Scoping the current practice of dynamic governance in co-operatives
Mark Simmonds (Co-op Culture)
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I'm currently putting together a proposal (invited to do so) to the UK Co-operative Governance Expert Reference Panel (of which I am a member) around their focus for the next couple of years. I'm proposing that we look at the emerging popularity of dynamic governance (sociocracy for example) in co-operatives and particularly co-operatives that may never physically meet. I'm thinking that the emerging practice in platform co-ops will be particularly interesting, but with application for more traditional large co-operatives.
I'm interested in your opinion of the questions we should be addressing. I include below my initial thoughts around this and you can see an earlier thought piece here.
The questions I've come up with so so far:
What is dynamic governance (what are we including?)?
Which co-ops are using dynamic governance?
What are the differences between the different models/instances?
What are the benefits?
What are the downsides?
How well do current resources around good co-op governance apply to this practice?
Cliff Mills Mon 20 Jan 2020 10:09AM
Sorry, my contribution to the ICA paper is chapter 8
Ian Snaith Mon 20 Jan 2020 10:15AM
Hello Mark,
I'd add:
"Make sure that the organisation's constitution (rules for a society, members' agreement for an LLP, or articles of association for a company) and the legislation under which it is registered permit the preferred governance system and means of communication."
E.g. the Companies Act 2006 requires members' meetings such as an AGM and a first one within a certain time of first registration of the company so you need to ensure that the articles facilitate electronic participation in those.
Best Wishes
Ian
Ian Snaith
Legal Writer Researcher and Educator
Editor of 2014 Edition of the Handbook of Co-operative and Community Benefit Society Law ( http://www.jordanpublishing.co.uk/practice-areas/charity/publications/-handbook-of-co-op-and-community-benefit-society-law-#.VO8Xny62qHs )
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Nathan Brown (Co-op Culture) Mon 20 Jan 2020 10:26AM
My understanding is that CA2006 removed the statutory duty to hold an AGM. But your main point is still valid and on point :-)
Ian Snaith Mon 20 Jan 2020 1:02PM
Absolutely right, Nathan, so the written resolution procedure is the norm - even if a 5% minority propose a resolution under section 292. But you still need a meeting to remove the auditor under section 510 or to remove a director before their term expires under s 168 - s 288(2).
Nathan Brown (Co-op Culture) Mon 20 Jan 2020 10:29AM
I'm really interested within the "What are the differences between the different models/instances?" question about the impact of scale (members size or worker size if not a worker co-op) on the way that Sociocracy is utilised. This could hold some really valuable learning.
Cliff Mills Mon 20 Jan 2020 11:03AM
Thanks Ian, that's helpful and I agree.
Following on from the discussion about an uncertain future, I have two further questions to add, though maybe they are for a different project as they might make the current scoping exercise rather too big. My questions are:
"Is dynamic governance a more effective way of achieving co-operative purpose today than traditional co-operative governance?" and
"Would it be better for co-operatives to move away from the concept and language and measurement of "return on investment" and other output-based measures to judge success, and towards a commitment to values and principles, and post facto reflection on effectiveness and performance to judge success?"
Sion Whellens (Principle Six) Mon 20 Jan 2020 11:46AM
Dynamic governance is a new term to me. Is there a pithy definition, and where is the term being used currently?
Pete Burden Mon 20 Jan 2020 12:39PM
They often use this term for Sociocracy in the US I believe Sion - apparently because Sociocracy sounds a bit like socialism! That's the story I have heard anyway.
More seriously I guess dynamic governance would include 'commercial variants' such as HolacracyTM? And other non-commercial variants - Sociocracy 3.0?
Cliff Mills Mon 20 Jan 2020 12:42PM
And also the Quaker Business Method? I had understood that both sociocracy and holacracy acknowledged their roots here?
Ian Snaith Mon 20 Jan 2020 1:06PM
A quick google search suggests it is another word for Sociocracy but i hadn't heard of the variations mentioned above.
Pete Burden Mon 20 Jan 2020 1:52PM
I believe it was Betty Cadbury (of the Cadbury's family) and Kees Boeke who first put the ideas into practice in their school in the Netherlands. So a definite yes to the Quaker Business Method and Quaker roots.
Mark Simmonds (Co-op Culture) Tue 21 Jan 2020 8:15PM
It's partly political @Sion Whellens (Principle Six/Calverts) to include co-ops that wouldn't necessarily identify as sociocratic - casting the net a bit wider really
Sion Whellens (Principle Six) · Mon 20 Jan 2020 11:58AM
Good points. When I’m workshopping legal and governance with startups, I’m generally using current model rules and ‘flexing’ them to allow for asynchronous/platform-enabled meetings, etc. In relation to sociocratic governance this means that the Directors/Committee need to be well trained on their fiduciary duties and powers, which includes delegating decision making as deeply and as broadly as they feel confident to do - which in turn means a very clear remit for circles, including the Directors’/General/Purpose circle, and mechanisms/double links enabling that circle to respond fast and positively when it needs to.