Issue 1: Value creation and a compelling business case
For a new peak body to be sustainable, it must launch and maintain a compelling business case which generates real and continuing value for its members. There must be a strong support base—one which generates financial contributions from members and the goodwill of stakeholders.
Value is generated to members through providing services and functions. Many of the benefits from these services and functions will also flow to stakeholders—the potential members and supporters.
Both financial contributions and goodwill can disappear rapidly unless the peak body continually delivers more in services and functions than its running costs—the organisational objective should be to maximise the net value created.
Net value can be created through the efficient provision of standard services; but long lasting value creation normally requires results‑oriented actions and achievements around issues of key importance to members and stakeholders.
Having a clear value creation story is centrally important to determining the functions and services, scope and charter of the new peak body. By clarifying the options, the possible form and governance of the new body will also become clearer.
The proposed business model should be ‘bench tested’ to provide confidence to those who need to sign‑on or sign‑over to the new entity. The testing needs to be robust to provide the assurance needed.
- Why form a peak body for Australia’s organic industry?
- What could be its mandate, scope and boundaries?
- Broad—e.g. promote biodiversity, resilient communities, farm to table, environment benefits
- Narrow—just focused on certified organic production?
- Inclusive—provide pathways for noncertified and organic‑related producers to become certified
- Who would be the members?
- What functions and services could it deliver?
- Whole of industry vision and priority-setting
- Policy development and position statements
- Research and development strategy and engagement with RDCs and researchers
- Industry support
- How would it be funded and achieve financial sustainability?
- Who could fund the start‑up and drive the creation and establishment of the peak body?
- What does success look like?