1. 04/991Fundação Empreender, SC, Brasil / DOrg-82e.ppt Fundação Empreender SC, Brazil & Chamber of Crafts and Small Industries (HWK) for Munich and Upper Bavaria Organisational Development of Business Associations (ACIs) or How to open the door for SMEs

2. 04/992Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 1 l “Business Associations in Latin America [ are corrupt [ are closed to SMEs [ are inefficient l “Motivate and use them to promote SMEs is impossible” (E. Oehring, FUNDES, in 11/90 on a leisure night on the beach in Fortaleza/CE, Brazil)

3. 04/993Fundação Empreender, SC, Brasil / DOrg-82e.ppt In 1987 ACIs looked for partnership with the HWK because... l Large companies needed better qualified SMEs as suppliers - outsourcing l The main problem of SMEs according to ACIs: lack of adequate professional business training

4. 04/994Fundação Empreender, SC, Brasil / DOrg-82e.ppt 1989 : ZOPP III l Definition of a Project to train SMEs l Instruments [ courses with HWK masters / technicians [ practical training in HWK member SMEs [ etc.

5. 04/995Fundação Empreender, SC, Brasil / DOrg-82e.ppt 1989 : ZOPP III l Changes in the ACIs themselves are out of imagination and question! l Why? [ SMEs are the target group - they have to change [ ACIs support SMEs but do not want to get involved [ ACIs do not perceive themselves as an object of the project

6. 04/996Fundação Empreender, SC, Brasil / DOrg-82e.ppt At the beginning of the project in 1991.... l The president of the ACI: “We do not want a revolution !!!” l The executive director of the ACI: “We do not want to change the characteristics of the ACI” l Consequence for the project team: The word CHANGE is a TABOO

7. 04/997Fundação Empreender, SC, Brasil / DOrg-82e.ppt Organisational Development - what is it? l A planned process to change [ the behaviour, attitudes and capacities of the actors in the organisation [ the culture and attitudes of the organisation [ the organisation and communication structures [ the strategies l Objective: To improve both internal and external performance of the organisation

8. 04/998Fundação Empreender, SC, Brasil / DOrg-82e.ppt Some basic elements of OD l Organisation members’ participation [ in identifying problems [ in developing solutions [ in implementing changes l A moderator / consultant accompanies the process l OD is a learning process within the organisation

9. 04/999Fundação Empreender, SC, Brasil / DOrg-82e.ppt Prerequisites to start an OD process l The will [ to learn [ to change the organisation (enterprise / business association) l due to [ internal / external problems or [ new visions

10. 04/9910Fundação Empreender, SC, Brasil / DOrg-82e.ppt Prerequisite to start an OD process l A problem : negative situation, the organisation suffers l A vision : adequate situation, but the organisation wants to improve more desired situation current situation problem vision current situation future situation + -

11. 04/9911Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 2 l An organisation [ content with its performance without problems / without visions [ which wants to contribute to the development of others (i.e. SME) during the analysis of the project scope, does not permit discussions about itself as a target for change “The problems belong to the others!”

12. 04/9912Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 2 l Effects: [ The subject OD does not appear during the ZOPP [ Project members (counterparts - international consultants) - are not selected - are not prepared to deal with OD [ When conflicts and organisational problems come up nobody is ready to treat them

13. 04/9913Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 3 l German project staff does not do what deemed necessary l It does [ what has learned [ what it is good at [ what is easy to do [ what leads to immediate success l Therefore, it does not do Organisational Development

14. 04/9914Fundação Empreender, SC, Brasil / DOrg-82e.ppt 1991: Orientation Phase l “The HWK / GTZ Project analysis” [ Key question: What is going to happen in some SMEs after three years of training? [ Answer: Nothing! [ Consequence: Lack of sustainability

15. 04/9915Fundação Empreender, SC, Brasil / DOrg-82e.ppt The logic of the “HWK / GTZ Project” l An unsustainable project SME level Time Project: SME improvement through German know how before after during

16. 04/9916Fundação Empreender, SC, Brasil / DOrg-82e.ppt The logic of a sustainable “ACIs and SMEs Project ” l A project with effects in the long run before SME level Time Project: Start a development process the process keeps going by itself after during

