Rosa's Story - Coady International Institute - St. Francis Xavier ...

Organizational Model
Rotating leadership is essential to a good democratic organization and is also an
Andean tradition claims (Luciano Martínez, personal communication, October 12,
2004). Respecting this tradition, the Association holds an election for its board and
President every two years, often resulting in a complete turnover of board members.
Presidents are only allowed to serve one two-year term, according to the current
system, though other representatives are eligible for re-election. This prevents
incumbent leaders from becoming entrenched, allows member interests to be represented,
and develops a cadre of people with valuable leadership knowledge and
experience.
Yet it also means that each time new leaders take their positions, the steep learning
curve delays important decision-making. According to Thomas Walsh, this can
be costly to the business: “It can take Jambi Kiwa months to make a decision…The
competition can be making four or five of those decisions a day” (personal communication,
October 20, 2004). On the other hand, he stresses that while the
process is slow, members remain responsible for their decisions and so have complete
ownership of the operations.
Internal debate has delayed the final approval of Jambi Kiwa’s new strategic plan.
On the surface, this debate is about whether Jambi Kiwa should focus on relationships
with existing clients or concentrate production on more value-added products
(like herbal teas) where they do not yet have solid commitments from buyers. At
its core this debate is about which management model Jambi Kiwa will adopt: the
current model with a manager handling day-to-day factory operations and the board
making most management decisions; or a more conventional business model consisting
of a management team with a board focusing on policy, making strategic
decisions and overseeing operations. In all likelihood, Jambi Kiwa will face enormous
pressure from customers and donors to move to a more conventional business
model.
Jambi Kiwa will also face market pressure to establish a consistent financial culture
within its membership. There has been some resistance within both the leadership
and membership toward adopting such a culture. The fear is that such a move
will jeopardize the social vision that led to the creation of Jambi Kiwa in the first
place. Some leaders and members feel that if they continue to submit to the
demands of the market, Jambi Kiwa will be abandoning its indigenous peasant
roots. Others contend that if Jambi Kiwa does not become more competitive and
fully adapt to the market, it will never make a profit. The best way to promote community
development, the latter argue, is to maintain a profitable business which will
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