Page from the Past
Revamped member-relations program
turns around negativity toward co-op
Editor’s note: this article originally
appeared in the September 1971 issue of
USDA’s “News for Farmer Cooperatives.”
It was written by E. J. Huenemann, who
was then manager of the Farmers
Cooperative Society in Garner, Iowa.
ive years ago, the
business climate for the
Farmers Cooperative
Society at Garner, Iowa,
looked like this:
Business volume was down. No growth
had been experienced for several years.
The board of directors was thinking of
eliminating departments showing losses.
Employees showed little enthusiasm.
Customer service needed improving.
Members did not understand
cooperative financing and were not
satisfied with patronage refunds. In
short, members had lost interest in their
cooperative and had little desire to
support it.
As the new manager, I questioned
what new life could be given to the
cooperative. It seemed that before
progress could be made, the communications
gap had to be narrowed.
The immediate goal was to set up a
program that would result in well
informed directors, employees, and
members working together for the
common good of the cooperative. To
attain this goal, we decided to hold
three report-to-owner meetings. The
board of directors personally invited a
group of not more than 50 memberpatrons
for each meeting.
They proceeded by taking every
third name on the membership list. The
three meetings were held on successive
nights. The local banker and other
community leaders also were invited.
We picked a time after harvest, in
mid-November, when members were
least busy. The dinner meetings were
held at a local cafe.
Support hinges on
understanding co-op
Our uppermost purposes were to
improve members’ understanding of
their co-op; to convince them why they
should be loyal supporters; and to show
them that by working together each
individual would profit. Topics
included: the purpose of co-ops; aims
and purposes of the Garner co-op;
credit and credit terms; building
programs; products and services
available; revolvement policy; marketing
activities; sales and savings; changes in
member equity and new programs.
These informational meetings
preceded producer meetings by about
60 days.
Our first informational meetings
four years ago were so successful that
we’ve made them an annual affair. The
board and management have learned
that the meetings are particularly useful
whenever major expansion is being
considered. Members have ample time
to express their opinions before a final
decision is made.
Members often convince each other
of the need, and thus a given project
receives fuller member support. An
example was the decision to build an
additional 170,000 bushels of storage
two years ago.
Communications gap closed
We believe the meetings are largely
responsible for closing the
communications gap. Both employees
and members are more loyal. New
projects have been executed with strong
support, because members had a part in
making the decisions.
Most important, members have
begun to feel that the cooperative is
their business, and that they do have a
voice in its management.
The board has been able to make
wiser decisions, based upon members’
desires and needs. Management has
found that less time is spent explaining
board decisions, because members have
been aware of actions that were going
to be taken.
Garner now has a stronger
cooperative.
We’ve gained 75 new members, and
— considering the declining number of
farmers — that’s doing pretty well.
Total membership is now about 700.
Volume has increased more than 100
percent in the past four years since the
meetings were started.
From the increase in sales, the
Farmers Cooperative Society has been
able to pay out in cash one year’s
deferred patronage each year. New
facilities and equipment have been
added to provide better service.
These member informational
meetings have been one of the best
member relations programs we’ve had.
We’re firm believers that it is dangerous
to allow current, every day business
activities to be the only member
informational program.
Now that we’ve informed the
membership about the value of the
cooperative, now that employee and
member enthusiasm is stirred . . . what
do we talk about? This year we talked
about the progress the cooperative had
made in the past five years.
