Lessons Learned w/ Taimako Ent.

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Taimako Enterprises Ltd, first detailed here, is the family own and operated agri business that I was first matched with when I arrived in Tamale circa Oct 2013. I worked on and off with them on a variety of projects over the 10 months of my first year. While progress was made and many good things definitely happened, the unintended and unplanned for consequences of the engagement actually yielded the most interesting results. In fact, looking back on the project and knowing what was actually valuable to Taimako is very informative and indicative of the whole small business consulting concept.

As a quick summary, the work at Taimako, at least ostensibly, centered around three main objectives:

  • Production Planning and Organization
  • Financial Management
  • Organizational Structure

These objectives were co-developed between Taimako and BDSA after having worked together for several months to gain an appreciation of the issues facing the company.  In the end, our approach was to try to offer a range of solutions and work with Taimako to pick and choose which elements to experiment with and adopt.

So what actually ended up happening at Taimako? What were immediate outcomes? When will we know about the actual, long-term impacts of the work? And, what is the counterfactual, i.e. what would have happened had we never began the engagement? At this stage we have some answers for the first two questions and can conjecture about the final two.

Key Successes

New Forestry Nursery

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Across Taimako’s multiple business units, the focus of the work shifted multiple times. First it was centered on the food processing scheme, but as the market realities of this business became clearer, it was decided to refocus efforts on the core business of tree seedling production. To this end, Taimako was able to procure additional nursery land near the centre of town, (their existing nurseries are located in surrounding rural areas).

This new plot is located in the Tamale Forestry Reserve, a sort of unintentional city greenspace that once served as a reservoir, and now mainly harbours the local Rastafarian population, wayward youth of all stripes, and various squatter farmers. Taimako worked through both the local government and the traditional authorities (chieftaincy) to secure a 2 acre parcel of land near the roadside. In the course of only few months, they were able to clear the land of many years of accumulated garbage; erect several structures, including a guinea fowl hatchery, shade cloth area, and a basic mosque. In short,covert an underutilized area into a beautiful nursery with thousands of tree seedlings, exotic plants and samples of local pottery .

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While the rows were not in straight lines and no one could tell exactly how many trees were in each one, as I would have liked, the nursery seemed to happily straddle both order and chaos. We were able to implement simple recordkeeping, inventory and accounting systems to track sales and expenses across the business and made progress towards organizing their production methods. In the end, this new nursery has been a remarkable success for Taimako. It has helped them find new markets for their products; it has reinvigorated and refocused the management on their core business of tree seedlings; and it has helped them become more independent of the highly variable government contracts that were once their mainstay.

Community Tree Sales

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This new pilot initiative was developed by Taimako after encountering many frustrations working with the government sponsored afforestation project known as SADA. There have been many tree planting initiatives in Northern Ghana over the past several decades. Most have been large-scale, government or NGO-driven projects designed to combat desertification, improve the livelihoods of rural people, and/or to mitigate the negative effects of climate change. While these large, top-down projects have had some success and were able to quickly achieve scale, there have been many issues with sustainability and local ownership after the projects have ended.

This community tree sales idea was borne out of Taimako’s interest in local communities and their long history as traditional herbalists and tree growers. This past year they piloted a “Base of Pyramid” social business model whereby individual families and groups combine resources to make slightly subsidized bulk purchases of tree seedlings and plants for their compounds and surrounding lands. At scale, this will provide a significant and growing market for Taimako’s products and provides a reliable source of tree seedlings and information for communities to champion their own livelihoods. At the same time, it avoids the major pitfalls of traditional, plantation style tree planting schemes, by focusing on small-scale, direct ownership of the trees by individual families.

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This project is expected to achieve a number of very important results. There are the direct quality of life and economic impacts for the individual families purchasing the trees, as well as the indirect social and environmental impacts on the community. The benefits or “returns” on the initial investment on these seedlings could be realized after only a few years of growth and include up to 20 years of production of cash and food crops (mangos, cashews, shea), animal fodder, fuel-wood, building materials and traditional medicines,  as well as a source of shade and wind/rain/soil protection. Each tree that is planted also has the potential to remove 1 ton of Carbon Dioxide from the atmosphere over its lifetime.

BDSA was able to help Taimako with some basic business planning and modeling for this initiative, and to develop some marketing/information materials to share around the community. We also did a fairly extensive survey of grants and potential NGO partners to bring on to scale this project, but so far we are still looking.

