Tuesday, 13 May 2014

Have we lost the art of collaboration?


In 2005 the International Cooperative Alliance launched a new initiative called Global300.  It brought together information about the world’s 300 largest cooperative organisations.  

By analysing seven key industries, the Global300 Report demonstrated the strength of the collaborative business model.

The Global300 Report was recently replaced with the World Cooperative Monitor.  2032 cooperatives in 56 countries are now analysed each year.

What’s blatantly obvious from this research is the top organisations that have thrived post-Global Financial Crisis are cooperatives, especially in the agribusiness and food sector.  In fact many have experienced strong growth.

Cooperatives are punching well above their weight, with flexibility and adaptability a key feature of their success.  It’s also blatantly obvious that of the 2032 cooperatives monitored, Australia is virtually nowhere to be seen.

The Cooperative Bulk Handling (grain) ranked 153 and Murray Goulburn Cooperative Company Limited (dairy) ranked 186.  That's it.

Interestingly, New Zealand’s Fonterra Cooperative Group (dairy) is the fourth largest cooperative in the world.  A tiny nation representing a sector that is only 1% subsidised (Australia is 9%) has climbed to the top by shortening its supply chain; in other words collaborating to develop a value chain.

Indeed, many of the global food companies that people so-fear will take over our local agribusiness and food sector are cooperatives and private collaborations.

As the ‘agricultural powerhouse’ most noted to exploit the food boom, it seems Australia has been distanced from the action.  There is evidence to suggest it is because we stopped collaborating.

Consequently, the small businesses that make up 98% of industry are left feeling powerless and vulnerable to globalisation.

Cooperative is a dirty word amongst some who are in the sunset of their involvement in agribusiness and food.

So one of the great opportunities I see in the area of succession planning for the industry is to clear the way for a new generation of participants that I believe are natural collaborators.

So why don't we want to collaborate?  Are the benefits of collaborative behaviour misunderstood in Australia?  Have we lost the art of collaborating?  

Have we been losing competitive advantage because of this?


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