04/2008Nucleus-International.net1 How to start Nuclei Nucleus-International.net

04/2008 Nucleus-International.net 1

How to start Nuclei

Nucleus-International.netNucleus-International.net


1.Types of Nuclei


Types of Nuclei

• Sector Nucleus = Vertical Nucleus– Carpenters– Bakers– Joiners– and many other branches ...

• Members offer similar products and services


Types of Nuclei

• Topic Nucleus = Horizontal Nucleus– Exporting enterprises– Woman entrepreneurs– Company technicians for environment problems– CEFE course participants

• Members offer different products and services but share common topics / interests / problems


Types of Nuclei

• Location Nucleus = informal Association– Entrepreneurs of a small village with an

insufficient number of entrepreneurs to found a Sector Nucleus and the next one being too far away

• Members offer different products and services but share the same location


Types of Nuclei

• Sub nucleus – Some members of a Nucleus share special

problems or certain interests

• Temporary Nucleus– Some entrepreneurs get together

to solve a specific problem. Afterwards the Nucleus dissolves.


Examples of Nuclei

• Farmers / Agribusiness• Automobile Workshops• Beauty Culture• Building Construction • Brassware• Commerce• Computer Hard- / Software• Cut Foliage• Electricians• Environment• Export• Food Processing (Bakeries,

Butchers, etc.)• Gem and Jewellers

• Handicraft• Hotels and Guesthouses• Leather Products Light

Engineering • Lime Production• Vegetable / Mushroom• Photographers• Printing• Radio and TV Repair• Tailoring• Tool Making• Women Entrepreneurs• Wood Industries (Saw Mills,

Plywood, Furniture, Carpentries)


2. Criteria for the

selection of a sector


The Start

• In the beginning, it is important to have– immediate success / impact– examples and proofs that the project is

serious works

• Therefore, it is recommended to start with "easy" sectors / persons / organisations


Criterion 1: Leadership

• Do not start with a sector, which does not have some entrepreneurs with charisma and leadership capacities

• but with a sector, which has one, two or more entrepreneurs with a strong personality and leadership capacities

Attention: This is a „Killer“-criterion : A Nucleus withoutsome informal leaders has low chances to develop!


Criterion 2: Qualification

• Do not start with a sector, in which all entrepreneurs and companies – are highly qualified

Eventually they think that they know already everything

– are very low qualified It will be more difficult to move them

• but with a sector, – having entrepreneurs of medium

qualification


Criterion 3 : Strong / Weak

• Do not start with a "strong" sector– Well organised, with a good supply of

services

• but with a "weak" sector– lacking effective organisational structures– lacking a supply of services– lacking self-confident entrepreneurs


Criterion 4 : Homogeneous / Heterogeneous

• When SMEs / companies are very homogeneous (same product, technology, know-how etc.)they have nothing to exchange

• When SMEs / companies are very heterogeneous(one member has 2 employees, another 100) they have nothing to exchange

• For a successful Nucleus is required a balance between homogeneity and heterogeneity !


Criterion 5: Critical Quantity

• If a sector consists of few enterprises only it is difficult to keep the Nucleus going in the long run– Some SMEs never participate, others drop out

• If a sector consists of many enterprises chances are better to keep the Nucleus going long term

• In the beginning a Nucleus requires 7 to 12 members, later 10 and more


Criterion 6: Improvements with / without big Investment

• In some sectors, entrepreneurs can improve their companies in a sequence of small steps, without big investments

• In other sectors, bigger investments are required for considerable improvements

• Start with sectors where improvements are feasible through counselling and training - without big investments in hardware!(Example: Carpentries)


Criterion 7: External Know-How Sources

• External sources of know-how :– Technical schools / institutes, providers of

hardware (tools, machinery, products), providers of raw materials, freelancing specialists ... and others

• If there are no or few sources of local / regional know-how the Nucleus may rapidly run into difficulties

• Before you start work in a sector, check the external sources of know-how in the market !


3.The Nucleus Counsellor


The Nucleus Counsellor : Tasks

Moderationof meetings

GroupCounselling

Execution of activities

IndividualCounsellingof members



• Stimulation and organisation of the communication process amongst members = Moderation

• Focal point: the group dynamics• Objectives:

– Stimulate the identification of common problems and ideas

– Stimulate the exchange of know-how, experience and solutions among members

– Implementation of activities as defined by the nucleus (courses, visits to suppliers, fairs, etc.)



