​
  • Our consultants have worked on behalf of local and international NGOs, think tanks that work to... TBD
    • ​List of clients we have worked for
  • Past works include research into x, analysis of y, strategy for z... TBD
    • ​List of type of work

Research
  • What type of research do we do?
  • What's our theory of change?
  • What are the fields of knowledge?

Strategy/TBD
  • What type of strategy do we work on?
  • What's our theory of change?
  • What are the fields of knowledge?

Policy/TBD
  • What type of policy do we work on?
  • What's our theory of change?
  • What are the fields of knowledge?
Are we missing a category, and/or are these the pillars of our work?

What's a Cooperative Consultancy?

A cooperative consultancy is a worker cooperative that is owned and governed by its members, who in this case are consultants. Consultants collaborate to provide services to clients in a collective manner. This promotes 1) an equitable distribution of benefits and a democratic approach to decision-making; 2) collaboration around consulting activities and tasks and 3) flexibility to safeguard the independence of members and their priorities.

​The added value is also that environmental, climate & social justice organisations regularly advocate for cooperative economies as a form of sustainability & wellbeing. From my awareness, a cooperative consultancy in this field would be a first, and something that many organisations would value as a sign of 'walking the talk.' 

Here are some ways a consulting cooperative can work:
​
  1. Ownership and Governance:
    • Member Ownership: Consultants are members and co-owners of the business. Each member has an equal say in decision-making processes, fostering a democratic structure.
    • Board of Directors: A board of directors can be elected by members to oversee the strategic direction and major decisions of the cooperative. This ensures representation and accountability.
  2. Profit-Sharing and Equity:
    • Equitable Distribution:  Profit-sharing is integrated so that members receive a share of the company's profits based on factors such as contribution, task-type, experience, or a combination of these.
    • Equity Stake: Depending on the structure type, members acquire equity in the cooperative over time, providing a sense of ownership and alignment of interests.
  3. Decision-Making:
    • Consensus Building: A cooperative consultancy can encourage a horizontal consensus-building approach to decision-making, where major decisions are made collectively and with input from all members equally. This helps in ensuring that decisions reflect the shared interests of the cooperative. 
    • Participatory Management:  A culture of participatory management allows members to be actively involved in shaping the company's policies, strategies, and day-to-day operations.
  4. Transparency and Open Communication:
    • Transparent Financials: Financial information is shared openly with all members, fostering trust and a sense of collective responsibility.
    • Open Communication Channels: Channels for communication are open equally and horizontally among members to facilitate collaboration and exchange.
  5. Training and Skill Development:
    • Continuous Learning: To foster a culture of continuous learning and skill development, a CC can provide opportunities for members to enhance their expertise. This can contribute to the overall growth and success of the cooperative.
  6. Client Relationships:
    • Client Involvement: When appropriate, and if considered long-term, clients can also be involved in decision-making processes, ensuring that their needs and expectations are well-understood and integrated into the cooperative's strategies.
    • Long-Term Relationships: While short-term projects are common practice, a CC can also prioritize building long-term relationships with clients to work towards broader values and goals that go beyond singular TOR objectives.
  7. Conflict Resolution:
    • Mediation Processes: A CC can establish fair and transparent processes for conflict resolution, ensuring that disagreements are addressed horizontally.

For internal use


Purple = TBD by co-op members

​​Entity, financial model, profit-sharing, etc.
  • We will need to determine if the co-op is pass-through model (e.g. LLC Cooperative), or non pass-through, such as Cooperative Corporation model of equity sharing (see: https://www.youtube.com/watch?v=R00XJLpK4Iw). In the former, the consultant is responsible for paying their own taxes (similar to current freelance situation). In the latter, the cooperative takes on the responsibility of paying the collective income taxes, however the member consultant is treated more as an employee than a freelancer. There are also other models to explore, such as the Benefit Corporation Cooperatives. The most flexible and appealing model seems to be the LLC Cooperative.
  • We will need to determine where the legal entity is registered, and whether or not it allows us to work international clients, and internationally-based consultants
  • We will also need to determine the types of agreements/contracts needed (member agreements, client agreements, etc).

