Just Think !!!

Merry Christmas

When I hear one of the most fondly quoted statement "Hate sin, not the sinner", I feel  we do have hypocrcy when there comes a similar ground for "Love good acts, not only the good doer". We as a society across the world get swayed away by hero worshipping and most of the times it happens that while we worship the hero, we forget the ethics, the prophecies, the actions that hero spoke about.

Yes !!, This is more special on this Christmas morning. Lord sent his only son Jesus, to spread the message of peace and love for everyone and its just 2000 years back & If one considers sentiments of all communities across the world, this message in one way or other was propogated by Lord Rama, Holy Paigambar, Guru Nanak, Lord Buddha & Mahavira and many other's unnamed who spread the message of humanity.

But when we look around incidents around us it makes our heart sad, the violence, the hatred of one  community against another, fight among nations and within nation........... I feel like questionining "Do we as humanity are actually  worshipping & in a way practicing those noble ideas of love & peace or  are we simply satisfying the formality of worshipping the preachers of these noble ideas and  in real sense have forgotten the cause for which they were here on earth at different point of times and in differen parts of the world".

I still dont have a answer but Every celebration be it Diwali, Id, Christmas, Holi, Gurunanak Jayanti must be making Almighty sad, not becauseGod.Ishwar/Allah doesnt like celebration and worshipping but because the real essence of peace & leave supposed to be propogated by these celebrations is somewhere getting lost. Somewhere we the God's children are at one end respecting our creator but at other end are missing the respect for peace & love he stands for !!!!

Lets along with loving the good doer, love & practice their good acts 

The Journey till now- Life Ahead

Subconsciously, its all like dots of life are joining by themselves.

I had at some corner of my heart feeling to contribute my little efforts for the marginalized & as anyone slightly interested in this would do, I wanted to enter to the civil service.

But as they as "Man proposes God disposes". ALmighty possibly had somethign else in mind. I still remember Prof. (___) came to my hostel room early morning of 18th dec, 2005 and we had a good discussion for about 2 hours. At the end he told me to stop preparing for UPSC, i was bit stunned as i had invested 3 years to this and he was asking me to leave even without giving a single trial of exam. In any case he was among most revered Prof's I had at NIT-Surat. So i told him "Sir I am ready to follow your advice but still I am curious to know why you dont want me to give even a try." His reply was possibly true to a greater extent as he understood " Sharda, i dont doubt your efforts or capability of clearing or not clearing the exam, only issue is whatever you intend to do as civil servant u can do by voluntarily. You r softhearted and you wont be able to fight crime and corruption and I fear you might not do what all u dream now". Innocently i asked him do these Voluntary organizations come for placements. He said here they don't , u take placements in any organization from here and then shift to this field in a year or two.

With this, another dimension got added up. Since the feel was soemwhere true to heart, possibly that's why my steps couldn't restrain myself from teaching kids at the Orphanage in baroda on weekends while continuing my Job at GM. As the days passed i realized, i am possibly getting the inner satisfaction of doing something beyond self, but still i was unable to contibute significantly to life of tose kids. Possibly it needs a full time devotion rather than week-end  task.

 This led me to apply for different ngo's so that i can take social work as a profession, unfortunately none of them called me up even for interview, bit tensed with this i took courage and asked the HR person of one NGO "Why r u not giving a chance for interview-afterwards you can reject me". Their reply was that my socalled profile didnt match with their requirement and i need to change it by going for masters and suggsted IRMA/TISS. Tiss dates were already over by then, fortunately i could apply for IRMA and by God's grace i got admission at this wonderful place (http://shardagautam.blogspot.com/2008/12/why-do-i-love-irma.html)

IRMA had its own deep influence & parents on the other hand didn't want me to join the developemnt world at the cost of socalled career,. Moreso my health trouble also was bothering me at some corner whether i would be able physically able to put some contribution or not.

It seems, this was the first time i got broken down completely and was on the verge of leaving the development thoughts seeign parents firm opposition and my health, But Almighty as always had far better solution which human mind can think of.

The MTS organization, where i m doing MTS, they offered me to join on a project which was a mix of field work & policy development which will not cause much strain to health and on the other hand will enable me to remain in development world. To my utter surprise, parents also don't have any objection (possibly bocz the field rural electrification matches somewhat to my fathers' field of renewable energy :) & to them name winrock doesn't sound like that of NGO for which they don't have high regards :)]

Lets see what future has in store from here. But i am happy that by grace of god, i am still with my dreams of contributing my little efforts to the marginalized & weaker section of the society.

I get reminded of Letter to elder brother Sarat Chandra Bose on September 22, 1920 by Subash Chandra Bose

"You will readily understand my mental condition as I stand on the threshold of what the man-in-the-street would call a promising career.There is much to be said favour of such a service. It solves once for all what is paramount problem for each of us -- the problem of bread and butter.One has not to go face life with risk or uncertainty as to success or failure. But for a man of my temperament who has been feeding on ideas which might be called eccentric -- the line of least resistance is not the best to follow .Life loses half its interest if there is no struggle -- if there are no risks to be taken.The uncertainties of life are not appalling to one who has not , at heart , worldly ambitions. Moreover , it is not possible to serve one's country in the best and fullest manner if one is chained to the Civil Service . In short , national and spiritual aspirations are not compatible with obedience to Civil Service Examinations."

रोटी कपड़ा और मकान बनाम Pizza Suitings and Duplex

भारत बनाम India saga

There used to be a time when India could be easily subsituted with "Bharat". So-called economic reforms began in disguise of Opening the economy under influence of Brettwood institutions and we saw India growing at an unprecedented pace which we never witnessed earlier. The quest for economic prosperity, mechanization and above all urbanization became a centre point. I cant say it was bad, but then there was happening a subtle change. India was going away from Bharat. This progress appeared to cause a drift. On one hand Bharat was moving at 2-3% growth rate and on other India was heading at 8-9% growth rate.

One insane guy who was neither in Bharat nor India (a middle class which constitutes a major chunk), intended to explore this nation (nations ?).

भारत (Bharat what he saw)

In some remote village not to far from state capital of a state, he found that electricity poles have not reached and to talk about electricity is a good joke, where parents feed their kids with "Madh"(its simply rice with about 3 times more of water not bcoz it tasted good but bcoz they didnt had enough to feed if their child asked another time for food.), where after 6 o clock in the evening, they want to remain in their home (just to ensure any naxal doesnt kill them), where if they fall ill, they can't take their dearone to hospital (not bocz they dont want but bocz nearest hospital is some 60 odd km's and they dont have money to arrange a vehicle) and so on......................... रोटी कपड़ा और मकान is still a big dream

India (India which he saw)

It was some IT-city near the capital of the nation (nations?) where let the sunset and innumerable buildings were lit with extravagent lighting, where escalators were running on some power source for the people who could easily climb up 12-15 stairs, where having food was no longer to satisy hunger but to have a change in flavor form xyz dish to abc dish, where for moving a distance of say 500 m people put fuel in their luxury cars, where for a simple cold or cough there exists a hospital (or a five star hotel) with best doctors and so on.........Pizza, suitings and duplex are in line

He got puzzled ánd asked his colleagues some of whom who have move to India and some still in Bharat (by choice or by compulsion is a different issue), none had an exact answer but inspite of all love/hate one has/had about Mr. M.K. Gandhi they admitted "Nature has produced enough to fullfill everyone's NEED but nor GREED". India's fast track growth is fully supported but lets not forget their exists a भारत in some greater parts of the nation/s, so lets take out some time/effort/resources to ensure that Bharat doesn't ask for becoming a different nation seperated out of India like we saw CG got seperated of MP or Jharkhand from Bihar on grounds of some differences.

The saga of भारत बनाम India goes on from रोटी कपड़ा और मकान to Pizza, suitings and duplex

Why Do I Love IRMA ?

“Why do I love IRMA”

The memoirs of a Participant

 

“Why do I love IRMA” is possibly a succeeding question to the most truthfully questioned and most flowerily answered J question “Why IRMA?” I am not sure how genuinely it was answered in past interviews of IRMA or will be answered in future but one thing remains precise that somewhere in the corner of our heart we have an unadulterated answer. I too had my own insane reasons which my diary quotes as

 

“I am not sure whether I would be able to contribute to underprivileged section after passing out from IRMA. I am also not sure whether this institute will be able to mould me into a capable rural manager, but I am happy that next 21 months of my life would be spent in an environment where tea-time gossips wont remain restricted to film and sports stars but will include talks about the marginalized and weaker sections , where class room discussions won’t  restrict to just increasing profits for organizations but will include humane aspect too, where exams wont test your capability of simply managing monetary aspects but will test how delicately you can integrate development (not sure what it meant then) in it.”

 With all these whims and fancies I entered into this wonderful campus. The very entry left an unforgettable mark in my memory. As per my earlier dispositions, guard at the gate was at maximum supposed to let me know the direction of hostel block, but to my utter surprise he took me to the hostel, put of my luggage from the auto rickshaw, took & filled up the empty water bottle, asked for my bed-sheet and set the things comfortable for stay of any new comer like me. I was dumb struck at the thought that if non teaching staff is so supportive then I am definitely going to have a homely stay here.

 

The Unlearning

I still remember during induction field work when we reached the GVT (Dahod) office Prof. Arvind Gupta called all of us together and told us  “Forget what you are, forget what your qualifications are.You all are simply learners and therefore spend next one week as a true learner from the so seeming illiterate inhabitants of the village.” I possibly didn’t realize it then. “The Barefoot Managers” as IRMAN’s are supposed to have humility at heart and this necessitates that the baggage of past whether its educational background or work experience must be dropped down. And this was the first and fundamental lesson for me possibly one of the most striking facet of IRMA.

 The Learning

Possibly none of the so-called management institutes would be teaching about rural livelihood systems and as obvious to most of us, things taught in this course were going above head, specially the way poor & poverty was defined with the six aspects which didn’t restrict to financial poverty. The village stay at Jharkhand possibly was waiting for another starking revelation. The discussion which  left me spell bound

We: “Whom do you rate as most poor person in Supa?”

Replies” Jharia who lives toward field is poorest person here”

We (the most obvious question): “How much land he owes”

Replies “About 6 acres”

We: “And you”

Replies: “2 acres, 1.5 acres…….”

