Cross Sector Collaboration & The Co-operative Decade, AACUL, 8.1.13
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Cross Sector Collaboration & The Co-operative Decade, AACUL, 8.1.13

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The 6th Principle of Co-operation recognizes that co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, regional, national and ...

The 6th Principle of Co-operation recognizes that co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, regional, national and international structures. And yet, credit unions and other co-ops rarely take advantage of opportunities to work together across sectors to grow our businesses, benefit our members, and influence policy makers. Presentation by Erbin Crowell, Neighboring Food Co-op Association Executive Director, and Jon Reske, VP of Marketing at UMASS Five College Federal Credit Union.

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Cross Sector Collaboration & The Co-operative Decade, AACUL, 8.1.13 Cross Sector Collaboration & The Co-operative Decade, AACUL, 8.1.13 Presentation Transcript

  • Cross-­‐Sector  Collaboration     &  The  Co-­‐operative  Decade   American Association of Credit Union Leagues Summer Meeting // Thursday, 1st Aug 2013 // Boston, MA INTERNATIONAL CO-OPERATIVE ALLIANCE BLUEPRINT FOR A CO-OPERATIVE DECADE JANUARY 2013
  • Our  Opportunity   The 6th Principle of Co-operation recognizes that co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures…
  • Our  Challenge   …and yet, credit unions and other co-ops rarely take advantage of opportunities to work together across sectors to grow our businesses, benefit our members, and influence policy makers.
  • Core  Questions   1.  Why collaborate across sectors? 2.  What are the challenges and opportunities for collaboration? 3.  How can we take advantage of the momentum of the Year of Co-ops and the Co-operative Decade? 4.  Is regional cross sector collaboration an opportunity for Credit Union Leagues?
  • Outline   1.  Our Context & Opportunity 2.  A Credit Union’s Perspective 3.  Food Co-ops’ Perspective 4.  Challenges & Opportunities 5.  Small Group Dialog
  • Our  Context  &  Opportunity   •  Crisis of our economic system •  Unemployment & inequality •  Diminished democracy •  Corporate influence •  Instability & change •  Hunger for alternatives   Local, democratic, values based, sustainable, etc.
  • Co-­‐operative  Principles   •  Voluntary & Open Membership •  Democratic Member Control •  Member Economic Participation •  Autonomy and Independence •  Education, Training and Information •  Collaboration among Co-operatives •  Concern for Community
  • Co-­‐operative  Values   •  Self-Help •  Self- Responsibility •  Democracy •  Equality •  Equity •  Solidarity •  Honesty •  Openness •  Social responsibility •  Caring for others
  • A  Flexible  Model   •  Credit Unions •  Food co-ops •  Agricultural & fishery co-ops •  Insurance co-ops •  Industrial & service co-ops •  Energy & utilities •  Housing co-ops •  Artisan co-ops
  • 2012:  International  Year  of  Co-­‐ops   Co-ops “in their various forms, promote the fullest possible participation in the economic and social development of all people...” United Nations Resolution 64/136 December 2009
  • A Flexible Model •  Credit Unions •  Food co-ops •  Agricultural & fishery co-ops •  Insurance co-ops •  Industrial & service co-ops •  Energy & utilities •  Housing co-ops •  Artisan co-ops
  • Co-­‐ops  Build  a  Better  World   “Co-operatives are a reminder to the international community that it is possible to pursue both economic viability and social responsibility.” UN Secretary-General Ban Ki-moon
  • International  Year  of  Co-­‐ops   UN Goals for the Year: •  Increase public awareness about co-ops. •  Promote formation and growth of co-ops. •  Encourage government policies, laws and regulations conducive to the formation, growth and stability of co-ops.
