1. 04/2008Nucleus-International.net1 How to start Nuclei Nucleus-International.net

2. 04/2008Nucleus-International.net2 1. Types of Nuclei

3. 04/2008Nucleus-International.net3 Types of Nuclei Sector Nucleus= Vertical Nucleus –Carpenters –Bakers –Joiners –and many other branches... Members offer similar products and services

4. 04/2008Nucleus-International.net4 Types of Nuclei Topic Nucleus= Horizontal Nucleus –Exporting enterprises –Woman entrepreneurs –Company technicians for environment problems –CEFE course participants Members offer different products and services but share common topics / interests / problems

5. 04/2008Nucleus-International.net5 Types of Nuclei Location Nucleus= informal Association –Entrepreneurs of a small village with an insufficient number of entrepreneurs to found a Sector Nucleus and the next one being too far away Members offer different products and services but share the same location

6. 04/2008Nucleus-International.net6 Types of Nuclei Sub nucleus –Some members of a Nucleus share special problems or certain interests Temporary Nucleus –Some entrepreneurs get together to solve a specific problem. Afterwards the Nucleus dissolves.

7. 04/2008Nucleus-International.net7 Examples of Nuclei Farmers / Agribusiness Automobile Workshops Beauty Culture Building Construction Brassware Commerce Computer Hard- / Software Cut Foliage Electricians Environment Export Food Processing (Bakeries, Butchers, etc.) Gem and Jewellers Handicraft Hotels and Guesthouses Leather Products Light Engineering Lime Production Vegetable / Mushroom Photographers Printing Radio and TV Repair Tailoring Tool Making Women Entrepreneurs Wood Industries (Saw Mills, Plywood, Furniture, Carpentries)

8. 04/2008Nucleus-International.net8 2. Criteria for the selection of a sector

9. 04/2008Nucleus-International.net9 The Start In the beginning, it is important to have –immediate success / impact –examples and proofs that the project is  serious  works Therefore, it is recommended to start with "easy" sectors / persons / organisations

10. 04/2008Nucleus-International.net10 Criterion 1: Leadership Do not start with a sector, which does not have some entrepreneurs with charisma and leadership capacities but with a sector, which has one, two or more entrepreneurs with a strong personality and leadership capacities Attention: This is a „Killer“-criterion : A Nucleus without some informal leaders has low chances to develop!

11. 04/2008Nucleus-International.net11 Criterion 2: Qualification Do not start with a sector, in which all entrepreneurs and companies –are highly qualified  Eventually they think that they know already everything –are very low qualified  It will be more difficult to move them but with a sector, –having entrepreneurs of medium qualification

12. 04/2008Nucleus-International.net12 Criterion 3 : Strong / Weak Do not start with a "strong" sector –Well organised, with a good supply of services but with a "weak" sector –lacking effective organisational structures –lacking a supply of services –lacking self-confident entrepreneurs

13. 04/2008Nucleus-International.net13 Criterion 4 : Homogeneous / Heterogeneous When SMEs / companies are very homogeneous (same product, technology, know-how etc.) they have nothing to exchange When SMEs / companies are very heterogeneous (one member has 2 employees, another 100) they have nothing to exchange For a successful Nucleus is required a balance between homogeneity and heterogeneity !

14. 04/2008Nucleus-International.net14 Criterion 5: Critical Quantity If a sector consists of few enterprises only it is difficult to keep the Nucleus going in the long run –Some SMEs never participate, others drop out If a sector consists of many enterprises chances are better to keep the Nucleus going long term In the beginning a Nucleus requires 7 to 12 members, later 10 and more

15. 04/2008Nucleus-International.net15 Criterion 6: Improvements with / without big Investment In some sectors, entrepreneurs can improve their companies in a sequence of small steps, without big investments In other sectors, bigger investments are required for considerable improvements Start with sectors where improvements are feasible through counselling and training - without big investments in hardware! (Example: Carpentries)

16. 04/2008Nucleus-International.net16 Criterion 7: External Know-How Sources External sources of know-how : –Technical schools / institutes, providers of hardware (tools, machinery, products), providers of raw materials, freelancing specialists... and others If there are no or few sources of local / regional know-how the Nucleus may rapidly run into difficulties Before you start work in a sector, check the external sources of know-how in the market !

17. 04/2008Nucleus-International.net17 3. The Nucleus Counsellor

18. 04/2008Nucleus-International.net18 The Nucleus Counsellor : Tasks Moderation of meetings Group Counselling Execution of activities Individual Counselling of members

19. 04/2008Nucleus-International.net19 The Nucleus Counsellor : Tasks Stimulation and organisation of the communication process amongst members = Moderation Focal point: the group dynamics Objectives: –Stimulate the identification of common problems and ideas –Stimulate the exchange of know-how, experience and solutions among members –Implementation of activities as defined by the nucleus (courses, visits to suppliers, fairs, etc.)