Stunned by the reply we asked him: “Still you call him poorest in the village”

Replies: “Sahab, you won’t understand, poverty is not simply related to land size, its something more than that”

We curiously continued the discussion and got to know that Mr. Jharia Uraon had big sized land but didn’t have ox and plough, therefore during cropping season he used to work in other’s field and during non cropping season along with his wife & children used to migrate to Bengal for working in Brick making foundries. He was somehow able to save 2000-3000 a year and was planning to purchase a pair of ox and plough when he is able to collect 10000 rupees. But then came the disaster. While he was in Bengal, his wife expired and left a one week child. Somehow he took back his children and this newly born baby. In tribal community, bridegroom moves to the village of his bride and same was the case with Mr. Jharia and therefore all social contacts in the village were of his wife who was no more alive. Now with three small children, his movement for work got restricted. He now cuts and sells log of wood locally in the village when his children are  asleep. He us waiting for them to grow up and take care of themselves so that he can move out and plan for ox and plough to earn from his large farm land ( Tribal’s cant sell their land to non-tribal’s as per law).

                                                          This is what possibly Prof. Hiremath wanted to teach in RLS- a lifelong learning.

 

The unanswered question

During PRA class room sessions Prof. Arunathan (who happens to be IRMA alumnus) showed us a video in which few poor families whose daily life, their sufferings etc. was depicted. I guess more then the video Arunathan Sir’s question “Why we are here and why they are there?” moved us. Our exploration for the question is still on but in very simple terms he gave a great lesson that since we are blessed up with certain richness and ability of good education &decent salary, it’s our duty to sincerely put efforts to pull up life of fellow beings who are not equally blessed with this.

This answered question will keep on haunting me lifelong!!!!

 The IRMAN way

When I told my friends that in IRMA, if someone breaks the rule, he puts a fine himself, none of them believed.  Possibly I also wouldn’t have known the tradition of integrity which IRMA values if had not overheard talk of two kids who came with their parents during Milaap08 (Alumni Meet). The conversation of two kids was over an incident in one of the fun-stalls during Milaap.

It was an event in which glasses were kept in pyramidal form and objective was to hit them with ball and scatter all the glass tumblers. Younger Kid [about 7-8 years] tried two or three time but couldn't dismantle the lower layer and same thing happened with the elder one [i guess around 12 years], both of them sat disappointed after this.

 

Younger one told "Bhaiya u know they stick the lower layer with glue, so it never falls". Elder one thought for a while and replied him back "Yaar it might be true but my father told that in IRMA people never cheat, IRMAN's are very responsible".

 

Awesome!!! Statement touched me- If an elderly person says one may presume he may be pretending but when a child says such words--they are from the innocent Heart.

 

The Glorious Past

 During MTS at Gurgaon, one conversation left me with mixed feelings. I was new to Gurgaon and therefore with my room-mate (was staying there as PG)  at Gurgaon , I went to a restaurant and was waiting for food. Our conversation somehow took turn towards IRMA. My Room-mate co-incidentally happened to be a relative of Prof. Vishwa Vallabh (earlier Prof. at IRMA) and told me that IRMA is virtually IIM of Rural management.

 

 Before I could react, another person (he must be in his early sixties) interrupted in between and said ‘Don’t degrade IRMA by comparing with IIM. IIM’s are nothing but a drain on tax payers money. IRMA used to be ‘Harvard of Rural Management”, & I hope IRMA will keep its glory.’ With moist eyes he left the restaurant, I couldn’t even ask him his name.

 

But who-so-ever he was, his statement left me in dilemma. I should feel happy or sad about this. Happy because the roots of the institute are among the best in the world and sad because I was born too late witness the glory which he was talking about.

 

In any case, if there has crept some adulteration in the founding principles which are putting a blot on IRMA, it calls upon every one involved with IRMA be it , the Board, Alumni,  Professors, Non teaching staff & obviously the Participants to set ourselves for regaining the glorious past of IRMA “The Harvard of Rural Management”

 

And as we fondly say at IRMA

 

        “If we wont ………………..........................................

                                                                                                               who will?”

 

PS: Answer to the question “Why do I love IRMA?” possibly subtly lies somewhere in these lines which I my naïve English knowledge is unable to specify in one word.

Was that Really Bad?

Was that really bad? He wasn’t sure.

 

He had dropped out of college. He didn’t have a dorm room, so he slept on the floor in the rooms of kind friends. He sold used Coca-Cola bottles for the five-cent deposit per

 

bottle to buy food. He walked seven miles across town every Sunday night to get one good meal a week at the Hare Krishna temple. But he didn’t abandon his passion. He was determined to learn calligraphy at the same.institute (Reed’s College)  He learned about serif and sans-serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful and artistically subtle in a way that science couldn’t capture, and he found it fascinating.

 

Some years later, he wrote:

 

None of this had even a hope of any practical application in my life. But ten years later when we were designing the first Macintosh computer, it all came back to me, and we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would have never had multiple typefaces or proportionally spaced fonts, and since Windows just copied (?) the Mac, it’s likely that no personal computer would have them. If I had never dropped out, I would have never dropped in on that calligraphy class and personal computers might not have the wonderful typography that they do.

 

He asked himself, “Was dropping out of college really that bad?” The answer was a firm no.

 

Life went on. In only ten years he established a great organization, characterized by an innovative and entrepreneurial spirit, in the computing field. As the organization grew, he hired someone whom he thought was very talented to run the company with him. For the first couple of years, things went well. But then the two men’s visions of the future began to diverge, and eventually he had a falling out with his colleague. At the age of thirty, he was fired from his own organization because of collusion in the boardroom. The incident appeared devastating. But he didn’t stop. He discovered new ways of moving ahead.

 

Life went on, and again things turned around. Five years later, he said with joy:

 

I didn’t see it then, but it turned out that getting fired from Apple was the best thing that could have ever happened to me. The heaviness of being successful was replaced by the lightness of being a beginner again, less sure about everything. It freed me to enter one of the most creative periods in my life. During the next five years I started a company named NeXT, another company named Pixar and fell in love with an amazing woman who would become my wife. Pixar went on to create the world’s first computer-animated feature film, “Toy Story,” and is now the most successful animation studio in the world. In a remarkable turn of events, Apple bought NeXT and I returned to Apple and the technology we developed at NeXT is at the heart of Apple’s current renaissance, and Lorene and I have a wonderful family together. I’m pretty sure none of this would have happened if I hadn’t been fired from Apple. It was awful-tasting medicine but I guess the patient needed it

 

He again asked himself, “Was that firing really bad?” The answer was a firm no.

 

By now, you might have guessed that this is not a fantasy or fable. What you have just read describes two real incidents from Steve Jobs’s life.

 

As it is with Steve Jobs, so it is with everyone on this earth. We at times label certain events as “bad” because they didn’t happen in the way that we wanted them to unfold. This could be failure in an exam, defeat in a game, loss in an election, setback in business, disappointment in love, death of a loved one, missing an important appointment, being turned down for a promotion. We cry and mourn over such “bad” incidents. We shout and scream in anger and rage.

 

But life goes on (unless we wish to end it). With the passage of time, we find that even incidents that seemed bad or tragic or upsetting have shaped our life in ways that we can only understand and appreciate much later when we look back. The learning, the experience, and the frustration of dealing with the “bad” moments in our life somewhere down the line become sources of inspiration, which help us to keep moving ahead with determination and fortitude.

 

“In the darkness of uncertainty, we see with a torchlight a limited view. But the Almighty sees in sunlight. Have faith and patience.”

 

Reflect on an apparently bad incident in your life, something that seemed most unfortunate, something that appeared to be a huge setback. For a moment, assume that it didn’t happen. Do you find that the pride and joy associated with some of your greatest achievements—or the happiness that you found at a later phase of your life—has been diminished? Do you find that you now have a different perspective when you look back at your past? All the events in our life, all the people we meet, all the problems that we face, and all the opportunities that come our way shape our future course of action. At times, one crucial event or one important individual can determine the entire course of our life. Let’s take a few pages from our notebook and “try to join the dots of life working backwards”.

 

The next time you feel like mourning over some unfortunate incident or brooding about a disappointment, stop and ask yourself, “Was that really bad?” You might be surprised at the answer to your own question. Then you will want to shout at Murphy who said, “If everything seems to be going well, you have obviously overlooked something”

 

P.S. Article doesn’t intend to portray good/bad, it’s simply an attempt towards creating positive thinking in life. Article is a part of book under composition “Was that really bad”. Pl. mail your suggestions/critic at sharda.gautam@gmail.com/ sharma.pkk@gmail.com , it may helps us in improving the content of the book !!.

 

 

बस फर्क सिर्फ़ इतना सा था

जीने के लिए काम तो सभी को करना   पड़ता है

मैंने भी शुरू किया और उसे भी शुरू करना पड़ा है

बस फर्क सिर्फ़ इतना सा था

मुझ पर जिंदगी  का बोझ २३-२४ की उम्र में आया

जबकि उसपर ८ वर्ष  में पड़ा  जिंदगी के बोझ का  साया

कडकडाती ठण्ड में मै काम के लिए सुबह निकला

रास्ते में उसे भी काम पर जाते देखा

बस फर्क सिर्फ़ इतना सा था

मै स्वेटर मफलर लगाए गाड़ी में जा रहा था

वो नंगे पैर अपना कचरे का बोरा उठाये ठंडी सड़क पर दौड़ा चला जा रहा था

खैर मै अपने कार्य स्थल यथा समय पहुँचा

वो  भी अपने आफिस  पहुँच गया

बस फर्क सिफ इतना सा था

मेरा कार्यास्थल वातानुकूलित आरामदायक कुर्सी वाला था

और उसका आफिस  कचरे के ढेर पर बना था

दोपहर का वक्त हुआ और मै खाने के लिए भोजनालय पहुँचा

भूक से व्यथित वो भी भोजनालय पहुँचा

बस फर्क सिर्फ़ इतना सा था

मै भोजनालय के अन्दर आराम से खाने का आर्डर दे रहा था

और वो भोजानालय के बाहर  आतुर आँखों से जूठी थालिओं में खाने के टुकड़े खोज रहा था

खैर आफिस का काम ख़त्म कर मै खुशी खुशी निकला

वीकएंड के दो दिनों में क्या क्या करूँ सोचते हुए घर के लिए चला

राह में देखा तो वो भी अपना कचरे का बोरा उठाये चला आ रहा था

क्या करोगे तुम वीकएंड पर, उसे देखा तो ऐसा पूछ बैठा

उसने मुस्कुराते हुए कहा “साहब हमारा वीकएंड तोह लाइफ एंड होने पर ही अता है”

उसका जवाब मुझे एक बड़े सवाल की प्रति ध्वनि लगा

खैर बिना कुछ कहे मै अपने आंसू रोक कर वापस मुड़ने लगा

बस फर्क सिर्फ़ इतना सा था

इस बार वह सवाल पूछ बैठा “साहब ये इतना सा फर्क मेरी जिंदगी में क्यों था”

मेरे पास इस सवाल का कोई उत्तर नहीं था

World bank's former Country Director's view-India

Michael Carter, who was the World Bank’s Country Director for India from September 2002, retired in July 2006. He looks back at the four years he spent in India.

