Governance Changes at MEC: Should Other Co-ops Take Note?

Aasa Marshall

MEC — a large Canadian retail co-operative that specializes in outdoor activity equipment — implemented a number of controversial changes three years ago to strengthen the knowledge and skill sets at its board table and to ensure its governance structure could continue to guide the growing company.

Formerly known as Mountain Equipment Co-op, MEC was started by a small group of friends from the University of British Colombia who found they couldn’t buy good quality climbing gear in Canada. Since its inception in 1971, it has grown to twenty stores across the country, with 4.5 million members and $366 million in annual sales. With this growth and the expectation of further growth, the co-op felt it needed a more experienced board to navigate not only its scope, but also the increasingly competitive market for the goods it sells. Continue reading

Top Co-op Issues 2017

Nora Russell

In our second annual survey of Top Co-op Issues, we asked co-operative leaders across Canada to identify the most pressing concerns facing co-operative organizations today. According to CEOs, board members, managers, and academics in virtually every region and sector, the number one issue for co-op leaders is public awareness of the co-operative model — the lack of it, that is. As one person commented, “Raising the profile of co-ops in a noisy marketplace is difficult.”

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We conducted the survey as part of our mission to understand the world of co-ops and make that knowledge accessible. The results published here hold a mirror to the co-op sector, not only identifying important issues but also providing clear areas for collaboration for both advocacy and research. We selected our informants based on their specialized knowledge about co-ops. The 2017 survey included a sample similar to last year’s — CEOs, board members, managers, and academics balanced by region, sector, and role within the co-op. Their knowledge is invaluable because it is extensive, detailed, and privileged. Continue reading

Crowding In and Crowding Out

Murray Fulton

In a previous post, I outlined how a failure to find the right balance between intrinsic and extrinsic motivations can lead to a crowding-out effect in which the introduction of more extrinsic incentives results in poorer, rather than better, performance. With the right balance, however, extrinsic motivations can significantly enhance performance — the crowding-in effect.

Crowding-in and crowding-out effects can have a real impact on how decisions are made, on the effectiveness of policy, and on the performance of organizations, including co-operatives. Here are a couple of examples. Continue reading