ICA-IFFCO WORKSHOP OF ICA-IFFCO WORKSHOP OF SENIOR EXECUTIVESSENIOR EXECUTIVES

“CO-OPERATIVE ADVANTAGE OF “CO-OPERATIVE ADVANTAGE OF DOING BUSINESS”DOING BUSINESS”

Wellington, New ZealandWellington, New Zealand

Presented byPresented by

Kelvin QuahKelvin QuahSenior ManagerSenior Manager

Singapore National Co-operative FederationSingapore National Co-operative Federation

AgendaAgenda

• Evolution of Singapore Co-operative Evolution of Singapore Co-operative MovementMovement

• What is a successful co-operative?What is a successful co-operative?

• Success factorsSuccess factors

• Challenges AheadChallenges Ahead

• ConclusionConclusion

Singapore Co-operative Singapore Co-operative MovementMovement

• Introduced in 1925Introduced in 1925

• Focused mainly on thrift and loan facilitiesFocused mainly on thrift and loan facilities

• ““Modernisation of the Labour Movement” Modernisation of the Labour Movement” by Singapore National Trades Union by Singapore National Trades Union Congress (SNTUC)Congress (SNTUC)

• Many co-operative ventures launched to Many co-operative ventures launched to improve quality of life of members and improve quality of life of members and community at largecommunity at large

Singapore Co-operative Singapore Co-operative MovementMovement

• Co-operatives serve members in areas Co-operatives serve members in areas of thrift and loans, insurance, of thrift and loans, insurance, supermarket, healthcare, eldercare, supermarket, healthcare, eldercare, childcare, broadcasting, travel services, childcare, broadcasting, travel services, housing, security, training, job housing, security, training, job employment, campus services, home for employment, campus services, home for the destitute etcthe destitute etc

• Many of these major co-operatives have Many of these major co-operatives have become household namesbecome household names

Global VillageGlobal Village

• Competing operational environmentCompeting operational environment

• Advancement in technologyAdvancement in technology

• Present economy is increasingly Present economy is increasingly dynamic and opendynamic and open

• Co-operatives competing with public Co-operatives competing with public and private enterprises for share of and private enterprises for share of economic pie and enhancing social economic pie and enhancing social mission to communitymission to community

What is a Successful What is a Successful Cooperatives?Cooperatives?

• TWOTWO levels of Success :- levels of Success :-

(1)(1) Economic Success = Economic Success = Ongoing & Viable BusinessOngoing & Viable Business

(2)(2) Fulfillment of Social Missions Fulfillment of Social Missions & Objectives& Objectives

• Need to Need to DO WELLDO WELL in order to in order to DO DO GOODGOOD

Success FactorsSuccess Factors

1.1. Social FocusSocial Focus

2.2. Professional ManagementProfessional Management

3.3. Enhancing Information TechnologyEnhancing Information Technology

4.4. Customer LoyaltyCustomer Loyalty

5.5. Kaleidoscope ThinkingKaleidoscope Thinking

Social FocusSocial Focus• Co-operative values give uniqueness Co-operative values give uniqueness

and competitive advantage over and competitive advantage over private enterprisesprivate enterprises

• Value-based management ensures Value-based management ensures business operations of co-operatives business operations of co-operatives managed with a strong social managed with a strong social conscienceconscience

• Being a “people’s movement” brings Being a “people’s movement” brings about greater affinity between co-about greater affinity between co-operatives and communityoperatives and community

• Easier to garner loyalty and support Easier to garner loyalty and support from customersfrom customers

Social Report CardSocial Report Card

• Measure co-operatives’ Measure co-operatives’ achievements on the social frontachievements on the social front

• Social indicators measure the co-Social indicators measure the co-operative’s role in benchmark operative’s role in benchmark pricing, its reach and impact on pricing, its reach and impact on society, and the privileges and society, and the privileges and benefits for its members and benefits for its members and community at largecommunity at large

Social ContributionsSocial Contributions

• NTUC FairPrice supermarket NTUC FairPrice supermarket maintains a basket of 400 essential maintains a basket of 400 essential items at low prices and moderate items at low prices and moderate prices and supplies during prices and supplies during unforeseen or difficult situationsunforeseen or difficult situations