Strategy:• Direct the discussion to problems

which members can solve on their own (internal causes – decision maker : SME= great chance of success)

• Avoid problems that members cannot solve by themselves(external causes – decision maker : others = lobby= less chances of success)



• At the “right” moment, the counsellor– Participates actively in the discussion– Contributes with

- questions, - ideas,- experiences,- comparisons,- proposals

= Counselling

Nucleus



Observations:• Group dynamics come first• Moderation without

counselling is ineffective


Individual Counselling

• Meeting of two persons:Entrepreneur + Counsellor

• Focal point:The relationship between them

• Instrument:Psychology


The Individual Counsellor : Tasks

• Create a trusting relationship• Speak the entrepreneur's “language” !• Identify problems

– Subjectively, as seen by the entrepreneur– not objectively, as seen by the counsellor

Counsellor

Entre-preneur


The Individual Counsellor : Tasks

• Look for solutions to a problem together with the entrepreneur

• Possibly search the market for other sources of know-how

• Ideally, the entrepreneurfinds a solution on his/her own, through reflection

• Decisions are taken by the entrepreneur(not by the counsellor)


What qualifications does a Counsellor need ?

• Experience with SMEs• Able to work with

people / in groups • Open minded and

willingto learn

• Communication & networking skills

• Entrepreneurial thinking

• Leadership qualities

• Analytical skills • Good public relation

competencies• Confidence to face

challenges • Computer literacy


Group and Individual Counsellor

Recurrent questions :

Why should the entrepreneur accept and respect me as a helpful counsellor ?

What can I do to be accepted and respected by the entrepreneur as a helpful counsellor ?


4.The Steps to start a Nucleus


Step 1: Identification of an appropriate sector

• Identification of a potential Nucleus in reference to the criteria– Identification of one or more potential leaders

Someone who is respected in the sector Neither the biggest nor the smallest entrepreneur

If possible an entrepreneur who is member of the board of directors of the chamber

• Short explanation of the Nucleus idea to the selected leader


Step 2: Mobilisation of potential participants

• The counsellor decides together with the potential leader who should be invited for a first meeting– Never invite all entrepreneurs of the sector

Risk, to have personal enemies among them– The informal leader will propose only those

entrepreneurs with whom he has a friendly ore neutral relationship

– The selected entrepreneurs shall have a maximum of 30 minutes to go to the meeting place


Step 2: Mobilisation of potential participants

• The counsellor visits together with the potential leader the selected potential participants

• They invite for the first Nucleus meeting– The personal encounter reduces the barriers

and creates a little bit of trust– Never invite per letter, fax, e-mail etc.


Step 3: Preparation of the Meeting

• Required number of participants– Minimum 7, maximum 15

• A room adequate for working with visualisation techniques– No tables– Many walls

• Take care of– Noise– Light– Temperature


Step 4: The first Meeting

• Welcome by an "important" person– President, CEO, etc.– to emphasise the importance of the

entrepreneurs‘ participation and the work of the Nucleus

• Objective : to honour participants

"We, the chamber, need you as member !"

"You, entrepreneur, need the the chamber to improve your company !"


Step 4: The first Meeting

• Introduction of participants• Very brief explanation of the Nucleus' work

– Don't explain details – they'll learn by doing– Don't explain the history – it's boring– Talk about Nuclei of other sectors – and about success stories

• Explanation of visualisation technique• The start :

"Which problems do you encounter ?"


Step 6:The Process of Identifying

- Problems - Ideas

- Solutions- Activities


Prerequisite for starting a Change Process

• A problem:negative situation, the entrepreneur suffers

• A vision:adequate situationbut the entrepreneur wants further improvement

vision

current situation

future situation

+desired situation

current situation

problem-


A : Identification of Problems

Workers withoutexperience

Which problems do you encounter ?

Money

Credit

Quality of raw material

Quality ofmaintenanceof machines

Customer

National Government

Purchase ofnew machine

Costs too high

Productivitytoo low

Collectionof cards


B : Provoking more Cards

Input Throughput Output

machinescapitalraw material buildings staff“know-how”training etc.

productiontransformationprocess

productservice

Areas in the company


rearrangement of cards to create structures

C : Structuring Problems

Workers


Money

Credit



CustomerNational Government


Costs too high

Productivitytoo low

FinancesProduction

Investment

Other Problems

Staff

Sales


D : Weighing Problems

Workers


Money

Credit



CustomerNational Government


Costs too high

Productivitytoo low

FinancesProduction

Investment

Other Problems

Staff

Sales

Take off redundant

cardsand those with very distant

problems.Explain why


E : Improving the Quality (Expressiveness) of Cards

Workers


Money

Credit

Low quality of raw material

Low quality ofmaintenanceof machines


Costs too high

Productivitytoo low

FinancesProduction

Investment Staff

SalesA problem

should express

a negative state

These cardsare ok !