    ​More information of cooperative model options (in the US): https://www.youtube.com/watch?v=hdnVybBlHSE
 
  • We will need to determine the profit model & profit-sharing options we want for the cooperative.
    • A breakeven cooperative is one where the income equals the costs, and no profit nor loss is incurred. In this case, 100% of client payments would be transferred to the consultants, and c3ej does not retain anything. However, member consultants would still need to contribute a yearly fixed fee to cover basic maintenance & administrative costs (e.g. web hosting, legal aid, unexpected costs, etc). 
    • A profitable co-op would require member consultants to allocate part of their gains to the c3ej (e.g. 2% of client payments to consultant is retained by c3ej). However, since cooperatives are worker-owned entities, each consultant ultimately has equity stake in the cooperative based on the amount they've contributed. There are advantages/disadvantages to both models that need to be discussed.​

      ​​More information on profit-sharing options: https://www.youtube.com/watch?v=R00XJLpK4Iw


Other points to consider:
  • Cooperatives are entities that value time/work-contribution over financial contribution. Time-tracking is important, especially if two or more consultants collaborate on a job together.
  • 1 member = 1 vote. It does not matter how much cash you have invested or not invested into the cooperative. Each member vote is equal, no matter their equity stake in the cooperative. 
  • Some cooperatives have initial member investments ranging anywhere from $10-$10,000. This not only helps cover start-up & maintenance costs, but also helps members commit to the cause and success of the co-op.
  • A consultant co-op can offer options for non-member consultants as well. For example, we can collectively hire a data analysis or visualization consultant, translation support, or even legal aid. These individuals may be non-member consultants who we work with once, or on a recurring basis. There would be a separate agreement for these contractors.
  • Membership agreements need to be developed to determine what are the possibilities and limitations of being a member consultant. Some examples:
    • Income dependence: A consultant may depend 100% on their c3ej work as their primary source of income, while another consultant may barely depend on c3ej work as their source of income.  
    • Cooperation vs independence:  To what extent should there be requirements embedded into the company culture regarding this balance? For example, if a consultant is offered a research project which aligns in terms of scope & values with c3ej's work, should the consultant take on this work via c3ej, or can they work on it independently on their own? While most consultants may prefer to take the work independently, this could jeopardize the long-term resilience of the cooperative. 
    • Fee split: how will payments be split between consultants? Should there be a standard formula which is applied across the board, or should the fee split be discussed on an ad-hoc basis? Do some consultants charge more per hour than others?

See presentation from Columinate, a consulting cooperative providing similar services: https://columinate.coop/shared-services-cooperatives/


Draft approach to onboarding new projects
  1. Connecting with a client: c3ej consultants find a relevant TOR or project that fits the skillset of one or more c3ej consultant.
    1. The TOR is shared via an internal portal to all consultants. 
    2. A potential client and its TOR objectives must be must be aligned with c3ej values. Once that is ensured, and if there is interest, an internal mechanism is set up to determine the lead consultant(s), based on availability, motivation & expertise, to apply to the TOR. 
  2. Taking on a new project: Applying for or accepting a new TOR/project.
    1. A project has a minimum of one and maximum of three lead consultants who take on the principle tasks of the TOR. These lead consultants are responsible for the completion of the work, are entitled to set their own fees, and work using their own methodology or approach.
    2. If more than one consultant works on a project, an internal mechanism is established to determine allocation of time, tasks, and funding. The project can also then be supported by other consultants in the cooperative, depending on availability, needs and expertise. For example, more experienced consultants can support less experienced ones with peer-review, preliminary research, analysis, and vice versa. Decisions for a particular project direction are made by the lead consultant(s) horizontally, and do not require input from non-lead consultant(s).
    3. All communications with the client are handled by the lead consultant(s), and all final decisions and agreements regarding the project direction or research are made by the lead consultant(s) in collaboration with the client. The lead consultant(s) is fully responsible to ensure that the TOR meets the needs of the client, assuming that these needs continue to align with c3ej values.
  3. Recognition and copyright: Based on the client needs and upon agreement of the lead consultant(s), copyright & public recognition of the final output can range from being 1) fully anonymous, 2) attributed to c3ej only, 3) attributed to both c3ej and lead consultant names, or 4) attributed only to lead consultant names.
  4. Payment to consultants: The client pays c3ej directly. c3ej either does not make any profits, or takes a minimal percentage to cover administrative costs (ie 1-2%), and allocates the funds according to the lead consultant(s) agreement for the project. There may be the option for equity stake in the cooperative, which could be done directly during client payment. 


More information on cooperatives (U.K): https://www.uk.coop/start-new-co-op
More information on cooperatives (U.S): https://www.co-oplaw.org/ 


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