  • Co-­‐ops  Are  Successful   •  Scale •  Competitive •  Resilient •  Innovative •  Relevant Ontario Co-op Association // ontario.coop
  • Co-­‐ops  Have  Impact   •  1 billion co-op members worldwide* •  100 million employees worldwide** •  29,000 co-ops in the U.S. •  U.S. co-ops hold $3.1 trillion in assets •  1 in 3 Americans are members * More than directly own stock in publicly traded corporations ** More than employed by multinational corporations.
  • A  Co-­‐operative  Decade?   “The real opportunity is turning the International Year of Co-operatives into a Co-operative Decade, with the goal of the co-operative being the fastest-growing model of enterprise by 2020.” Charles Gould, Secretary General International Co-operative Alliance www.ica.coop/en/blueprint INTERNATIONAL CO-OPERATIVE ALLIANCEBLUEPRINT FOR A CO-OPERATIVE DECADEJANUARY 2013
  • •  Environmental degradation •  Unstable financial sector •  Global governance gap •  Disenfranchised younger generation •  Loss of trust in political & economic organizations Global  Challenges…   INTERNATIONAL CO-OPERATIVE ALLIANCE BLUEPRINT FOR A CO-OPERATIVE DECADEJANUARY 2013
  • Co-ops are a Better Business Model because… •  Participation through ownership, •  Economic, social and environmental sustainability, •  Places people at the heart of economics. …Co-­‐operative  Solutions   INTERNATIONAL CO-OPERATIVE ALLIANCE BLUEPRINT FOR A CO-OPERATIVE DECADEJANUARY 2013
  • •  Elevate participation to a new level •  Co-operatives as builders of sustainability •  Build the co-operative message & identity (positioning) •  Legal frameworks for co-operative growth •  Reliable co-operative capital that also guarantees member control Strategy  for  a  Co-­‐operative  Decade   INTERNATIONAL CO-OPERATIVE ALLIANCE BLUEPRINT FOR A CO-OPERATIVE DECADEJANUARY 2013
  • Strategy  for  a  Co-­‐operative  Decade   Sustainable Business Legal Framework Co-op Capital Member Participation Co-operative Identity
  • The UMassFive “Co-op” Brand A Credit Union Perspective
  • To Co-op or not to Co-op   UMassFive  has  always  supported  the  co-­‐operative   movement  and  has  positioned    itself  as  a  non-­‐ pro9it  9inancial  co-­‐operative  established  to  serve   it’s  member-­‐owners     Over  the  past  15-­‐20  years  the  credit  union  has   actively  tried  to  position  itself  as  such  in  the   marketplace.  
  • What our members said…
  • Main Financial Institution (MFI)   About  65%  of  respondents  have  their   primary  checking  account  at   UMassFive.     Among  those  who  do  not  use   UMassFive  MFI,  four  banks  were   identi9ied  by  more  than  5%  as  their   MFI:       Bank  of  America     Florence  Savings  Bank  (FSB)     TD  Bank     Easthampton  Savings  Bank  (ESB)   Us e  UMas s F ive  as  MF I: Yes 65% No 33% Don't  know  /   refused 2%
  • Credit Union vs. Bank   Overall,  the  9indings  indicate  that   UMassFive  members  feel   having  an  account  at  UMassFive   is  signi%icantly  different  from   having  an  account  at  a  bank.     Speci9ically,  75%  of  UMassFive   members  said  it  is  signi9icantly   different,  and  only  17%  said  it  is   not.     In  addition,  8%  were  unable  to   answer  the  question.        Yes 75%    No 17%    Don't  know 8%