Other Minor Successes

Recordkeeping & Evidence-back Decision Making

A significant transformation for Taimako has been in how they perceive the value of detailed recordkeeping and data-informed decision-making. This has been demonstrated in their adoption of recordkeeping books at the nursery and the use of financial modeling to predict the scope of the pilot version of their community tree seedling sales business. A large reason behind this transformation has been in closing the loop between collecting data, manipulating it in order to reach a conclusion and acting on that new information. Having seen this process come full circle, Taimako has realized the value and the potential to benefit their business.

Transparent Business

A primary objective of Taimako’s for this project was to raise its level from a large, but relatively opaque family business, into a more open, transparent and professional enterprise that could be easily be partnered with. Through a mix of financial policy development, labour practices, and written documentation, Taimako is now in a much better position to communicate and present its business to investors, granting foundations, financial institutions and other partners.  Using the goal of securing impact investment or grants as unifying force behind this work, helped focus efforts on a tangible outcome and drive the development in a cohesive way, even if partnering is still some time into the future.

Challenges & Failures

 

Processing Plant and Mango Plantation

While progress was made in other areas, these two business units were put on the back burner for the time being. The processing plant is awaiting an injection of capital, but more to the point it needs a passionate champion to take ownership and help drive it forward. This might come in the form of new employee or through partnership with other producers. Either way, the need and potential for local food processing and preservation is just too high to let this initiative sit idle for long. As for the mango plantation, with the advent of the rainy season, the need for regular watering, vigilance against brush fires and other direct interventions has dropped off. The farm is still a few years away from producing a viable crop, but Taimako already has ambitious plans for how to get the most out of this investment.

Over Emphasis on Securing Financial Investment

A main assumption made at the beginning of the project was that Taimako would be seeking outside investment in the near term and some of that money would be used to offset BDSA’s fees. It became clear later in the project that this was not the preferred tactic of Taimako and that they would prefer to self-finance for the time being. BDSA failed to adequately respond to this change and held fast to the belief that the company would be interested in pursuing debt or equity financing, without giving enough attention to Taimako’s actual financing requirements. This also stems from the current mania for financial products in the world of development, which assume a lack of capital is the primary stumbling block for companies.

Overemphasis on Production Efficiency and Technical Inputs

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Too much emphasis was put on production efficiency and backend process improvements in the form of planning tools and cost saving measures. By focusing too much on these technical inputs, BDSA missed the larger and more crucial opportunities to help the company clarify their direction and provide less tangible support like coaching and guidance on leadership and family business matters.

Lack of Co-Ownership of Problem Identification

The information asymmetry and power dynamic between the outside “expert consultant” and the passive/receptive client (inherent in these relationships), created a situation where it was very difficult to obtain direction and co-ownership with Taimako. The latter would often rely on BDSA to be both the problem identifier and the solution provider which made it difficult to achieve the necessary commitment and motivation to follow through with changes.

Isomorphic Mimicry

There was a lot of focus put on deliverables such as policies and best practices which were not necessarily valuable in and of them self, but hopefully representative of a deeper change in the organization. Unfortunately, in many cases this lead to the opposite effect of “isomorphic mimicry” where BDSA was helping Taimako look like a better organization without actually changing it to become one.

Limits to the Embedded Approach

The long-term, embedded consultant approach put too much pressure on Taimako to always be making use of BDSA, and put pressure on BDSA to find things to do to keep busy. The embedded approach is more appropriate for a project-based engagement than it is for general business system development. A more flexible relationship where BDSA could have charged a daily rate would have allowed the same amount of work to be completed, but would have made more efficient use of both parties’ time.

Final Thoughts

The 10.5 month relationship with Taimako was both very rewarding and very challenging, with many unforeseen events taking place in the timespan. A strong foundation has been formed for Taimako’s business and many of the right components are now in place to allow them to achieve their long-term goals. The next steps are in the very capable hands of their management, and there will no doubt be many more successes and challenges to face the company in the future.

On personal level, I cannot imagine having a better client and work environment than I experienced with Taimako. The entire family was unfailing open, welcoming and warm and I always felt we interacted in a very direct and honest way which greatly enhanced the relationship. Getting to know the family and being hugely inspired by their vision for both their business and their community at large has, without a doubt, been one of the most satisfying experiences of my life. I can only hope that my contributions reciprocated a small part of this value and that the eventual impact of the work will prove positive and lasting. Thank you to the Taimako family, the staff, and their partners for a fantastic year!

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