Facet Annual Report by SPRESSO design studio

FACET!

JUNE 2005

FAC ET JUBI L EUM MAGA ZIN E

‘What does your father do?’ ‘He works abroad’ ‘Where is he now?’ ‘Abroad’ ‘?’ ‘But when he comes home, he brings gifts from the airport’

I N T E R V I E W S

R E F L E C T 1I O N S

I N S I D E

S T O R I E S

I N T E R V I E W S

R E F L E C T I O N S

I N S I D E

S T O R I E S

12 14

21 19

50 48

ACT

PRODUCTION

Facet

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Contents Part I

WHAT IS FACET? 4 The many facets of FACET 6 The paradox FACET 14 Entrepreneurship 18 The entrepreneur 22 FACET as a fact

Part II

THE HOME OFFICE IN ZEIST 24 25 26 28 30 31

Sleepy town? The Office 15 years of FACET culture Crazy stuff Team spirit Young blood

Part III

THE FUTURE OF FACET 32 Around the globe 36 FACET’s own style 37 Future paths of FACET: Indonesia 41 Future paths of FACET: Bolivia 45 Future paths of FACET: Tanzania 48 Reflecting the future 49 FACET puzzle contest 54 FACET: Then, now and in the future

Part IV

TO EXPAND OR NOT TO EXPAND 57 Scene I, Act I. The library. 57 Scene I, Act II. Klaas Molenaar and Adriaan Loeff on the importance of FACET’s image. 58 Scene I, act III. The interview now becomes a conversation. 59 Scene I, Act IV. Yet unmentioned is Triodos Bank. 60 Scene II, Act I. The setting remains the same as in the previous scene. 60 Scene II, Act II. Ashes to the wind. 61 Scene II, Act III. Will Development Cooperation cease to exist? 62 Scene III, Act I. Nachdenken über die zukunft. 63 Scene III, Act II. The final act. To expand or not to expand. 64 Where are we located? 65 Colofon

Inside stories 5 People By Peter Blom 8

Manager or coach? By Dick Moor

Friends, business partners or relatives? By Samvel Gevorgyan

Quest for the source of entrepreneurial inspiration By Willem van der Veer

Ondernemend in beweging blijven Door Herman Snelder

Something of a gem By Fieke Molenaar

FACET in the jungle of ICB By Roy Kessler

Indonesia: A big market for FACET services in the coming 15 years? By Udjian Wahjusuprapto

15 Años de relación con FACET: Mirando el pasado y visualizando el futuro Por Roberto Casanovas S.

FACET innovation in East Africa By Marjan Duursma

The new, the many, the connected By Henk Harmsen

FACET als bruggenbouwer Door Jan Roland Vergeer

Part I WHAT IS FACET?

‘What does your father do?’ ‘He works abroad’ ‘Where is he now?’ ‘Abroad’ ‘?’ ‘But when he comes home, he brings gifts from the airport’ - Jeroen Molenaar A vivid memory, and one of the best I have. My father away from home, on what he calls ‘a mission’. Coming back, loaded with presents. But as I grew older, I started to wonder: what does he actually do? In my teens, the picture of my father’s occupation became clearer. He was engaged in supporting and financing Small and Medium Enterprises in developing countries. But still, every time I heard myself speaking these phrases, I feared someone would ask me: what does he actually do? Looking back, these are the facts. He founded a company. First its office was in Apeldoorn, later he travelled up and down to Zeist. Business trips abroad reduced, the work itself grew. The company flourished and after ten years he realised he had to give up the director’s seat, for the good of the company. And he couldn’t. As if one of his kids left for university and started a life of its own. So I wonder: what’s this passion, he calls FACET? What kind of company is it? What makes FACET so special, that he couldn’t let go?

The many facets of FACET Now, fifteen years after the first brick was laid, that’s still what I want to know. I want to look into the heart of FACET, and find out what it is. Is it really unique? If it is, what makes it so? And will it live on, for many years to come? But already I stumble. For how am I going to find out about the true character of a company, called FACET? The ‘many facets of FACET’; an organisation that consists of so many different parts - each carrying its own identity but also a gene - like copy of the company itself. I have to start somewhere, pick up one of the many facets. Triodos Bank is 50% shareholder of the company, and one of the two founding fathers of FACET. And who else but Peter Blom, director of Triodos Bank, can show me a first glimpse, he was ‘there’ when it all happened.

PART I PART II PART III PART IV

People

By Peter Blom

FACET is a consulting company not only focusing on people in projects, but is actually built on people. That makes up the strength of FACET, as well as its weakness. Most important is the role of its founder, Klaas Molenaar. He embodies the entrepreneurial spirit. When FACET was still in its pioneering phase, Triodos could provide the financial backing and sense for proper governance. The result was an interdependency, which has worked well, but also seems to carry some internal flaws that had to be dealt with. The fact that FACET is all about people can be felt all through its fifteen years of history. Without loyal and professional staff it would not have grown as successfully as it did. FACET staff could be found all over the globe. At the same time it has probably been underestimated how important the Dutch home office was for many co-workers of FACET who worked short term or long-term abroad. When you visited the office in Zeist that culture was very much present (and still is).

That takes us back to the company FACET really is: a peopleâ&#x20AC;&#x2122;s company. FACET developed on its own strength a good reputation in the market. The combination of professional know how of the financial sector in development countries and the experience with SME-development on the one hand and the ability to discuss issues on a high level with a great deal of innovative thinking on the other, was very much appreciated. The sense for the strategic dimension was highly developed within FACET and known by its clients. The attempts of FACET to set up independent subsidiaries in development countries have been less successful. The nature of the consultancy business - it is all about individuals - makes it very difficult to create an international FACET-culture. Other attempts to grow the business by mergers, take-overs or whatever

you could imagine have never been very fruitful. FACET is FACET and should probably accept that as a fact. Despite the strong reputation as a consultant, FACET was and is not been the consultancy firm known for a specific product, service or sector focus. Specialisations like micro credit finance institution management, training of staff of these organisations, fair trade & finance, has never been an option. FACET maintained a broad focus, which made it less outspoken in branding terms, but certainly not less successful and effective in what it did. A very strong strategic move was the involvement in activities in the Netherlands. IntEnt, which supports foreign entrepreneurs in The Netherlands in setting up businesses in their home country, has been invented by FACET and is now a very successful initiative that helps immigrants to start businesses in their motherland. Financially FACET has been able to survive, but is not a huge financial success. In a volatile sector, still quite an achievement. Thanks to the effort of management and staff, FACET was able to maintain a small but stable financial base. That takes us back to the company FACET really is: a peopleâ&#x20AC;&#x2122;s company. And I am, both personally and as Triodos Bank, very pleased to have witnessed it grow into a healthy business with a solid reputation.

The paradox FACET Now, fifteen years later, looking back, you can say that the cooperation between the banker, Peter Blom, and the entrepreneur, Klaas Molenaar, bore fruit. A company, by people, for people. With on the one hand a clear view of where it wants to go and what it stands for, on the other a most heterogeneous entity without one single company profile. A strange paradox, I must say.

But a paradox that spawned a ‘healthy business with a solid reputation’, according to banker Blom. But he’s not all praise. He notes the lack of success of independent subsidiaries in development countries, and he states that the interdependency between Triodos Bank and FACET worked well, but also carried ‘some internal flaws’. Makes you wonder what these are and if they are dealt with in an appropriate manner as to not endanger future operations and development of the company. Could it have something to do with the 50-50 shareholder base? Let’s not go into that right now. Although I know some of you readers will already have the answer to that question, we are not yet at the stage to be wondering about where FACET is going to be in the next fifteen years. In any case, I’m not. Before we head on down that future road, I want to know what FACET actually does and how the mission and the goals of the company are put into practice by, what Blom calls, the ‘loyal’ and ‘professional’ staff. FACET’s portal That means we have to take a look on the internet. FACET’s website will hopefully provide enough information to get us started. Well, it has to, because in our times the IT-portal of a company is more important than a front door, a reception hall or even an office itself. ‘FACET (Financial Assistance, Consultancy, Entrepreneurship and Training) is a Netherlands based company, specialised in the promotion and development of the Private Sector, with a focus on the entrepreneurs running their Small and Medium Enterprises.

‘We combine our consultancy services with implementation and capacity building’ We combine our consultancy services with implementation and capacity building’, reads the general statement of the company. And general it is indeed, because apart from being based in The Netherlands, all the other parts of the company’s description could use some explaining. When browsing, it becomes clear that FACET focuses on the four themes that together make up its name: financial assistance, consultancy, entrepreneurship and training. These four tools are meant to lead to diversi-

fied financial services for SMEs, effective business development services for SMEs, growth and strengthening of SMEntrepreneurs and sustainable organisations rendering the services to the sector. FACET carries out its assignments in Asia, Central- and Latin America, Africa and Central- and Eastern Europe, together with other companies within the FACET Group. The Zeist-based group consists of a growing number of organisations, located in The Hague, Guatemala City, La Paz (Bolivia), Jakarta (Indonesia) and in Dar es Salaam (Tanzania). Besides these worldwide activities, the Zeist-based Group also supports and runs small enterprise development and self-employment programmes in The Netherlands itself, through affiliated and managed organisations SEON and IntEnt. Within SEON and IntEnt there is special attention for migrants, refugees and unemployed. FACET has a wide range of clients, including the Dutch Ministry of Foreign Affairs, bilateral donors (GTZ, Swiss Development Co-operation, SIDA/Sweden), Dutch and foreign NGO’s and co-financing organisations, the European Commission, financial institutions (World Bank, Asian Development Bank, Inter American Development Bank, Triodos Bank, FMO), UN agencies (ILO, UNCDF, UNDP, IFAD, UNIDO, UNIFEM, OPS) and private organisations engaged in sustainable entrepreneurship (Max Havelaar Foundation, Fair Trade Assistance, Solar Development Foundation). Need I go on? With special thanks to the internet and the technique of copying and pasting large quantities of text, have I just, in no more than four paragraphs, described a whole company with fifteen years of history? We know what FACET is, what it does, where it operates, who its clients are. But do we know FACET?

PART I PART II PART III PART IV

FACET’s projects; bitter cold and sweet peaches To get to know a company is to get acquainted with the people working for it. And to get to know these people, don’t we have to get a clear view on how they go about their daily business-to-business business? In short, we have to get one of the staff-members to talk. And while we’re busy finding out about the way FACET and it’s staff works, why don’t we ask one or more persons involved in the development projects about their experience with FACET?

Yerevan, with both personal and entrepreneurial hardships and choices to be made, Samvel writes about the strong ties between his BSC and FACET, a relationship that goes beyond one of mere business-partners. And of course, both men reflect on whether the lessons learned in the bitter cold and sweet peach-like environment of those years, are lessons FACET has to take to heart in order to flourish in the fifteen years to come.

