KRUIZ, Santa Cruz Mountains Network Manager

Kyiakhalid Ruiz, MBANetwork Manager, Santa Cruz Mountains Stewardship Network

”Change happens at the speed of trust” 1 Key Challenges for Large, Landscape-Level Stewardship Efforts 2

Obvious Challenges to Innovative Partnerships 2Notable Lack of Diversity 2

“The single biggest problem in communication is the illusion that it has taken place.” 2

The Most Powerful Tool in Business 2We, not me 3

“When the best leader work is done the people say, ‘We did it ourselves.’” 3

Leaders Put Their Teams in Positions to Succeed 3How May I Assist You Today? 4

Terrestrial Harmony 4Unique Skills That I Bring to the Network 4

Relationship to the Region 4Science is life, Life is Science 4Respect for the Contributions of Many Peoples 4Social Entrepreneurship 5“Arara da Mata”: Parrot of the Forest 5Real Estate Expertise 5Education is Necessary to Re-Invent our Status Quo 6The Entrepreneurship that Academics Study 6

Primary Challenges to Becoming an Effective Network Manager 6

Exhibits 7 Arara da Mata”, Social Entrepreneurship large, Landscape-Level Reforestation in Brazil 7

Attributions 30

Kyiakhalid Ruiz, MBA Social Entrepreneur, Educator

Table of Contents

!2

”Change happens at the speed of trust” Key Challenges for Large, Landscape-Level Stewardship Efforts

Obvious Challenges to Innovative Partnerships According to the summary report from the workshop, several challenges threaten the success of any innovative approach to land conservation and stewardship that redefines the status quo. Among those identified include obvious difficulties inherent in bringing together multiple stakeholders: aligning internal constituencies, time horizons, agendas and motivations, withstanding the inevitable rotation of decision-makers, uncertain future budgets, and attempting to engage the essential buy-in of federal, state and local agencies.

Notable Lack of Diversity An unacknowledged challenge to any collaboration is the lack of diversity among the stakeholders. Any revolutionary venture requires revolutionary ideas and perspectives, and those may need to come from parties outside of our implicit biases (especially the ones that tell us we can only work with people that look like us or think similar thoughts.) (see “Rebuttal”, page 3 for thoughts on prejudging potential allies prematurely.)

“The single biggest problem in communication is the illusion that it has taken place.”

The Most Powerful Tool in Business

Transparent communication preserves the precious resources of time, money and energy. Communication is often underrated. It is taken for granted that the words said are the words heard or that the message sent in correspondence is the message received. Effective communication requires patience, perseverance, and confirmation.

Additionally, the atmosphere of trust needs to be established and nurtured among the stakeholders so they feel comfortable and empowered to ask the critical questions that help clarify the message being communicated. Technology is great for facilitating communication, especially with the 21st Century tools at our disposal.

Kyiakhalid Ruiz, MBA Network Manager Santa Cruz Mountains Stewardship Network

George Bernard Shaw

“CHANGE HAPPENS AT THE SPEED OF TRUST” Workshop Participant

!3

We, not me

“When the best leader work is done the people say, ‘We did it ourselves.’”

Leaders Put Their Teams in Positions to Succeed

Effective leaders take the time to understand the strengths of their teammates and the areas where their teammates need to grow. Leaders can then put the team into challenging, but achievable positions to win and constantly stand prepared to offer support, advice and mentorship.

The articles (The Most Impactful Leaders You’ve Never Heard Of and Five Steps to Building an Effective Impact Network) emphasize several key points of similarity among effective Network Entrepreneurs. Essentially, the points are deliberately counterintuitive to those who have been trained in the traditional behavior of business organizations. The ideals of the “leader” putting themselves aside and serving the group, trusting the group to their own consensus versus trying to control them, stressing the mission-first nature of the collaboration over the promotion of any particular organization among others are designed to strengthen the network and enhance the impact of the collaboration.

The second of the two articles continued on this theme, giving us 5 easy C’s to build an effective network. Personally, I had a couple of issues with the article, one of which is addressed in the “Rebuttal” (see inset.)

The other is that an enduring trust can be quickly established. The initial confidence might come soon after introductions, but I believe enduring trust requires examples of repeated reinforcement to confirm.


WE, NOT ME

Rebuttal

“Convene the Right People” is troublesome because it reinforces our inherent biases of “right” before we invite our participants. I think it’s better to invite all the participants, especially the ones we don’t think will be fruitful. Then, let the participants self-select themselves out of the partnership. The only way to ensure that the network is getting the strongest ideas is to include everyone possible. Also, we gain the trust of all the parties involved because our obvious impartiality puts the needs of the cause above our own preferences.

Lao Tzu

!4

How May I Assist You Today?