I came to India four years ago at an exciting time in India’s recent history. Change was palpable and a new sense of confidence was in the air. India’s extraordinarily energetic private sector was propelling the country to new heights of growth, and the nation was beginning to emerge as an economic powerhouse, a strong player in the increasingly knowledge-driven world of the new millennium. Although India was still home to the largest number of the world’s poor, it seemed that poverty’s worst features could be vanquished in the coming generation.
Shortly after our arrival in India, my wife Jenny and I went to stay with a low income family in the Kolar district of Karnataka. Mahatma Gandhi said that India lives in its villages, and in that one week in rural Karnataka I glimpsed what life was like for the common people of the country. As we ate with the family and slept like them on straw mats, I began to understand the magnitude of India’s rural development challenge. The village had no health centre, a school that barely functioned, and a road that was more of a dilapidated track. This is not to say that no public resources were being provided. The government was, for example, subsidizing power for agriculture – although this was fostering a fall in the water table that deeply worried the farmers.
Those early days vividly impressed upon me the huge gaps in the government’s delivery of basic services; yet, the people worked so hard to secure a better future for themselves and their families. That image, which I was to see repeatedly across the country, has remained with me ever since, underpinning my work here these past few years in many ways.
I saw the extraordinary spirit of India’s people again in the aftermath of the tsunami. As the survivors picked up the pieces of their lives, they were helped by an administration whose competence in handling the disaster has been recognized world-wide. Though I have seen many examples of the failure of governance and service delivery by governments across the country, I have also come across many public servants of immense ability and commitment, often unrecognized, battling against all odds to get their jobs done. My experience has left me in no doubt of the enduring strength of India’s people.
It looks increasingly likely that the global economic environment will be less favorable for India than it has been in the past few years. While some resulting slowdown in India’s growth over the next few years would not be a surprise, I believe that the country can continue to be one of the world’s fastest growing economies. But the sustainability of that growth over the longer-term will depend on a number of factors which require urgent thinking and action now.
To name a few: Adapting to increasing water scarcity in a way that meets the reasonable needs of all; ensuring adequate energy supplies, especially through the difficult reforms that are needed to improve energy efficiency; adapting to climate change, which could impact India more than most countries; coping with accelerating urbanization, for which strengthened urban governance is surely essential; creating high quality job opportunities; protecting India’s fragile environment in the face of the ever increasing pressures created by economic success; and making India a driving force in technical innovation. My hope is that the World Bank will be able to contribute to ways forward in all these areas, especially by bringing to the table the lessons of experience from around the world.
My experience has also convinced me of the importance of a second and, perhaps even more difficult agenda: Finding ways to make growth more inclusive, so that India’s recent successes improve the lives of all its people. There are no easy solutions, but there are promising experiences to build on. All have the common theme of empowerment – if people are given the opportunity and confidence to develop new avenues for improving their livelihoods, and a role in the governance of the services they receive, the face of poor communities across the country can be changed.
This is certainly a tough challenge. For empowerment, by its very nature, implies a shift in the balance of power. It means a change from the topdown ways of centralized governance to a more participatory, grassroots-led system of decision-making. It means a greater responsiveness on the part of the country’s political system to the needs of its common citizens. It means an emphasis in policymaking on strengthening competition, so that poor producers get a fair reward. And it means transparency in public dealings, an openness to scrutiny, and an unequivocal right to information – all crucial to fighting the scourge of corruption.
But I am convinced that it is eminently doable. The women’s self help groups in Andhra Pradesh, for example, have shown that if poor and marginalized people are given the confidence to improve their lives, they can increase their families’ incomes within months and perhaps even give rise to a quiet social revolution in the process. In Uttaranchal and Kerala I have seen how giving poor rural communities a role in overseeing the construction of their drinking water schemes, as well as the responsibility to operate and maintain them, reduces construction costs, improves construction quality and greatly strengthens the prospects for sustainability.
Given India’s complexity and diversity, scaling up these local successes is a formidable challenge. Efforts to empower local governance institutions right down to the village level, which the government is rightly emphasizing, will surely help. But it will also be crucial to monitor developments on the ground, ensure that government programs are really designed to foster empowerment rather than respond to vested interests, and to constantly learn as reform proceeds. The World Bank will need to keep these challenges in mind for its work in India, all the time looking for ways to strengthen its contribution to India’s own development efforts.
I will certainly be watching, with respect and affection.

(This article was originally published in the New Delhi edition of The Economic Times on 7 August 2006)

My Experiments with Reforms: Dilemma

My Experiments with Reforms: Dilemma

Dilemma

Life for most of us takes sharp 'u' turns at one point or the other which is often professed as "Man proposes God disposes". All development interventions are principally aimed at serving weakest of the weak in the system, but somehow our attempts touch only the layer which is more visible and more easily accessible and we feel successful when we find better results coming out for this layer. BUT DOES THAT NOT MEAN THE DEVELOPMENT INTERVENTION DIDN'T MEET ITS BASIC OBJECTIVE OF ASSISTING THE WEAKEST. I was reviewing the objective with which my naive experiments with reforms started and course they followed while being established.

Drishti-"My first experiment with reforms" was pioneered as an organization which will support all the students at SVNIT and promote their technical endeavours. More so it was an attempt to specifically guide and nurture students with low inclination towards tech things because fundamentally students who were already motivated for tech endeavours could attain good results even in absence of Drishti. In nutshell Drishti's existence was with a mandate that it will prove prowess of SVNITians in technical arena by ensuring that everyone in the institute is involved in some way or the other. We got best results in almost all tech competitions and there is no doubt about it but if give a micro look did Drishti really create platform for "so called less technically inclined students" I personally don't get a satisfactory yes. All the people involved in the noble endeavour of transforming NIT-Surat to a technical hobby centre of excellence did best job and year after year results are shining like anything. BUT IS THIS THE REAL CHANGE WHICH WE FROM DRISHTI WANTED? DO THESE RESULTS REPRESENT THE WORK OF THOSE WHO REALLY NEEDED DRISHTI?

This is not to judge past but to join it with the next experiment "Disha". Our team dreamt of serving the weakest, through a model of organization which is not dependent on charity for doing development interventions. Therefore after much deliberation we undertook a midway path and attempted to keep in virtues of market driven organizations (for profit), NGO's( not-for profit) and Co-ops (sharing of profit/surplus with original producers i.e. poor).

We started our journey 8th august 2007 and explored all possible options to set in this model. As a mode we principally agreed to create what Mahatma Gandhi calls "production by masses" and that too in sync with not disturbing environment ( any intervention which disturbs ecology will not be sustainable). We decided to begin our work from one of the poorest state Jharkhand (known as sudan of India). As a part of curriculum of IRMA, we stayed their for two months in a tribal village "Supa" and tried to asses how people there can be involved by building upon their strengths. As area is not getting investment (possibly bcoz of naxal problem) and there are no alternatives other than to migrate during non-farming season, we thought we should start some productive work in which every one in the village can be involved, so first option before us was to give training to people (alike NGO's work) for very basic handwork (what we popularly call as handicraft) and then provide market linkage (alike for-profit organizations )so that they can earn a decent livelihood by remaining in the village itself. Our objective was to share back the profits with the original producersi.e. rural poor (alike Co-ops but not democratically as naxal problem is hindrance to democratic process) and our team serving as employees of the organization with producers as owners of Disha. Along with this we attempted to take up rural innovations with support of NIF, Ahemdabad so that innovation at the grass root can be brought forward.

But as its said "Man proposes God disposes" today i see things not going the way we thought of. Bcoz we couldnt convince venture capitalists to support us (as equity & not grant) our attempts have stuck up. The cause for which our team is moving is what we never want to leave in between, so an alternative way we are planning- we are now thinking ( not sure yet ur valuable views will help us decide) to begin with a for-profit venture on e-waste recycling (which fulfills only one social objective of caring for environment) which will make organization financially sound and then will carry forward the mission of serving the weakest.

But as it happened with the first experiment "Drishti" i sometimes apprehend will WE BE ABLE TO FULFILL THE BASIC OBJECTIVE OF SUPPORTING THE REAL NEEDY. This drift is bit more sharp WILL WE BE ABLE TO JOIN BACK THE STREAMS?. Only one answer i find coming from the heart "If the feeling for the cause is true this drift will not hinder the mission and we will be able to contribute our best for the REAL needy"........

The quest is on.... with all actions being filtered on Gandhiji's talisman

"I will give you a talisman. Whenever you are in doubt, or when the self becomes too much with you, apply the following test. Recall the face of the poorest and the weakest man [woman] whom you may have seen, and ask yourself, if the step you contemplate is going to be of any use to him [her]. Will he [she] gain anything by it? Will it restore him [her] to a control over his [her] own life and destiny? In other words, will it lead to swaraj [freedom] for the hungry and spiritually starving millions?Then you will find your doubts and your self melt away."

Disha Moves Ahead!!!!!!!!!!!!!!!!!!!!!

Inspiring thoughts

"When someone lies to you, it teaches you that things are not
always what they seem. The truth is often far beneath the
surface. Look beyond the masks people wear if you want to know
what is in their hearts. Remove your own masks to let people
know who you really are."

"When someone steals from you it teaches you that nothing is
forever. Always appreciate what you have. You never know when
you might lose it. Never take your friends or family for
granted, because today and sometimes only this very moment is
the only guarantee you may have."

"When someone inflicts injury upon you, it teaches you that the
human state is a very fragile one. Protect and take care of
your body as best as you can, it's the one thing that you are
sure to have forever."

"When someone mocks you, it teaches you that no two people are
alike. When you encounter people who are different from you, do
not judge them by how they look or act, instead base it on the
contents of what is in their hearts."

"When someone breaks your heart, it teaches you that loving
someone does not always mean that the person will love you
back. But don't turn your back on love, because when you find
the right person, the joy that one person brings you will make
up for all of your past hurts. Times a thousand fold."

"When someone holds a grudge against you, it teaches you that
everyone makes mistakes. When you are wronged, the most
virtuous thing you can do is forgive the offender without
pretense. Forgiving those who have hurt us is often the most
difficult and painful of life's experiences, but it is also the
most courageous thing a person can do."

"When a loved one is unfaithful to you, it teaches you that
resisting temptation is Man's greatest challenge. Be vigilant
in your resistance against all temptations. By doing so, you
will be rewarded with an enduring sense of satisfaction far
greater than the temporary pleasure by which you were tempted."

"When someone cheats you, it teaches you that greed is the root
of all evil. Aspire to make your dreams come true, no matter
how lofty they may be. Do not feel guilty about your success,
but never let an obsession with achieving your goals lead you to
engage in malevolent activities."

"When someone ridicules you, it teaches you that nobody is
perfect. Accept people for their merits and be tolerant of
their flaws. Do not ever reject someone for imperfections over
which they have no control."