For this matter I’ve had contact with Dick Moor, the ‘wise old man’ of FACET; currently the oldest staff member of the company. More then ten years ago, when FACET was still pioneering, he endured some bitter cold nights in Armenia, setting up a so called SMEDA (Small and Medium Enterprise Development Agency) that turned into a self-sustaining company called BSC (Business Support Centre), an export promotion project for SMEs. His is a fine story, with some very important lessons learned. The same goes for an article, sent to me by Samvel Gevorgyan. A witty Armenian fellow, and currently director of the successful company BSC, picks up where Dick Moor leaves us. As Dick tells about the struggle in the beginning of setting up the business in the Armenian capital of

Een FACET consultant moet van alle markten thuis zijn. Wat te denken van Gerrit Ribbink als vertaler, bij de uitreiking van een fiets aan de werknemer van de maand in een cashewfabriek in Mozambique.

Manager or coach? By Dick Moor

During the long, cold nights of my first job in Armenia, without electricity, only a few hours of running water and more of these inconveniences in a country then at war with its neighbour Azerbaijan, I had plenty of time for reflection.

‘To reflect,’ means to show something as a mirror does. That is exactly what happened to me several times while re-thinking my activities in the project I worked for. In the late eighties I was financial director of a medium sized textile company for some years, quite different from being a project leader in a Tacis project, a programme set up by the European Commission that provides grant-financed technical assistance for the former Soviet-States. In that company I was a manager. And I assure you; it’s quite a useful experience for any consultant to be ‘on the other side of the table’. As a consultant, you present your recommendations, sometimes you are asked to implement your proposals or do some counselling, but you never have the final responsibility for the economic life of the company workers and their families. The mirror taught me, to concentrate the rest of my working life on coaching and training. I hoped to find possibilities to further develop the ability to give some guidance to people, using my thirty years of experience as a manager and a consultant. Klaas Molenaar invited me to join the permanent staff of FACET after a relatively short probation period of a couple of months during which I had

to demonstrate my value for the organisation. My first assignment, still as a free-lance consultant was a job for the EBRD, The European Bank for Reconstruction and Development established when communism was crumbling and ex-soviet countries needed support to build up a new private sector. My job was to produce 10-20 pre feasibility studies for investments in energy saving activities in Belarus with a team of consultants, managed by the Dutch engineeringand consultancy bureau Tebodin. That first assignment for FACET brought me, along with the interesting first experience working in a part of the former Soviet Union, my future wife, Iryna Makhnach, and with her a Belarusian family of men, women and children who had been brought up in a society very different from ours. Belarusian people are friendly but many do not have contact with western foreigners Neverthe-

Dick in Armenia

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less I soon felt accepted although my Russian is lousy as is their English. But trying to find my way in my new family helped me to better understand people I had to work with in the years thereafter. During my first months working for FACET, Klaas offered me the job of Chief Advisor in a Small and Medium Enterprise Development project in Armenia, a long-term assignment in the consortium headed by GTZ, a semi-governmental organisation that is part of the German Ministry of Foreign Affairs. I accepted the job, knowing about Armenia not more than that it is a small country in the Caucasus, one of the Republics formally part of the Soviet Union. Iryna told me enthusiastically I was to go to the ‘Rosawi Gorat’, the Rose City. The capital Yerevan carries that name, because of the colour of the buildings made from a special stone and for the nice apricots and cognac Armenia is famous for. From a colleague, who had been there, I heard of the extreme cold and other hardships. She told me that to stay warm during the night she slept in her fur coat. So I left with mixed feelings.

‘Yes, it was sometimes cold, but the cold was endurable, soon

The ‘Prunus Armeniaca’ better known as Apricot is the pride of Armenia. Nowhere fresh apricots taste better than in Armenia end June, beginning of July. After the dissolution of the Soviet Union, the traditional export markets for dried apricots disappeared and orchards were neglected. ICCO and other donors invest in planting new apricot orchards in rural areas. This investment, will improve the socioeconomic situation of the poor rural population by creating jobs in the processing industry for unemployed women. Moreover export of dried fruit to Europe and the US is one of the possibilities to boost the Armenian economy. FACET together with its local partner BSC assisted ICCO to prepare an investment plan for building solar fruit dryers for the export company ‘CHEER CJCS’ a spin-off activity of the Armenian NGO SHEN.

spring came and with it the sun. And yes, the cognac was really nice…’ But my impressions soon became more positive. Yes, because of neglected maintenance and chemical pollution the houses were mainly grey. Yes, it was sometimes cold, but the cold was endurable, soon spring came and with it the sun. And yes, the cognac was really nice… One of the positive results of the collapse of the Soviet Union was that huge industrial complexes, like the chemical factory situated almost in the city centre of Yerevan, also ceased because of lack of clients, now that the central planning system became extinct.

Dick Moor (left) and Samvel Gevorgyan executive director of BSC (right) are satisfied with the information they received from the company.

Moreover, because of shortage of fuel, cars were rare on the roads of Yerevan, during the first years I worked in Armenia. There was and still is huge unemployment and I hope that the project I managed proved to be some kind of a solution for at least the most entrepreneurial of the unemployed. As chief advisor with management experience I soon discovered that managing a Tacis-funded project is quite different from managing a commercial enterprise. The bureaucracy in Brussels developed procedures that take almost as much time as the main task of developing a SMEDA proper, with a package of services for the business community. One can critically ask oneself the question if it is really necessary to spend so much expensive consultants’ time in such an unproductive way. I sometimes had the uneasy feeling that I spent money in the recipient country, but not for them. But we got the programme running and the objective of the project was to create an Armenian institution to promote Small and Medium enterprises in the private sector through capacity building of the consultancy sector, and to provide direct services to entrepreneurs and managers of SME. The local staff was recruited and trained in the country as well as in The Netherlands. As chief advisor in the inception phase I was responsible for project management. This responsibility was gradually transferred to a local manager. The institution at first being a project, developed into a limited liability company with shareholders. Amongst them are the management and some of the staff members. In the beginning Tacis was not in favour of this idea, because it didn’t like

the idea of staff-members having too much influence on company policy. But eventually we were able to convince them of the advantages of this construction. So all’s well that ends well. The SMEDA, presently called ‘Business Support Centre’ (BSC), became a flourishing sustainable company and is proud to be a partner of the FACET group of companies. One of my priorities was to develop the skills of the trainers, being mainly bright young university graduates who were used to the former Soviet system, spending long hours in their classes endlessly listening to or sleeping during lectures. This system created excellent technical specialists; the former Soviet Union no doubt delivered specialists of the highest level, but for assisting entrepreneurs and managers through adult training in modernising and improving management and organisational change in the framework of enterprise restructuring, performance improvement and strategic development, classroom lecturing is not the right approach. And would-be entrepreneurs, thinking of starting a business need practical advice and hand-on support, which can only partly be learned in colleges and universities.

‘Man develops in phases; every age has its own challenges! ’ So the consultants had to learn that, besides technical and scientific content of the training, close attention must be paid to the social and individual needs of their clients, managers and (would-be) entrepreneurs, who would expect from them no theoretical stories, which they could read in the textbooks, but hands-on assistance in solving their day-to-day management problems. This is illustrated by a discussion I once had with a Russian consultant in the small town of Kaluga, 200 kilometres southwest of Moscow. That day the subject was Financial Management. After having explained the ins and outs of the ‘Internal Rate of Return’ his comment was: What you just explained to us is correct, but please tell us how can we use this for our clients. I told him the Internal Rate of Return was just one of the core figures, mainly used by banks like the World bank, but that the figure isn’t

PART I PART II PART III PART IV

used by entrepreneurs as a guidance for their business-policy. Apparently my answer pleased the group, because we spent some very fruitful days together. I still receive mails now and then. While writing this, I recollect the words I have spoken during my first meeting with the Board of Founders of the Armenian Business Support Centre as it was called back in February 1995. After introducing myself and explaining how I saw my task I said to them: ‘Gentlemen, (there were no ladies present) I am not to stay here, not because I do not like it here, but because it is your project.’ It was this sentence that established an atmosphere of trust and understanding. They accepted me as one of them. Creating ‘ownership’ was to become one of the most important principles I tried to pursue since those cold days in the winter of 1995. I always felt a guest in the countries where I worked and since then one of my main objectives has since been to create ‘local’ ownership. Maybe it is my age, but all these ten years of my life I worked for FACET, I became more and more aware that my contribution, the best I could give, was to be like a coach, or call it a counsellor. I always emphasise self-development and carrying out practical projects in the situations I worked in, between intensive short and focused off-site training sessions. Thus achieving that teachers are transformed from lecturers to coaches and facilitators, thereby helping to integrate the training into the culture of the country, I worked in. The concept of the teacher and trainer as a facilitator is often written about in literature, but not as familiar yet as it could be in many countries. I have many examples of foreign practitioners who seem to be preoccupied with their own ideas, or the strategy of the donors they work for. After ten years working for FACET, and close to being a pensioner, it is still a challenge to make more people familiar with this concept. I hope to be able to participate in the work of FACET for some more years, maybe not so intensive as before anymore, but nevertheless. And about that dilemma: It is not there anymore, I have chosen to be a coach, let others, younger and probably more ambitious than me, do the managing. Prof. Lievegoed in Rotterdam taught us to understand: man develops in phases; every age has its own challenges! Probably you have to pass through these phases to really understand the meaning of these words.

Friends, business partners or relatives? By Samvel Gevorgyan

Thinking about FACET reveals a very immense edge between friends-business partners’ relationships. Eleven years of cooperation between Business Support Centre (BSC) and FACET almost completely erased that distinction, which in most extent is of FACET’s merit. As a proof, when in 2004 BSC was preparing a list of invited colleagues for its 10th anniversary celebration, it did not include FACET in that list, since FACET was already ahead of it in the list of friends to be informed. Besides, during the award ceremony from the five nominations and prizes, two were awarded to FACET and its staff-member, Dick Moor (‘For Supporting BSC and the development of Armenian Small and Medium Entrepreneurship’ and ‘The Best BSC Chief Advisor’).

