THE SPIRIT OF CO-OPERATION

Bay of Plenty Beacon, Volume 1, Issue 39, 21 July 1939, Page 6

THE SPIRIT OF CO-OPERATION

ELECTION OF DIRECTORS

(Published by arrangement with the Rangitaiki Plains Branch of the New Zealand Farmers' Union). Are you going to the annual meet, ing of the Rangitaiki Plains Dairy Co? BECAUSE A notice of motion framed to give effect to the ideas outlined in this circular is to be proposed at that meeting, and it is desired that shareholders should understand the motives behind the moving of it, and you are therefore asked to take careful note of the following arguments. ALL FOR ONE. Co-operation is the act of working or operating together to one end. In the dairying industry of this country, co-operation, has been the greatest single cause of the -tie mendous growth and expansion, of the industry. Experience with our own companj l, is suffi-i cient evidence of that. We have cooperated to the extent of banding together pooling our resources in ar equitable, and unanimous manner, and have slowly, surely, and safely, built up a huge collecting and manu. facturing business which ensures to every, shareholder, the utmost possible return in cash, for work per-* formed. Up to this point our cooperation has been very successful and we have conclusively proved its worth. having (lone this, are we doing what would appear to be the obvious thing to do? Are we advancing in the use of this co.operation in directions where it is possible to make best use of it? In other words, are we developing it to th" best advantage in the concern that has so convincingly proved it worth while? We think not! We consider there are still many avenues to be exploited. That, although there is no question that the business as it stands, is well managed and run, the extension, of the cooperative idea is than need be. " What is the cause of this more or less static period in the development of tho co-operative idea? We consider that it is to be found in our method of guiding and controlling this huge business that we have built up.

TAKE PRESENT PROCEDUIIr. " We elect a board of directors democratically enough, and according to our articles not less than two of hese directors retire every year, and arc eligible for re-election. That seems fair enough. BUT IN OUR OPINION THIS IS WHERE THS WEAKNESS LIES. The board of directors of this factory, as with most similar is a very efficient body, so efficient in fact, that when the opportunity arises, as it does every year, to injept a little new blood into it, and so make sure o\ keeping it healthy, the shareholders ire as a whole, so satisfied, that they /ail to take their opportunity. ''Why interfere when a concern is running so smoothly?'' is the average man's and he looks with suspicion on those who wish for a change. Without having the matter brought ■onvincingly to his notice, he fails to realise that a genuine principle is involved, and is inclined to look on fresh candidates as office_seckers. His first questions: ''What principle is involved?" "Why is fresh blood necessary?" "These men already on the directorate are capable, and by no means old. Years of first class efficient work in them," and so on. Undoubtedly! DANGER OF A "GROOVE." But there is always a very distinct tendency 011 the part of a borly or men in responsible positions to become conservative particularly if •9 they are undisturbed, for long periodsj by the influence of ncAA' men;, bcrs, and automatically new ideas. Conservatism is not nccessarity a bad thing in itself. In fact reasonable conservatism is desirable. But. conservatism can too easily beonmultra.conscrvatism which is unhealthy. Most people will agree with that 'We are not 'bothered by tj:;t vel. w'Ay \\rti fc ur' \ve v • iking steps to dual v.-ilh il. •: Hotijad over a bank and so to t'r