"When someone loves us, it teaches us love, kindness, charity,
honesty, humility, forgiveness, acceptance, and all of these can
counteract all the evil in the world. For every good deed,
there is one evil deed. Man alone has the power to control the
balance between good and evil, but because the lessons of love
are not taught often enough, the power is too often abused."

"When you enter someone's life, whether by plan, chance or
coincidence, consider what your lesson will be. Will you teach
love or a harsh lesson of reality? When you die, will your life
have resulted in more loving or more hurting? More comfort or
more pain? More joy or more sadness? Each one of us has the
power over the balance of the love in the world.
Use it wisely!"

Courtsey:- Roy Nwaisser- Thoughts reproduced with a humble intention of spreading good words

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Allow Your Own Inner Light to Guide You

• There comes a time when you
  must stand alone.
• 
  You must feel confident enough within yourself to follow your own dreams.
• 
  You must be willing to make sacrifices.
• 
  You must be capable of changing and rearranging your priorities so that
  your final goal can be achieved.
• 
  Sometimes, familiarity and comfort need to be challenged.
• 
  There are times when you must take a few extra chances and create your own
  realities.
• 
  Be strong enough to at least try to make your life better.
• 
  Be confident enough that you won't settle for a compromise just to get by.
• 
  Appreciate yourself by allowing yourself the opportunities to grow,
  develop, and find your true sense of purpose in this life.
• 
  Don't stand in someone else's shadow when it's your sunlight that should
  lead the way.
  
  
  
  
  
  
  
  
  
  

courtsey: http://www.indianchild.com/thoughts_for_life.htm

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Thoughts from Achieve online magazine

Every moment is priceless, and each one belongs to us

to use as we choose.



Although we cannot achieve everything we want in one

day, there is enough time today to begin with what we

have. Today, we can make a commitment to paint our

personal life masterpieces--one brush stroke at a

time.



We were meant to enjoy life, to live completely, and to

experience all the exciting gifts that God has offered

to us. In each moment, we move toward or away from any

goal through our choices and actions. To live

deliberately, we must get out of auto-pilot mode and

become conscious of our choices.



When we live consciously, we live deliberately. We use

our minds as the magnificent tools that God designed;

we make up our minds to act in constructive and loving

ways.



In auto-pilot, or ego mode, the mind is no longer our

tool--the mind uses us instead of us using it. It

"makes us up", manipulating us to react in hurtful

ways to situations and events that are different from

what we imagined as ideal. Observe the mind doing this,

and it stops; the auto-pilot mind does not like our

conscious presence to spy on it.



Inside most people, there are treasures and talents

that they have not discovered. When we rush through the

day without observing our thoughts with the eyes of the

heart, we will overlook those treasures.



As Alan Cohen insightfully points out in the article

below, no one else can live our lives for us. The self-

awareness that only human beings have, is within us.

Each person has the sole responsibility to live in ways

that foster soul growth, fulfillment, and joy.



Each one of us will have a unique idea of what living

deliberately means. For me, it involves these five

actions:



1. Choose what is essential: my purpose, joy, and

legacy.



2. Express gratitude for experiencing the essential.



3. Clean away what is not essential.



4. Take corrective actions when needed.



5. Continue to see what is essential, and purposely

repeat these actions each day.



Consider this question: What does living

deliberately mean to you?



By using our minds and our time on purpose, expressing

gratitude for all we have, and sharing some of our time

with those we care about, we can experience the joy of

a deliberate life.

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Quest for Ideal model of 6th Experiment Disha-1

MONDRAGON CORPORACION COOPERATIVA
“The History of an Experience”

1
INTRODUCTION
The development of what is now known as the Mondragón Corporación Cooperativa has, throughout its long history, been based on the firm conviction that the “Experience”, as it is commonly called within the organisation, is a phenomenon in constant evolution, in tune with what occurs in its social environment, to which it aims to make a positive contribution. It has therefore been obliged to continually reinvent itself.
Adaptation to the environment in which it carries out its activities, an environment in constant economic, social and political evolution, is seen as a vital necessity, not only in order to ensure survival, but also to enable the Corporation to continue pursuing its established objectives.
In the effort to turn this theory into a reality, MCC has always, and continues to strive for balance, albeit tenuous, between apparently paradoxical aspects of the co-operative business environment such as:
• Efficiency and democracy
• Economic and social concerns
• Equality and hierarchical organisation
• Private interests (of staff and the companies) and the general interest
• Identification with the co-operative model and co-operation with other business models.
And yet, it is from this tension created by the coexistence of a co-operative business culture and the pressing need to adapt to an ever-changing reality that the Corporation’s innovative approach to organisation springs, an innovative approach that influences each co-operative, the organisation as a whole and its relations with the outside world.
• striving for business efficiency in ever-changing markets
• discovering ways of resolving conflicts through co-operation, not confrontation
• experimenting with original management styles in keeping with the Basic Corporate Principles
This process of constant adaptation that characterises the Corporation’s history has demonstrated its worth time and time again during the periods subsequent to its implementation. Yet there is a price, sometimes very high, and we have often had occasion to discover for ourselves just how hard it is to leave the well trodden path and embark on an adventure into the great unknown.

2
THE FIRST STEPS
The event which laid the very first stone of the building now known as MCC was undoubtedly the arrival in Mondragón of a young priest named José María Arizmendiarrieta.
With some projects it is almost impossible to identify the single spark which lit the flame, often because such a spark simply does not exist. In this case, however, the writing is on the wall and even those of us who were not lucky enough to have played an active role in the group’s initial development can clearly see that Father José María was indeed the fundamental driving force behind the whole experience.
Despite being an unverifiable hypothesis, all of us at MCC share the firm conviction that without his influence, the so-called Mondragón co-operatives would never have been formed.
Such was the ability of the young 26-year-old priest who, dynamic, enterprising and bursting with ideas, arrived in Mondragón in 1941 to look after the youth of the parish.
Fourteen years passed between the date of his arrival in the town and the appearance of the first manufacturing company, which demonstrates that his primary concern was not the development of business activity but rather the welfare of his parishioners and his desire to provide opportunities for all and to correct the acute social deficiencies of a population still suffering from the disastrous consequences of a civil war.
During the period between his arrival and the constitution of Talleres Ulgor, now called Fagor Electrodomésticos, Father José María worked tirelessly with the young people of the parish, organising a multitude of sporting, cultural and educational activities.
Gradually, some of those young people began to stand out as a result of their collaboration in the activities organised by Father José María, making a concerted effort to combine work and study and gaining the knowledge and values that would later lead them to become the instigators of a complicated and admirable undertaking: that of turning the often vague and sketchy ideas of their mentor into tangible and successful business realities.
The essence of the formative task undertaken during these initial years constitutes an ideal towards which many entities still strive today: the ability to combine the presentation and definition of an idea with a method that ensured that those to whom a theory was explained later became the people responsible for its application. People learned through listening, debating and doing.
Two years after his arrival in Mondragón, Father José María founded the Professional School, the seed which would later become Mondragon Unibertsitatea - the University of Mondragón. This institution has played a vital role over the decades, training many of those who later became key figures in the development of the co-operative project.
3
Their many years of organisational experience and educational training meant that the young people attained an extraordinary degree of maturity and the preparation they required to face the next stage, in which they were to play a central role. Under the guidance of their mentor and undisputed leader, they decided to embark on an original business development project.
4
EVOLUTION
The history of the Corporation can be divided into the three principal stages outlined below, each one being intrinsically intertwined with the organisational models adopted.
FIRST STAGE: 1956-1970
The first fifteen years were characterised by a development boom which, in response to the long awaited revival of the Spanish economy during the second half of the 50s, resulted in the creation of a large number of co-operatives following the incorporation of Fagor in 1956, at that time manufacturing paraffin stoves and heaters.
The intuition, a quality often overlooked, and bravery of those pioneers met with a favourable response from a domestic market that, being isolated from the outside world, readily absorbed all that the manufacturing industry could offer.
At that time the possession of manufacturing licenses was central to all production activity, since the know-how required to develop own makes was simply not available. This unwanted and restrictive dependency did not pass unnoticed, and before long the co-operatives began to set up their own R&D departments with the aim of developing their own products, thereby avoiding both the need to pay royalties and the limitations imposed by the obligation to export to specific countries.
5
As their commercial networks spread throughout Spain, the co-operatives began to make tentative gestures towards expanding into foreign markets, well aware that, despite the low profits involved in the short term, internationalisation was the way of the future.
This conviction led to a greater involvement in international fairs and the setting up of commercial networks in Europe and Latin America. At the beginning of the subsequent decade, in 1971, this approach was further reinforced with the signing of the preferential treaty between Spain and the European Community.
The dynamism of this first stage is evident in the fact that by the end of the 1960s, the total number of co-operatives had risen to 41. Some of these were spin-offs from Fagor, others had their origins in the Business Division of Caja Laboral and yet others were formed by autonomous groups or as a result of the transformation of public limited companies, etc.
We should also underline the proliferation of groups of people concerned about the development of their town or region that approached the organisation with the aim of identifying products that, after being subjected to the corresponding viability studies, would then form the basis for the constitution of a co-operative.
Some important initiatives from this period which would later play a key role in the development of MCC were:
􀂾 ESKOLA POLITEKNIKOA
6
The project initiated in 1943 by Father José María with the creation of the Professional School was further developed during the 60s with the construction in 1962 of a new Polytechnic School, attended by over 1,000 students studying mechanics, electricity, electronics, casting, technical drawing and automation. The centre was officially recognised as an Industrial Engineering School in 1969.
Linked to this initiative, the Alecop (Co-operative Educational and Working Activity) Co-operative was formed in 1966 in an attempt to promote equal opportunities combining work and study within a single project.
􀂾 CAJA LABORAL
In 1959, four years after the formation of the first co-operative, Father José María proposed the idea of creating a financial entity which would channel public savings into co-operative development. This stroke of genius resulted in the constitution of an entity which became the backbone of the co-operative project, enabling a growth rate that would have otherwise been impossible with just the internal resources of the different initiatives.
7
But Caja Laboral’s achievement far exceeded its initial, mainly financial purpose, and for many years its Business Division not only provided fundamental support to co-operatives expanding into new areas and new organisations that emerged in a wide variety of geographical locations, but also offered vital advice and backing.
􀂾 LAGUN-ARO
1959 was also the year in which Lagun-Aro was created with the aim of resolving the problem that arose when the government refused to allow co-operative members to qualify for Social Security benefits, maintaining that they were owners as opposed to employees.
Making a virtue of necessity, the co-operative members formed Lagun-Aro, which in addition to fulfilling its specific function admirably, also became a valuable learning experience. By managing their own quotas and benefits, the co-operative population obtained a greater degree of responsibility and realism, a logical result of the realisation that all benefits entail their corresponding costs.
8
􀂾 EROSKI
The end of the 60s, 1969 to be precise, saw the creation of Eroski, which despite having little impact on the period in question, is worth mentioning as a result of its later importance.
Fruit of the merger of nine small local co-operatives, its creation opened the door to a new sector in much need of transformation, in which isolated co-operatives were out of their depth and, as history has shown us, ultimately doomed to extinction.
􀂾 ORGANISATION
During this period, the different co-operatives had no common ties except that of their association with Caja Laboral, which was regulated by articles of partnership detailing the group’s only common requisites.
This was, incidentally, another of the functions carried out by Caja Laboral for many years, i.e. that of head of the group and sole common reference.
In light of this, some co-operatives felt the need to establish links between themselves, and in 1964 the Ularco Group was formed in the Mondragón area. This Group would later serve as a reference for other co-operatives, although the seed would not bear fruit for many years to come.
9
The Ularco Group was governed by a multilateral contract based on “a system of mutual commitment and solidarity with the community whose objective is to promote the optimum and dynamic merging of the needs of the working community and the demands of modern trading companies with adequate technical, financial and marketing forces”.
Nevertheless, the group’s organisational set-up remained essentially uncomplicated, with each co-operative facing the future as an individual entity with financial backing and management support provided by Caja Laboral and its Business Division respectively.