It is worth to mention that BSC considers FACET as Godfather of BSC and in Armenia ‘Godfather’ is considered as a relative. The reason is because the first years of BSC-activities in revitalizing Armenian small and medium business sector are fully supported by FACET’s experience and cooperation with many of its outstanding staff members: Dick Moor, Willem van der Veer, Adriaan Loeff, Klaas Molenaar, Peter Buijs, Patrick Boel, Stefan Platteau, Quirin Sluijs, Hedwig Siewertsen and others. These people not only became good friends of BSC, but also played not least a role in the creation of a strong and experienced BSC-staff, which got ‘baptism of FACET-fire’ through numerous contacts and trainings. The most memorable training was organized by FACET in June 1997, when it became possible for the whole staff of BSC to visit the Netherlands and get extensive knowledge in business consulting from the first hands of FACET consultants. BSC went through several difficult stages in its development. I remember September 1999, when a lot of negative outside-

PART I PART II PART III PART IV and inside factors could affect an end of BSC. It was a really difficult period. And suddenly, we were informed that the director of FACET, Stefan Platteau, was going to visit BSC to support us. That visit started with a very serious meeting discussing all problems and finished in restaurant where everybody (including Stefan) was dancing authentic Armenian dances. Recently BSC got acquainted with one more approach, taught by FACET-Corporate Social Responsibility (CSR), which has become one of the most important directions of BSC consulting activities and has tied us even more with FACET and particularly with the accomplishments of the ADAPPPT-foundation and its brightest CSR mind-Gerrit Ribbink (the ‘CSR guy’). Here we still expect further partnership development which will be of benefit not only for FACET and BSC, but also for the whole Armenian community (in other words, with CSR, BSC will ‘go global’ in Armenia and, why not, the region). There is so much to do in this aspect here.

That visit started with a very serious meeting discussing all problems and finished in restaurant where everybody was dancing authentic Armenian dances. Also it is worth to mention that, throughout the last ten years at BSC, the Netherlands is associated with FACET. Even if someone asks new staff members of BSC what is their first thought when they hear ‘The Netherlands’, they will mention Dick, Stefan (sorry Mr. Loeff, but we mean Stefan Platteau), Gerrit and FACET. The same initial associations come to our minds when we think about ‘who is our international partner?’ These long-term business and friendly relationship between BSC and FACET are also widely reflected in the so called BSC Hall of Frame (named so by ‘CSR guy’ Gerrit during his visit to BSC). The Hall is just a photo gallery, which embellishes the entrance to BSC’s administrative premise. The idea of the Hall was given by FACET and the first FACET-experts, Dick Moor and Willem van der Veer presented the first two photo frames to BSC. Soon five more frames with photos of BSC friends and partners gained during the 11 years of its activities followed; one photo frame for each two years of BSC history. Here in each frame one may find FACET faces

(all mentioned above and even more). This only proves strong and continuous personal and business liaisons between BSC and FACET. Valuable is the fact that the contacts with all those people were not ‘on spot’, unilateral ones, but continue to be fostered by both sides through years. To summarize everything said above, here is a brief ‘SWOT analysis’ of our partnership with FACET:

Strength - Knowledgeable staff, that freely shares its experience and knowledge with BSC - Strong friendly relationships with several FACET outstanding members, which strengthens business cooperation. Weaknesses - Sparesity of contacts - Low attention from FACET to BSC staff training (no trainings since 1998) - Slow long-term decision-making process of FACET (fast decisions are made on short-term, operational assignments, the decisions for long-term cooperation opportunities are being delayed) - Orientation on short-term projects implementation in Armenia, rather than integration in 1-3 year projects - Long distance between FACET and BSC - No new visit-places for Dick Moor any more (he has already seen the whole of Armenia). I am sorry, Dick, I forgot Tatev monastery. OK, next time. Opportunities - Possible on-job trainings for BSC staff members by FACET - New Armenian SME development projects (including CSR application) - New friends and new faces in Hall of Frame Threats - Apocalypses - Global warm-up of climate - Nothing can threat our cooperation and friendship with FACET (not even a lost football match on September 2005)

Finally, coming back to the business-friends relationship with FACET, I really believe that this is quite an example of true cooperation between two consulting companies and two countries - developing and developed (like shooting two rabbits with one bullet). Not only that new friends are acquainted in different cultures, but also a firm business liaison and

development is provided through trustful and open intercourse between our companies, which in its turn is of a benefit to Armenian SME development. Besides, this kind of relationship makes the experience exchange process between developing and already experienced companies easier and more effective. Friendship relationship makes experienced specialists from a developed company available for on-the-spot advice at any time if needed, while business relationship adds not only new knowledge and experience but also creates an image to the developing company, making the historical references stronger and thus opening new opportunities for the developing company, both in its own country and in foreign markets. Therefore, it may be concluded that this kind of cooperation between the companies from developing and developed economies may be of benefit for both.

Entrepreneurship ‘We believe in a society where people get the opportunity to develop their entrepreneurial talents, with equal opportunities for those who want to have their own business. Our advisory services, implementing capabilities and enterprising attitude must lead to the generation of work and income for those who wish to deploy their own talents.’ - Mission Statement FACET

It seems FACET strides forward on the path it had laid out for itself. After reading the stories of Dick Moor and Samvel Gevorgyan, one may conclude that the company’s mission statement does not only seem very well thought through, but also clearly defines the goal it’s staff-members pursue in the field. It makes you wonder why. We now know roughly what FACET is. In particular we are aware of the corporate structure, based on a fifty-fifty shareholder deal between a banker and an entrepreneur. The internet provides us with information about its many international projects and gives us an insight in FACET’s client-base. We have this image of a professional and loyal staff and we know what the staff-members do, how they go about their businesses. And it seems to a certain degree of client satisfaction, considering the positive outcome of that particular project in ‘The Rose City’ of Armenia. But don’t you want to know why the people of

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Dangerous places

FACET are so anxious in creating opportunities for Small and Enterprises? Could it be that the members are all driven by some entrepreneurial spirit?

business Medium FACETkind of

Are there countries where FACET does not want work? Of course we avoid going to dangerous places but how about working in wrong places like Turkmenistan? While Hedwig hands over certificates to Turkmen women who have gone through a sewing course, their Great Leader does not bother one second about the well being of his population. If we follow David Dollar’s theory that aid should only be provided to well-governed countries, we should certainly not be in Turkmenistan. However, I think the presence o the EU aid programme is justified. Not to develop the country but to enable the EU to monitor the situation in the country. And on the human and individual level, I have seen that our presence creates hope for a better future: it is important for people to know that people outside Turkmenistan know what happens in their country. I hope this picture will draw at least 1 minute of your attention to the very harsh living circumstances of the population of this wrong country.

Willem van der Veer certainly believes so. He used to be part of FACET, a former colleague of someone like Dick Moor. Willem now resides in mild and rural Laren in The Netherlands, where he contemplates his years working for FACET and packs to take off to Rwanda for a new assignment again with FACET. But he also endured those cold nights in Yerevan and he too participated in a very peculiar entrepreneurial belief of ‘becoming rich by revealing others the road to fortune. As becoming wise by showing others the gates of wisdom.’ Well, read for yourselves. (p.15)

Quest for the source of entrepreneurial inspiration By Willem van der Veer

Contemplating the 15-years jubilee of FACET and enterprise development in general, I figure there must be something more than vision and mission statements to find reasons of existence. Why is it that notwithstanding the availability of these statements some organisations succeed, where others fail? Is reason for success then to be found somewhere beyond statements and/or other visible limits? And if this is true, should the secret be found in the essence, the soul of an organisation? And if we would have found the source of a mystical driving force, are we perhaps already in the vicinity of the legendary Source of Entrepreneurial Inspiration?

While formulating this congratulation for the FACET team at the occasion of the fifteen years of existence of the company, we try to find an answer on this most intriguing question and I take you with me on my breathtaking search and together, rushing beyond borders and boundaries we are speeding further down, elapsing the most profound limitations and restrictions till we discover the dazzling core of the matter. This year a milestone has been reached and another important stride on the path of business venture has been taken. I imagine the feelings of the team, now the uncertainties of the past have been overcome and a part of the entrepreneurial dream realized. At the same time I am aware that you, strengthened through past experiences, look with confidence and eagerness towards future challenges. Ah, entrepreneurs are always the same. A jubilee of the company. On the one hand this event could be considered quite an achievement, taking in account the rapid changing environment in which the company had to operate during its existence. On the other hand it can be argued that 15 years existence is a logic accomplishment for an organisation that has the objective to assist other organisations to reach similar achievements. In fact, the reality is that the success of FACET must be considered as a double success, because the company succeeded in reaching its own milestones by assisting other organisations to reach their milestones. I realize that such a double success sounds beautiful, philosophic even.

It sounds about the same as becoming rich by revealing others the road to fortune; as becoming wise by showing others the gates of wisdom; as reaching Nirvana by guiding others on the path to enlightment. With FACET I discovered not only adherence to this philosophy, but observed also the practical outcomes of it. Under the surface this always-present idea forms the essence, the soul of the company, creating trust and provoking the FACET spirit. A trust and spirit shared amongst the team and translated in visions and approaches and transferred into the minds of partners and clients. It is generally accepted that entrepreneurship cannot be taught through textbooks or case studies alone. Entrepreneurs are more likely to develop when they have opportunities to observe and experience the dynamics of new business start upâ&#x20AC;&#x2122;s within their socio-economic environment. But where textbook information ceases, starts a vague domain in an entrepreneurship development process. A domain difficult to grasp, to concretise. What and where are possible other means and methods than text book information

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and training materials to create real entrepreneurship? During the period I worked for the company, I realized that handling this vague domain is one of FACET’s strong features indeed: How to build entrepreneurial confidence within groups of people, often operating in very difficult business environments. How to quench their needs and fire their enthusiasm, ‘till they start to believe in their own ambition and become ready to take their future in their own hands? Where others stop (or fail) due to lack of methodology, FACET continues with an approach, which goes beyond classroom instruction, including components of real world involvement, exposure to practical examples, and above all, a continuous spiritual support till entrepreneurial confidence and attitude becomes the norm. Approaches that are not to be found in textbooks must emerge from a philosophic source. A source I found with FACET and I realize that this is exactly what makes the company unique. During 15 years this source was available to FACET’s

clients and partners and has proven to be a key to success. As a hint for the future, I strongly recommend continuous nurturing and cultivation of this treasure and above all: beware it will never dry out!

... such a double success sounds beautiful, philosophic even. While complying with one of the wise lessons of FACET’s founding father, that if someone has really something important to say it should fit on one page, I would like to make use of this occasion to thank you all for the great period we experienced together. It was a joy to discover the existence of this precious source of inspiration, not found amongst competing agencies, and I wish good luck to the FACET-team with your endeavours to reach your own success by creating success for others. In spirit together!

The entrepreneur It must be the heart of FACET, the vital organ that pumps life through the corporate body: entrepreneurship. And according to Willem van der Veer, not only does FACET manage to grasp the essential of that entrepreneurship; the staff-members also seem to be able to turn that abstract matter into something specific. A merit that makes the Zeist-based company stands out in the international field of business-consultancy. The question is: how does FACET turn entrepreneurship into something specific? And are these entrepreneurial achievements visible to the outsider? The story of Herman Snelder, one of the managing directors of MDF (Management for Development Foundation), a long-time partner of FACET, seems to confirm the last. Being ‘an outsider’ himself and closely related to FACET and its founder, Klaas Molenaar, since the early days of the company, he too reflects on that entrepreneurial spirit, that makes FACET unique. But instead of grasping entrepreneurship by the philosophical (and slightly esoteric) roots, he sets himself the task of thoroughly analysing the different facets of FACET’s entrepreneurial heart. He asks himself: ‘What is an entrepreneur?’