20. 04/2008Nucleus-International.net20 The Nucleus Counsellor : Tasks Strategy : Direct the discussion to problems which members can solve on their own (internal causes – decision maker : SME = great chance of success ) Avoid problems that members cannot solve by themselves (external causes – decision maker : others = lobby = less chances of success )

21. 04/2008Nucleus-International.net21 The Nucleus Counsellor : Tasks At the “right” moment, the counsellor –Participates actively in the discussion –Contributes with - questions, - ideas, - experiences, - comparisons, - proposals = Counselling Nucleus

22. 04/2008Nucleus-International.net22 The Nucleus Counsellor : Tasks Observations: Group dynamics come first Moderation without counselling is ineffective

23. 04/2008Nucleus-International.net23 Individual Counselling Meeting of two persons: Entrepreneur + Counsellor Focal point: The relationship between them Instrument: Psychology

24. 04/2008Nucleus-International.net24 The Individual Counsellor : Tasks Create a trusting relationship Speak the entrepreneur's “language” ! Identify problems –Subjectively, as seen by the entrepreneur –not objectively, as seen by the counsellor Counsellor Entre- preneur

25. 04/2008Nucleus-International.net25 The Individual Counsellor : Tasks Look for solutions to a problem together with the entrepreneur Possibly search the market for other sources of know-how Ideally, the entrepreneur finds a solution on his/her own, through reflection Decisions are taken by the entrepreneur (not by the counsellor)

26. 04/2008Nucleus-International.net26 What qualifications does a Counsellor need ? Experience with SMEs Able to work with people / in groups Open minded and willing to learn Communication & networking skills Entrepreneurial thinking Leadership qualities Analytical skills Good public relation competencies Confidence to face challenges Computer literacy

27. 04/2008Nucleus-International.net27 Group and Individual Counsellor Recurrent questions : Why should the entrepreneur accept and respect me as a helpful counsellor ? What can I do to be accepted and respected by the entrepreneur as a helpful counsellor ?

28. 04/2008Nucleus-International.net28 4. The Steps to start a Nucleus

29. 04/2008Nucleus-International.net29 Step 1: Identification of an appropriate sector Identification of a potential Nucleus in reference to the criteria –Identification of one or more potential leaders  Someone who is respected in the sector  Neither the biggest nor the smallest entrepreneur  If possible an entrepreneur who is member of the board of directors of the chamber Short explanation of the Nucleus idea to the selected leader

30. 04/2008Nucleus-International.net30 Step 2: Mobilisation of potential participants The counsellor decides together with the potential leader who should be invited for a first meeting –Never invite all entrepreneurs of the sector  Risk, to have personal enemies among them –The informal leader will propose only those entrepreneurs with whom he has a friendly ore neutral relationship –The selected entrepreneurs shall have a maximum of 30 minutes to go to the meeting place

31. 04/2008Nucleus-International.net31 Step 2: Mobilisation of potential participants The counsellor visits together with the potential leader the selected potential participants They invite for the first Nucleus meeting –The personal encounter reduces the barriers and creates a little bit of trust –Never invite per letter, fax, e-mail etc.

32. 04/2008Nucleus-International.net32 Step 3: Preparation of the Meeting Required number of participants –Minimum 7, maximum 15 A room adequate for working with visualisation techniques –No tables –Many walls Take care of –Noise –Light –Temperature

33. 04/2008Nucleus-International.net33 Step 4: The first Meeting Welcome by an "important" person –President, CEO, etc. –to emphasise the importance of the entrepreneurs‘ participation and the work of the Nucleus Objective : to honour participants "We, the chamber, need you as member !" "You, entrepreneur, need the the chamber to improve your company !"

34. 04/2008Nucleus-International.net34 Step 4: The first Meeting Introduction of participants Very brief explanation of the Nucleus' work –Don't explain details – they'll learn by doing –Don't explain the history – it's boring –Talk about Nuclei of other sectors –and about success stories Explanation of visualisation technique The start : "Which problems do you encounter ?"

35. 04/2008Nucleus-International.net35 Step 6: The Process of Identifying - Problems - Ideas - Solutions - Activities

36. 04/2008Nucleus-International.net36 Prerequisite for starting a Change Process A problem : negative situation, the entrepreneur suffers A vision : adequate situation but the entrepreneur wants further improvement vision current situation future situation + desired situation current situation problem -

37. 04/2008Nucleus-International.net37 A : Identification of Problems Workers without experience Which problems do you encounter ? Money Credit Quality of raw material Quality of maintenance of machines Customer National Government Purchase of new machine Costs too high Productivity too low Collection of cards

38. 04/2008Nucleus-International.net38 B : Provoking more Cards Input ThroughputOutput machines capital raw material buildings staff “know-how” training etc. production transformation process product service Areas in the company

39. 04/2008Nucleus-International.net39 rearrangement of cards to create structures C : Structuring Problems Workers Which problems do you encounter ? Money Credit Quality of raw material Quality of maintenance of machines Customer National Government Purchase of new machine Costs too high Productivity too low Finances Production Investment Other Problems Staff Sales