These cardsare not ok


E : Improving the Quality of Cards

workers does not describe a problem

workers not adequately qualified

does describe a problem


E : Improving the Quality of Cards

Workers not adequately qualified


Confusion of privateand companymoney

No accessto credit

Low quality of raw material

Low quality ofmaintenanceof machines

Customerdoesn'tpay

Doubts aboutpurchase ofnew machine Costs too

high

Productivitytoo low

FinancesProduction

Investment Staff

SalesCards after improvemen

t


F : Deciding Priorities

Workers not adequately qualified


Confusion betweenprivateand companymoney

No accessto credit


Customerdoesn'tpay

Doubts aboutpurchase ofnew machine Costs too

high

Productivitytoo low

FinancesProduction

Investment Staff

Sales

Which problem - is

the most

urgent ?- concerns

the majority of SMEs?



F : Deciding Priorities

• When a Nucleus is relatively new take care that– The selected problem is not too complex to be

successfully tackled and solved– In the case of external know-how probably

being required, you should have potential sources of know-how in mind

Start with simple

problems!


G : Further Analysis of the Problem

Which problems do you encounter with raw materials?What are the causes?


Too dry

Don't know whetherit is the right materialfor my product

Too expensive

Too wetQuality isalways different

Not always availablein the market


G : Provoking further Analysis

through "W"-Questions

• What ...• When ...• Where ..• How ...• Who ...• Why ...

• Before what ..• How much ...• Which ...?


G : Further Analysis through Questions

• What happens?• When do you buy it?• Where do you buy it?• How do you store it?• Who has the same

problem?• Why don't you return

it?• Are there other

possibilities?

• What are you afraid of?

• How much do you pay?

• Which product do you produce with it?

• ....


H : Exchange of Solutions and Ideas

Who within the Nucleus has which solutions?Quality of raw material

Too dry

Don't know whetherit is the right materialfor my productToo expensive

Too wetQuality isalways differentNot always in

the marketavailable

List of producersList of suppliersSupplier x is reliable

List with pricesand suppliers

Increase stock in May – Junewhen price is low

The problem

is solved ? If yes : ok Or is more

information necessary ?


I : Deciding on Activities

Nobody here knows anything more.Are there external sources of know-how ?What do we want to do? Quality of

raw materialDon't know whetherit is the right materialfor my product

Plan of activities,decision

aboutnext steps

Next meeting in acompany to see theproblem in place

Visit a producercompany

Invitation of a supplierto make a presentation


And so on ....

Further meetings ....

Further activities ....


…and at the End of the meeting...

Evaluation


Rule Number 1 :

The participant returns home with the feeling that he / she gained something !


Rule Number 2 :



... and Rule Number 1000 :



.. and Rule 1001 :

A counsellorhiding in the office is useless !

His workingplace is in the companies!

Office chair with nailsfor the counsellor !


5.Some Problems ...


Some Problems: the Group doesn’t work ...

• Too homogeneous or heterogeneous• Weak leader, little commitment• One entrepreneur tries to dominate the others• Cartelisation (closing the group against new

members)• The leader uses the group for other purposes

(e.g. political goals)• Personal conflicts hinder a professional

relationship


Some Problems: the Counsellor doesn’t work ...

• Doesn't know what he wants• Sleeps ... • Acts like a subordinate / secretary and

not as a counsellor (insecurity, fear)• Does not grow as fast as the group• Does not use visualisation techniques:

Without visualisation the quality of the work of a Nucleus deteriorates dramatically


Success ...

• Ask the entrepreneurs!


Nucleus-International.net

• This file is part of our material to present and illustrate our activities to professional and elected officials of business associations, personnel from technical cooperation projects, and other people with an interest in this field. We are involved in a constant process of elaborating and improving this material, and targeting it to the demands of specific groups.

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04/2008Nucleus-International.net1 How to start Nuclei Nucleus-International.net