Solidarity This photo present a solidarity group in Techiman, Ghana, promoted by the MicroSmart project of Care Ghana. Alternative forms of collateral have improved access to small loans for (female) micro entrepreneurs and poor households, such as peer pressure groups in which each member of the group is also responsible for the payment of loans by each of the other members. On the other hand, group members may develop a demand for different financial products, something which is difficult to provide for using the solidarity group approach.

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Ondernemend in beweging blijven Door Herman Snelder

De ondernemer, man of vrouw, steeds creatief en als het moet confronterend op zoek naar nieuwe opdrachten, iemand die het er niet bij laat zitten als het even tegen zit. Pragmatisch omdat het bedrijf moet voortbestaan, principieel omdat het gaat om ontwikkeling en ondersteuning van ambitieuze ondernemers, hier en daar. Daaraan denk ik bij FACET en zijn mensen, maar vooral bij Klaas, de oprichter. De man achter FACET, zijn visie en zijn beweegredenen. De oprichter van een organisatie laat altijd zijn of haar sporen na. Het is degene wiens voetstappen of handen als het ware in het cement van de vloer of de muur zijn afgedrukt. Zo ook met FACET. Ik ken Klaas al vanaf de oprichting van FACET, nu 15 jaar geleden, en herinner me nog een paar van zijn praktische uitspraken. Het eerste kantoor op de markt in Apeldoorn was een ruimte waarin nog het een en andere moest worden verbouwd en opgeknapt. Een van de eerste medewerkers vond dit niet zo prettig, was beter gewend. Klaas fulmineerde, zoals hij wel vaker kan, hoe het toch mogelijk was om zo’n houding te hebben als je een eigen bedrijf aan het oprichten bent. Alle ondernemers beginnen toch zo en moeten alle klussen eerst zelf opknappen. Ze hebben geen ‘support staff’, want die is niet te betalen. Het typeert de ondernemer, die aan de slag gaat en zich vooral niet wil laten afleiden door dit soort futiliteiten. Natuurlijk heeft Klaas een visie op ondernemerschap, kleinbedrijf, financiering en advisering. Hij kende de uitdagingen en de problematiek onder andere uit zijn Kenya-tijd. Maar wat mij vooral intrigeert is de persoon van de ondernemer, met het hart op de juiste plek.

Zijn vader had een modezaak, dus blijkbaar ook ondernemer. Ook de zoon gaat in zaken. Natuurlijk niet in kleding, want dat is saai. Alhoewel hij toch regelmatig opmerkingen wist te maken over mijn kleding. De binnenkant van de voering van mijn jasje stak iets uit en dat wees op sleet. Of hij zelf nu altijd het juiste pak voor de juiste gelegenheid aan had, betwijfel ik... Nee, het gaat om ‘nature and nurture’, om een ondernemer die wil realiseren en de grenzen opzoekt, die confronteert en ruzie maakt, die helder is en doorstoomt. Dat type mens, dat is hij, in mijn ogen. Klaas wist hoe belangrijk dit was, want in veel van de gezamenlijke projecten van MDF en FACET kwam dit ondernemerschap altijd weer boven drijven. Of er in de verre landen, in alle hoeken van de wereld, door FACET altijd voldoende rekening gehouden is met dit essentiële kenmerk van de groei van ondernemingen, namelijk de daadkracht van de ondernemer, kan ik niet beoordelen. Daar zullen anderen vast meer over weten en hopelijk schrijven. De mensen in de organisatie Genoeg geschreven over de oprichter, soms kan dit ook overdreven worden. Want al die mensen die de organisatie FACET vertegenwoordigen, maken of breken het evengoed. Het zijn de cruciale spelers, waarmee je het spel wint. Ik herinner me hele goede medewerkers, vol ambitie en met veel ervaring.

Ze droegen meer dan kleine steentjes bij, maar toch vertrok een aantal van hen net te vroeg. Jammer, want er gaat meer dan alleen kennis en ervaring weg als goede medewerkers vertrekken. Het blijft de kunst van (ver)binden en boeien zoals dat nu populair genoemd wordt. Een worsteling die ook FACET heeft gekend, die alle organisaties kennen, zeker in tijden van grote vraag en interessante contracten bij grote organisaties, die meer betalen voor minder verantwoordelijkheid. De ambities van de organisatie De ambities van FACET waren altijd al enorm. Na bijna elke reis kwam Klaas terug met plannen om in samenwerking met lokale ondernemers een FACET-dochter op een ander continent te starten. Allemaal op basis van vertrouwen en niet zozeer door het vastleggen van afspraken op papier. Weer een kenmerk van een ondernemer: je bouwt verder op vertrouwen, meer dan op formaliteiten. Ook werden grote projecten binnen gehaald, die overal ter wereld werden uitgevoerd. Ik herinner me vooral het project in Polen, waarvan Klaas tegen me zei om vooral niet teveel sociaal democratische betogen op te zetten in gesprek met de klanten. Het land was net vrij van centrale planning, dus ook oppassen met planningschema’s, doelstellingen, activiteiten en daaraan gekoppelde begrotingen.

‘Behalve dat, was er tijd en ruimte voor feest. Beroemd is de foto waarop zowel Klaas als ik in de Yemenitische klederdracht, inclusief het beroemde mes, op de dansvloer staan.’ De samenwerking met anderen, zoals met MDF Het inzicht en het vermogen om samen te werken is ook van grote waarde voor een kleine organisatie. FACET wilde bijvoorbeeld trainingen gaan organiseren en uitvoeren en dacht daarin met MDF een goede partner te hebben. Dat was ook zo, want in die beginjaren ontwikkelden we samen cursussen, gingen er de boer mee op (‘financier zoeken’) en organiseerden we een aantal jaren boeiende en dynamische cursussen, waarin niet alleen werd gewerkt in (klas)lokalen, maar waarin we ook op bezoek gingen bij banken, kleinbedrijfinstellingen enz. Behalve dat, was er tijd en ruimte voor feest. Beroemd is de foto waarop zowel Klaas als ik in de Yemenitische klederdracht, inclusief het beroemde mes, op de dansvloer staan. Het kan natuurlijk helemaal niet vanuit een correct cultureel inlevingsvermo-

gen, maar het voelde prima en ook de deelnemers konden hun lol niet op. Samenwerken in ons soort business is belangrijk. Het levert meerwaarde, maar niet zozeer uitgedrukt in geld. Ik denk dat in onze rangorde samenwerken voor geld komt. Het past ook bij het type werk dat we doen. Samenwerking stopt als de persoonlijke band niet meer klikt en we moeten gaan onderhandelen over punten en komma’s, als het wederzijds vertrouwen onvoldoende is. Ook dit hebben we meegemaakt in onze samenwerking, maar hebben we gekozen om de band wel levendig te houden en te blijven zoeken naar synergie. Ontwikkelingssamenwerking (OS) in beweging Organisaties als FACET en MDF zijn uitermate afhankelijk van beleid uit Den Haag, Brussel of Washington. Kleine spelers moeten snel kunnen inspelen op veranderingen en daarvoor heb je behalve goede voelhoorns, betrouwbare informatie ook een flexibele organisatie nodig. De recente trend in de richting van begrotingssteun aan landen zelf, op sectorniveau dan wel op macroniveau, kwam aan de orde tijdens het 20 jarig jubileum van MDF. De consequentie van dit beleid is, dat Nederlandse organisaties zoals FACET, die als onderneming opereren (niet als NGO) weinig tot geen toegang hebben tot financiering en dus sterk onder druk komen te staan. Een groot dilemma voor de consultancy bureaus zoals FACET. Het is de verschuiving in de ‘publieke

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markt’ die het noodzakelijk maakt om de bakens te verzetten en alles te ondernemen om te blijven overleven, dus nieuwe strategieën formuleren en nieuwe allianties aangaan. Deze constatering werd dan ook luid en duidelijk gemaakt door FACET tijdens de bijeenkomst. Nu is het denk ik niet zo dat vele anderen daarvan wakker liggen, dus je moet het als organisatie zelf onder ogen zien en zelf oplossingen zoeken en realiseren, waarbij overleg met ‘lotgenoten’ nuttig kan zijn. Ontwikkelingen in Nederland De recente ontwikkelingen en vooral de discussie over onder andere immigranten en werkgelegenheid in Nederland vormen een thema dat alle aandacht en zorg verdient. Hoe kun je in verre landen een boodschap verkondigen, over ondernemerschap, over management, over organisatie, over overleg, als dat in eigen land steeds meer afbrokkelt en terecht komt in politiek-populaire discussies, zonder dat er richting gegeven wordt voor oplossingen? Mensen moeten werk hebben, inkomen vergaren om te kunnen integreren en om zich te kunnen identificeren met de veelkleurige samenleving. De wens van ondernemende jongeren en ouderen om een eigen zaak op te zetten, om zelf

inkomen te genereren, om een bijdrage te leveren aan de samenleving, moet worden ondersteund. De problematiek van ‘daar’ is ook de problematiek van ‘hier’. FACET en de ‘sprouts’, zoals IntEnt, zijn van groot belang voor vele kleine en beginnende ondernemers. Ondernemen is meer dan snel geld verdienen; het is hard werken om jezelf en je medewerkers te (laten) ontplooien. FACET is en moet een onderneming blijven die anderen ondersteunt met ideeën en mogelijkheden. En zoals altijd, doet goed voorbeeld volgen, dus moet de organisatie de medewerkers aantrekken en behouden, die ook ondernemend zijn.

FACET as a fact So it all comes down to entrepreneurship. Or, to be more precise, FACET embodies all the different facets of entrepreneurship. The company itself has been built on an alliance of an entrepreneur and a banker. Its staff-members have all got that entrepreneurial spirit, flowing through their veins. The main goal of the Zeist-based company is to promote and stimulate entrepreneurship in the many different corners of the world. And FACET seems to do a pretty good job at it.

But does entrepreneurship provide the answer to my burning question about the unique character of FACET? Is that what FACET is really all about, or could it be that entrepreneurship is just one of the many facets of FACET? Let us recapitulate. We learned from Peter Blom - director of Triodos Bank - and one of the two founders and through Triodos Ventures still a 50% shareholder of the company, that the joint forces of a banker and an entrepreneur have been ‘a reasonable successful formula’. And Blom adds that ‘FACET developed on its own strength a good reputation in the market’. Moreover, the Triodos director was very much pleased with the ‘loyal and professional staff’, because without it the company ‘would not have grown as successfully as it did’. But on the other hand Blom placed some critical notes. By his judgement the cooperation between Triodos and FACET didn’t result in a profile to the extent the founders had expected. The lack of profile is mainly part of the consultancy business, as it is all about individuals. Also the attempts to grow the business by either take-overs or mergers weren’t very success-

ful. ‘FACET is FACET and should accept that as a fact’, Blom writes. From the men in the field, Dick Moor and his Armenian colleague Samvel Gevorgyan, we learned about the way FACET works. In addition to the question ‘What is FACET?’, we had to ask ‘What does FACET do?’, and got a more than satisfactory answer. Trading his management position in Holland for the cold nights in the ‘Rose City’, Dick Moor had plenty of time to think about where he got himself into. When looking back on that period in the beginning of the nineties he says that he ‘became more and more aware that my contribution, the best I could give, was to be like a coach, or call it a counsellor.’ By shedding his management-feathers and strongly emphasizing

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‘Entrepreneurship is more than a quick buck. It’s a hard labour.’