Terrestrial Harmony

Growing up in the socially-progressive Bay Area as a child of Native American ancestry, I was raised to respect the land. The Earth doesn’t belong to us, it is merely a responsibility we inherit from our parents. Our family made frequent trips to hike and camp in many of California’s regional, State and National parks, notably to Redwood Regional Park and the Lake Chabot campground near our house in East Oakland. In 1988, to escape the increasing violence of the inner city, our family moved to Monterey and I passed my high school years basking in the natural splendor of the Monterey Bay area.

Unique Skills That I Bring to the Network Relationship to the Region

I was fortunate to attend the UC Santa Cruz in my Bachelor degree pursuit for two reasons: for its beautiful confluence of ocean, forests and mountains and for the strength of its world-class research curriculum. I lived in Santa Cruz for 7 years before and during my undergraduate career. A particular joy during those years was walking my puppy on the beach twice a day, before and after classes. I miss the beauty the region and the environmentally-conscious citizenry.Science is life, Life is Science

I followed my passion for plants as a Biology major (Plant Sciences emphasis). Even though I later switched my major, the rigorous scientific method has stayed with me: hypothesis development, repeatable

experimentation and observation, comprehensive note-taking, data analysis, and publishing the results for peer-review. Respect for the Contributions of Many Peoples

I switched my major to American Studies in order to study the formation of America from the perspective of the various underrepresented peoples. The strength of our country is a reflection of the multiple contributions and sacrifices of these communities. This study increased my cultural sensitivity and it enables me to work with members of our increasingly global teams. Another benefit gained from this “soft science” major: the abilities to read and comprehend difficult texts and to write comprehensive summary reports that succinctly transform complex topics into “people-speak”.


HOW MAY I ASSIST YOU TODAY?

!5

Social Entrepreneurship

After creating and managing two successful entrepreneurial ventures, I stepped away to become my mother’s full-time caregiver during her battle with breast cancer. After three years, she finally succumbed and I returned to school to obtain my MBA degree. I chose Hult International Business School (receiving the “Entrepreneurial Impact Scholarship”) for three reasons:• the full-time one-year MBA program that minimizes my

absence from the workforce,• their innovative curriculum that emphasizes the “soft

skills” necessary for business,• their year-long course, Hult Impact Challenge, where I

could study “Social Entrepreneurship” and create a viable globally-beneficial business venture.

“Arara da Mata”: Parrot of the Forest The topic our team chose to address was large, landscape-level reforestation in Brazil. (see Exhibit: “Arara da Mata”) Arara da Mata was a graduate school research project that was founded like a real company. Our team of financial wizards, environmental scientists, and real estate professionals created a blueprint for large, landscape-level reforestation in Brazil that leverages the recent changes in Brazilian law to create a partnership between the government and sugarcane producers, preserve sugarcane producer profits and reverse centuries

of deforestation and land-misuse. A true win-win for business and the environment.

Real Estate Expertise In order to better manage my family’s residential real estate portfolio, I obtained an AA degree in Real Estate from Merritt College and the Real Estate Broker’s license from the California Department of Real Estate. As a Real Estate consultant, I understand the financial motivations affecting the landowner’s decisions and how to maneuver the complex regulatory morass of California Real Estate.

As a Property Manager, I have established a mutual trust and communication channel to keep in constant contact with my tenants. Because they know they can come to me anytime for any reason, they respect my commitment to providing quality housing at reasonable market rents. To maintain the properties, I have built a network of maintenance contractors. I take a proactive approach to maintenance and whenever I need to have work done I obtain multiple estimates of the work and develop a scope-of-work that specifies the requirements of the project within the agreed upon budget. Property Management is the art of managing details and budgets, keeping all the stakeholders contented, nurturing trust and communication and being flexible enough to “expect the unexpected.”


!6

Education is Necessary to Re-Invent our Status Quo With my recent Masters degree I am currently preparing to teach part-time Business classes (Introduction to Business and Entrepreneurship) to the next generations. As a Faculty Diversity Internship Program (FDIP) Participant at the Peralta Community College District, I partner with a teaching mentor to develop innovative syllabuses and lesson plans designed to optimize student potential. What is great about part-time teaching is that I can schedule my classes (nights, weekends and online) around my work schedule as Network Manager for the Santa Cruz Mountains Stewardship Network.

The Entrepreneurship that Academics Study

The unorthodox challenge of large, landscape-level stewardship requires unorthodox personnel who bring fresh ideas, fresh perspectives, and the entrepreneurial ability to solve complex problems without the panacea of money. My 15 years of successful entrepreneurship have given me the capability to understand the various sides of issues in order to make informed decisions.

