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A BWB Volunteer Experience in Policy Development for Cooperatives

The Sustainable Coconut Project or SCP of Grameen Foundation USA which is funded by the Barry Callebaut Group is laudable endeavor of improving copra production and income for the 25,000 small farmers, 12 cooperatives and farmer organizations and 35 extension officers in Mindanao, Philippines.

The project has strategically and effectively identified critical development gaps and key improvement areas to achieve its goal of increasing farm productivity and generating higher incomes for the target beneficiaries. Small landholders managing coconut farm lots have been capacitated and trained in a wide range of knowledge and skills aimed at enhancing copra quality, boosting productivity, and improving overall income. “These efforts focus on the production of high-quality copra as a means to significantly raise farmers' earnings”. The SCP recognized the importance of cooperatives and farmers organizations as channels of assistance to farmers and local traders alike in consolidating and linking with institutional markets (the oil millers and processors) and access to government development assistance programs.

It is in this instance that I was engaged as a BWB volunteer twice in a “paired set-up arrangement” with international expert volunteers 2 by the Grameen Foundation to assist cooperatives developed their operations manual for the whole nut and copra production and trade. The basis of the engagements was a response by Grameen Foundation of requests for assistance coming from the cooperatives to come up with an operations manual. The Grameen Foundation scouts for available expertise globally that are suitable for the requirements of the request. It was an opportune time that I was available and that my expertise fits with the qualifications needed for the job.

As BWB volunteers we conducted in depth evaluation of the coop processes and systems in the management and operation of the whole nut procurement and copra production and trading business. We utilized the evaluation results as basis in crafting the policy paper documents for copra production and trade in collaboration with the management and board of directors. I assisted the management in the conduct of an orientation for the board of directors and staff to create awareness, understanding, and appreciation, instill commitment of support, encourage proper implementation and compliance of the written policy.

Evaluation Processes (Outsider’s View Looking In): Basis of Well-informed Policy Development

The journey began by informing and engaging the board of directors and key management staff that the coop will undergo an important activity that will facilitate transformation of the current practices into desirable system. Laying out the detailed activities and involvement of a coop technical team to be directly involved in all the phases of the evaluation and policy development processes. The board of directors prepared a board resolution to officially convene and designate members of the technical team and allocate resources, declare the commencement of the engagement, and inform and invite all the staff to cooperate of the upcoming series of related events that will be conducted.

The evaluation entails the detailed review of financial reports, coop evaluation reports, board resolutions, related policies and procedures, industry and market researches and technical journals to know and identify possible gaps and opportunities. I conducted ocular observations on the actual application of inputs and technologies, execution of processes from the farm, transport, buying stations, warehouses, delivery, price negotiations and producing of concrete outputs and business results to determine the effectiveness and efficiency of the system. I conducted interviews and focused group discussions with farmers, traders, management staff, board of directors, oil millers, processors, representatives from relevant government and non government entities to gather insights, validate information and further deepen the understanding of the dynamics of the processes and practices of the main business activities and sub activities and the organizations.

In my exposures with the coops, the following were observed:

• coops existed for more than two (2) decades
• more than 50% of the business volume is contributed by copra trade
• it continuously operated with unwritten policies, systems and procedures
• if the operation manual document exists it is outdated and irrelevant board resolutions served as the guide post of decision however, it appeared to be reactive and formulated only when there are requests, and response to undesirable events that happened
• the document is used to justify and earn a point during submission of annual evaluation report to Cooperative Development Authority (CDA); low rating using the CDA self-evaluation tool
• experiencing a continuing negative bottom figures and/or dismal financial performance based on audited financial results; and,
• prone to pilferage, product damages and wastage and inventory loss due to weak internal quality control system

To sum up the coops are experiencing, high operating costs, low productivity, and low profitability which are attributed to absence of clear and functional policy, guidelines, standards and procedures and updated business plans contributing to the inefficient business outcomes and results. To deepen the awareness and appreciation of the staff and the board of directors about policy development, a case simulation of a “dysfunction” but relevant system in whole nut and copra production and trade value chain was tested while conducting the evaluation.

This is to demonstrate and document how policy development works. It is a way to portray to the staff on how to assess and discover where the issue, challenge, and bottleneck lies, what practices can be tweaked and what immediate measures can be enforced? Likewise, it informs the decision makers that policy development is a continuing process and that it requires constant review and evaluation and application of changes and refinements for continuous improvement of the system.

The evaluation activity was concluded by presenting an “impartial evaluation report” containing the detailed findings, analysis, conclusions and recommendations. It was emphasized to the board of directors and management staff that the findings and recommendations will advise the contents of the policy paper.

Crafting the Policy Paper through Work Collaboration

The next stage is writing the policy paper. The designated technical team of the coop have opted to invite additional knowledgeable members coming from the board of directors and staff to help in providing ideas and put these ideas into writing. In coming up with the policy paper, it entails series of writing sessions, presentations, debates and discussions. The board of directors and management have to prioritize items to be incorporated in the policy paper having discovered the importance of the evaluation report findings.

The technical team was guided in the prioritization using the Eisenhower’s Urgent/Important technique. I provided the technical team a venue for discussion and detailed orientation on the structure of a policy paper document with practical examples and tips on how to write the purpose of an operations manual, policy statements, guidelines, standards and the step-by-step procedures and processes embedding safe to fail set-ups of a particular business activity or sub activity, e.g., whole nut procurement, copra processing: sun drying, copra processing: direct-smoke drying, storing, copra trading, and, etc. From the initial documents prepared, I helped the technical team refined and supplied additional information missed during the series of writing sessions and finally assembled the document. The participatory approach enables the board of directors and management write their thoughts and ideas as original contributors in crafting the policy paper document.

Preparing to Prepare for Implementation

The final stage of the engagement is setting the groundwork to ensure a smooth and successful rollout of the policy. This is to enable the board of directors and management staff become proactive and eliminate/mitigate risks and uncertainties as possible, so that policy implementation becomes seamless.

The series of steps include:

1. Formulating of board resolution approving and adopting the policy paper
2. Information dissemination to the general assembly of the approved policy paper
3. Introduction and pilot testing of the one-cycle business activity plan with corresponding volume and financial targets, risk management plan, and fail-safe mechanism and a simple review, monitoring and evaluation system embedded in the plan
4. Conduct of general orientation training on the approved policy paper specifying the roles and functions, responsibilities and accountabilities and generating commitment of support to implement the policy.

My Key Insights

This experience emphasized the value of combining analysis with teamwork. A clear and
collaborative approach helps cooperatives stay strong and adaptable in an ever-changing
market environment. For cooperatives and related organizations planning to embark on
similar endeavors, I suggest focusing on:

1. Comprehensive evaluation to uncover root causes of inefficiencies.
2. Build strong work collaboration with internal and external key players to ensure policies are practical and well-received.
3. Clear communication to foster understanding and compliance.

Through this process, I hope to contribute to the cooperative's growth and empower its board of directors, management staff and members/owners to achieve sustainable success in their respective copra trade businesses. And also, I hope that this piece work can contribute to the Sustainable Coconut Project of the Grameen Foundation’s broader goals and aspirations.