Co-oppundit 2012

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Leadership

The factors

LEADERSHIP
“Member-controlled enterprises are only truly successful when they are led by people of the highest integrity who are entirely committed to achieving the true purpose of their enterprise”

Understanding leadership

Leaders in member-controlled enterprises, both member-leaders and executive-leaders need to fully understand the model of enterprise and be committed to the achievement of the outcomes as determined by the members. Leaders must have both the integrity and competence to lead; and they need to have their ego under control.

Members need to understand the following:

The role and functions of their leaders
The basis of leadership
The relationship between member-leaders and professional leaders
The systems required to ensure that leaders remain under the ultimate control of the membership
The importance of systematically developing current and future leaders (both member-leaders and executive leaders)

LEADERSHIP - THE MOST CRUCIAL OF ALL FACTORS

The quality of leadership determines the success of all forms of organisation, but none more so than co-ops & mutuals. Exceptional leadership is required on the part of both member-leaders and professional executives working in partnership, if co-ops & mutuals are to succeed in reaching their full potential. Given the inherent features of co-ops & mutuals, in particular the importance of self-help and their democratic basis, we need to understand that their leaders cannot be just a product of destiny but must be systematically developed, trained and nurtured.

In an investor-controlled enterprise the leaders are either self-appointed (because they are the dominant investors) or they are appointed by those with a controlling financial interest in the enterprise. Either way, investors are in a position to 'buy-in' the leadership they require; and to remove, relatively easily, those leaders who do not produce the results required. This contrasts with the position of co-ops & mutuals where leaders need to be substantially ‘home grown’.

If co-ops & mutuals are to succeed, then strong, committed leaders, working truly in their members’ best interests, are essential. Some previously highly successful co-ops & mutuals sometimes drift away from their original purpose or, as frequently happens, are hijacked by another stakeholder group or clique, or even demutualised. Constant vigilance is required to ensure that the enterprise remains member-controlled.