Primary Challenges to Becoming an Effective Network Manager Obstacles to my becoming an effective Network Manager… 1. Not getting the job.2. Lack of Network and/or administrative support.3. Change in the Memorandum Agreement that removes the Network Manager position.4. Budgetary constraints that require the reduction of the Network Manager position.5. “Scope Creep” that increases the requirements of the position beyond what is possible without the proportional extensions of time, budget and energy.


Us !

!7

Exhibits Arara da Mata”, Social Entrepreneurship large, Landscape-Level Reforestation in Brazil

EXHIBITS

Arara da Mata, L3C Parrot of the Forest

Providing a Solution for Brazilian Farmers to Adhere to Recent Land Use Regulation

Arara da Mâta, L3C Parrot of the Forest

The Win-Win Solution for Brazilian Farmers and the Mata Atlântica Wildlife Ecosystem


Watch the Investor Pitch video!

https://youtu.be/3pgTtcKUYxY


!8

Inspiration: Sebastião Salgado Influential photographer & UNICEF Goodwill Ambassador


“Arara da Mata”, Social Entrepreneurship large, Landscape-Level Reforestation in Brazil (cont’d)

!9

Salgado Private Reserve (2001) Former Cattle Ranch



!10

Salgado Private Reserve (2013) TWO MILLION+ trees in 10 years!



!11


PastMâta Atlantica region. Once 2X size of France, now 7% original size due to rampant deforestation.

PresentBrazil’s government intervention to reverse past damage creates our opportunity.

FutureOff-site leasing area for farmers provides value.Deforestation, wildlife habitat,...



!12

Ecosystem of Brazil Legal Reserve AreasForestry Code 12.651

Established by Federal Law No. 12.651 Enacted on May 25, 2012

Mâta Atlantica20% reforestation rate



!13

Market Potential Legal Preservation Deficit hectares of sugarcane plantations (1 hectare = 2.47 acres)

7,032,000 hectares in Mata Atlantica

4,515,000 hectares in São Paolo State

904,000 hectares designated for reforestation

586,000 hectares available for reforestation

316,000 hectares in existing legal reserves

Source: Site NovaCana.com and Conab - Companhia Nacional de Abastecimento



!14

Competitive Analysis Sugarcane Producer’s Alternatives to Forestry Code 12.651

Alternatives

Costs

Consequences

Buy nearby offsite land to reforest

$13,000/hectare(land prime for sugarcane)

➡ Cost of reforestation

➡ Heavy Maintenance required

➡ Deviation from core competency

(sugarcane production)➡ Capital Expense on

Balance Sheet

Existing sugarcane plantation

Nearby land, prime for sugarcane



!15


Alternatives

Costs

Consequences

Reforest existing sugarcane plantations

$2,200/hectare

➡ Loss of revenue from smaller crop production and yield

➡ Capital Expense on Balance Sheet Existing sugarcane plantation



!16


Alternatives

Costs

Consequences

Do nothing

$0

Sanctions from breaking the lawincluding…➡ No access to capital➡ Blacklisted by the

government➡ Penalties on how

land is titled, transferred and financed.



!17


Alternatives

Costs

Consequences

Buy offsite land to reforest

$13,000/hectare

➡ Cost of reforestation

➡ Heavy Maintenance required

➡ Deviation from core competency

(sugarcane production)

Reforest sugarcaneplantations

$2,200/hectare

➡ Loss of revenue from smaller crop production and yield

Do nothing

$0

Sanctions from breaking the lawincluding…➡ No access to

capital➡ Blacklisted by

the government➡ Inability to will

land to family

Arara da Mata, L3C

$150/hectare

➡ Meeting legal requirements

➡ No maintenance required

➡ Cheapest alternative

➡ No change in crop production and yield



!18

Value Proposition Advantages to Sugarcane Producers

* Not including penalties for legal non-compliance



!19

Financial ForecastingYear 2015 2016 2017 2018 2019Land 2,000 hectares 2,000 hectares 2,000 hectares 5,000 hectares 10,000 hectares

Leasing Price($150/hectare) $300,000 $300,000 $750,000 $1,500,000

Revenues $300,000 $300,000 $750,000 $1,500,000

SG&A $200,000 $200,000 $300,000 $400,000

Profit before Taxes $100,000 $100,000 $450,000 $1,100,000

Taxes $6,000 $6,000 $15,000 $30,000

Net Income $94,000 $94,000 $435,000 $1,070,000

Investment -$3,830,000 $0 -$5,745,000 -$9,575,000 $0Land -$3,400,00 $5,100,000 $8,500,000

Supplies -$400,000 $600,000 $1,000,000Legal Setup -$30,000 $45,000 $75,000

Cash Flow -$3,830,000 $94,000 -$5,651,000 -$9,140,000 $1,070,000



!20

Sources of Capital Funding Options

Phase 3● Implement Eco-tourism Sustainability Resort● Initiate Carbon Credit Management Program● Awareness Campaign (ex. produce documentary to

increase consciousness & attract more donors,...)