‘self-development and carrying out practical projects’, he reaches ‘the concept of the teacher and trainer as a facilitator’. With of course the note that this concept ‘is often written about in literature, but not as familiar yet as it could be in many countries.’ But Moor’s is also the story of the SMEDA in Armenia, de development project growing into a privately owned company, one of the successes of FACET: BSC. And in that manner it becomes the story of the present director of Business Support Centre, Samvel Gevorgyan. Where Moor had trouble getting consultants out of their textbooks and into the field, Gevorgyan writes about the close ties between his company and FACET. It is a relationship that goes beyond that of business-partners. FACET and it’s staff became friends. That special bond, based on trust and loyalty instead of contracts and figures, is something FACET should consider for future alliances, Gevorgyan states. Also very important is the approach of Corporate Social Responsibility (CSR), ‘which has become one of the most important directions of BSC consulting activities and has tied us even more with FACET’. Gevorgyan expects further partnership development in that specific field and ‘with CSR, BSC will ‘go

global’ in Armenia and, why not, the region.’ Both the articles of Moor and Gevorgyan show that there is more to the projects of FACET then merely business. Behind the activities FACET deploys, there is a certain drive, a will to get things done. That culminates in the essence of entrepreneurship, described from a philosophical point of view by Willem van der Veer and from a methodological standpoint by ‘the outsider’ Herman Snelder and gives us an answer to the question why FACET does the things it does. Both men, having worked in service for or in partnership with FACET, unravel the kind of entrepreneurship that makes the Zeist-based company quit unique. Van der Veer in the sense that the particular entrepreneurial approaches ‘are not to be found in text books but must emerge from a philosophic source.’ And he strongly recommends that FACET further deploy that source in the future, because ‘during 15 years this source was available to FACET’s clients and partners and has proven to be a key to success.’ The ever practical Snelder proves his point that ‘entrepreneurship is more than a quick buck. It’s a hard labour with the purpose of unfolding oneself and the people you work with.’ That’s why Snelder thinks FACET should always be an enterprise focused on assisting others with ideas and opportunities. So now we know what kind of company FACET is, what is does and why. But still, the quest to the heart of that unique entity is far from fulfilled. Maybe we are halfway there, maybe we are just in the first stage of our journey that is becoming quite and adventure. But were do we go from here? Where else but to its home office in Zeist?

Part II THE HOME OFFICE IN ZEIST

Sleepy old town? Ah, Zeist, sleepy town with sleepy old people. Zeist, made up of sleepy old houses and surrounded by sleepy old woods. Zeist, hometown to the most sleepy village-centre, a sleepy train station and, apparently endless, sleepy country-roads. Walking through the door of the office building on the Stationslaan 4 it all changes. Strange, as if entering a different world, an enclave of activity with busy people running around. The sleepy town is gone. Something is happening over here. But what is it? What are those people doing? In any case, it must be important. As Peter Blom, director of Triodos Bank writes: ‘It has been underestimated how important the Dutch home office was for many co-workers of FACET who worked short term or long term abroad.’ It is there, he states, that one could find the true FACET culture. And now I’ve set myself the task of finding out what that culture is. A company’s culture is one of the most important facets of a corporate entity. Without a culture a company won’t survive, and with it it’s workers are motivated because it gives them the feeling they belong to something. And for a journalist a company culture offers him a view of the nature of a company, that which goes beyond mission statements, founding fathers,

staff-members and projects. So, finding out about the culture of FACET is adding another piece to my puzzle. Hasn’t he got something else to do? I hear some of you readers, think. How is he going to grasp something so abstract as a company culture? How is he going to catch such a thing and put it in words? Well, I’m not going to. Because you are right: I can’t. The only ones, who can show me what working with and belonging to FACET is all about, are the people who daily or on a regular basis walk through that door. And to complete the scene, I have also added the commentaries of those who are in any way close to the people who walk the stairs, sit behind the desks, operate the phones and make the coffee at the home office in Zeist.

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Here we see Nieves (agent 006 with license to be grumpy) and Paul (agent 007 with license to control) at work during their morning briefing session. Nothing can escape the attention of these two. They are the beating heart and nerve centres of FACET!

The office ‘Trustworthy tenants’, said Mr. Tan. It was the first thing that came to his mind, when I asked the landlord about the folk occupying his building. Together with his wife, Mr. Tan ran the Chinese restaurant Lin-Fa, next-door. The Tans retired from the business, but still own both buildings, including the one in which the home office of FACET is situated. In 1992 they saw Triodos leave and FACET move in. And will FACET ever trade the Stationslaan for a new office? ‘I can’t tell’, said Tan,’ but they really are attached to that building.’ According to Tan, FACET never missed a month’s rental payment. But more important, he thinks highly of its personnel. ‘I don’t exactly know what it is they do, but they are friendly people, friendly neighbours, friendly tenants and friendly business-partners. As far I can remember I’ve never had any negative past experiences with FACET.’

I can’t think of a better place to start then the FACET secretaries’ office. Run by Paul Stussgen and Nieves Boorsma, the secretaries’ office is a kind of hub, Stussgen himself tells me, ‘a busy knot in the net of FACET activities.’ Nearly everything that enters or leaves the company passes through that place, be it staff, management, partners in project, clients, tenders, contracts and company brochures. Within a consultancy company, whose activities range from Asia to Africa, from Latin America to Eastern and Central Europe, whose staff-members walk in and out, travelling to all those different corners of the world, there has to be one stronghold, standing firm in the storm of everyday business. Without the secretaries’ office the place would probably blow apart. Stussgen describes a day in the life: ‘Once a project is in the air, it starts with the activities of Nieves, the secretary. She will make a file and prepare everything for the coming correspondence and archiving. In the mean time, she and I, the management assistant, are already busy to win the next tender in making its layout as the finishing touch, before it can leave the office to Brussels, The Hague, La Paz, Cairo, Kampala, or Manila.’

Tan is right. FACET without its home office in Zeist is simply unimaginable. But of course it is not only the building that plays such an important role in the existence and past of the company. Also everything that goes around inside that building makes up a very important facet of FACET. How do people go around their daily business? How do staff-members, office personnel and management treat each other? What kind of atmosphere does the home office breathe?

Nieves entered the office more then eleven years ago, just after FACET moved to Zeist. Coming from Barcelona she writes:

‘Visc a Holanda desde el any 1990 i treballo a FACET desde el any 1993. Vaix vindre a treballar a FACET un dia i m’quedat ja 11 anys. Espero que aixo qu’escrit en catala no os porti problemas. El

Klaas

m’a

dit

que

tenia

qu’escribir una mica en catala. O sigui que si no enteneu aixo no es culpa meva.’ It’s hard work and sometimes they have to put in more than a hundred percent effort to get everything done on time. But that, according to Nieves, is mainly because consultants do not always realise what a deadline really is. ‘A deadline does not mean that at 16.00 hours: ‘I just have to make some small changes…’ when you know that you are already late to book DHL and ‘small changes’ sometimes mean one hour or more of work.’ But Nieves doesn’t regard that as a complaint.

‘We know it’s a part of the job. If you want to work at FACET, you have to be a little crazy and I think we are, a little bit.’ Together with the fact that FACET ‘is a nice business to work for because of the international atmosphere (communicating in Dutch, English, Spanish and French; arranging tickets and visa to anywhere) with FACET consultants travelling and working all around the world’; Stussgen considers the job ‘adrenaline consuming, but satisfying.’

years of 15 FACET culture

Was it always like that? Was working for FACET ‘adrenaline consuming, but satisfying’ for fifteen long years? Undoubtedly the staff and its members went through certain changes over the years, the company grew, the management changed, people came and people went. In order to draw a picture on FACET’s company culture, we need to dive into its history. We have to go back to those early years, when FACET was still an idea, follow the trail through its forming years in the early nineties, consider the consequences of its management change in the year 2000 until we reach the present. I could draw back on my own memories, as FACET’s history spans half my own lifetime. But I won’t. I’ve asked my sister instead. In conversations we had about FACET, it struck me that she remembered far more details about the earliest years, then I did. She also used to work for the company now and then. Therefore she has a far better view on what FACET was all about, at a time when the company was just one man: her father, Klaas Molenaar.

Something of a gem By Fieke Molenaar

When one looks up the word facet in a dictionary, the following definitions can be found:

‘packman’ logo was not our idea of something catchy.

- parts of the eyes of certain insects - cut surface of a gem - view from a particular angle, aspect

The business took off and Klaas moved from the spare room in our family home in Apeldoorn to a proper office on the Market Square, with Joyce, our mother, as his secretary. This meant two things for us. Not only was it the birth of my CV, doing the odd temporary job folding folders and sticking address labels on envelopes, but we would also have fish for dinner every Monday evening, it being fish market! Strange things impress you as a child, but this was definitely one of the less shiny surfaces of Klaas’ gem in my eyes…

When one looks for the definition of the word facet in my personal vocabulary, the ‘daughter’s point of view’, the following will surface. Fifteen years ago, at our evening meal - all important things were discussed during mealtime, when everybody was present - Klaas announced that he had decided to quit his job at ETC and start his own enterprise in small and medium business. What did it mean to us at the time? Because he would be working at home, he would be present all the time, additionally keeping an eye on us. Being teenagers, this was not an inspiring thought. Also, we had to answer the phone in an orderly manner from then on and note the name and phone number of the caller meticulously. I never managed to do either to Klaas’ satisfaction. The sunny side of those ‘early days’ was that we got involved, sort of. The deciding on possible names and logo’s for the new enterprise became a family matter. However, one might rethink our actual influence, considering the word facet was not in our vocabulary at the time and the original

The move to Zeist followed. Because of the distance from home, our involvement as a family decreased. Gradually the dress code changed from jeans and T-shirt to shirt and tie. Although there still remained a first-name-basis relationship between the employees and the employer - Klaas - a shift in personality from the direct entrepreneurship to directorship could be felt. FACET became ‘a workplace’

and lost its feeling of being a ‘family achievement’. Because both the workload and the number of employees increased, the business did not seem to suffer from this more professional approach. Or did it? Can colleagues translate such a personal idea to budding entrepreneurs in developing countries in the same way? What was the value of that personal touch in those earliest years? I have been to visit some of the businesses that had been set up in Kenya and unfortunately only one out of ten was still running. Again questions arise. Was it worth it? Is it worth it? Should the approach again be adjusted to obtain better results? Looking at it from a positive angle, these people have been successful with help from the FACET education programmes. Is a ten percent success rate in countries with such a different culture and attitude a good result? In that case, what would be the best possible result? A certain kind of philosophy has been the start of FACET, formed the basis of its ideology and is an indispensable aspect of its future. As long as anyone working for FACET will ask these questions and continue this philosophical debate, FACET will keep going on. Fifteen years down the line, no longer carrying its eye-catching packman logo and without Klaas’ continuous presence, FACET is still doing well. And watching it from the side-line, it surely remains something of a gem, something to be proud of.