11
SECOND STAGE 1970-1990
Initially, the second stage was characterised by the same dynamism as the first, with extraordinary increases in sales and employment rates as well as in the number of co-operatives themselves.
It was during this initial period, in 1974, that IKERLAN was founded as a research centre whose objective was to study technological advances for their eventual use in industrial applications.
Once again, the far-sightedness of the co-operative members becomes evident in their realisation that the future would demand the permanent offer of a wide range of options capable of satisfying all customer requirements and expectations.
Based on the needs of the individual co-operatives, the IKERLAN project was made possible by the support provided by Caja Laboral and the professionals supplied in part by the Mondragón Polytechnic School, whose activities now included technological development.
Otalora was also created during this period as a centre specialising in management studies and co-operative training and dissemination. The centre was to play a vital role in ensuring a constant supply of management staff who, in addition to essential professional experience, also possessed a deep sense of responsibility, were fully committed to both the business project and the co-operative principles and were aware of the obligatory social control to which their community was subject.
The boom which, in general terms, the co-operatives had enjoyed since their creation came to an abrupt and brutal end at the beginning of the eighties with the onset of the economic recession. One of the most distressing symptoms of this period was the emergence of the hitherto unknown concept of mass unemployment, which rose to over 20%.
The co-operatives did not escape the effects of the economic crisis. A significant number showed negative profits and labour surpluses became, for the first time, a variable to be taken into account. A few companies were even forced to close down. Luckily, not all the co-operatives were affected to the same degree, and those who had had the foresight to develop their exportation activities now found themselves in a position to weather the storm with relative ease.
It was a period of setbacks and vexations during which the co-operatives were forced to operate in unknown circumstances, vigorously applying the techniques outlined in the model and creating new instruments, such as unemployment cover, which had been unnecessary in the past.
One positive aspect of the recession was that it served to highlight the far-sightedness demonstrated by the founders in creating institutions such as Caja Laboral and Lagun Aro, since they constituted a fundamental basis from which to combat the ever increasing problems experienced by the co-operative business world.
Indeed, on the whole, co-operative companies weathered the recession better than the area’s private companies, demonstrating once again the advantages of a model in which the involvement of the workforce is intrinsic to the company’s makeup.
12
Among the many policies that contributed to the survival of the Mondragón co-operatives, the following are some of the most important:
􀂾 Capitalisation of Profits
The policy of capitalising profits enables the co-operatives to constantly reinforce their resources, strengthening resistance in some cases and enhancing development possibilities in others.
It is important to remember that of the total profits, only the 10% earmarked for the Social Works Fund actually leaves the company. The remaining 90%, including the members’ share (dividends), is capitalised. Members may not cash in their dividends until they either leave the co-operative or reach retirement.
Profit pooling, another generalised practice, also helped alleviate the situation of the worst-hit co-operatives by enabling the transfer of resources from other organisations in a less critical position.
􀂾 Flexible calendars
A practice which attempts to adapt the annual working calendar to the varying work load. The excess or deficiency of accumulated hours from the first half of the year are compensated for during the following six months. If, after the end of this period, a balance has not been reached, then the equivalent economic sum is paid, capitalised or subsidised.
􀂾 Relocations
Surplus members are given preference for, and have the obligation to accept, a position in another co-operative, either as a temporary or definitive measure, depending on whether the situation of their former co-operative is transitory or permanent.
􀂾 Remuneration policy
Since the remuneration policy is intrinsically linked to the economic-financial situation of the co-operative, during the recession annual dividends in some companies were actually negative.
There were also many years when either one or both extra wage packets were capitalised.
13
􀂾 Financial Restructuring
Accumulated losses caused such a decrease in company assets that in some cases measures had to be taken to replace lost capital. In a system where the worker members are the sole owners, it fell to them to deal with this financial restructuring.
Given that the members relied entirely on wages received from the co-operative, wages that were often affected by the policies mentioned above, it was not uncommon for them to apply for individual loans, granted by Caja Laboral on very generous terms, in order to cover the cost of replacing lost capital.
The intervention of Caja Laboral proved more decisive than ever during this period of crisis. In addition to subsidising loan interest, sometimes by as much as 100%, in the most extreme cases it also wrote off the original debts, either partially or entirely, although all such activities were dependent on an initial Viability Plan which justified the effort expended by all parties.
It is important to note that all the aforementioned measures, some of which were fairly harsh, were adopted during General Assemblies attended by all members under the principle of one member one vote. At this point we would like to pay tribute to the wisdom, responsibility and commitment of those that did not shrink from their assigned role in the face of difficult circumstances.
The application of all these policies, the improvement of management techniques, the introduction of strategic planning as a complementary element to annual management plans and the modification of the economic scenario during the second half of the eighties enabled the co-operatives to recover from the crisis and enter a new era of positive growth.
14
Nevertheless, the experience of the past decade seemed to affect the development of new co-operatives and gradually, activity in this area ground practically to a halt. Instead, the co-operatives began to incorporate non-co-operative companies from the sectors in which they were based into the Mondragón group, with the aim of reinforcing their position on the market and reducing the immense size difference that separated them from their main competitors, the majority of which were multinational organisations.
International development was characterised by an increase in exports, the entrance into new markets through the establishment of commercial delegations in a variety of countries and even an initial step towards internationalising production activities with the creation of manufacturing plants in Mexico and Thailand.
Meanwhile, Caja Laboral continued to develop, increasing its number of branches and, despite its relative youth, making its presence felt among the other financial entities within the Basque Country. It also opened branches in Madrid and Barcelona, thus sparking an interesting debate about the validity of developing co-operative activities outside the initial area of origin.
Eroski expanded rapidly throughout the Basque territory leaving its competitors trailing far behind and becoming the undeniable market leader. It opened its first hypermarket in Vitoria and towards the end of the eighties began to look to the future, reflecting on its chances of maintaining its position as a leading company within a reduced market in which it would inevitably have to compete with international organisations.
Teaching activities were reinforced by both the expansion of existing institutions and the creation of new ones.
15
• ETEO, for Administration and Company Management training
• IRAKASLE ESKOLA, University Teacher Training College
• TXORIERRI Polytechnic School
• LEA-ARTIBAI Polytechnic School
Training continued to be one of the cornerstones of the development of the Mondragón Co-operative Corporation.
􀂾 Organisation
At the end of the seventies and beginning of the eighties, the seed sown by the Ularco Group (later to become Fagor) began to take root in the other co-operatives, who eventually formed Regional Groups, although the level of consolidation was extremely varied. The importance of this process lies in the general realisation of the need for organisations which would unite the co-operatives, enabling them to engage in joint activities that would optimise results far better than individual ventures.
During the eighties, debates about the future of the Group intensified as Spain joined the European Community and opinions abounded about the consequences this would have for the Spanish economy in general and our Corporation in particular.
A number of different studies were conducted and countless debates organised in order to determine the way in which the Corporation could remain true to its underlying Values yet still respond to the demands of the modern market. Finally, in December 1984, the Co-operative Congress was created to give definition to the group as a whole. During the founding session, the Basic Articles of the Congress and the Basic Articles of the Group Council were approved, and the members of the Standing Committee appointed to act during the intervals between Congress meetings.
This was an important step forward, since for the first time the co-operatives had common bodies to discuss and co-ordinate the transformations required to enable the group to respond successfully to the changes occurring in both the markets and society as a whole
The role played by Caja Laboral until that time now changed, and its activities became increasingly orientated towards specifically financial concerns much more in keeping with the new organisational model being implemented by the group.
16
Despite these changes, the co-operatives’ core organisational element continued to be the Regional Groups, which were based on geographic proximity. However, the group gradually began to understand that the future was going to require a more business-like and less sociological approach.
Two new Congress meetings were held during this period, one in 1987 and one in 1989, during which the Basic Principles that underpin the whole co-operative experience were approved, as well as the Principles governing the Treatment of Capital. The first interco-operative funds (FISO and FEPI, etc.) were also established at this time.
The approval of the Basic Principles constitutes an important milestone in the Corporation’s history, since it marked the end of a period in which doctrines were created by individuals and governed by a single moral authority, and the beginning of a period in which they were established by a more complicated process of proposal, debate and democratic approval.
From hereon, the Principles, which bring together the ideas developed by Father José María, international co-operative thought and the perspective of our individual co-operative community, served as the cornerstone of the entire project. Whereas up until then the experience had been based on shining ideals and moral guides, their official approval provided the co-operatives with definite, binding principles which accurately expressed the community’s convictions.
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Organisational structure of the Mondragón Co-operative Corporation (Regional)
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THIRD STAGE: 1990
The third and current stage in the development of MCC is strongly influenced, and perhaps even characterised by, the organisational process that turned the Group into a Corporation, structuring its business areas according to sectorial criteria as opposed to geographical location.
The regional concept had resulted in a wide-spread dispersion of the various business groups, one extreme case being that of Intermediate Goods, which was composed of 29 co-operatives spread throughout 14 different regional areas.
The concept of sectorial organisation met with substantial resistance, since its implementation involved the restructuring of personal and business relationships that had been firmly rooted for many years. The most unfortunate result of the implementation of the sectorial organisation principle was the separation of a number of co-operatives that refused to accept this new structure.
Nevertheless, experience has since demonstrated the clear advantages of this organisational model, which has enabled the development of synergies that have strengthened and reinforced the companies involved.
Sectorial Organisation
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The organisational structure, approved during the Co-operative Congress held in December 1991, comprises three Groups:
• Industrial
• Financial
• Distribution
The Financial and Distribution Groups each consist of a single Division, while the Industrial Group contains seven different Divisions. Each Division is in turn divided into a certain number of Sectorial Subgroups, made up of companies operating within the same market sector.
The Subgroups constitute one of the basic management elements, being responsible for strategic planning within their particular area, although it is the General Council’s task to ensure that these Plans coincide with current corporate policies.