Phase 1● Targeting 2,000 hectares @ $1,000-2,000/hectare.● Need $3.8MMix of investors and grants from Global NGOs (WWF, Gordon & Betty Moore Foundation,...), local NGOs (Biophilia Foundation, BVRio,...) & government grants.

Phase 2● Sell Green Bonds to finance future growth.



!21

Web/App Platform• Create landing page• Land mass

calculator• Calendar/schedule

tracking crop cycle

Marketing Mix Positioning Arara da Mata, L3C as a service to the Marketplace

Marketplace

Product

Company as Service• Lease land• Flexible payment

options

Motivate MarketplaceRegional offices/volunteers/students/internsTestimonials → Have sugarcane producers speak with us

1

2

3

Service



!22

Go to Market Strategy Near-Term (2015-2016)

2015 (Summer/Fall)

Awareness Campaign• Rollout webpage www.araradamata.com• Add Land Mass Calculator

& other metricsFundraising• Roadshows• Crowdsourcing• Grant Proposals

2015 (Winter)

Found Company• Establish HQ in Bay Area• Set-up local sales office to

educate/recruit farmers about land fulfillment solution

2016 (Early)

Acquire land• Work with local agent to

secure initial plot• Set-up base-camp

• Obtain tools• Source materials• Contract local laborers



!23

2016 (mid)

Hypothesis Testing• Validate with trial-run

of 5-6 sugarcane producers (perhaps smaller producers)

2016-2017

Quantify Performance Metrics• Reforest rate• Wildlife return• Erosion control• Revenue retention

2017

Grow Client Base • Have Trial-run producers

testify their Arara da Mâta experiences at major convention

Go to Market Strategy Near-Term (2016-2017)



!24

Erosion ControlIs erosion being controlled/reversed?

Aquifer LevelsAre underground aquifers maintaining their water levels? Growing?

Wildlife Habitat PreservationAre native animal species returning?

Indirect Beneficiaries Key Social Impact Metrics on Land Use



!25

Summary: Arara da Mata, L3C Parrot of the Forest

OpportunityBrazil’s government intervention to reverse past damage creates our opportunity. Mâta Atlantica region. Once 2X size of France, now 7% original size due to rampant deforestation.

Value Creation SolutionOff-site leasing area for farmers provides value. It’s cheaper for them to outsource to us than to do it themselves. Plus, it allows them to focus on their core competencies (farming/ranching.)

Social Environmental ImpactForest rejuvenation, wildlife habitat preservation, benefits to land erosion & water resource maintenance.



!26

Meet your team…





!27

Kyiakhalid Ruiz, MBA (USA)Real Estate Consultant,

Media Advisor, Entrepreneur

Rachel Varghese, MBA (USA)Financial Analyst

Fabio Pehlo, MBA (Brazil)Financial Controller, Credit Analyst

Oil & Energy

Nupur Singh, MBA (India)Business Development Associate

Amy Lin, MBA (Taiwan)Project Management,

Supply Chain, Research & Analysis

Fahad Garba, MBA (Nigeria)Writer, Clean Water Advocate



!28

Fahad Amy Fabio Rachel Kyiakhalid

Marina Campos, PhDAndes-Amazon Program Officer Gordon and Betty Moore Foundation She’s worked with Brazil’s government to implement climate change legislation

Leonardo Fleck, PhDAndes-Amazon Program Officer Gordon and Betty Moore Foundation Leonardo is a Conservation Economy expert who works with the Climate and Land Use Alliance

Carlos ArantesBrazil-based Environmental lawyer specializing in the new Brazilian Florestal Code

Nupur



!29





www.araradamata.com/donate



!30

Attributions

ATTRIBUTIONS


Arara da Mata, L3C

LinkedIn Kyiakhalid Ruiz, MBA

(twoGiraffe) Santa Cruz Mountains Purisima Creek Redwood Preserve

Santa Cruz Mountain Sunset (traviswitten.com)

IMG_2990

(santacruzmountainstrails.blogspot

sun (printablecolouringpages.co.uk)

santa-cruz-mountains (shop.madeinsantacruz.com) Main-Map-

e1360259228250 (www.everyvine.com)





Kyiakhalid.com, Portfolio "Arara da Mata"

pretty-blue-flower-wallpaper-1

http://kyiakhalid.com



http://kyiakhalid.com

Documents

KRUIZ, Santa Cruz Mountains Network Manager