Crazy stuff The entrepreneur himself rarely notices a change in company culture, because in most cases it occurs gradually. For an outsider, like Fieke Molenaar, its shift is felt. The move from Apeldoorn to Zeist in 1992 can be considered as leaving the stage in which FACET was mould out of an idea, to a higher level in which its pioneering spirit pushed the firm to higher grounds. But note that by entering a new stage, also the culture changes. ‘Gradually the dress code changed from jeans and T-shirt to shirt and tie’, Fieke Molenaar writes. No longer was the company a family thing, ‘FACET became a workplace’.

Still everyone got along on a first-name-basis, which signals a company culture built on a friendly respect of staff, back-office and management for each other. But another thing strikes out: the part that Klaas played in FACET’s fifteen years of history. He seems to have been the soul of the company, a person who not only laid the foundations of the firm, but kept it going at a sometimes nerve-racking speed. ‘Klaas was FACET’, Kyra Oosthoek told me. I spoke to her on the phone. Kyra Oosthoek was secretary to Klaas and the company for nine years. ‘I’ve had the time of my life’, she said when I asked her about FACET. ‘But I must say, consultants are strange folk. I never knew if my work was done.’ Her first encounter with FACET was a conflict with Klaas. She joined the company just before it moved to Zeist. ‘I just got started’, she said. ‘Klaas was somewhere far away, but I had to get a hold of him. So I sent him a few fax-messages, which he never answered. Really annoying. I had never met the fellow, but already I had an argument with him on my first day. Hey man, why are you not answering!?’

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‘We had a lot of arguments in the years that followed’, she continued, ‘but you know, Klaas could handle that. You could have a really big argument with him, but when it turned out he was wrong, he could admit that.’

‘I’ve had the time of my life’, she said when I asked her about FACET. ‘But I must say, consultants are strange folk. I never knew if my work was done.’

According to Kyra the arguments were part of a daily business, in which anything could happen. ‘Klaas always came up with new and crazy ideas. He took on anything he found interesting. He never was a real manager. And I think that was his weak spot: whenever a subject or thing got the better of him, he would hire someone to do the job.’ Crazy times she remembers, in which Klaas always played a part. He was omnipresent, which could be quite annoying sometimes. ‘Everything had to run on a pretty tight schedule’, she told me. ‘There was always the deadline of DHL. We had to get the tenders out in time. But when he didn’t like the tender or thought it poor quality, he took it back and we had to shift deadlines again. Or he sometimes just pulled out all the plugs in order to have drink together, just when we were stressing to get a deadline.’ Kyra is still sorry she couldn’t follow Klaas to The Hague. In 2000 he stepped down as director and set up two new businesses, but he advised Kyra to stay with FACET in Zeist. Her health and the prospect of having children in the near future would have made it very difficult for her to get a new job, in case things went wrong. ‘And as Klaas left the firm’, Kyra said, ‘FACET changed and it wasn’t my FACET anymore.’ She sees a very important shift in company culture, when the two new directors, Adriaan Loeff and Stefan Platteau, took office. ‘Klaas was always very open, transparent. The new management conducted business behind closed doors. The crazy, fun stuff was gone and from then on everything was seen from a manager’s point of view. And when the management was out and about, nobody knew what to do anymore.’

Nevertheless, she stayed and made it her last task to write a manual for the secretaries’ bureau and set up a central archive. The purpose was to gather all the practical information on old and new projects. ‘Consultants usually have a manner of arranging everything themselves. But if they take stuff with them, like telephone numbers or hotel addresses, how on earth can we reach them?’ In the spring of 2001 she quit, as her first child was due. She still considers FACET ‘a wonderful time’. ‘Nine years. I have worked for the same company for nine years. Do you know that’s quit rare? Secretaries don’t usually stay that long’. She now has two kids, of whom the eldest carries the initials D.P.O. ‘My own DPO,’ she says as she starts laughing. ‘You know, we had this project, called DPO. And I can’t imagine a better example of Murphy’s Law. Everything that could go wrong, did go wrong. So now, when Klaas and I talk to on the phone, we always ask each other: how is your DPO?’

Team spirit That brings us to the year 2005. A lot has changed, and in the meantime some things remained the same. FACET still has a company culture, not seen at other consultancy firms. Although consultants, especially those who work in far away places under conditions not always desirable, tend to be some kind of Einzelgänger, there seems to exist a kind of team spirit at FACET. People like working there, not only because of the kind of work they do, but also because they like working with the other FACETpeople. Ask around: most of the staff, back-office and management are in service of FACET for a considerable period of time. But that’s not all. From stories told by partners in projects we learned that people outside the office also feel the teamspirit of FACET. An example of an outsider who experiences FACET every day, is Machteld Loeff, wife to director Adriaan Loeff. She doesn’t only see Adriaan going to work in the morning and coming home in the evening, to her FACET is more.

FACET door de ogen van Machteld Loeff: ‘FACET dat is op mijn netvlies, een bedrijfje met sympathieke, hardwerkende en bijzondere mensen met veel liefde voor hun werk…’ ‘FACET daarin bewonder ik het engagement en het optimisme, het streven naar ontwikkeling.’ ‘FACET vanuit de auto, wachtend op de stoep (vooral niet uitstappen want dan heb je onmiddellijk een bon!), dat is een bedrijf in een oud huis, kleinschalig en niet doorsnee.’ ‘FACET dat is voor mij Adriaan die reist. Dat houdt de spanning erin; thuiskomen en verhalen...’ ‘FACET, dat is onlosmakelijk verbonden met het buitenland, maar dan niet de gebaande wegen maar de landen waar je de hoofdstad van op moet zoeken en waar ik bij mij op school de blits mee kan maken.’ ‘FACET is voor mij de herinnering aan 10 jaar buitenland, aan Indonesië waar twee van onze kinderen geboren werden, aan onze bediendes en alle geuren en geluiden van de Jalan Kemang Selatan.’

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Young blood Will the teamspirit prevail? We have seen that the company culture has changed in the past fifteen years, although the most important aspect remained. But FACET’s staff is aging. Sure, wisdom comes with age, but it must be passed on too. The thing is, FACET’s staff doesn’t really change a lot. Would you trade a job at FACET’s for another job, after just having read all about the company culture? Still, FACET has a ‘youngest employee’, Wieteke Gondrie. I have asked her to give her view on the future of FACET, and not surprisingly she chose herself as starting point for an exploration into the years ahead. She states that young people are not very attractive for a company like FACET. ‘The CV’s of my colleagues are impossible to match by the younger people, who have limited experience in the field, if any’, she writes. ‘Contracting rather inexperienced professionals might be difficult in the competitive environment FACET works in, where chances to win a project are higher for proposals that include impressive CV’s of experienced experts. Younger and/or less experienced consultants in this aspect are difficult to sell.’ But then, she asks herself, aren’t there any positive sides to hiring young employees? ‘They can bring in new views, new enthusiasm, and it is a way for the senior consultants to transfer their valuable knowledge, and making sure that their knowledge does not leave the company with their retirement.’ And thus, she concludes, fresh blood makes the company more sustainable.

‘Young professionals could be recruited as junior consultants and/or be offered a traineeship’, she suggests. ‘This creates the possibility of exploring each other and creates fewer risks for the company. If this is accepted as a way to include young professionals in this fascinating work, it may be considered to open this to young professionals from developing countries as well. This also creates a network that favours the company.’ Let’s hope FACET’s company culture, as it is now, will thrive. Because for a great deal it explains why the people working for FACET seem to posses a certain drive. FACET is an experience that you will never forget. And of course it works both ways, as FACET is made up of the same people that seem to be possessed by that spirit. The question is: were will this spirit lead FACET and its crew in the fifteen years to come?

Part III THE FUTURE OF FACET

Around the globe Let’s leave Zeist for the time being and follow FACET’s footsteps around the globe. A short visit to other offices based in The Hague, Guatemala City, La Paz, Jakarta and in Dar es Salaam may be a good start. And from there we visit the countries in which FACET executed or shared in projects: Armenia, Azerbaijan, Bolivia, Bosnia, Egypt, Ethiopia, Georgia, Indonesia, Kosovo, Morocco, Nicaragua, Pakistan, Peru, Sri Lanka, Tanzania, Uganda, Vietnam, Yemen, Zambia and Zimbabwe. Tired yet? Bedazzled? No wonder, but it’s just to show FACET truly is an international company. The main issue concerning international corporations seems contradictory to it’s own existence. It comes down to a very basal statement: where do we go from here? A fine and inescapable paradox, for a venture like FACET is always to seek new markets and new opportunities, and by expanding its businesses in the world that search becomes ever more present. The bigger the window, the harder it becomes to see the windowpane. Sounds too metaphorically? Then let’s bring it down to earth. Looking out of our symbolic window is visualising the future. Ask yourself: where am I, where do I want to go and what are the challenges I will find on my path? And after making a decision, dare step out of that window and in pursuit of your vision, remember that you take with you a company loaded with fifteen years of history.

The windowpane To unravel the true and unique nature of FACET, we have to go down that future road. So let’s tackle the first issue: where are we now? And in answering that particular question, remember that we cannot clearly see the windowpane. We stand either directly in front of the window or slightly to the side. Lucky for us, Roy Kessler reaches out a helping hand. As an associate consultant of FACET and part of the team, Kessler knows where FACET stands on that huge, global and diversified field of international Small and Medium Enterprises, it’s financing, consultancy and development. He can show us how FACET managed to not only survive, but proudly holds up its chin in a world that’s made up of competition, scarce means and a lot of uncertainties. And although he is just ‘a partner in projects ‘and wasn’t always around during these past 15 years, he feels that he owes it to FACET and its creative and inspiring staff, at least, to try to put some of his experiences with FACET on paper. So we let him.

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PART III PART IV

FACET in the jungle of ICB By Roy Kessler

When celebrating 15 years FACET, one wonders how this small organisation managed to survive in the world of International Cooperation Business (ICB), while so many others did not. Without pretending to have all the answers on this question, I strongly believe that besides FACET’s persistence for survival, the following factors were crucial: - Integration of the many facets of SMED - In-house expertise - Local capacity building - Refreshing the organisation’s own management Let me elaborate on these ‘many lessons learned’ in the 15 years of FACET’s existence.

