In 2007, coop developers, researchers and worker coop practitioners met in Halifax to consider a means of measuring worker cooperatives in terms of the stated ethics, values and principles of the co-operative identity out of a desire to help cooperatives grow closer to an ideal cooperative organization, driven by cooperative values.

Although it is recognized that each co-operative is unique, it is believed that key elements bridge the differences and can provide a guide for the developing worker co-op. The Co-op Index tool does this by measuring the co-ops adherence to the co-op principles and values, as well as adherence to its own identity, and its success in meeting its mission.

In addition, it provides an overview analysis of the governance and operations from the perspective of the co-ops members and employees, with recommendations for initiatives is specific areas.

i.    Underlying Assumptions

This diagnostic approach is based on a number of key assumptions:

1. The condition of the organization is reflected in the convictions and attitudes of the workers and they may be diagnosed by confidential questionnaires.
2. People want to understand and feel secure within their environment, that they are free regardless of what they are told to do or what they seem to do.
3. Everyone has the capacity to become a better person, as well as participate in creating an effective values-driven co-operative.

These assumptions both guide the process of the assessment as well as inform the recommendations. They ultimately assume that the board, managers, members and employees (the stakeholders) can make a difference in the way the co-op operates both internally and externally. They also imply that the road to greater and fairer participation within the co-operative and its capacity to enhance its contribution to the greater community is in the hands of the stakeholders, reflected in the way they choose to work together.

The theoretical model underlying this approach is one of Total Participation in Management developed by Ryzard Stocki and others. Under TPM, employees engage in participatory management in all aspects of an organizations activities, as would an owner of the organization. This implies responsible behavior by the stakeholders.

Measures of responsibility are intertwined in the organizational dimensions of this tool, in the systems that enable it, in the positive impacts of responsible behavior in an organization on the individual, and in the positive outcomes of responsible behavior on the social and physical environment of the organization.
ii.    The Structure of the Tool and Results

The Co-op Index team developed measures of co-op functioning on several levels. The Tool uses a mixed methodology including a survey, document review and interviews to develop an analaysis of the functioning of the organization as a worker-owned and controlled cooperative.

There are four general indices which capture the functioning of the organization within two simple numbers ranging from 1 to 100 (described in greater detail below). Such measures allow quick identification of progress and benchmarking against other similar organizations.

In addition, because co-operative values and principles are deeply intertwined with the daily actions of a co-operative, the questions in the survey are analysed in two types of scales to view the co-op from the perspectives of both values and actions.

There are 22 scales that refer to particular Co-operative Principles and Values, and another grouping of 30 scales that refer to concrete Organizational actions and their effects.

The responses are also grouped into four dimensions: Systems, Climate, Attitudes and Outcomes.  These scales point to the types of actions that may increase member and employee engagement, and improve the functioning of the co-op. The combination of the various scales and indices provides the co-operative with an in-depth picture of their values in action.

At the end of the report we enumerate the answers to each question and provide selected demographic comparisons between groups within the co-op, e.g. members vs. non-member workers; managers vs. production workers, etc.

The survey results provide one aspect of the diagnostic. Along with the report of the indicies, an analysis of existing policies compares against the expressed sentitments of the survey. Any disconnects between the presumed means of functioning (policy) and experience (survey) undergo further exploration through interviews and discussion with the implementation team.

iii.    General Description of the Indices

The report includes two general indices.

The first is the Organizational Maturity Index (OMI), which places the worker co-op on a maturity continuum.  This provides a guide to the extent to which the co-op embodies the key features of successful worker co-ops.

The second is the Organizational Trust Index (OTI), which provides a general assessment of the level of organizational trust within the co-op, i.e. how secure the members and employees feel within the organization.

The report also includes a Co-operative Principles Index (CPI) for 12 Co-op Principles. The Co-op Index development team used the ICA 1995 Co-operative Principles as a starting point, and added several developed by the Mondragon Co-operative group, as well as an additional principle reflecting the concern for the environment.

The 12 principles used in the Co-operative Principles Index (CPI) are:

1.    Voluntary and Open Membership
2.    Democratic Member Control
3.    Member Economic Participation
4.    Autonomy and Independence
5.    Education, Training and Information
6.    Co-operation among Co-operatives
7.    Concern for Community
8.    Concern for the Environment
9.    Participatory Management
10.  Payment Solidarity
11.  Labour control
12.  Social Transformation

The report also includes a Co-operative Values Index (CVI).  Its calculation is based upon the 10 co-operative Values (ICA Statement of Co-op Identity):

1.    Self-help
2.    Self-responsibility
3.    Democracy
4.    Equality
5.    Equity
6.    Solidarity
7.    Honesty
8.    Openness
9.    Social responsibility
10.  Caring for others

The report includes an assessment of 30 indices relating to different dimensions of the co-ops life, including key information on how the dimensions are perceived by different groups of stakeholders within the co-op. A general picture diagram provides a snapshot of all the questionnaire results organized in four general categories and thirty dimensions.