17. 04/9917Fundação Empreender, SC, Brasil / DOrg-82e.ppt This correspondents with new concepts about the development of organisations l The institution as learning organisation traditional step by step improvement continual improvement Know how

18. 04/9918Fundação Empreender, SC, Brasil / DOrg-82e.ppt Project: SME Improvement Consequence l The logic of the “HWK / GTZ Project” before after Think it over again!! during Forget ZOPP III

19. 04/9919Fundação Empreender, SC, Brasil / DOrg-82e.ppt ACI The search for a vision of a project starts up... l With whom discuss and experiment ? Project Team Board of Directors Executive Director Employees SME

20. 04/9920Fundação Empreender, SC, Brasil / DOrg-82e.ppt ACI Rule: Integrate the Executive Director to gain trust and confidence! l strategy “from middle both ways” Project Team Board of Directors Executive Director Employees SME

21. 04/9921Fundação Empreender, SC, Brasil / DOrg-82e.ppt Analysis: The participating agents in the know how transfer process SME Business Associations (ACIs) Know how institutions

22. 04/9922Fundação Empreender, SC, Brasil / DOrg-82e.ppt SME’ Characteristics l Poor school education and professional training: did not learn how to learn, how to look for new know how and how to apply it l Isolated : Other SMEs are seen as competitors = personal enemies l Mistrusting business associations l Problems, needs and ideas are defined in a diffuse and abstract manner

23. 04/9923Fundação Empreender, SC, Brasil / DOrg-82e.ppt Know how institutions l Professional education and training bodies (schools, universities etc.) l Consultants and tutors (firms and freelancer) l Suppliers of raw material, equipment and services

24. 04/9924Fundação Empreender, SC, Brasil / DOrg-82e.ppt Characteristics of the know how institutions l Are not familiar with SME’ reality l Define problems and needs of SMEs “from Top to Bottom” l Offer products, services and know how which they know to produce and not which SMEs need l Do not feel the necessity to actively offer and sell their know how

25. 04/9925Fundação Empreender, SC, Brasil / DOrg-82e.ppt Characteristics of the Associations of Industry and Commerce (ACIs) l Only deal with.............. l Institutions of the elite, closed to SMEs l Poor / not professionalized l Employees only administrate, do not initiate, create... l Do not know the affiliated SMEs l Function as social clubs rather than business associations ACI LOBBY

26. 04/9926Fundação Empreender, SC, Brasil / DOrg-82e.ppt Cooperation between institutions does not work SME Business Associations (ACIs) Know how institutions SUPPLY DEMAND INTER- MEDIATE

27. 04/9927Fundação Empreender, SC, Brasil / DOrg-82e.ppt A new vision for the ACIs l Lobby is not the only task of a business association l They have two tasks: [ LOBBY and [ SERVICES for affiliated members ACI LOBBY SERVICE

28. 04/9928Fundação Empreender, SC, Brasil / DOrg-82e.ppt Logic of the Development of Associations 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 ACI More Entrepreneurs apply for membership More members pay more membership fees More means to finance more and better services

29. 04/9929Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 4 l The business associations have never decided not to offer services to their affiliated members l They don‘t offer services, because they are not aware that this is a fundamental task of a business association

30. 04/9930Fundação Empreender, SC, Brasil / DOrg-82e.ppt Development stages of an association

31. 04/9931Fundação Empreender, SC, Brasil / DOrg-82e.ppt Development stages of an association

32. 04/9932Fundação Empreender, SC, Brasil / DOrg-82e.ppt Where are the ACIs? l In 1991 out of 105 ACIs in Santa Catarina [ 98 are on stage 1 or 2 [ 07 are close to stage 3 [ None is on stage 4

33. 04/9933Fundação Empreender, SC, Brasil / DOrg-82e.ppt Ideas for a partnership project l ACIs change through an Organisation Development Process and start to: [ hire counsellors [ professionalize its staff [ integrate SMEs as members [ offer services to affiliated members l They finance themselves through membership and service fees

34. 04/9934Fundação Empreender, SC, Brasil / DOrg-82e.ppt Instruments to initiate discussions about changes within the ACIs l Provoke reflections by definition of the terminology: [ “It is not a GTZ project! [ It is not a HWK project! [ It is not a German project! [ It is a Brazilian project! [ It is an ACI project! [ So, you are the ones to say what to do and how!”