Training and research activities are grouped together under the concept of Corporate Activities, although the Corporation is currently attempting to find them a new position more in keeping with the importance of their present and future role.
Unlike most company models in the modern business world, our Corporation is not based on equity holding, but rather on an agreement between all parties to join forces with regard to certain management areas that either go beyond the limits of individual capacity or provide more efficient results when dealt with as a team.
The Corporate Centre, the most visible element of MCC as a whole, is fundamentally, although not exclusively, a service centre which supports the development of co-operative businesses within the Subgroups and Divisions.
In other words, the Corporation does not own the co-operatives. Rather, it is the co-operatives themselves, along with the various complementary structures, that make up the Mondragón Corporación Cooperativa.
The MCC management model combines vertical and horizontal administration, overseen by the Division and Subgroup management teams and the Central Departments and Corporate Centre, respectively. These latter organisations promote the implementation of corporate policies and attempt to make the most of existing synergies.
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The Co-operative Congresses held between 1984 and 1995 served to establish MCC’s legal regulations and the Principles governing its functioning. The list of current Regulations given below offers a global vision of the corporate configuration.
1. Basic Principles of the Mondragón Co-operative Experience.
2. MCC Company Configuration Regulations.
Basic Articles of the MCC Congress.
Principles governing the Election of the Standing Committee.
Principles governing Infractions and Disciplinary Measures within MCC.
Basic Articles of the MCC General Council.
3. Institutional Configuration Regulations for Key Co-operatives and Subgroups.
Basic Principles governing the Organisation of Sectorial Subgroups.
Basic Principles governing the Organisation of Regional Groups.
Basic Principles governing the Company Structure of Key MCC Co-operatives.
Basic Principles governing Remuneration Policy.
Basic Principles governing the Treatment of Share Capital and Profit Pooling.
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4. Interco-operative Regulations.
Basic Principles governing Profit Pooling in MCC.
Basic Principles for the Constitution of the Interco-operative Solidarity Fund (FISO).
Basic Principles governing the Creation of an Education and Interco-operative Promotion Fund (FEPI).
Holding Company.
5. Business Policy Regulations.
MCC Business Policy for 2001-2004.
Principles and criteria governing MCC employment management.
6. General Regulations for defining the Organisational Project.
Basic Criteria, Strategic Measures and their Application during the First Stage.
Reference model.
In addition to the regulations approved during Congress meetings, another set of rules were established by the Standing Committee and the General Council within their relative areas of authority.
With the aim of outlining the role played by the corporate bodies within the organisational structure, a description of their main objectives and a summary of their principal responsibilities are given below:
􀂾 The MCC Co-operative Congress: Its aim is to maintain, perfect and promote the Corporation’s harmonic development through the planning and co-ordination of the various activities carried out under the principle of gradual and effective business consolidation and a common management strategy.
In the process of complying with its duties, the Congress determines the general guidelines and criteria governing MCC, in keeping with both current requirements and the basic principles that underpin the Co-operative Experience.
Decisions adopted by the Congress in a plenary session are mandatory and cover, among others, the following areas:
• Definition of the general framework for dealing with basic productive factors (Work and Capital) in the MCC Co-operatives.
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• Approving basic policies on fundamental areas of common interest, such as:
• Promotion of new Co-operatives
• Scientific and technological research
• Basic financial and labour policies
• Business and co-operative training
• Social Security for co-operative members
• Organisational structure of MCC as a whole
• Analysis and definition of the role of MCC in the resolution of problems affecting the society in which it is based, establishing collaborative relations with other social movements.
• Analysis and up-dating of the co-operative principles which underpin the Experience, with the aim of maintaining their current role as a dynamic source of community development.
􀂾 The Standing Committee: a body which operates between Congress sessions and is made up of representatives from the different Divisions elected by their respective Group Councils. The Committee’s responsibilities include:
• Promoting and controlling the carrying out of the policies and agreements adopted by the Congress, monitoring MCC’s business development and overseeing the activities of the President of the General Council.
• Presenting projects and proposals to the Congress for approval.
• Monitoring and controlling the work carried out by the General Council, and presenting the corresponding report to the Congress.
• At the instigation of the President of the General Council, approving the definition of corporate strategies and objectives.
• Designation, suspension and establishment of the salary corresponding to the President of the General Council and, at his/her instigation, that corresponding to the Vice Presidents, Department Directors and Secretary General also.
• At the instigation of the President of the General Council, approving financing rates and proposals presented by the Central Departments and submitting them to the Congress for ratification.
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􀂾 The General Council of the MCC Corporation is a management and co-ordination body which operates within its specific area of authority in relation to the co-operatives represented by the Congress.
It is made up of:
• President
• Vice Presidents, responsible for the Divisions
• Directors of the Central Departments
• Secretary General of MCC
Its basic functions can be divided into the following six areas:
Policy
This area includes the compilation, presentation before the Standing Committee and application of the corporate strategies and objectives that form the strategic global policy framework in the following areas:
• Industry
• Innovation
• Investment
• Socio-labour
• Financial
• Promotion
• Social Security
Control
To compile, prior to approval, the strategic plans of the subgroups and co-operatives, monitoring and supporting the fulfilment of the objectives established for each Sectorial Subgroup.
Co-ordination
The Council’s responsibilities in this area include the co-ordination of Division, Subgroup and Co-operative policies, harmonising individual interests with the general objective of common development.
Promotion
Promoting the Corporation’s business evolution and ensuring compliance with established development objectives.
Establishing social, human, physical, technological and financial infrastructure elements that contribute to the Corporation’s harmonious development.
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Intervention
Presenting intervention proposals to the Standing Committee regarding co-operatives in critical situations, determining the extent of intervention required and taking the necessary measures.
Functional
Compilation of internal General Council operating principles within the general precepts established. Presenting proposals to the Standing Committee regarding the up-dating of the Statutes and Regulations governing the Sectorial Subgroups.
Another milestone reached during this period was the approval of the MCC Business Policy in 1993, thereby introducing for the first time in the history of our co-operative experience one of the basic functions of common management: the definition of General Policies as a global framework on which to base the activities of each Subgroup.
Within this framework MCC compiled the first Corporate Strategic Plan for the 1994-1996 period, outlining the strategies and objectives established to ensure the fulfilment of the Basic Objectives:
• Customer satisfaction
• Profitability
• Internationalisation
• Development
• Social Involvement
In this first Strategic Plan, the Subgroups laid the groundwork for a management approach more geared towards business units, an approach which, over the years, has resulted in substantial organisational restructuring in response to the individual characteristics of each different market.
The development of the new organisation required that the Corporation as whole begin to deal with areas that had, until now, been the exclusive responsibility of each individual co-operative. One such area was the development of a Management Model designed to help improve management performance and establish common references which would give coherence to general analyses.
The Management Model was, of course, based on the principles and values that have shaped our development right from the start. However, it also made use of modern management concepts, as well as cutting edge techniques employed by state-of-the-art organisations.
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All these considerations contributed to the emergence of the definitive Management Model, whose most important characteristic is probably the fact that its Results section includes not only economic profits, but Customer Satisfaction, Social Commitment and Staff Satisfaction also, a clear indication that economic results alone are not considered sufficient to constitute positive management.
In 1996, the second Strategic Plan was compiled for the 1997-2000 period, reinforcing the tendencies of the previous plan and establishing ambitious training, communications, development, internationalisation, investment and employment objectives, among others. Although at the time some doubts were expressed as to the possibility of achieving some of these objectives, as we approach the end of the period we are in a position to affirm that, in the majority of cases, the results have exceeded all expectations.
Once again we are reminded of the deep commitment and profound sense of responsibility shown by so many of our members with regard to the fulfilment of established objectives.
Another hugely significant event that occurred during the nineties was the founding of Mondragon Unibertsitatea / the University of Mondragón in 1997. The project, instigated by the Mondragón Polytechnic School, Irakasle Eskola and Eteo, marked the pinnacle of a long development process and cleared the way for a bright future in a whole new area.
Given that training has played a vital role in our experience right from the beginning, the creation of a University seems a fitting development, which in addition to other advantages, enables the Corporation to work towards achieving its own training objectives within the general educational framework.
The nineties also saw the growth of the financial entities previously described in this document as well as the creation of new ones such as MCC Investments and MCC Development. This growth considerably enhanced the co-operatives’ development capacity, since it meant that they were backed by an investment policy that became increasingly ambitious in response to the country’s various economic changes.
These events serve to highlight once again the many advantages of interco-operation as an expression of the founding concept of solidarity that enables companies to develop beyond their own individual limits.
The Corporate Centre continued to carry out its established functions during this period, engaging in supporting activities which enabled it to optimise Subgroup and Co-operative performance within each different area.
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The latest modification of the general structure was the creation of the Promotion Department after a lengthy debate in the General Council and Standing Committee. The new Department aims to boost the promotion of new activities, a task which affects all levels of the Corporation.
􀂾 Significant variables
With the exception of 1992 and 1993, the rest of the nineties was a period of positive economic growth, enabling the development of activities which, within the Industrial Group at least, were accompanied by increased activity in foreign markets in accordance with established objectives.
In addition to enjoying a period of growth and development, the Financial Group also expanded into bordering Autonomous Communities, meeting with a favourable response from savers in those regions.
The Distribution Group underwent a significant period of growth, expanding throughout Spain and the south of France – a project which required a huge creative effort in response to the different demands made by this accelerated development.
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THE CURRENT SITUATION
Thanks to its accumulated growth over the years, MCC is now the seventh largest business group in Spain with regard to sales volumes. However, on the basis of employment, the Corporation occupies third place in the national ranking, a difference that serves to highlight the characteristics of its various activities and the vocation behind the experience as a whole.

