Letter from the Board

by Marcy Cordes, President

You've probably seen this description of the Board duties before, either on our website or reproduced in this newsletter. The primary responsibilities of the Wedge Board of Directors are:

1. To ensure sound management of the co-op resources
2. To act as trustees on behalf of the members
3. To set long-range goals and to plan for the future

To members, the practical implications of this statement aren't always apparent, particularly since the Board doesn't participate in operational decisions such as pricing, product selection or supervision of staff other than the General Manager. As a result, our work isn't always visible to the membership.

As I thought about this column and approaches I might take to describing the Board's role, I came across a statement in an article in my files the other day that framed the board's role a little differently: "The greatest threat to the survival of a cooperative is the board of directors." (Dr. Robert Cropp, Director, Wisconsin Center for Cooperatives, 1994).

It 's a strong statement, but it emphasizes the importance of the Board to the future of any co-op. As I hear about the financial struggles some of the other co-ops in the metro area currently face, Dr. Cropp's words seem particularly relevant. While the work of the Board may not always be visible to most of the membership, the success of any coop ultimately depends on the capacity of its directors to provide the vision and direction needed to develop and grow, and sometimes, to survive.

When people got together to form the first Twin Cities' natural food coops in the 1970's, the cooperative spirit of these "pioneers" led to the establishment of stores that provided products that weren't available in traditional venues: whole and natural foods. Not all had the business acumen needed to keep their visions moving forward, but many of those early co-ops are still serving members today, including the Wedge. And, all of those early stores provided future co-opers with a model for collaboration and concern for the community that keeps co-ops vital today.

Looking at the history of local co-ops leads us to one of the most important issues currently faced by co-op boards. Products that were once only available at the local co-op can now be purchased at any number of giant retail chains including Lunds, Rainbow, and even Walmart. When consumers have numerous outlets to purchase products once offered exclusively by the co-ops, what steps do we now need to take to ensure our continued relevance and vitality?

The Wedge has already responded in many ways over the years, carving out our unique niche in the market through store expansion (and related growth in the products we can offer our members), the creation of a positive shopping experience and great customer service. The Wedge has also become a key player in ensuring our supply chain through the expansion of Co-op Partners Warehouse and the store's commitment to local producers. Our community efforts, primarily WedgeShare and Midwest Food Connection, are still going strong. And, we continue to work with and support other co-ops, both locally and nationally.

But there is more to do. Due in part to the increased competition and the need for, I believe, increased board performance in the area, the Board has invested time this past year looking at the way it does its work and on processes that can guide our decision-making and ultimately, future outcomes.

As a result, the Board recently revised the Wedge's Mission and Vision statements and are also currently working on a new set of long-range goals that will guide our decisions about the direction, profitability and continued incorporation of the cooperative principles in the work of the co-op. As always, this work will be done in strong partnership with Lindy, our General Manager. We should have our goal-setting completed in February and will publish the results in an upcoming newsletter.

We've also heard loud and clear over the last year or so that the Board needs to become more engaged with members. And, in fact, the Board considers strategies for getting more information about members' needs and wants critical to our planning for the future.

To that end, the Board's Trusteeship Committee has been working on ways to obtain more member input. This work has included the development of a member survey list, as well as looking at ways to encourage dialogue between the Board and members on our longterm goals and other Board issues. (We'd love to include you in our email survey project. You can quickly enroll on the website Membership page.)

Finding qualified members to serve on the Board, or even finding individuals who are willing to serve, is a challenge for most co-ops. To improve our own nominating process, the Board has invested time in documenting and improving the steps we take to recruit and evaluate Board candidates. It's important work - this is not a small organization. The Wedge Board represents the Twin Cities' largest co-op membership (soon be to 13,000 strong) and oversees a business with more than $35,000,000 in annual sales. We have a responsibility as Board members to make decisions that are beneficial to the co-op in general and to the co-op membership as a whole. It is critical, then, that we have board members with visionary capabilities, in addition to business, communication and team-building skills.

In many ways, this work is part of "gearing up" to address opportunities or changing market conditions, while remembering that we are not just another business, existing solely to make a profit. Our success, our survival, as a co-op requires that we maintain profitability to meet members' needs and provide the resources needed to take creative risks... but it's also the board's role to ensure commitment to the co-op's other "bottom-line," adherence to the cooperative values and principles.