1. 04/2008Nucleus-International.net1 Nucleus Approach The ideas and strategies below the surface Nucleus-International.net

2. 04/2008Nucleus-International.net2 The Ideas of the “Nucleus Approach” Nucleus Organizational Development of Chambers Empowerment of Entrepreneurs Sustainability Auto-dynamic Processes Learning Platform Economic Development Democratization of the Society Development of Leadership Project Design Costs & Finances

3. 04/2008Nucleus-International.net3 1 Organisational Development of Business Chambers & Associations

4. 04/2008Nucleus-International.net4 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

5. 04/2008Nucleus-International.net5 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

6. 04/2008Nucleus-International.net6 Prerequisites to start an OD process The will –to learn –to change the chamber due to –internal / external problems or –new visions

7. 04/2008Nucleus-International.net7 Prerequisite to start an OD process A problem : negative situation, the organisation suffers A vision : adequate situation, but the organisation wants to improve more desired situation current situation problem vision current situation future situation + -

8. 04/2008Nucleus-International.net8 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 ?

9. 04/2008Nucleus-International.net9 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

10. 04/2008Nucleus-International.net10 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

11. 04/2008Nucleus-International.net11 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

12. 04/2008Nucleus-International.net12 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

13. 04/2008Nucleus-International.net13 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

14. 04/2008Nucleus-International.net14 Development Stages of a Business Chamber

15. 04/2008Nucleus-International.net15 Development Stages of Chambers

16. 04/2008Nucleus-International.net16 Development Stages of Chambers

17. 04/2008Nucleus-International.net17 Development Stages of Chambers

18. 04/2008Nucleus-International.net18 Development Stages of Chambers

19. 04/2008Nucleus-International.net19 Development Stages of Chambers

20. 04/2008Nucleus-International.net20 Development Stages of Chambers

21. 04/2008Nucleus-International.net21 Development Stages of Chambers

22. 04/2008Nucleus-International.net22 Development Stages of Chambers

23. 04/2008Nucleus-International.net23 Development Stages of Chambers

24. 04/2008Nucleus-International.net24 Development Stages of Chambers

25. 04/2008Nucleus-International.net25 Organisational Development: The traditional chamber DO approach Board Staff Members Consulting Training Instruments : - equipment / grants - administration costs / grants - consulting - training - information - etc. Assumption : Who knows better acts better! Chamber Objective: Increased organizational efficiency

26. 04/2008Nucleus-International.net26 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

27. 04/2008Nucleus-International.net27 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 …

28. 04/2008Nucleus-International.net28 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

29. 04/2008Nucleus-International.net29 Chamber-OD under the Nucleus Approach Board of Directors Employees Members / Nuclei Intervention IntInt Change of the relationship between the actors

30. 04/2008Nucleus-International.net30 The goal Change of the relationship – creation of a positive, constructive “tension” between the Chamber’s actors  Members start to request, propose, participate, press  Employees start to orientate towards the members  The chairperson / board of directors start to negotiate with members / Nuclei and employees

31. 04/2008Nucleus-International.net31 Society / Government Members Employees CEO Chairman Board Public Relations Services Lobby Administration A Business Chamber

32. 04/2008Nucleus-International.net32 Members Employees Chairman Board N Public Relations Lobby Services Administration Society / Government Start of Nuclei CEO

33. 04/2008Nucleus-International.net33 Members Employees CEO Chairman Board Public Relations Lobby N New employee: counsellor Services Administration Society / Government

34. 04/2008Nucleus-International.net34 Members Employees Chairman Board Public Relations Lobby N New tasks for the CEO Services Administration Society / Government CEO

35. 04/2008Nucleus-International.net35 Members Employees Chairman Board Public Relations Lobby N New services: counselling training information support Services Administration Society / Government CEO

36. 04/2008Nucleus-International.net36 Members Employees Chairman Board N Public Relations Lobby Services N New type of relationship among members Administration N N N Society / Government CEO

37. 04/2008Nucleus-International.net37 Members Employees Chairman Board Public Relations Lobby Services N More members: more tasks for the administration Administration N Society / Government CEO

38. 04/2008Nucleus-International.net38 Members Employees Chairman Board N Public Relations Lobby Services Administration New tasks regarding Public Relations Society / Government CEO

39. 04/2008Nucleus-International.net39 Members Employees Chairman Board N Public Relations Lobby Services Administration New tasks for chairperson and board Society / Government CEO

40. 04/2008Nucleus-International.net40 Members Employees Chairman Board Public Relations Lobby Services Administration New goals and tasks in terms of lobbying N Society / Government CEO

41. 04/2008Nucleus-International.net41 Members Employees Chairman Board Public Relations Lobby Services Administration At the end: everything is changing! N N N N N Society / Government CEO

42. 04/2008Nucleus-International.net42 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

43. 04/2008Nucleus-International.net43 Logic of the Development of Chambers of Entrepreneurs Services Information / Consultation Training / Support Lobby in front of Government and other groups of the society Higher attractiveness for Entrepreneurs Law of great number: the more members, the more influence Chamber More Entrepreneurs apply for membership More members pay more membership fees More means to finance more and better services

44. 04/2008Nucleus-International.net44 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

45. 04/2008Nucleus-International.net45 –Organisation & administration - management of organs, staff etc. - membership fees - member administration –Networking - other chambers - chamber – federation – confederation - public & private institutions

46. 04/2008Nucleus-International.net46 2. The Nucleus: Learning Platform We do not bother what the entrepreneur learns … We only bother that the entrepreneur starts to learn …

47. 04/2008Nucleus-International.net47 3. Sustainability An unsustainable project SME level Time Project: SME improvement through interventions before after during A repair project

48. 04/2008Nucleus-International.net48 Sustainability An sustainable project before SME level Time Project: Creation of a learning environment, start of an auto- dynamic development process the process keeps going by itself after during

49. 04/2008Nucleus-International.net49 This correspondents with concepts about the development of organisations The institution as learning organisation traditional step by step improvement continual improvement Know how

50. 04/2008Nucleus-International.net50 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 Group Consulting of SMEs Effective but extremely expensive Less effective per SME but the costs can be financed by them Costs

51. 04/2008Nucleus-International.net51 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

52. 04/2008Nucleus-International.net52 The Nucleus: Economic Development SME Quantity SME Growth General Rule: In order to reach a visible and sustainable impact > do few things ! > but do them very intensively !!! Nucleus Approach

53. 04/2008Nucleus-International.net53 6. The Nucleus: SME Empowerment Producer Businesspeople Entrepreneur ? Many people in the economy …

54. 04/2008Nucleus-International.net54 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.

55. 04/2008Nucleus-International.net55 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

56. 04/2008Nucleus-International.net56 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...

57. 04/2008Nucleus-International.net57 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 …”

58. 04/2008Nucleus-International.net58 The Nucleus: Project Design Goal Instrument s Development of the project design Staff Definition of the goal & selection of instruments under consideration of the capacities of the staff

59. 04/2008Nucleus-International.net59 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

60. 04/2008Nucleus-International.net60 The Nucleus: Project Design Results: Newly contracted chamber counsellors –with a certain personality –but with limited professional capacities, –whose salaries the chambers are able to finance, –trained very fast in moderation and group working, –can  organise the Nuclei,  learn and  step-by-step grow with them

61. 04/2008Nucleus-International.net61 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!”

62. 04/2008Nucleus-International.net62 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

63. 04/2008Nucleus-International.net63 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