• NTUC Healthcare maintains a basket NTUC Healthcare maintains a basket of 100 commonly purchased items at of 100 commonly purchased items at the lowest overall pricingthe lowest overall pricing

Social ContributionsSocial Contributions

• NTUC Childcare provides quality children NTUC Childcare provides quality children services at affordable prices to help services at affordable prices to help working parentsworking parents

• NTUC Income provides one of the lowest NTUC Income provides one of the lowest premium products in the marketpremium products in the market

• Co-operatives also contribute financially Co-operatives also contribute financially through providing donations and offering through providing donations and offering social programmes to the lower incomesocial programmes to the lower income

Contribution to the labour movement

- Support for NTUC and union activities

Impact and reach

- Benefit large number of workers

Social programmes

- Community out-reach

Benchmark pricing

- Moderate prices

Benefits for members

- Rebates, dividends, bonuses

Account to public on our

social role

Measure social returns

Social indicators : Measuring Cooperatives’ Social indicators : Measuring Cooperatives’ ValuesValues

Challenges In Meeting Social Challenges In Meeting Social ObjectivesObjectives

Cooperatives must Cooperatives must firstfirst be be

viable, if they are to fulfill viable, if they are to fulfill

their social objectives on a their social objectives on a

sustainable basissustainable basis

Professional ManagementProfessional Management

• Co-operatives flounder due to Co-operatives flounder due to absence of professional teams to runabsence of professional teams to run

• ““Listed company mindset”Listed company mindset”

• Good corporate governance and a Good corporate governance and a meritocratic systemmeritocratic system

• Clear measurements and deliverables Clear measurements and deliverables to be spelt out for management to be spelt out for management effectivenesseffectiveness

Harnessing Information Harnessing Information TechnologyTechnology

• Embark on high tech ways to improve Embark on high tech ways to improve operational efficiency, bring down costs operational efficiency, bring down costs and better customize range of products and better customize range of products and servicesand services

• IT as an indispensable tool in helping co-IT as an indispensable tool in helping co-operatives compete with global playersoperatives compete with global players

• IT is no longer an option but a IT is no longer an option but a MUSTMUST for for survival in this present competitive survival in this present competitive environmentenvironment

Customer LoyaltyCustomer Loyalty

• Co-operative Model – “member-led” Co-operative Model – “member-led” and “member-user oriented”and “member-user oriented”

• Co-operatives enjoy an “automatic” Co-operatives enjoy an “automatic” customer basecustomer base

• Co-operatives should take advantage of Co-operatives should take advantage of membership database with effective membership database with effective data miningdata mining

• Cheaper to retain a member/consumer Cheaper to retain a member/consumer than getting a new member/consumerthan getting a new member/consumer

Kaleidoscope ThinkingKaleidoscope Thinking

• Way of creating patterns from fragments Way of creating patterns from fragments of existing data, resources, experiences of existing data, resources, experiences and ideas available and then and ideas available and then manipulating them to form different manipulating them to form different patternspatterns

• Many solutions and perspectives to a Many solutions and perspectives to a problemproblem

• Bring about an innovative culture where Bring about an innovative culture where staff will always be on the lookout for new staff will always be on the lookout for new ways of serving membersways of serving members

Challenges AheadChallenges Ahead

• Aim to be best-in-class for the Aim to be best-in-class for the business they are inbusiness they are in

• Attraction of talentsAttraction of talents

• Adopt best practices of good Adopt best practices of good corporate governancecorporate governance

• Expansion of market base / Strategic Expansion of market base / Strategic alliancesalliances

ConclusionConclusion• Twin forces of globalization and Twin forces of globalization and

advanced technologyadvanced technology• Strike a balance between achieving Strike a balance between achieving

economic success and performing economic success and performing social rolesocial role

• Willingness to break away from Willingness to break away from conventional practices and reinvent conventional practices and reinvent ourselvesourselves

• Discard old practices and ideas which Discard old practices and ideas which are no longer relevantare no longer relevant

THANK YOU !