Having strong roots in our native territory, MCC has become a significant factor of the Basque economy, accounting for 3.7% of the GDP and employing 3.8% of the working population. These percentages are considerably higher with regard to the industrial sector.
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The relevance of history should not be underestimated and MCC’s Gipuzkoa origins are the main reason behind the Corporation’s above-average presence in that province. MCC accounts for 7.6% of Gipuzkoa’s GDP, employs 6.8% of its working population and is responsible for 32% of its industrial exports.
The internal distribution of activities is illustrated in the diagrams below:
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Participation percentages
The period of growth and development which, despite a number of economic, social, political and technological difficulties, MCC has enjoyed over the last years, serves to underline the truth of the affirmation made at the beginning of this document regarding the Corporation’s capacity for constant change and adaptation and the advantage of learning from experience.
In general terms, we can confirm that the last five years have been characterised by the outstanding growth of all areas of the Corporation.
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IDEOLOGICAL BASE
The development charted over the preceding pages would not have been possible if not for MCC’s unique outlook and way of doing things, in other words, its unique corporate culture.
Our individual culture and the way in which it coincides with the specific actions outlined in the Strategic Plans is illustrated in the diagram below:
􀂾 Basic Principles
These principles are the cornerstone of the Corporation’s guiding ideology, and have been developed over the years on the basis of both personal experience and the experience of others in similar situations within the universal co-operative movement. They therefore incorporate a number of elements common to the majority of co-operative organisations, although others are specific to MCC.
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There are ten basic principles:
1. Open membership
2. Democratic organisation
3. Worker sovereignty
4. Instrumental or subordinate nature of capital
5. Participation in management
6. Wage solidarity
7. Co-operation between co-operatives
8. Social transformation
9. Universal nature
10. Education
Open membership
This principle declares that we are open to all men and women, regardless of religion, race, gender, political convictions or origin. The only criteria for acceptance are professional capability and a willingness to accept existing regulations.
Democratic Organisation
All members are equal and have equal rights within a democratic organisation governed by the concept of “one person one vote”.
Each person’s vote carries the same weight, regardless of seniority, position within the company, professional category or accumulated capital, etc.
Worker sovereignty
At MCC, work is placed top of our scale of priorities, since we believe that it is the key to transforming nature, society and even people themselves.
As work is held to be the principle generator of wealth within the co-operative company structure, the corresponding distribution model should coincide with the degree of labour provided.
Given the importance attached to the concept of work, the co-operatives are committed to widening the scope of job opportunities for all members.
Instrumental and subordinate nature of capital
While its value is acknowledged and its presence considered necessary for business development, capital is always considered subordinate to labour.
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It is considered worthy of just remuneration that, although limited and not directly linked to the results obtained by the co-operative, is nevertheless sufficient to ensure the accumulation of the necessary resources.
Contribution by any means to the share capital does not give members the right to participate in the management of the co-operative.
Participation in management
The democratic nature of the co-operative organisation extends to all members, and implies their active participation in the management of the company.
The development of appropriate channels for participation requires a departure from traditional organisational structures, professional and social training for members, transparent information policies and internal promotion.
Wage solidarity
Wages should be sufficient, comparable with those of other salaried workers in the region and in keeping with the means of the co-operative.
Payment should correspond to an internal framework based on solidarity, reflected in a smaller difference between the top and bottom of the pay scale than is commonly seen in the business market.
Wages and work hours should also be comparable throughout the Corporation as a whole.
Co-operation between co-operatives
Another specific expression of solidarity that also constitutes a basic requirement for efficient business practice.
One aspect of this principle is direct co-operation between co-operatives through the creation of profit-pooling subgroups with homogenous socio-labour systems, the transfer of worker-members and the development of potential synergies derived from overall size.
Other aspects include the creation of mutually beneficial inter-subgroup superstructural entities and bodies, as well as the collaboration of MCC with other co-operative organisations from the Basque Country, Spain, Europe and the rest of the world through agreements aimed to promote joint development.
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Social transformation
In solidarity with movements in other countries, the MCC Co-operative Experience aims to contribute to the social transformation of the region in which it operates in the hope of building a freer and more just society.
Reinvesting the majority of its profits, supporting community development initiatives, co-operating with other Basque social and economic institutions and promoting local culture and a social security policy based on solidarity and responsibility, are just some of the ways in which MCC contributes to social development.
Universal nature
MCC’s strong local roots are compatible with its universal vocation, which proclaims its solidarity with all those who work towards economic democracy in the field of “Social Economy” and share the common objectives of the international co-operative movement: Peace, Justice and Development.
Education
The development of the above principles is only possible if sufficient attention is paid to education and the necessary human and economic resources are provided for both co-operative and professional training.
Special attention should also be paid to young people, on whose shoulders the future development and consolidation of the MCC Co-operative Experience rests.
􀂾 Mission
A second element in the Strategic Structure of MCC is its Mission, a combination of primary objectives that turn the abstract ideas of the Principles into a tangible project that serves to focus efforts and contribute to the overall progress of the organisation.
The Mondragón Corporación Cooperativa is a socio-economic business organisation with deep cultural roots in the Basque Country. It was created by and for people and is based on the Basic Principles of our Co-operative Experience. It is fully committed to the environment, competitive improvement and customer satisfaction, as well as to the generation of wealth in society through business development and the creation of jobs. Furthermore, it:
• is based on a firm commitment to solidarity, and uses democratic organisational and management methods.
• promotes the participation and involvement of its worker-members in the management, profits and ownership of its companies, which strive together for harmonious social, business and personal development.
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• fosters training and innovation through the development of human and technological capacity.
• applies its own Management Model, aimed at improving the market position and general development of each Co-operative.
􀂾 Corporate Values
The Corporate Values are the heart of MCC’s business culture, providing a common sense of direction for all worker-members and a set of general guidelines for the everyday working of each company. They represent the fundament nature of the organisation and create a specific sense of identity.
The last Congress meeting, held in May 1999, reduced the list of Corporate Values to just four in an effort to facilitate their communication, absorption and application.
CO-OPERATION
“Owners and protagonists”
PARTICIPATION
“Commitment to management”
SOCIAL COMMITMENT
“Distribution of wealth based on solidarity”
INNOVATION
“Constant renewal”
Co-operation
As owners and protagonists we work for a company which we consider to be our own. We treat its ups and downs, problems and triumphs as things that depend on us and that affect us both directly and personally.
Our organisations are designed to accommodate our co-operative ideals and are based on our common Management Model, which enables corporate cohesion and promotes efficiency and dynamism, while at the same time ensuring that the concept of a shared set of ideas, objectives, means and interests, in other words our “Common Project”, remains the backbone of the whole experience.
Development needs and the desire for improvement have forced us to re-evaluate independent initiative, channelling this valuable resource towards co-operation in management in accordance with our conviction that the good of the group as a whole should outweigh individual concerns.
Worker-member training is also a key element of our philosophy, both as regards professional knowledge and courses focusing on the Experience’s Basic Principles and Corporate Values.
Worker-members are given the opportunity to develop their potential as expert professionals, combining experience, prudence, seriousness and dedication in the assumption of the responsibilities inherent to their position.
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A meticulously programmed and monitored integration process is initiated every time a new worker enters one of our co-operatives. Individual goals are the best means of fostering personal development and evaluating professional capacity, which should always be combined with the internal transfer of knowledge and active participation in problem solving activities.
The Corporation should be considered as a single unit, and the development of any of its autonomous elements should result in the global development of MCC as a whole, since this general progress in turn generates value for its member co-operatives.
In order to improve the performance of each individual co-operative, it is necessary to foster co-operation, searching for synergetic constants both within the heart of the Corporation and through collaboration with customers, suppliers, competitors and social institutions.
Participation
At MCC we believe that people are the only guarantee of the success of our co-operative project. This is why we base our philosophy on a firm commitment to participation and integration, since the essential element of the socio-business model employed by our co-operatives, and at the same time, the element that sets us apart from other models, is the participation of members in the company capital, profits and management.
Participation in the building of the company is not just a right, but an obligation and demand for mutual commitment also. It enables us to channel personal potential and place it at the service of the common interest, thereby increasing staff satisfaction and fostering a sense of belonging.
The concept of workers as participating members of the company with corresponding rights and obligations is not, however, confined to this area alone, but rather permeates throughout all areas of the company, influencing labour organisation and operating processes in order to ensure that everyone is given the opportunity to contribute their knowledge and ideas for improvement.
Participation based on the concept of the worker as a responsible person actively involved in the establishment and fulfilment of company objectives requires that all members be both properly informed and attentively listened to.
Our worker-members are characterised by their potential for development and creativity, their ability to assume responsibilities and their willingness to commit themselves to resolving the problems experienced by their company.
The democratic-institutional processes which result from the legal status of the co-operative and our individual business culture should be kept alive, since they serve as effective instruments for personal, social and business participation.
Thanks to the convergence of the basic objectives and the participation of worker-members and other employees, specific business initiatives permeate through all levels of the company, constituting a distinct and permanent competitive advantage.
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The development of participation requires flexible organisational structures that foster a good working atmosphere, efficient inter-functional process management, team work and continuous training.
Social Commitment
Work is not only a means of obtaining income. It also constitutes a source of satisfaction that fulfils a personal and collective need for development. For this reason, we try to ensure that personal aims are compatible with those of the company, and that company objectives coincide with its social commitment.
The internal distribution of generated wealth should prioritise common interests as a way of guaranteeing the survival of the company and as an expression of solidarity, since this approach excludes the possibility of improving individual economic assets.
The effects of our activities go beyond the personal limits of those involved to have a notable impact on our immediate surroundings. We are therefore committed to the improvement of the area in which we operate and to the development of our country as a whole.
Another aspect of our social commitment is respect for the environment, evident in our efforts to render business development compatible with the protection of our natural heritage.
Activities designed to promote and disseminate our Co-operative Experience also constitute an ideal basis for business and social development. The sharing of know-how and accumulated experience, both within and outside the Corporation, is another example of distribution of wealth based on solidarity.
Innovation
Commitment to an ongoing search for new opportunities in all areas is vital to business development, as well as being the key to ensuring an efficient response to the expectations generated in society.
Our customers, and society in general, perceive and evaluate our companies according to the quality of our products and services, the end result of the efforts and expertise of our staff, one hundred percent committed to innovation and continuous training.
We should accept change as a necessary and essential part of our business lives, and therefore foster the search for and experimentation with new developments and solutions within our company.
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Innovation is a fundamental element of our business structure and the creation of an environment that encourages and stimulates it is one of our priority objectives, never forgetting, of course, that customers themselves are a vital source of ideas providing we learn how to listen to them.
Our universities and educational centres reflect our commitment to investing in human capital and utilising intelligence to generate teams capable of integrating innovation into the management of our companies.