You cannot write about FACET without mentioning the name of its founder, first director and main company shareholder, Klaas Molenaar. Professionally, we first came across each other in the early 80’s, when Indonesia was looking into the future of the many Javanese, who were contracted to work in the north of Aceh around the biggest gas field in the world, that of Biruen. Many of these Javanese would be without work from the mid-80’s onwards, because by then the construction work (gas liquefying plant, paper pulp factory, and others) would have finished. Klaas was instrumental in the plans to come to SMED (Small and Medium Enterprise Development) for employment generation in the Aceh area. I was approached to help implement those plans. Unfortunately, till today, the political situation in Aceh prevented us in realizing those. I start with this episode in our 25 years of being both colleagues and friends, because during the 15 years of FACET-activities since 1990, I have always recognized the design style of those earlier Aceh plans. Already in the early 80’s, Klaas had the vision to integrate the various facets, such as training, financial services, technology transfer, design, production management, quality control, marketing, legal framework, entrepreneurship development and advisory services for the good of SMED. In its 15 years of existence, FACET always tried to integrate the mentioned facets in its work for SMED. This, especially at the beginning, was not always easy, as many working in SMED lacked that vision (yet).

So, from the start, FACET tried to develop the human resource for active support to the mentioned facets of SMED within its own organisation through internal training, practical exposure in the field, combining junior and senior staff. Unfortunately, the structure of the international cooperation business (ICB), does not make this a feasible approach. Until today, the ICB prefers to employ organisations (so called ‘consultancy firms’) for an assignment, which are not more than a director, a secretary, and a database with experts on the mentioned facets of SMED. With these experts signing ‘unique availability statements‘, these ‘consultancy firms’ enter the tender processes, hoping to gain a share of the 60 billion dollar, yearly business in international cooperation. Organisations, such as FACET, could not enter these tenders with lower bids than the other ‘director-secretary-database’ organisations as it had to meet the financing of its efforts to develop expertise within the own organisation.

‘Rather than to stick to the ‘end’ with his ‘child’, Klaas dared to leave the management to fresh blood.’ What I have always admired in the 15 years of FACET’s existence is the way the organisation has managed to stay away form the ‘directorsecretary-database’ concept, and still managed to find enough assignments to survive in the ICB jungle. Sure, FACET has developed less in-house expertise than it planned at the start, but that was the necessary adjustment to survive financially in the ICB world, rather than its own free will and insight. So, during their first 15 years, besides their core staff (considerably more than the mentioned ‘director-secretary’), FACET also worked with their ‘database experts’.

Being one of those ‘database experts’ of FACET, I experienced that one was considered more a ‘freelance associate’ rather than just a ‘database expert’ who never heard again from his ‘employer’ once the job was done. With FACET, also the ‘database expert’ was/could be involved in various in-house activities, would/ could receive the internal news magazine and, occasionally, could follow some internal training or do some specific re-search. Another commendable effort with varying success was FACET’s foresight to start with what now is commonly known as ‘local capacity building’. From the start FACET invested in the development of ‘local capacity’ in the developing countries itself, based on partnerships with local organisations, which regularly would come to Zeist for expertise expansion. Nowadays, donors finance these efforts in developing countries, but FACET started this before there was any sight of such financing opportunities. Today, FACET has reliable partners in various countries, such as Guatemala, Indonesia, South Africa, Ghana and Indonesia. What I also would like to mention in this paper is Klaas’ withdrawal from FACET’ s day-today management in the late 90’s. For this aspect, he could be compared to the Mandela’s and Nyerere’s of our time. Rather than to stick to the ‘end’ with his ‘child’, Klaas dared to leave the management to fresh blood. Of course, the ones who took over, had already gained quite some

experience in the ICB. By my own experience, I can witness that FACET has gained from this move. For the last 6-7 years, with Hedwig, Adriaan, and Stefan, FACET has been put stronger on the ICB map. All in all, I believe that FACET is well prepared for the future challenges in the ICB. Its organisational flexibility is ready to meet the fierce competition, which, amongst others, has lead and will lead, to lower consultancy fees. FACET’s expertise in this sector, its constant drive to deliver quality work, its creativity to find the right solutions, its well developed network, and its willingness to collaborate with partners in the first, second, and third world, form the basis for this optimism. It always has been a pleasure to work with and for FACET. I congratulate the former and present staff with its 15 years of existence. I wish them many more years to service entrepreneurs in the developing world and I am convinced that FACET’s contribution will make a difference.

Practical tricks

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PART III PART IV

Microfinance in Pakistan is a relatively young industry and the scope for growth is enormous with millions of poor families and SME’s having no access to financial services of any kind. Over the past 5 years FACET has been working in the country, training and coaching micro finance institutions and service providers and bringing in experience and practices from other countries. FACET’s Stefan Platteau has trained more than 50 consultants, accountants, bank personnel and loan officers, by jointly executing assignments and by conducting training events like this Skills Training for Service Providers to the Microfinance Industry held in Peshawar in 2004. ‘These trainees are very motivated and they are eager to pick up and apply the knowledge we present during the course. They particularly appreciate the sessions where I present practical tricks and tips on how to do consultancy work with microfinance institutions’

FACET’s own style So FACET is considered revolutionary in its approach to the development of Small and Medium Enterprises. By integrating all the various facets of SMED, like training, financial services, production management, entrepreneurship development and advisory services, it can offer more or less tailor-made solutions. This idea of a multi-focus and multi-services business approach is, what Kessler calls, a ‘design style’. Dating back to the early eighties that particular design style not only makes FACET stand out to its peers, but also assured survival in the hard world of International Cooperation Business (ICB).

But this ‘design style’ also has its weakness. Integration means hunting and gathering for know-how, having experts in permanent service and constantly looking for fresh approaches and developing new methods to beat your components. And that’s going to take plenty of money, which means the services of FACET don’t come cheap. It is hard for FACET to compete on a price level comparison base. And were it not for it’s unique product offering, FACET would have probable perished in the 60-billion-dollar-jungle of ICB. So when you look into the future, ask yourself which path you think FACET has to go. Does it need to further nourish its unique design style, so admired by Kessler? Possible outcome maybe a gain of market share and a wider recognition within the field. Or should FACET look for fresh trails, which may lead to hence nondiscovered territories and new markets? As I understand FACET does both. For example, with the implementation

of the new approach of Corporate Social Responsibility (CSR) it ventures down the road of integrating all those different facets of SMED. The company is broadening and perfecting its unique product. By starting up IntEnt and SEON, using FACET and its expertise as a launch-platform, it goes where no man has gone before. FACET is creating it’s own market, by using the old business-concept of developing and supporting Small and Medium Enterprises, and looking at it from a different point of view. Little by little is becomes clear where FACET is going. Still the view remains foggy and the future course is not yet entirely visible. We need some buoys to guide us or we will run ‘a ground.

Future paths of FACET: Indonesia One of those buoys is PT FACET Matra Indonesia (PT FMI), a Jakarta-based sister company of FACET’s. Like its Dutch mother, PT FMI is a consultancy company, but owned and managed by Indonesian nationals. The Indonesian company focuses on applying methods of supporting Small Scale Enterprises (SSEs). The services it renders contain the establishment of institutional professionalism

by,

for

example,

developing

entrepreneurship and improving SSE access to bank financing. PT FMI pays a lot of attention to local capacity building, by providing entrepreneurship training for SSE owners, and is constantly developing new supporting programs.

PT FACET Matra Indonesia was set up in the early nineties, together with Udijan Wahjusuprapto, who until today is sole owner and director of the company. The foundation occurred at the time when Ton Brunsveld, one of the first staff-members of FACET who even experienced the early Apeldoorn-days of the company, and Adriaan Loeff, the present director were working in Indonesia. Together with PT FMI the Zeist-based mother carried out activities in Aceh. So it seems that new paths can also be old ones. Consultancy for SME’s in Indonesia is a recurring event in the history of FACET. Aceh was the place where founder Klaas Molenaar developed the idea of integrating all the aspects of SMED, according to Kessler. Present director Loeff worked and lived in the Asian archipelago. The Dutch Indies the islands were called, before they became independent in 1949. Strange though that Indonesia doesn’t seem to contribute a whole lot to the FACET group, says Wahjusuprapto. With so many ties, and so much work to do, shouldn’t Indonesia be one of the most important future paths for FACET?

Indonesia: A big market for FACET services in the coming 15 Years? By Udjian Wahjusuprapto*

*With sincere appreciation to Mr. Ton Brunsveld, a senior FACET associate consultant spending in total 20 years in Indonesia, for his hints and key words to write this paper. As an outsider, he has a better view of the ‘jungle’, while the writer is more occupied with the shapes and color of the ‘leaves’ and ‘branches’. For development of micro banking, see Ton Brunsveld’s ‘Micro banking in Indonesia over the Monetary Crisis’

FACET has gained popularity for SME consultancy in developing countries. Indonesia, however, contributes only a small portion in FACET revenues and earnings. Indonesia deserves a big portion because Indonesia is a big country in terms of population. With the long historical ties between Indonesia and the Netherlands, and also with the positive impression of most FACET consultants ever visiting and living in this country, Indonesia should become the biggest share. At least in the business activities of FACET. This also implies that FACET should more actively participate in ‘inviting’ more foreign development funds for SMEs in Indonesia. 40

PART I PART II

The first part of this paper addresses the ‘normative’ answers to three essential questions. Is Indonesia a big market for consultancy services? Is the demand for SME consultancy services in Indonesia big? Is the demand for foreign consultancy services big? The second part contains some suggestions for FACET to increase its stake in Indonesia. The third part is an attempt to identify some potential areas for the international-level SME consultancy services. SMEs in Indonesia: Problems and Prospects for Consultancy Services According to data from the Ministry of Cooperatives and Small Enterprises Development (MOCSED) of the Republic of Indonesia, there are currently (2003) around 42.4 million Small and Medium Enterprises (SMEs) in Indonesia. They offer a large contribution to employment, 99.46%, and non-oil Gross Domestic Products, 63.41%. Also, the SMEs’ contribution to export trade is promising: 15,43% (up from 14.87% in 2000).

