Years ago I worked for a major corporation that decided to make employees more knowledgeable of their department or division operations by forcing heads of divisions and departments holding quarterly meetings to review operations with ALL the employees.

While there was much window dressing on the part of managers, still there was awareness of what was going on and WHY certain business prospects did not go ahead, why the business went ahead, etc. As an employee, I used to hate such quarterly meetings at first, then became fond of them as it kept me in touch with "why some heads were chopped" or why we all got a bonus or why more effort was required in certain areas.

Probably inspired by such an example, I decided to publish a newsletter on a quarterly basis approximately 7 years ago very much reflecting the operations. I don't care if Joe Blow had a baby or if the exterminator is coming every Saturday. The Newsletter is a publications dedicated to explain operations from the board's perspective with some ounces of optimism.

YES, I spend over 20 hours of my time putting this publication together: thinking of topics, and slanting the publication so that the shareholders see the point of the board challenges. Example: In 1995 the co-op did its fuel surcharge and, it was explained WHY it was necessary: if the oil went from $1.00 to $1.25, a 25% increase means 25% in your oil budget for oil. IN 2006, the oil continued to go up, so it was rolled into the budget, not as a surcharge, but as a permanent way of life. This was again explained to shareholders and why the decision to roll the surcharge with maintenance. Therefore, it is in this type of venue that I publish the quarterly income statement.

You may say that this is a DRY publication. Well, the co-op board is there to work in a professional manner for the shareholders. Consequently, a board that is proactive in providing information cannot be accused of secretive, or doing things without people's knowledge.

In fact, the annual meeting is extremely simple. Just a reiteration of our summary of operations that is usually published as the first issue of the following year (since December figures are published after January 15th). Consequently, you EDUCATE your shareholders to the point in which increases and assessments are seen, if not like God's sent gift to the shareholder, something that is unavoidable to continue good services.

So, if there are boards who tell you otherwise, it is because they may be publishing their results without any effort to brief and educate your population. That's my opinion.

AdC

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AdC, I agree with you. Shareholders elect people to a board and entrust us with their money. We have to be accountable to them for where it goes and why. The comments in my last e-mail were from board members I know in other coops. We're open with shareholders and educating them is ongoing. We don't have newsletters but we have "issue letters" in which we explain an issue and related costs. We also send them to shareholders to keep them alert to issues we have to face, like soaring fuel prices or a major capital project so nothing is a surprise and they understand what's involved.

We have "open forums" - lobby meetings a few times a year so: 1) shareholders can discuss any issue with us, and 2) new shareholders can assimilate into the "community". Our people also feel comfortable calling mgmt with questions because they they get straight, logical answers. By annual meeting time, we aren't battered by irate shareholders because we "brought them along" with us and didn't keep them in the dark about important things.

You're right, AdC. Educating shareholders is good strategy. Reminds me of what my dad used to say that has no meaning here: Education is the horse and experience is the jockey. Just a passing memory. :-) There are always people who won't understand, or only see what they want to see, but I believe being open, honest, communicative and professional can't be anything but good for a board - and for a coop.

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