  • Non-profit Financial Cooperative  Overall,  UMassFive  members  feel  they   have  at  least  some  understanding  of   what  a  non-­pro<it  <inancial  cooperative   is.  Speci9ically,  52%  of  members  feel  they   know  fully  what  this  statement  means,  and   43%  feel  they  know  somewhat  what  it   means.  4%  did  not  understand  the   statement.    Overall,  when  provided  with  a   description  of  a  non-­pro<it  <inancial   cooperative,  members  indicate  that  this   has  a  highly  positive  impact  on  their   image  of  UMassFive,  with  82%  saying  it   has  a  very  positive  impact  and  15%  saying  it   has  a  somewhat  positive  impact.     Don't   understand   statement 4% S omewhat   understand   statement 43% Fully   understand   statement 52% Don't  know 0% Negative 0% No  impact 4% S omewhat   positive 15% Very  positive 82%
  • Member Owner  The  majority  of  UMassFive   members  knew  that  by  having   an  account  at  the  credit  union   they  were  owners.  Speci9ically,   63%  of  members  knew  this,  and   37%  did  not.    Overall,  members  feel  being  an   owner  has  a  positive  impact  on   their  experience  with   UMassFive,  with  43%  saying  it  has   a  very  positive  impact  and  35%   saying  it  has  a  somewhat  positive   impact.     Aware  Was  Owner: No,  was  not   aware 37% Yes,  was   aware 63% Impact  of  Owners hip: Don't  know 2% Negative 0% No  impact 19% S omewhat   positive 35% Very  positive 43%
  • Member Advocacy  Most  UMassFive  members  do   perceive  of  staff  as  member   advocates  with  their  best   interests  at  heart.    We  then  asked  members  how   valuable  this  is  to  them  as   members.    Most  members  feel  that  having   UMassFive  staff  as  member   advocates  is  valuable,  with  67%   saying  it  is  very  valuable  and   most  of  the  remainder  (23%)   saying  it  is  somewhat  valuable.     S hare  Perception  of  S taff: Y es 71% No 7% Don't  know 22% How  Valuable  to  Members: Very   valuable 67% S omewhat   valuable 23% Not  valuable 2% Don't  know 7% Respondents  read  the  following:  “UMassFive  strives  for  its  staff  to  be  member  advocates,  offering   advice  and  guidance  that  is  in  the  best  interest  of  members  regardless  of  the  impact  it  has  on  the   credit  union.”  We  then  asked  respondents  if  they  share  this  perception  of  UMassFive  staff.  
  • College  students  are  likely  to  keep  their  accounts  at   UMassFive  after  they  graduate.                           Speci9ically,  57%  said  they  are  very  likely  and  24%  said   they  are  somewhat  likely  to  keep  those  accounts.    
  • Co-ops make for Good SEG’s   Retail  Deposit  Balance  Average   River  Valley  Co-­‐op  Market:  $21,995   General  Membership:  $14,337       Retail  Loan  Balance  Average   River  Valley  Co-­‐op  Market:  $23,076   General  Membership:  $22,498        
  • Co-ops make for Good SEG’s   Percent  of  Households  with  Retail  Loans   River  Valley  Co-­‐op  Market:  43.7%   General:  43.1%     Single  Service   River  Valley  Co-­‐op  Market:  9.3%   General:  21.5%  
  • A  Food  Co-­‐op  Perspective   A food co-op is a co-operatively owned grocery store, owned and governed by its members.
  • Food  Co-­‐ops  &  Innovation   •  Community ownership •  Healthy foods •  Organic industry •  Fair trade •  Local economies
  • Food  Co-­‐ops  &  Local  Economies   •  Democratic ownership & control •  Focus on meeting needs before profit •  Develop local skills & assets •  Ability to assemble limited member resources •  Address challenge of business succession •  Low business failure rate & are long-lived •  Difficult to move or buy-out •  Separate community wealth from markets •  Mobilize member loyalty…
  • Co-­‐ops  &  Credit  Unions   Build More stable, participatory, resilient and productive local economies.
  • Neighboring  Food  Co-­‐op  Association   “Our vision is of a thriving regional economy, rooted in a healthy, just and sustainable food system and a vibrant community of co-operative enterprise.”
