastructure —
village cooperative, dairy and cattle
feed plants, state and national
marketing — is owned and
controlled by farmers.
Successful capital formation
http://www.fao.org/docrep/007/y546
strategies require the creation of a 9e/y5469e07.htm
surplus in normal and good years
Successful cooperatives mobilize
http://www.fao.org/docrep/007/y546
capital from their members in a
9e/y5469e07.htm
variety of ways
producer
producer
producer
producer
producer
producer
producer
financially self-sustaining
financially self-sustaining
grassroots development &
leadership
grassroots development &
leadership
grassroots development &
leadership
grassroots development &
leadership
grassroots development &
leadership
grassroots development &
leadership
grassroots development &
leadership
grassroots development &
leadership
innovation & adaptation
innovation & adaptation
innovation & adaptation
innovation & adaptation
innovation & adaptation
innovation & adaptation
Solid co-op business activities
Financial self-sufficiency, based on
member capital, institutional capital
and outside commercial sources of
funding, is the basis for successful
commercial cooperation
PASSIONATE PEOPLE DRIVING
THE MOVEMENT
local manager retains responsibility
of the project
people must be motivated from the
bottom up
Building the project from bottom to
top
successful cooperative processing
ventures may take appropriate
leadership.
involves people in their own
development through cooperatives
where professionals are
accountable to leaders elected by
producers
collective consciousness and a
shared vision towards the domain
centrality of milk and the need for
cooperation in dairying
Successful business ventures also
are well-rooted in strong leadership.
(neg.)Lack of member leadership
within the cooperative.
Successful cooperatives innovate in
the development of their businesses
and in their capitalization strategies
and methods
modernising the economics of the
dairy sector by enabling the rural
producers in the area to organise
themselves
standardized technology adapted to
the local technical environment
Diversified & competitive
business portfolio
consultants only objective is to
transfer their know-how to local staff
Multi-portfolio business,
networking with other coops
networking with other coops
networking with other coops
networking with other coops
networking with other coops
real economic benefits for members
real economic benefits for members
real economic benefits for members
real economic benefits for members
real economic benefits for members
Co-operation between cooperatives
Implementation of the project on a
network approach
Training the participants of the
project on technique and technology
Linking the cooperative with other
cooperatives.
networks and management by
information as competitive
advantages
members purchasing and selling in
the same market
objectives take into consideration
local economic environment
Quality, price and versatility as
competitive advantages
addresses an unmet need
(neg.)Lack of member commitment
to the cooperative by using it
http://www.copacgva.org/berlin.pdf producer
http://www.fao.org/docrep/007/y546 producer
9e/y5469e07.htm
http://www.australia.coop/cs_united. producer
htm
http://www.copacgva.org/berlin.pdf producer
http://www.copacgva.org/berlin.pdf
producer
http://www.copacgva.org/berlin.pdf
producer
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
http://www.amul.com/kurienannual05.htm
producer
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
http://www.fao.org/docrep/007/y546 producer
9e/y5469e07.htm
http://www.amul.com/kurienannual05.htm
producer
http://www.copacgva.org/berlin.pdf
producer
http://www.ica.coop/calendar/ga200 producer
5/neilimof1.pdf
http://www.copacgva.org/berlin.pdf producer
http://www.ica.coop/calendar/ga200 producer
5/neilimof1.pdf
http://www.copacgva.org/berlin.pdf producer
http://www.copacgva.org/berlin.pdf
producer
http://www.copacgva.org/berlin.pdf
producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
http://www.ica.coop/calendar/ga200 producer
5/neilimof1.pdf
http://www.historycooperative.org/jo producer
urnals/ahr//106.3/br_86.html
http://www.copacgva.org/berlin.pdf producer
http://www.ica.coop/calendar/ga200 producer
5/neilimof1.pdf
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
http://ocdc.osu.edu/pdf/startcoop.pdf producer
real economic benefits for members provides a competitive advantage
real economic benefits for members Committed customer-owners as
partners
real economic benefits for members THERE MUST BE A NEED FOR A
COOPERATIVE
real economic benefits for members more individualized and specialized
services, particularly in the
marketing area
real economic benefits for members providing only the goods and
services members use
real economic benefits for members The greater the financing (risk
capital) supplied by the members,
the more efficient the
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
skilled management
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
http://cpa.utk.edu/pdffiles/cpa96.pdf
http://www.ica.coop/calendar/ga200
5/neilimof1.pdf
http://www.australia.coop/cs_united.
htm
http://www.ncba.coop/abcoop_ab_s
uccess.cfm
producer
producer
producer
producer
http://www.ncba.coop/abcoop_ab_s producer
uccess.cfm
http://www.ncba.coop/abcoop_ab_s producer
uccess.cfm
cooperative.
