Chapter 2: Developing Your Cooperative
IN THIS LESSON
Clarifying your cooperative’s decision-making strategy builds every members power.
On this page, you will learn about the major decision-making models that are used in cooperatives and how you can mix and match them to develop the best decision-making strategy for your cooperative.
How to make decisions in your cooperative?
There are many decision-making models. You may be familiar with some (like majority voting or single-person decision-making) through elections or your current job. Others, like consensus or consent-based decision-making, may be new terms, but you likely also practice these with your friends and family.
On the next few pages, we lay out each decision-making model in more detail. Then, we will guide you through thinking about which decision-making model to use and how you might incorporate the others. See the resources at the end of this workbook to learn more about your chosen decision-making model and become your own local expert.
Single person
One individual has the authority to make decisions for their team or community. They may seek input from others, but the final decision is theirs. They may gain this authority because their team has delegated that authority to them.
Majority vote
Each member has an equal say in the decision through voting. After a period of discussion and proposals, a vote will be called. This decision-making model may require a simple majority of 51% or a super majority of 67-90%.
Consent
In this model, a decision is made if everyone decides, “I can live with this.” It does not require that the decision be everyone’s ideal choice. This model values experimentation and airing potential objections early.
Consensus
All members of the group must agree for the decision to move forward. Consensus decision-making generally requires a process of co-creation and creativity so that all members develop buy-in to the decision. Consensus is similar to consent and shares many overlaps, but it requires more agreement.
There is a spectrum from quick decisions that only account for some voices to decisions that take more time but require everyone’s approval. However, a single person may dawdle on a decision and take more time than a team of people who have mastered an efficient consent-based decision-making process.
Some of decision-making models will be easier to learn and apply because you already have experience with them. This doesn't mean you should only choose a model that you are familiar with. You and your team may need time to learn a new model. If it fits your needs and values, it will support sustainable relationships and growth.
“Giving everyone an equal amount of time to be able to speak, creating a safe pace, always prefacing the meetings with “this is business, none of this personal”, clearing the air and giving people a safe space to speak.... I always have to make sure everyone has a seat at the table and that they feel comfortable.”
“In our operating agreement, the actual text says it’s majority decision. In real life, it’s consensus, which is very easy when you’re so small. But I think we would strive for consensus. ”
“[Our decision-making structure] is super adaptive to what’s worked in the past and the needs of the moment. We’ve tried a whole bunch of ways of making decisions.”
Tailoring your decision-making model
As you think through how you want to make decisions, you can also think about mixing the models. You will want to choose an overarching model that determines the majority of your decisions but can use other models in certain circumstances.
Different decisions may also require different processes. For example, day-to-day operational decisions may be delegated to one person or a small team for the sake of efficiency, while major decisions about the direction of the co-op may require consent or consensus. It’s important to decide what types of decisions are made by whom and how they are made.
Another group may choose to primarily use a majority vote system. However, they may encounter issues that require a rapid response that does not leave time for a vote. In this case, they may delegate certain decisions to a single person to make them in a timely manner.
Decisions at Hidden Alley Ranch
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Decisions at Hidden Alley Ranch 〰️
For example, Hidden Alley Ranch co-op primarily utilizes consensus. However, they are required to implement a backup system if consensus cannot be reached in order to qualify as a state-recognized Cooperative Association.
After three meetings where consensus cannot be reached on a decision, the decision moves to a supermajority (2/3rds) vote. Their emphasis is to build the skills and relationships to successfully come to consensus. However, they added another model to meet their legal requirements.
Decisions at Hidden Alley Ranch
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Decisions at Hidden Alley Ranch 〰️
Which do you care about in decision-making?
Download the worksheet and brainstorm with your community.