35. 04/9935Fundação Empreender, SC, Brasil / DOrg-82e.ppt Instruments to initiate discussions about changes within the ACIs l Speeches and presentations in the ACIs about services offered by HWK to its affiliated members [ Effect: almost zero !!!! l Visit of ACIs representatives to HWK and its institutional counterparts to get to know the services and support network offered to SME [ Effect: Spark the debate on change in the ACIs!

36. 04/9936Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 5 l When starting a discussion about changes in the organisation mind this: [ rational arguments are less important: if you want “A” you must do “B” [ psychological elements are more important: - trust amongst participants - credibility on the part of the participating institutions

37. 04/9937Fundação Empreender, SC, Brasil / DOrg-82e.ppt Question: l Why a Latin American business association should trust in [ GTZ [ HWK [ a consultancy firm in technical cooperation to a point to change its organisation ???

38. 04/9938Fundação Empreender, SC, Brasil / DOrg-82e.ppt Steps to a vision for SMEs! l Proposal: “We research the SMEs’ needs in the areas of management, business administration, production and sales!”

39. 04/9939Fundação Empreender, SC, Brasil / DOrg-82e.ppt Steps to a vision for SMEs! l Answer: “We already know the results. They are always the same: lack of credits, technology, well trained personnel etc. This does not help!” The project team working

40. 04/9940Fundação Empreender, SC, Brasil / DOrg-82e.ppt Thesis 6 l SMEs only want to discuss those problems and needs they perceive / identify in a subjective manner l The identification of problems and needs is the final outcome of a communication process of the SME with other people, and not the beginning

41. 04/9941Fundação Empreender, SC, Brasil / DOrg-82e.ppt The alternative: a discussion platform for the SMEs l Creation of organisational structures within the ACI [ SME’s industry branch working group within similar business areas ( Nucleus ) [ organised, managed, advised by a consultant (ACI’s employee) l which permit and maintain a continuous learning process

42. 04/9942Fundação Empreender, SC, Brasil / DOrg-82e.ppt Task of a Nucleus counsellor l Initiate and manage a communication process amongst entrepreneurs = Moderation l Objective: [ Identify common subjects and problems [ Stimulate the exchange of information and experiences [ Perform decisions and organise activities (training, visits to suppliers, fairs, etc.)

43. 04/9943Fundação Empreender, SC, Brasil / DOrg-82e.ppt Task of a Nucleus counsellor l At the “right” moment [ take part in the discussion actively [ bring into the discussion - questions, - ideas, - experiences, - comparisons, - proposals = Counselling

44. 04/9944Fundação Empreender, SC, Brasil / DOrg-82e.ppt The didactic l What I hear, I forget l What I see, I understand l What I do, I learn (Confucius)

45. 04/9945Fundação Empreender, SC, Brasil / DOrg-82e.ppt Elements of group counselling l Key strategy to start with : [ Keep the discussion focused on problems SMEs have direct influence (internal causes - good chance of success) [ Avoid problems on which SMEs do not have the power to decide on their own, because their are out of their hands (external causes - small chance of success)

46. 04/9946Fundação Empreender, SC, Brasil / DOrg-82e.ppt The “Nucleus” in an ACI: the basic idea l Through a “bottom to top” structure strengthen the affiliated SMEs [ demand for services in the ACI [ evaluation of the ACI performance [ influence on the ACI development l The membership paying affiliated SME has the right to demand, complain and influence

47. 04/9947Fundação Empreender, SC, Brasil / DOrg-82e.ppt Working strategy for the project team l To develop ideas and assign its responsibilities to the ACIs employees does not work: - lack of confidence, skilled personnel... l The project team itself has to: organise, invite, lead, advise, execute...... to demonstrate what works and how it functions

48. 04/9948Fundação Empreender, SC, Brasil / DOrg-82e.ppt The first results l The Nucleus in the first year: [ bakeries [ jointers [ plant producers l The Executive Director of the ACI: “I did not know that the SMEs do want and need us!"