• The Organizational Systems include: Communication Systems, Transparency, Feedback Systems, Development of co-op members, Remuneration, Innovations, Personnel Policies, Processes, and Strategies.
• Indices of Organizational Climate are the indicators of the general tone and mood between members and employees within the coop. They include dimensions such as Mutual Respect, Leader competence, Trust in leadership, Trust in co-workers, Participatory management style, Relations with Co-workers, and Fun.
• Personal Attitudes and Actions include individual personal dimensions such as Participatory Knowledge, Ownership, Process Improvement and Responsibility.
• The Outcomes Individual, Organizational and Social include including dimensions such as Identification, Satisfaction, Self-realization; Independence, Viability, Products and services; Co-operation with other co-operatives, Care for Community and the Environment.

Democracy at Work

A Professional Peer Network for Democratic Businesses

NWCDC

The Northwest Cooperative Development Center (NWCDC) is a not-for-profit, 501(c)(3), organization devoted to assisting new and existing cooperative businesses, from daycare centers to credit unions.   NWCDC primarily supports cooperatives in Oregon, Washington, and Idaho but has also supported projects as far away as Alaska and Hawai’i.  Founded by cooperatives in 1979, the Center has grown into the Northwest’s leading provider of services for co-op business development.  We have a long history of collaborating with communities, governments, economic development agencies and other cooperatives, sharing expertise and building cross-sector support for new and existing cooperatives.  NWCDC understands that when consumers, producers or workers become business owners of a cooperative, their individual and collective responsibilities greatly increase.  New owners face significant challenges to organize, get started and stay on track with a new cooperative business.  To help with these challenges, NWCDC provides facilitation, advising, analysis and access to information and tools for cooperatives.  Pre-development work with startups helps to build business ownership, sound management practices, and economic health.  NWCDC is an active member of the National Cooperative Business Association (NCBA), and CooperationWorks!, the cooperative development network.

Starting a cooperatively-owned business requires planning, analysis, financing and capital investment, and marketing.  NWCDC technical assistance tools include:

• Feasibility Assessments
• Cooperative Education
• Business Planning
• Strategic Planning
• Market Research
• Board Training
• Grant Writing

Strengthen your cooperative’s democratic governance through training:

• The role of member-owners
• Board of directors responsibilities
• Leadership development
• Financial management

To succeed as a strong business, co-ops need effective operations and sound financial management. NWCDC offers assistance with:

Co-op Index: Measuring the Co-op Advantage

Strengthen your cooperative’s relationships with other cooperatives.

2016 Conferences

Sep 12-14 Home Care Cooperative Conference (Dulles, VA)

Sep 19-21 Purchasing Cooperatives Conference (Miami, FL)

Sep 19-21 Cooperative Professionals Conference (Miami, FL)– for lawyers, accountants and other professionals serving the cooperative community.

Measure the Cooperative Advantage

Your measure your finances, but how about your principles? Social audits provide a means to build integrity with your mission and values. The Coop Index provides a means for worker coops to obtain a detailed analysis of the coops ability to meet its non-financial goals.

NWCDC subscribes to The Madison Principles: Professional Standards for Cooperative Development Practitioners, written by the members of CooperationWorks! in Madison, Wisconsin, in 1995 and revised in 2005.

1. Declare Conflicts of Interest: Co-operative developers subscribe to the highest level of ethics and shall declare any conflict of interest, real or perceived, so that they can be a credible source of objective feedback and an articulate advocate of the project as needed.
2. Develop Co-ops Using Proven Models: There are essential development steps that must be taken in a critical path to success.
3. Facilitate the Goals of the Steering Committee: An enthusiastic group of local, trustworthy leaders is a prerequisite for providing technical assistance. The effective cooperative developer nurtures that leadership by helping them shape a vision that will unite members and provide ongoing training.
4. Use a Market Driven Approach: Co-operatives only work when they are market driven; the cooperative developer works to ensure that accurate market projections precede other development steps.
5. Acknowledge the Importance of Member Involvement: Member control through a democratic process is essential for success. Success also depends on the commitment of the members’ time, financial resources and loyalty to the cooperative.
6. Seek Tangible Benefits: There must be tangible benefits for members.
7. Steer Toward Revenue Generation: The co-operative’s products and services must generate sufficient revenue so the effort can be financially self-sustaining. Provisions must be made to share any surplus equitably.
8. Honor Diversity: Each co-operative responds to its unique economic, social and cultural context; as a consequence, each co-operative is different.
9. Make Co-op to Co-op Connections: Co-operative developers link emerging co-operatives with established co-operatives to facilitate mutual communication and learning.
10. Promote Social and Economic Empowerment: Co-operatives are tools for development and promote social empowerment and economic goals.
11. Understand the Co-operatives Worker Everywhere: Applied appropriately, co-operatives have value to all population groups and for all businesses and services in the public and private sectors.
12. Our Vision of the Co-operative Community is Global: Opportunities for human co-operation exist throughout the world. Co-operative development transcends national boundaries.