Our training activities will focus on the acquisition of assimilation techniques and on encouraging learning habits, on the basis that “learning how to learn” is a vital element in fostering adaptation and constant renewal.
􀂾 Basic Objectives
Being more closely connected to everyday company activity, the Basic Objectives outline the key areas in which the MCC Corporation, both as a whole and through its individual co-operatives, aims to carry out significant improvements during the stipulated period.
They are deeply rooted in, and indeed form the basis of, both the strategic and operational plans.
Customer satisfaction
Based on the following guidelines:
• Maximum customer awareness: striving to provide an efficient service to both external and internal customers, as well as to MCC personnel themselves. Customer relations should be characterised by transparency and honesty and based on trust and ethical behaviour.
• Management Model: MCC’s unique method of managing its staff and companies identifies customer satisfaction as one of its key objectives.
• Customer loyalty: as a permanent objective and key indication of maximum business efficiency.
• Continuous improvement: commitment to innovation, efficiency and constant change.
• Products and services: our companies are perceived and evaluated according to the quality of our products and services.
• External and Internal Communications: projection of an image that highlights corporate potential, and development of instruments designed to involve staff and adapt our organisation to specific customer needs.
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Profitability
The Corporation aims to increase profitability by following the general guidelines listed below:
• People: committed to meeting the business objectives of their company.
• Quality: in the widest sense of the word, affecting all company areas and staff.
• Organisation: aimed at ensuring the effective management of the different business units, simplifying structures, implementing process-based management and striving for general efficiency and productivity.
• Supplies: a key area in the company’s cost structure, with interesting new opportunities provided by the opening up of foreign markets and internationalisation.
• Optimisation of resources: accurate gauging of assets, making more of less and in general, increasing turnover.
• Selecting investments: prioritising management improvements and always selecting the best alternatives in terms of performance and balance of resources.
• Rethinking of non-profitable activities: either through restructuring, re-launching or closure.
• Wage systems: in accordance with the corresponding sector and the internal situation of each company.
• Social Welfare: the efficiency of our Welfare system as a source of competitive advantage.
Internationalisation
This Objective is based on the following guidelines:
• Foreign expansion: improving our competitive position by increasing commercial, operative, production and supply activities on international markets.
• Winning target customer loyalty: as a way of meeting their requirements and gaining a larger market share in globalised sectors.
• Shared development: joint exploitation of competitive advantages based on collaboration agreements, joint-ventures, alliances and purchase groups, etc.
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• Share purchases: acquisitions for strategic reasons or as a way of expanding into new areas or reinforcing existing activities.
• Staff recruitment and training: greater involvement of people and organisations in the internationalisation process, with the corresponding adaptations.
• Corporate backing: to support the entrance into new markets or to increase activities in current areas by fostering commerce and joint projects.
• Outward focus of knowledge-related activities: using our accumulated experience in the field of knowledge (co-operation, management, education, teaching, engineering, advice, etc.) as a springboard for international activities.
• Corporate Image: strengthening MCC’s international image and its relations with Governments and Institutions as a way of attracting opportunities.
Development
Progression, growth and expansion will be based on the following guidelines:
• Competitive positioning: attaining the required size, depending on the nature of each individual company.
• Generating employment: in accordance with MCC’s Basic Principles and Mission.
• Convergent autonomy: combining autonomous management with co-ordinated strategic activity within each Subgroup and throughout the Corporation as a whole.
• Local development and foreign expansion: by combining individual and joint local and foreign business projects.
• Globalised sectors: achieving status as providers of development.
• Financial platforms: through new instruments and figures aimed at financing development.
• Mondragon Unibertsitatea / University of Mondragón: generating an area of economic development and influence based on the innovative application of knowledge.
• Commitment to the environment: in business facilities, working methods and end products.
• Business co-operation: adapting the corporate structure to the strategy of collaboration with other companies and groups in joint development projects.
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• New products and services: integrating innovation and development into our products and services in order to respond to the current needs of our customers-markets and to contribute to the growth of existing co-operatives.
• Incorporation of technological developments: paying special attention to emerging technologies.
• Assumption of promotional risk: as an integral part of our individual and collective commitment to development and the promotion of new projects and activities.
Innovation
• Innovation Culture: promoting organisational changes and activities designed to foster creativity, intuition, the generation of ideas and the exploration of new fields.
• New products and services: development and innovation of our offer in order to respond to customers-markets and promote growth.
• Strategic alignment: reinforcing innovation in strategic approaches in order to develop new business models and theories and to manage innovation in a strategic manner.
• Innovation spaces: intensification of activities designed to create environments conducive to developing new outlooks and original visions in organisations.
• People and Teams: setting up of Human Teams specialising in different areas, with a strong inclination for creation and discovery.
• Corporate Inter-cooperation: ensuring the co-ordinated use of knowledge and innovative initiatives between companies, universities, research centres, engineering and consultancy firms and corporate platforms.
• Training: alignment of the teaching contents of our educational and training programmes with current needs in the area of innovation development.
• Technological challenges: constant technological monitoring of trends and changes in the environment and the impact of new information and communications technologies.
• Innovation Management: structuring and systemisation of innovation management as a key process in business management.
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Social Involvement
The guidelines underpinning this Basic Objective are:
• A joint project: the challenge accepted by MCC can only be met through the equal and sustained participation of capable and enthusiastic people.
• Communication: as a means of identifying the prospects of both individuals and the business project. Relationship with society based on honesty and an open channel of communication with other groups and institutions.
• Ethical behaviour: underpinning all areas of corporate relations.
• Responsible people: willing to honour their commitment to the business and corporate project.
• Satisfied people: happy with their level of involvement and the training and promotion opportunities available.
• Pride in belonging: willing participants in the Corporation’s Mission.
• Wage coherence: in accordance with each person’s individual contribution, based on equality, internal solidarity and external competitiveness.
• Acknowledgement: of effort expended and a job well done.
• Training: source of constant renewal and the joint responsibility of the company and workers.
• Membership and job stability: promotes better results and improved performance of individual tasks.
• Health in the workplace: safe and healthy working conditions.
• Social Welfare: our welfare system as a source of satisfaction thanks to the quality of its cover and social benefits.
• Responsibility: fulfilling our social obligations as a company and supporting community initiatives aimed at developing the local area.
• Environment: ensuring environmentally-friendly business activities and collaborating in the development of protection initiatives within a framework of sustained quality.
• External communications: outlining our commitments and key achievements.
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􀂾 General Policies
The General Policies govern the Corporation’s activities in certain areas of particular importance and serve as a basis for the compilation of the Strategic Plans.
Their aim is the achievement of the Basic Objectives through the application of specific guidelines designed to lay the foundations for facing the competitive challenges of the future. Given that the areas involved are similar to those covered by the Basic Objectives, a simple list should suffice to give a general picture:
• Competitiveness
• Internationalisation
• Communication
• Innovation
• Business Promotion
• Employment
• People
• Financing
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LOOKING TO THE FUTURE
The new model of participatory and humanitarian company that emerged 50 years ago as the brainchild of Arizmendiarrieta, being nurtured by the selflessness of the first members and the efforts of thousands of cooperative workers, has now, half a century on, become the foremost experience worldwide in the development of cooperation, standing at the head of the business ranking in the Basque Country and seventh in Spain overall.
The humble training college in Mondragón, the Escuela Profesional, and Ulgor, the tiny workshop producing domestic appliances, were the seed for a socio-business reality that now extends throughout the five continents and provides work for over 80,000 people in 264 firms and businesses involved in finance, industry and distribution, as well as in research and teaching centres of both an occupational and general nature, including a Cooperative University.
Over the course of these years and in “a dynamic progression of experiences”, in the words of Arizmendiarrieta, Mondragón Cooperativism has led to the creation of efficient, humanitarian companies, focusing on the Individual and the Sovereignty of Labour, with the main aim being the creation of jobs and equitable wealth for the surrounding area.
These are cooperative firms that have furthered equal opportunities in the workplace and in education, reinvested the profits forthcoming and learnt how to forge close ties of inter-cooperation within the financial, educational, technological and organisational spheres, thereby strengthening both the individual Cooperative and the Corporation as a whole.
The changes have been huge over this half century, but we are in no doubt whatsoever that now, as in the past, the success of the Mondragón model requires reconciling the founding spirit – based on the Society of People, participation and solidarity – with the demands of an increasingly competitive and globalised market.
We believe, and shall continue to believe, in the individual as the driver of all progress although, logically, the knowledge and skills required for the task ahead may well change. Yet we shall continue to uphold our faith in cooperative values, generosity, commitment, hope and decency, etc.
Looking to the future, the creation of jobs will continue to be one of the Corporation’s primary objectives. This will involve fortifying business development at all levels within the organisation and focusing on innovation as a vital tool for developing products of greater value added and more highly-skilled jobs, preferably of a cooperative nature. This was the view taken by the 9th Cooperative Congress held in October 2005, which revealed a clear commitment to innovation and business development as the best way of assuring the future.
It is founded on a twin strategy: reinforcing the pooling of efforts to attain leadership in those business areas in which the Cooperatives and Divisions are currently immersed, and responding to the opportunities arising in other sectors, especially those MCC has tagged as priorities: Aeronautics, Energy, Health and ICTs.
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A key role in this process will correspond to the Development Centre, approved also at the 9th Congress, which has its own legal status and a major budgetary allocation. Its activity takes place within the sphere of the new Industrial Council, a body that coordinates cooperative industrial policy, seeking to identify interdivisional synergies and, especially, to boost and monitor innovation and development.
A decision was also taken at the Congress to update the industrial organisation prevailing since 1991: eliminating the intermediate Group level, imbuing the performance of the Divisions with greater flexibility, empowering Mutual Interest Groups for channelling synergies between Cooperatives through specific or permanent agreements and setting up the Industrial Council.
In terms of innovation in knowledge and products, MCC has other extremely important platforms: a Cooperative University focusing on studies in engineering, business administration and education sciences; Executive Training Centres; a corporate Science and Technology Plan, whose aim is to incorporate high impact technological know-how into the Cooperatives’ companies and businesses, and a network of sectorial Technology Centres closely linked to our companies’ business areas.
A significant role is also to be played in this entire process by the Garaia Innovation Park in Mondragón, which seeks to develop innovation and technology, using a single site of excellence to interweave technology centres, companies and higher education, thereby bolstering the adoption of new technologies in companies and helping to create highly-skilled employment.
Another key area for the future of the MCC Cooperatives involves their international deployment, which has undergone major development in recent years and requires further expansion. This trend is giving rise to a new Corporation, in which the foundational core of the Cooperatives coexists alongside a growing number of subsidiaries in the form of stock companies.
This circumstance requires serious thought, focusing on the development of new ways of sharing property, management and profits, which may be applicable to our stock companies and suitably reflect our defining traits and cooperative values. Regarding the gradual application of this model of “participatory company” to our subsidiaries, we already have the successful experience undertaken a few years back by the Eroski distribution group, through the firm Gespa.
Throughout their first 50 years of existence, the MCC Cooperatives have been characterised by their consummate skill in adapting to their changing environment, creating the right organisational and management tools to address each situation. Today, just as before, the building blocks of the future are in place, with the assurance that there will be no shortage of expertise available to cement them sturdily and accurately onto their corporate values.