49. 04/9949Fundação Empreender, SC, Brasil / DOrg-82e.ppt After six months: ZOPP IV l ACIs decide to: [ change the ACIs [ professionalize them [ stimulate SME’s membership [ create “SMEs nucleus” [ offer them services l The ACIs decide to be the target of a project of organisational change in order to improve SME’s performance

50. 04/9950Fundação Empreender, SC, Brasil / DOrg-82e.ppt The most important outcome l Nobody talks about the “HWK / GTZ German project” anymore l Everybody talks about the “ACIs Project” l This means: the responsibility is with the ACIs !

51. 04/9951Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... l 37 ACIs in Santa Catarina participate! l 63 employees are working in the service area (42 posts are newly created)

52. 04/9952Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... l the ACIs change their statutes in order to affiliate SMEs as members l integrate SMEs in the board of directors l cooperate on the level of [ presidents [ executive directors [ consultants in the areas of lobby and services, planning of activities, staff training etc.

53. 04/9953Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... l ACI Board of Directors plan “Objectives and Targets”: [ what do we want and [ by which activities can we reach the objectives on the subjects of [ lobby (economy and community) [ services to large, medium a small sized enterprises [ organisational development of the ACI

54. 04/9954Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... the ACIs … with 9.000 members increased its number between 10% and 300% by 2.500 SME,

55. 04/9955Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... l 200 nucleus in 59 business areas l 3.000 SMEs participating

56. 04/9956Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... l many nucleus activities [ problem / solution discussion [ training courses on subjects defined by núcleo members [ evaluation of participating SMEs enterprises [ visits to suppliers [ collective equipment purchasing [ visits to national /international business fairs [ etc. etc.....

57. 04/9957Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... l Nucleus’ start to lobby via ACIs to influence politics of know how institutions ACI Suppliers Schools SME Nucleus

58. 04/9958Fundação Empreender, SC, Brasil / DOrg-82e.ppt A communication, services and influence network starts to work... SME Business Associations (ACIs) Know how institutions SUPPLY DEMAND INTER- MEDIATE

59. 04/9959Fundação Empreender, SC, Brasil / DOrg-82e.ppt... and today... in the enterprises l Many changes The joiners example: [ Employees increased by - 90 % [ Products’ quality increased by- 80 % [ Work planning increased by- 60 % [ Changes (machines, lay-out, installations)- 80 % [ Introduction of new technology and products- 70 % average

60. 04/9960Fundação Empreender, SC, Brasil / DOrg-82e.ppt Who contributes what? [ Experience with services for affiliated SMEs [ Serves as working example of a business association which gives - credibility, - confidence in the organisational change process [ Intercultural aspects [ Methodologies - ZOPP - Metaplan - Group Consultancy - CEFE - Action Learning HWK gtz

61. 04/9961Fundação Empreender, SC, Brasil / DOrg-82e.ppt Four years later... l ACIs in Santa Catarina [ are open for SMEs [ work more efficiently [ offer services to SMEs l “Apparently you have found a way to get in move the ACIs in order to contribute to the development of SMEs” (E. Oehring, after a training session in SC)

62. 04/9962Fundação Empreender, SC, Brasil / DOrg-82e.ppt Fundação Empreender A Foundation of Associações Comerciais e Industriais (ACIs - Chambers of Industry and Commerce) in Santa Catarina, Brazil, to promote and support business associations In a partnership with the the Chamber of Arts and Crafts for Munich and Upper Bavaria, Munich Supported by SEQUA, Bonn, and Federal Ministry for Economic Cooperation and Development, Bonn The aim of the partnership project (which started in February 1991) is, inter alia, to diffuse experiences with organisational development in business associations, and with their opening for small firms. We diffuse our know-how via training courses, consultancy work, and publications. 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 (in the file name, the first number indicates the year, the second the version number). Currently, files are available in Portuguese, Spanish, German, and English. 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. We need this feed-back to demonstrate the effects of our work vis-à-vis those institutions which support the work of Fundação Empreender. Thank you! The Fundação Empreender Team