These principles are meant to guide both the steering committee and the professional developer.

Cooperative Development Practitioners ready to assist you and your cooperative. Skills specific to start-up and organizational business development include: feasibility research, business planning, financial management, dynamic governance (Sociocracy), accountability models, governance training, communications, strategic planning and group facilitation.

All Center work is guided by the Madison Principles, professional standards set and agreed upon by co-op development leaders.

Diane Gasaway: Executive Director

Diane joined the Center in 2003 and together with the NWCDC Board of Directors has been responsible for building the Center into what it is today. Her specialty is in strategic planning, co-op education, co-op development, grant administration, and budget management for a multitude of projects. Diane has 13 years of experience in the financial services industry. She received a Master of Public Administration (with a co-op emphasis) from The Evergreen State College.

 

John McNamara: Cooperative Development Specialist

John joined NWCDC in the Spring of 2014. John has 26 years of practical experience in the worker cooperative world with Union Cab of Madison.  John earned a Masters in Management: Cooperative and Credit Unions from Saint Mary’s University (Halifax) in 2010 and currently is a PhD Candidate in Business Administration (Management). As a student researcher, he assisted in the development of the Co-op Index Report, a tool for measuring co-ops against the values and principles of cooperation. John is a founding member of the Democracy at Work Network and US Federation of Worker Cooperatives. He teaches a summer course on worker cooperatives at The Evergreen State College and has served as Presidio Graduate School faculty for their Cooperative Management Certificate. John co-edited a collection of essays on measuring co-operatives available as a e-book at no cost from the Cooperative Difference.

Deborah Craig: Cooperative Development Specialist

Deborah Craig joined the NWCDC in the Spring of 2014. Deborah has over 20 years of experience in cooperative management, specializing in Human Resources in the Food Co-op and Home Care Co-op industries. She has a Master’s degree from Western Washington University. In addtion to working with NWCDC, Deborah serves as a peer adviser with the Democracy at Work Network. Deborah is also part of the first cohort of Democracy at Work Institute’s Fellows. Deborah specializes in home care/caregiver cooperatives as well as working with the ROC Northwest program.

Daniel Luis Arrañaga: Cooperative Development Specialist

Daniel joined NWCDC as technical assistant provider for the ROC program in the Fall of 2014. Daniel has 7 years experience working in the non-profit sector and was a co-founder and chair for a start up food co-op in Eastern Washington. Daniel spent over a year in West Africa (Liberia & Côte d’Ivoire) as Assistant Director for an International NGO, the Wild Chimpanzee Foundation (WCF), and now serves on the board of directors for the US Representation of WCF. Daniel brings with him much needed bilingual skills for working with Hispanic communities in Washington State.

Sam Green: ROC Program Director

Sam works with the ROC Northwest program help to navigate the successful conversion of manufactured home parks into resident owned communities. Sam is a graduate of The Evergreen State College.

Miles Nowlin: Cooperative Development Specialist

Miles arrived at NWCDC in 2017.  Miles has a background in experiential education, child and family advocacy, low income and affordable housing, nonprofit development with a focus on youth programing, and Spanish language.  Miles spent 5 years coordinating the Homeless Education Program in the Shelton School District in Shelton, Washington, where he provided direct services, trained school staff and collaborated with local agencies.  Much of his time was spent working with churches and community service agencies to increase and improve programing for children, youth and their families.  He co-founded the Mason County HOST Program, an education and housing support program for youth experiencing homelessness, based inside of CHOICE Alternative School.  Miles has coordinated over 70 weeks of outdoor/experiential youth education programs, in the in the United States and Latin America.  He has a bachelor’s degree from The Evergreen State College in Latin American Studies.

Cristina Klatovsky: Cooperative Development Specialist

Critstina joined NWCDC at the beginning of March, 2018. She works out of Yakima, WA and will primarily cover the Eastern Washington service area for the ROCNW program.  She brings to NWCDC over 20 years experience training diverse groups in shared governance, program management and conducting extensive community outreach throughout the area. Cristina is passionate about community engagement, facilitating trainings and presentations. As a certified Spanish/English Interpreter, she is committed to assuring opportunity to participate for all regardless of language. Cristina has hit the ground running, falling in love with every community she visits and looks forward to every bit of it.

 Joe Garrison: Cooperative Development Specialist

Joe signed on with NWCDC in 2017 on a part time basis. Joe helped found the Blue Scorcher Bakery and Cafe in Astoria, OR, a worker cooperative that models the use of Dynamic Governance in its decision-making.