  • Neighboring  Food  Co-­‐op  Association •  Regional 2nd Level Co-op (similar to a CU league) •  35 Co-ops & Start-Ups •  80,000 memberships •  1,500 employees •  $29 million in wages •  $200+ million revenue •  $30 million in local purchases http://nfca.coop/members
  • Co-­‐ops  &  CUs  in  the  Northeast   New England & New York •  8,860 co-ops •  9.5 million members •  Employ 55,000 people •  $2 billion in wages •  $100 billion in assets •  $14 billion in revenue http://reic.uwcc.wisc.edu/ http://nfca.coop/co-opeconomy
  • Cross  Sector  Collaboration   •  Cross-Sector Collaboration: Promoting Co-operative Difference •  New England Farmers Union: Food Policy & Co- op Advocacy •  Producer & Worker Co- ops: Sourcing & Education •  Valley Co-op Business Association: A Model for Cross Sector Collaboration
  •    
  • Value  Added   •  Members see themselves as part of something bigger •  Partners that “get it” •  Peer professional support •  Access to shared resources •  Legitimacy as business model •  Influence policy & advocacy •  Educational institutions
  • Challenges  &  Opportunities   •  Education   Limited understanding of history & impact of our movement. •  Philosophy   Do we have confidence in our model and movement? •  Expectations   We have high standards for each other. •  Mainstream business influence   We are encouraged to think like individual businesses. •  Development models   Focus on isolated businesses, not development of systems. •  Sector & Industry Silos   We rarely act together as a movement or system.
  • Co-­‐operative  “Silos”   Producer Co-ops Food Co-ops Credit Unions Worker Co-ops Energy & Utilities OtherCo- ops Cross Sector Collaboration
  • •  Vocational school in 1956 •  256 co-ops & subsidiaries •  $20 billion in Sales (‘11) •  84,000 employees (‘11) •  Largest domestic grocery •  Cross sector: Industry, financial, agriculture, education, tech, etc. •  Integrated credit union Mondragón,  Spain  
  • •  4 million people •  8,000 co-ops •  30-40% of GDP •  2/3 are members of co-ops •  Vibrant local traditions and food culture •  Strong sectors combined with an integrated, cross sector movement •  Integrated credit unions Emilia  Romagna,  Italy  
  • Shared  Characteristics   •  Strong co-operative identity   Co-ops & credit unions as community assets •  Development guided by co-ops   Emphasis on co-op to co-op business •  Integrated Financial Sector   Capital for growth and development •  Regional cross-sector associations   Supported by sector based organizations
  • Bridging  Sector  Divides   •  Shared history •  Common values & principles •  Basic business model •  Collective economic impact •  Cross sector business •  New models for collaboration •  A common message
  • A  Common  Message   Co-ops & Credit Unions… •  …put people before profit, •  …are democratic, •  …are rooted in community, •  …are innovative, •  …are successful, •  …are resilient, and •  …build a better world.
  • Toward  the  Decade  of  Co-­‐ops   •  Seeing the co-op landscape   Opening the dialog with other sectors •  Focus on shared identity & impact   Values, principles, history, structure, impact •  Start with those that “get it”…   …and others will follow •  Immediate opportunities for collaboration   Educate members, marketing, engage policy makers •  Collaboration as economic driver   Innovation, business development, growth
  • Why  Bother?   •  Access markets & committed members •  Share capital & resources •  Raise the profile of co-ops & credit unions •  Influence policies and legislation affecting co-ops & credit unions •  Engage educational institutions •  Grow our co-ops & credit unions
  • Some  Questions  for  You   •  Do you buy it? Does cross sector collaboration benefit credit unions and their members? Why or why not?
  • Some  Questions  for  You   •  Strategically, what is the most compelling opportunity for cross sector collaboration?
  • Some  Questions  for  You   •  How can credit union leagues take a leadership role in cross sector collaboration and add value for their members?
  • Contact   Erbin Crowell Neighboring Food Co-op Association erbin@nfca.coop www.nfca.coop/iyc Jon Reske UMASSFive College Federal Credit Union jreske@umassfive.org www.umassfive.org