Leaders have a confident balance of http://cpa.utk.edu/pdffiles/cpa96.pdf producer
expertise, vision and commitment to
the project.
hire, empower and hold accountable http://www.firstpioneer.com/about/L3 producer
a strong CEO.
/pres_future_coops.htm
be able to come to consensus on
http://www.firstpioneer.com/about/L3 producer
critical decisions.
/pres_future_coops.htm
a highly effective, dedicated board http://www.firstpioneer.com/about/L3 producer
of directors
/pres_future_coops.htm
informed and responsible leadership http://www.rurdev.usda.gov/rbs/pub/j producer
an04/giant.html
directors must know what members http://www.rurdev.usda.gov/rbs/pub/j producer
need- assess cooperative’s ability to ul02/tip.html
meet needs& understand the
strengths & weaknesses of
cooperative & make judgments
based on thorough understanding of
ooperative’s resources and
employees
(neg.)Failure to use experienced
http://ocdc.osu.edu/pdf/startcoop.pdf producer
advisers in the building stages of the
cooperative.
Successful identification of leaders http://www.copacgva.org/berlin.pdf producer
Audit project progress at regular
http://www.copacgva.org/berlin.pdf producer
intervals
Looking out for the interests of the http://www.lindquist.com/vertical/Site producer
cooperative first
s/
(neg.)Lack of competent
http://ocdc.osu.edu/pdf/startcoop.pdf producer
management in the cooperative to
lead it
good leadership
http://www.copacgva.org/berlin.pdf producer
strong credit union leaders and
http://www.copacgva.org/berlin.pdf producer
competent employees
problems with poor leadership,
http://www.ilo.org/public/english/bur producer
misappropriation and theft
eau/inf/features
SET ACHIEVABLE TARGETS AND http://www.australia.coop/cs_united. producer
GOALS AND MATCH YOUR
htm
STRATEGY WITH THE
STRUCTURE
realistic business assumptions,
http://www.rurdev.usda.gov/rbs/pub/j producer
careful analysis and well developed an04/giant.html
business plans
A CLEAR PLAN AND A CLEAR
http://www.australia.coop/cs_united. producer
DIRECTION
htm
fundamentally sound business
http://www.firstpioneer.com/about/L3 producer
proposition
/pres_future_coops.htm
legal and regulatory conditions for http://www.ica.coop/calendar/ga200 producer
the development of Investment
5/silverof2.pdf
funds, with financial instruments of
medium and long term in national
and foreign currency
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
sound advance planning
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
supportive environment
Making buying cheaper and easier
for customer-owners Wide network
and cheap shopping basket
suffered from a lack of capita
http://www.ilo.org/public/english/bur producer
eau/inf/features
Time schedule respecting the
http://www.copacgva.org/berlin.pdf producer
existing capacities
(neg.) Inadequate planning by the http://ocdc.osu.edu/pdf/startcoop.pdf producer
steering committee and board.
business ideas that are well
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
formulated, planned, organized and
lead.
(neg.)Poor assumptions about the http://ocdc.osu.edu/pdf/startcoop.pdf producer
operations of the cooperative,
especially in the feasibility study and
cost analysis
(neg.)Failure to identify and
http://ocdc.osu.edu/pdf/startcoop.pdf producer
minimize the risks for the
cooperative.
aggressively positioning for changes http://www.ncba.coop/abcoop_ab_s producer
in operations, markets and member uccess.cfm
needs.
take a long-term view
http://www.firstpioneer.com/about/L3 producer
/pres_future_coops.htm
Simplicity is important in a
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
successful equity drive
ESTABLISH KPI’s TO MONITOR
http://www.australia.coop/cs_united. producer
THE PERFORMANCE AND TREND htm
LINES OF THE COOPERATIVE
(neg.) Lack of a mission statement http://ocdc.osu.edu/pdf/startcoop.pdf producer
that describes the cooperative’s
purpose
Constant balancing of shorterm
http://www.firstpioneer.com/about/L3 producer
reward versus building a company /pres_future_coops.htm
that will be there to serve the current
generation’s sons and daughters
(neg.)Lack of appropriate financing http://ocdc.osu.edu/pdf/startcoop.pdf producer
for the operation of a successful
cooperative.
