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Leadership and vision
To move from the current situation to the framework
required by a mature industry will take real leadership and vision. The
trap that many new industries fall into is the tendency to hang on to
the structures and administration that were developed in an ad hoc way
during the early years. Often this leads to acrimonious politics which
wastefully channels energy into battles between various stages of the
demand (supply)-chain, people get hurt and the whole chain suffers.
Being approximately 5% of vegetable oil consumption we would be better
providing cohesion which retains and expands market share.
Tenure is another issue which in the early years of
political development can lead to alienation of members. When office
bearers and administrators are either voluntary or inadequately
compensated for their time and expertise there is a reluctance to rotate
office bearers. The long-term effect of this is that alliances are made
which skew the representative body towards vested interests to the
exclusion of others.
It is therefore important that at a national and state
level the tenure of office bearers is limited. The presidency of the
Winemaker’s Federation of Australia is limited to a maximum of three
years. This gives time for the incumbent to deliver on policy and
ensures that any alliances made are for the long-term benefit of the
industry and not vested interests.
Often there is a perception that no-one else will do the
job if long term leaders step aside. This is rarely the case, and with
good succession management the organisation will continue to grow and
benefit from a variety of leadership styles.
In the years of development the administration should
likewise be based on a contract which is reviewed every three years with
calls for tender to provide the services. This should lead to innovative
ways to provide a stable administration and eventually a dedicated
secretariat strategically located to support the olive industry.
Commercial activities
Most of the effective industry bodies worldwide
supplement their membership income, be it from voluntary levies or
subscriptions, with funds derived from commercial activities. One of the
most common is insurance, either provided as a service or through
commission arrangements with an insurer. As mentioned at the beginning
of the article, banks, education and many other commercial pursuits have
become the cash cows of agricultural unions/associations.
It is important for tax, ethical and probity reasons that
commercial activities are seen to be, and are, at arms length from the
elected leaders of the entity. Board members should not be involved in
the delivery of services and any engagement with enterprises to deliver
services should be open to tender and subject to strict guidelines and
regular formal review.
Services should be generic and contributing to the
well-being of members and the industry, not competing with either.
In building a dedicated membership base, it is essential
to mimimise the reasons that industry participants can use as an excuse
for not becoming and remaining members.
Objectivity and cohesion
Since its explosive reemergence in 1995, the progress of
the olive industry has surprised many. Import replacement has been
successful with both the bulk and boutique markets, and exports are
growing. There is demand for Australian olive oil and, with some
favourable market conditions worldwide, we have been given the
opportunity to establish our industry to an extent that should ensure
its future growth and success.
However, it is during the good years that we should be
establishing a solid foundation for the future. The role of our
representative bodies is crucial in providing objective leadership,
cohesion and a regulatory framework which promotes and protects the
integrity of our products. Doing this successfully will ensure the
interests of membership are well looked after.
Membership will then be willing to invest in the
organisation from which they derive the benefit.
References
1.
The Winston
Churchill Memorial Trust Fellowship to study the Role and Structure of
Overseas Farming Organisations. Ian Cuming. 1989.
2.
International
Trends in The Structure of Agricultural Cooperatives. O’Connor and
Thompson. RIRDC Publication No 01/06. 2001.
Simon Field is an olive grower, processor and trader. He
is a former; General Councillor with the Victorian Farmer’s Federation,
Board Member of the Victorian Farmer’s Federation Industrial Association
and Executive Director of the Australian Institute of Agricultural
Science. In 1988 he wrote the Office Bearers’ Handbook, republished in
2005 as ‘The Guide to Good Meetings and Effective Associations’. The
handbook is available on the website
www.olivebusiness.com |
