What is your co-operative performance? Using Co-operative - PowerPoint PPT Presentation

What is your co-operative performance? Using Co-operative Performance Indicators Fiona Duguid, CEARC, Saint Mary’s University

Agenda • Objectives • CEARC • Background to Co-operative Performance Indicators (CPI) • What do we know about our co- ops’ performance? • A co-operative performance analysis • CPI app tour

Objectives of the Presentation • To expand our understanding about what we measure and report on about our co-operatives. • To lay the foundation for measuring and reporting using the co-operative principles. • To introduce Co-operative Performance Indicators.

Centre of Excellence in Accounting and Reporting for Co-operatives (CEARC) • Centre of Excellence in Accounting and Reporting for Co-operatives (CEARC) • Formed in 2007 - founding partner: CPA Canada • Conduct research into: • Accounting for coop purpose & multiple bottom lines • Integration of financial and non-financial reporting • Accounting for cooperative members’ funds • The characteristics & behavior of capital in coops • Social and environmental reporting • International Journal of Co-operative Accounting and Management

Why are Co-operative Indicators Important for Co-operatives? • Stakeholders (i.e., members, employees, future recruits, general public) are increasingly interested in the co-operative performance of business enterprises • Can be used to illustrate the impact of the co-operative • Benchmarks provided for the co-operative and the co-operative sector • Indicators and benchmarks can be used by the co-operative in strategic planning and in goal setting • Can be used in communications with members • Opportunities to learn about best practices in a wide array of co-operatives • Opportunities to reduce operating costs through various initiatives

Co-operative Performance Indicators An integrated, online system of collection, measurement, and reporting using co-operative principles as the basis of indicators and metrics.

Economic Indicators Poll www.menti.com Code 26 24 58 For Example: Revenues Profits Expenses Liquidity Cash Flow Inventory Turnover Return on Investment

Economic Indicators How are you able to use this information? • Report to members, board, employees, CRA • Plan and manage operations accordingly • Forecast • Strategize • Market • Difference as an enterprise How do you keep track of everything? • Bookkeepers • Accountants • Treasurers • Simply Accounting etc. etc. • TaxPro etc. etc.

Social and Environmental Indicators Poll www.menti.com For example: Community Donations Volunteer Hours Diversity at Governance Level Greenhouse Gas Emissions Waste Energy Efficiency Living Wage

Social and Environmental Indicators How are you able to use this information? • Report to members, board, employees, CRA • Plan and manage operations accordingly • Forecast • Strategize • Market • Difference as an enterprise

How could co-ops measure social and environmental impact? What social and environmental tools exist? • 74 and counting • Much talked about: GRI, SROI, AccountAbility, IIRC, Social accounting, B-corps, STARS, Earth Charter, United Nations Global Compact • Many proprietary, purpose built, to be used alone, not standardized across, many different motivations for use http://persistent.cs.smu.ca/Measuresmart/

What about Co-operative Indicators? So if we value economic indicators and some emphasis is put on social or environmental indicators, why not indicators that help us to truly understand what is means to be a co-operative. Lets move beyond the anecdotal. Lets collect, measure and report on what it means to be a co-operative.

Co-operative Performance Indicators Development • The project is designed and implemented using participatory action research (PAR) • With the co- ops and CU’s selecting and agreeing on small number of non-financial indicators/ metrics • Identified 12 co-ops/credit unions across Canada to participate in the pilot project • Sample: representatives from each geographic region of Canada, French and English, and various types, industries, sizes and maturity • The app facilitates collection of data and production of reports

Co-operative Performance Indicators http://persistent.cs.smu.ca/CPI/

Take-Aways Part of a movement with a difference Co-operatives have differences that other enterprises can not touch – why not report on them? The power of data – benchmarking, reporting, strategic planning, actualizing what is important

Thank you For more information please contact fduguid@gmail.com CEARC http://www.smu.ca/academics/sobey/co-operative- performance-indicators.html CPI http://persistent.cs.smu.ca/CPI/