CAPITAL RAISING ISSUES MUST http://www.australia.coop/cs_united. producer
BE ADDRESSED AND
htm
SUFFICIENT FUNDS KEPT
WITHIN THE ORGANISATION FOR
GROWTH AND TOUGH
YEARS
addresses an economic need that
might be fulfilled by a cooperative
effort
Successful equity drives often
require both short informational
meetings and more in-depth followup meetings
solidarity and support
scheme of local regulation for those
regulated cooperatives that
contribute to stimulate the national
saving
THE ECONOMIC ENVIRONMENT
MUST BE RIGHT
support from the Trade Union and
political party
local economic environment
in line with local culture
Supportive legislation
Clear-cut national co-op strategy
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
http://cpa.utk.edu/pdffiles/cpa96.pdf producer
http://www.copacgva.org/berlin.pdf producer
http://www.ica.coop/calendar/ga200 producer
5/silverof2.pdf
http://www.australia.coop/cs_united. producer
htm
http://www.copacgva.org/berlin.pdf producer
http://www.copacgva.org/berlin.pdf
http://www.copacgva.org/berlin.pdf
http://www.copacgva.org/berlin.pdf
http://www.copacgva.org/berlin.pdf
producer
producer
producer
producer
supportive environment
supportive environment
supportive environment
supportive environment
belief in coop concepts
Building on local culture is essential
national macro-economic reforms
macroeconomic reform
CUs were linked to the workplace
Would-be participants must
demonstrate acceptance of basic
coop principles
clustering of successful
cooperatives in a given area
http://www.copacgva.org/berlin.pdf producer
http://www.copacgva.org/berlin.pdf producer
http://www.copacgva.org/berlin.pdf producer
http://www.copacgva.org/berlin.pdf producer
http://www.ilo.org/public/english/emp project
loyment/recon/crisis/download/coop
s.pdf
belief in coop concepts
http://www.ilo.org/public/english/emp project
loyment/recon/crisis/download/coop
s.pdf
belief in coop concepts
assistance personnel should be
http://www.ilo.org/public/english/emp project
familiar with cooperative principles loyment/recon/crisis/download/coop
s.pdf
common member interests
adverse economic conditions,which http://www.ilo.org/public/english/emp project
somehow stimulated determinatio loyment/recon/crisis/download/coop
into overcome obstacles and a
s.pdf
sense ofcommunity
education
Capacity building for members in
http://www.ilo.org/public/english/emp project
leadership management technical loyment/recon/crisis/download/coop
skills
s.pdf
financially self-sustaining
sources of finance
http://www.ilo.org/public/english/emp project
loyment/recon/crisis/download/coop
s.pdf
financially self-sustaining
http://www.ilo.org/public/english/emp project
Assets provided should be
loyment/recon/crisis/download/coop
replaceable with the income
s.pdf
cooperatives are expected to
produce.
networking
links with other
http://www.ilo.org/public/english/emp project
cooperatives/networks of
loyment/recon/crisis/download/coop
cooperatives
s.pdf
real economic benefits for members members must fully understand
http://www.ilo.org/public/english/emp project
purpose and objectives
loyment/recon/crisis/download/coop
s.pdf
real economic benefits for members members need to demonstrate
http://www.ilo.org/public/english/emp project
financial commitment
loyment/recon/crisis/download/coop
s.pdf
real economic benefits for members out of adverse economic
http://www.ilo.org/public/english/emp project
conditions,which somehow
loyment/recon/crisis/download/coop
stimulated determinationto
s.pdf
overcome obstacles and a sense
ofcommunity
which somehow stimulated
determination
to overcome obstacles and a sense
of
community,
skilled management
no substitute for the business,
http://www.ilo.org/public/english/emp project
technical and governance skills
loyment/recon/crisis/download/coop
It is important to explain realistically s.pdf
the expected benefits and
cost/commitment
skilled management
leaders must foster cooperative
http://www.ilo.org/public/english/emp project
behaviour throughout the
loyment/recon/crisis/download/coop
organization.
s.pdf
sound advance planning
Managers should always directly
http://www.ilo.org/public/english/emp project
report to members' elected leaders loyment/recon/crisis/download/coop
s.pdf
sound advance planning
http://www.ilo.org/public/english/emp project
a withdrawal strategy must be built loyment/recon/crisis/download/coop
into project design
s.pdf
sound advance planning
It is important to avoid creating too http://www.ilo.org/public/english/emp project
high expectations
loyment/recon/crisis/download/coop
s.pdf
supportive environment
well adapted cooperative legislation http://www.ilo.org/public/english/emp project
loyment/recon/crisis/download/coop
s.pdf
supportive environment
supportive environment
http://www.ilo.org/public/english/emp project
financial institutions able to support loyment/recon/crisis/download/coop
cooperatives
s.pdf
fair taxation
http://www.ilo.org/public/english/emp project
loyment/recon/crisis/download/coop
s.pdf