40. 04/2008Nucleus-International.net40 D : Weighing Problems Workers Which problems do you encounter ? Money Credit Quality of raw material Quality of maintenance of machines Customer National Government Purchase of new machine Costs too high Productivity too low Finances Production Investment Other Problems Staff Sales Take off redundant cards and those with very distant problems. Explain why

41. 04/2008Nucleus-International.net41 E : Improving the Quality (Expressiveness) of Cards Workers Which problems do you encounter ? Money Credit Low quality of raw material Low quality of maintenance of machines Purchase of new machine Costs too high Productivity too low Finances Production Investment Staff Sales A problem should express a negative state These cards are ok ! These cards are not ok

42. 04/2008Nucleus-International.net42 E : Improving the Quality of Cards workers does not describe a problem workers not adequately qualified does describe a problem

43. 04/2008Nucleus-International.net43 E : Improving the Quality of Cards Workers not adequately qualified Which problems do you encounter ? Confusion of private and company money No access to credit Low quality of raw material Low quality of maintenance of machines Customer doesn't pay Doubts about purchase of new machine Costs too high Productivity too low Finances Production Investment Staff Sales Cards after improvement

44. 04/2008Nucleus-International.net44 F : Deciding Priorities Workers not adequately qualified Which problems do you encounter ? Confusion between private and company money No access to credit Quality of maintenance of machines Customer doesn't pay Doubts about purchase of new machine Costs too high Productivity too low Finances Production Investment Staff Sales Which problem - is the most urgent ? - concerns the majority of SMEs? Quality of raw material

45. 04/2008Nucleus-International.net45 F : Deciding Priorities When a Nucleus is relatively new take care that –The selected problem is not too complex to be successfully tackled and solved –In the case of external know-how probably being required, you should have potential sources of know- how in mind Start with simple problems!

46. 04/2008Nucleus-International.net46 G : Further Analysis of the Problem Which problems do you encounter with raw materials? What are the causes? Quality of raw material Too dry Don't know whether it is the right material for my product Too expensive Too wet Quality is always different Not always available in the market

47. 04/2008Nucleus-International.net47 G : Provoking further Analysis through "W"-Questions What... When... Where.. How... Who... Why... Before what.. How much... Which... ?

48. 04/2008Nucleus-International.net48 G : Further Analysis through Questions What happens? When do you buy it? Where do you buy it? How do you store it? Who has the same problem? Why don't you return it? Are there other possibilities? What are you afraid of? How much do you pay? Which product do you produce with it?....

49. 04/2008Nucleus-International.net49 H : Exchange of Solutions and Ideas Who within the Nucleus has which solutions? Quality of raw material Too dry Don't know whether it is the right material for my product Too expensive Too wet Quality is always different Not always in the market available List of producers List of suppliers Supplier x is reliable List with prices and suppliers Increase stock in May – June when price is low The problem is solved ? If yes : ok Or is more information necessary ?

50. 04/2008Nucleus-International.net50 I : Deciding on Activities Nobody here knows anything more. Are there external sources of know-how ? What do we want to do? Quality of raw material Don't know whether it is the right material for my product Plan of activities, decision about next steps Next meeting in a company to see the problem in place Visit a producer company Invitation of a supplier to make a presentation

51. 04/2008Nucleus-International.net51 And so on.... Further meetings.... Further activities....

52. 04/2008Nucleus-International.net52 …and at the End of the meeting...  Evaluation

53. 04/2008Nucleus-International.net53 Rule Number 1 : The participant returns home with the feeling that he / she gained something !

54. 04/2008Nucleus-International.net54 Rule Number 2 : The participant returns home with the feeling that he / she gained something !

55. 04/2008Nucleus-International.net55... and Rule Number 1000 : The participant returns home with the feeling that he / she gained something !

56. 04/2008Nucleus-International.net56.. and Rule 1001 : A counsellor hiding in the office is useless ! His working place is in the companies! Office chair with nails for the counsellor !

57. 04/2008Nucleus-International.net57 5. Some Problems...

58. 04/2008Nucleus-International.net58 Some Problems: the Group doesn’t work... Too homogeneous or heterogeneous Weak leader, little commitment One entrepreneur tries to dominate the others Cartelisation (closing the group against new members) The leader uses the group for other purposes (e.g. political goals) Personal conflicts hinder a professional relationship

59. 04/2008Nucleus-International.net59 Some Problems: the Counsellor doesn’t work... Doesn't know what he wants Sleeps... Acts like a subordinate / secretary and not as a counsellor (insecurity, fear) Does not grow as fast as the group Does not use visualisation techniques: Without visualisation the quality of the work of a Nucleus deteriorates dramatically

60. 04/2008Nucleus-International.net60 Success... Ask the entrepreneurs!

61. 04/2008Nucleus-International.net61 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