THE RANGITAIKI DAIRY COMPANY SUGGESTIONS FOR ANNUAL MEETING WIDER ADMINISTRATIVE POWERS

point, purposely to make it clear, is —'Supposing our chairman and a couple of directors decided to go to the races at Rolorua, and travelling together, drove final resting place of all directors. We are prepared to admit that our business would not collapse. But at the same time we claim that, as no shareholders at all have been passing through the directorate, and thus gaining experience and as none of fhe directors themselves, other than the present chairman, have had experi, ence in that capacity that for some considerable time there would be a very disjointed period, wherein there would be a strong probability of retrogression and lack of progressive initiative. NEED FOR NEW BLOOD. This we consider sound argument If it is, how are these difficulties to be overcome, and more complete cooperation assured? FIRST OF ALL, IT MUST BE MADE DEFINITELY POSSIBLE to introduce new blood on the directorate, instead of being theoretically possible, as it is at present. The retirement of not less than two directors each year, does make it possible, but the result has already been explained. the directorate itself should endeavour to make the important office of chairman of directors, circulate. HOW THIS MAY BE DONE. Dealing first of all with the need for new blood. The only alteration necessary here, is to make it compulsory for one of the two retiring directors to be in-eligible for re-election, for at least one year. This can be decided in such a way, as to not reflect unfairly. but no member should serve less than three years, as at present. In some cases a director retir. ing in one year under these conditions his ability was undoubted, be automatically re-elected the following year 1 . There could be no harm in this, because there a'e alwaj's some men iii a district, who are a definite asset in such position. There is another aspect however. It must be remembered there are at least two men retiring each and once; the value of the break, in the routine is realised, the re-cleetie~. of a useful .director will not necessarily pres-]tide the election of some one el?;e other than a retiring man, if th : s is deemed necessary. In following out this method new blood MUST automatically go on the board. And the retirement, even of a valuable man for a year, will always be beneficial, both for the director himself and the board. The directorate will thus be prevented from depending too much on any one man, and the man himself will be in a better position while off the board, to appreciate criticisms of suppliers and to consider, absorb and analyse suggested reforms. SPREADING THE BURDEN. So much for the election of directors. Now for a more equitable spreading of the work of the directors themselves. It must be borne in mind that the following are merely suggestions, and may not be practicable. They are put forward in a constructive and helpful manner on the basis that it must be made pos-

sible for new ideas to be introducs'l to enable the broading but of the co* operative ideal. SUB-COMMITTEE -^EMBERS.. From their number, directors, as a rule t elect a number of sub.com~ mittees to cope Avith the work of administration, and to relieve the chair* man to some extent. This method could possibly be ex-, tended. We say possibly because wtf do n,ot know how many sub-commits tees there are at present. We ask in all sincerity why do we not know?' And why you do not know? After all,, it i,s our business, and the present method debars us from knowledge of our own affairs. If we are to vote intelligently, either for or on any important matter of policy that may be put before us we must, have this information. The method mentioned above, may not need extending as far as the number of sub-cominittees are concerned. But it might be extended in another way. Each sub-committee has itsown chairman, and at the annuel meeting, instead of the chairman of directors covering the whole of the 1 workings of the he might deal with all important aspects, and' matters of policy. The chairman of the sub-committees could then deal each with his own department. This would have two very beneficial results. It would mean, that in departmental matters, the chairmen concerned, would come in for direct criticism, if such were from the suppliers meeting, and <?owould have the experience of explaining and upholding their actions at a large meeting. It would also give the shareholders a direct line on their capabilities as directors, and as subcommittee chairmen. Also it would definitely be a first class training ground for men of ability, Tor the post of future chairmen of as, under the suggested alteration of the method of election, the chairman' would ultimately have to take his year off along wfth the rest. SAFEGUARDING THE FUTURE On,ce start these positions circulating within reason and virtually ik* calamity could upset management routine. Apart from that, we woukf be much nearer true co-operation. WITHIN REASON, is a very necessary and the idea - he_ hind the suggestion, that only one director at a time, shall retire for a year. . , Continuity of effort is essential, and too big a change in a directorate,, at one time is likely to be more damaging than valuable. Follow out the suggested altera-i tion in and probably in the next 24 years there will be anything; up to 20 men district wit I* more jor- in the work of directors. Of that number, probably four or five capable of adequately and successfully filling the position of .chairman of directors. That is pure surmise, but, wea, very reasonable surmise. Does that position exist to_day after 24 years of the running of this factory? E. C. HAULTAIN (Chairman) ,F. B. MAUNDER (Hon. Sec.> Issued by the Rangitaiki Plains Branch of the New Zealand Farmers' Union.