‘Is Indonesia a big market for consultancy services? The answer to this question is ‘yes’ In addition, SMEs proved to be viable during the economic crisis in 1997. Though the main reason is obvious, i.e. almost none of them had foreign loans to repay during the economic crisis, the viability of Indonesian SMEs have accelerated the gradual upgrade of their image from beneficiaries of social aids to potential customers of commercial assistances. Three developments seem to confirm this upgrade. First, the outstanding development of microfinance in Indonesia. Second, the growing interests of commercial banks (both national and foreign) to finance SMEs. Third, the growth of a relatively new profession: the SME consultants (BDSPs). Is Indonesia a big market for consultancy services? The answer to this question is ‘yes’, so far as ‘need’ rather than ‘demand’ is concerned. SMEs always remain high in the political agenda of the government, and recently also political parties. The government never sets lower priorities for SMEs. Examples are setting up a special department for small enterprises, small credit instruments, small credit policies, foster father linkage inducements, fund reallocation of fuel subsidy, etc. The government measures are so far much based on the assumption that, despite their vital role in the economy, SMEs deserve financial and technical assistances. Most SMEs are family businesses with weak access to loans from formal financial

PART III PART IV

institutions, particularly bank loans. The number of SMEs seems too large to be covered by the outstanding development of microfinance, small credit policies, and other measures. The data confirm that the market, in terms of the need for technical assistances, especially consultancy services is very big. Is the demand for SME consultancy services in Indonesia big? The answer to this question may be ‘yes’ in the future. The growing interest of commercial banks to give loans to SMEs is based on the fact that viable SMEs are safe places to diversify their loan portfolio. The recent growth of SME consultants (BDSPs) is driven by normative assumption, or rational expectation, that SMEs are becoming capable of financially supporting their needs for consultancy services. Several foreign donors are involved in strengthening the supply side of BDS market, e.g. setting up BDCs and promoting financial consultant certification. Results in production, marketing and other non-financial consultancy areas are quite promising, but not so much in closing the gap between SMEs and bank financing because many banks are more inclined to develop their own account officers to access bankable SMEs. How FACET should deal with the Problems and Prospects? FACET has developed a consultancy product mix, consisting of core and special services that has so far

proved to be successful in developing countries. Indonesia, however, is a big front for other international consulting companies, offering also similar services. FACET should offer specially packaged consultancy services with international qualities, but costing more efficiently for the funders, and (in the near future) within the paying capacity of SMEs in need of those services, e.g. backstopping Indonesian consulting firms. Based on facts in the field, several points to consider in formulating the marketing strategies for Indonesia are as follows: - Strengthening the network with international funders and international consulting companies with common interests to increase stakes in Indonesia. Examples are managing reconstruction aids for post-tsunami Aceh, and recently also the nearby Nias Island. - Strengthening the complementary arrangement between foreign and Indonesian domestic consultants through various structures of consortia, including domestic proposal with FACET backstopping to improve the service qualities. - Focusing more on developing the existing SMEs, including existing innovators, rather than stimulating starters. The more important objective of SME development in Indonesia is to enhance natural growth of existing SMEs. - Regarding SMEs more as totalities in need of various services from trustworthy ‘one-stop’ service providers. Through complementary arrangement between foreign and domestic consultants, FACET can also offer other ‘special services’, i.e. application of new production technologies and extension of marketing networks. - Focusing more on facilitating and counseling rather than researches and trainings in the delivery of consultancy services, as facilitating and counseling are more effective in customer development. Potential Areas for International-Level SME Consultancy Services. This table should be developed further by inviting the opinions of consultants ever

Prospective Funders International

Domestic

Organizations

Support

SMEs

Consultancy Services

Organizations

Special studies

Program evaluation, policy formulation

Designing and setting up support structures

Private sector linkages

Building and extending international

marketing networks for export-oriented SMEs 5

Building guarantee fund for SMEs

Setting up marketing organizations for

Sourcing SME development finance

Development of micro finance

Application of new production technologies

farm products 7

Setting up foreign investments in horticulture sector

Potential market areas for consultancy services

visiting and living in Indonesia. The market areas are classified in terms of prospective funders, like international organizations (bilateral, multilateral, social organizations, international companies and international financial institutions), domestic support organizations (government, associations, large enterprises, national banks), and the SMEs themselves. Many of the activities are already included in the core services of FACET. Some sound new but are still within the framework of FACET’s main mission. Dependence upon donors’ fund is still justifiable in the shortmedium term, but meanwhile we are developing SMEs so that in the future they are capable of paying for their own demands for consultancy services. By viewing SMEs as totalities, the fourth, sixth and tenth services are not leaps to other areas of services. This is merely because the SMEs are in need of those services, for which they are most likely to be able and willing to pay. Increasing FACET’s stakes in Indonesia does not necessarily mean making large investment in Indonesia. Instead, setting up some kind of ‘Indonesia Desk’ in Zeist, maintained by FACET consultants ever visiting or living in Indonesia, will yield sufficient returns if this desk is successful in driving interests into Indonesia.

Future paths of FACET: Bolivia Udijan

Wahjusuprapto

apolo-

gised to me the first time he sent me his article. ‘More of a leaflet, than an essay’, he stated in an email-correspondence. And I agreed, at that time. But now, after having read it again and with more attention, I’ll have to reconsider my previous judgement.

Because it is strange that FACET hasn’t expanded its business in Indonesia. The facts seem to confirm the idea that Indonesia could be the market of the future. And with so much expertise on and experience in the country, why not? Wahjusuprapto even hands out a kind of manual on how to successfully expand in Indonesia. ‘FACET should offer specially packaged consultancy services with international qualities’, he writes. And he also seems to be aware of the fact that FACET’s services could be expensive in comparison to other SME consultancy firms. He think the special package for Indonesia should be ‘costing more efficiently for the funders, and (in the near future) within the paying capacity of SMEs in need of those services, e.g. backstopping Indonesian consulting firms.’ So the question for FACET is: how can you lower such expenses in the future without breaking with the successful formula of the past, the concept of wholly integrated SMED-services? A way to try and find an answer to a burning question like the one above is simply by looking at how other companies in the field deal with it. If you don’t know how to make bread, visit a bakery. Watch and learn and use that knowledge to create something of your own. In a short while the visitor will be the visited. But is there a company like FACET? Well, of course not. But there is a NGO in Bolivia which was established a year after FACET and has a similar kind of history to that of FACET’s. IDEPRO successfully developed and implemented many micro enterprise financing and related BDS programmes in the past years and grew into one of the bigger NGO’s in Bolivia.

Like Indonesia, Bolivia too has a special place in the heart of many a FACET-man or -woman. One of its first sister companies was established there, FACET Andina, set up together with Luis Baudoin. Throughout the fifteen years of history various FACET staff-members proved their merits in the Latin-American country, having laboured in areas such as micro credit, BDS and entrepreneurship, training and advise counselling and evaluations. Due to financial problems, FACET Andina had to close down, but that doesn’t mean La Paz is not visited by members of FACET on a regularly basis. The cooperation between IDEPRO and FACET goes back to the early nineties, when both the organisations were established. A businessrelationship between the founders of the two different companies, Roberto Casanovas and Klaas Molenaar, grew into a friendship that bore many an entrepreneurial fruit. Most important is that IDEPRO will most surely be part of the future of FACET. Not only do both parties own a share in FACET’s Bolivian sister-company ProActiva and does FACET have serious plans to become active in the market in Bolivia and neighbouring countries Peru and Venezuela, rumours are that IDEPRO may become the first shareholder in FACET from the south.

15 Años de relación con FACET: Mirando el pasado y visualizando el futuro Por Roberto Casanovas S.

Es una satisfacción personal especial poder compartir algunas ideas en torno al futuro de FACET en ocasión de su 15 aniversario. Pero mi visión de futuro de esta empresa amiga no puede estar al margen de lo que ha sido una relación de confianza y (espero) de mutuo aprendizaje extraordinariamente rica con varios colegas de FACET, y particularmente con Klaas Molenaar.

En 1991 Klaas acompañó el nacimiento de IDEPRO por encargo de DGIS e ICCO. Contribuyó y compartió con nosotros las ideas centrales de nuestro enfoque en cuanto al trabajo con microempresas, enriqueciéndolo y enfatizando la importancia del enfoque integral, de la necesidad de buscar una relación de largo plazo con los clientes, de la importancia de tener permanentemente presente los objetivos de nuestros clientes en nuestro trabajo, entre muchas otras premisas. Desde entonces, y por espacio de cerca de 10 años, FACET siguió de cerca nuestro trabajo con visitas anuales

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la Paz, Bolivia

a Bolivia. En todo ese tiempo Klaas se ganó cariñosamente el apelativo de ‘el dentista’ ya que sus visitas siempre fueron escenario para abordar ‘temas de fondo’ y, no pocas veces, temas ‘muy sensibles’ para la organización y/o sus ejecutivos. A partir de la decisión que tomó IDEPRO de constituir un Fondo Financiero Privado (ECO FUTURO) en 1996, Klaas contribuyó a la discusión y decisión de impulsar este proyecto, participando activamente y acompañando a IDEPRO en los primeros contactos con los que a futuro serían parte de los accionistas de la empresa. Esta fue una de las decisiones más importantes en la vida institucional de IDEPRO y que marcó el rumbo de nuestra organización en los siguientes años. En 1998 conocimos a Stefan Platteau quien junto a Samuel Machacuay participó en la evaluación de medio término del Plan Institucional 1995 - 1999, el período de mayor expansión de IDEPRO y donde nuestra organización logra una presencia nacional con servicios financieros y servicios empresariales. La separación de los servicios empresariales y los servicios financieros

en dos entidades (IDEPRO y ECO FUTURO, respectivamente) fue parte de las recomendaciones de esta misión que nos ayudó a ver y analizar las oportunidades y amenazas que traería consigo esta decisión. Esta consultoría dejó planteado también el desafío de encontrar una forma jurídica apropiada para administrar de manera eficiente dos negocios distintos (servicios financieros y servicios de desarrollo empresarial), administrar inversiones empresariales en organizaciones afines y lograr un equilibrio adecuado (siempre tan difícil) entre los objetivos económicos y sociales vigentes en las formulaciones de la visión y misión institucionales. Meses más tarde, IDEPRO se planteaba constituir un Holding de empresas y organizaciones que integre los propósitos anteriores. En agosto de 2003 se concreta este ‘sueño’ con la compra de parte de IDEPRO de la mayoría de las cuotas de capital en la empresa consultora PROACTIVA, de la que FACET es un socio estratégico. FACET nos acompañó también en épocas (muy) difíciles. En junio de 2002 la situación financiera de ECO FUTURO era crítica y los socios principales de la empresa necesitábamos tomar decisiones estratégicas muy delicadas en cuanto al futuro de la empresa. FACET participó activamente de este proceso, mostrando objetivamente cuáles eran las opciones estratégicas para la empresa y los accionistas, una de ellas constituir ‘FINDEPRO’. Después de explorar el escenario de posibles fusiones y venta de acciones de la empresa, en febrero de 2003 IDEPRO toma la decisión de relanzar y fortalecer este proyecto empresarial, el más importante en la vida institucional de IDEPRO. Actualmente,

ECO FUTURO ha remontado totalmente su crisis de gobernabilidad y financiera, ya tiene utilidades durante 18 meses seguidos y es una de las empresas que ha mostrado mayor crecimiento (34%) en la pujante industria de las micro finanzas bolivianas. El recuento anterior no puede dejar de influir en nuestra visión de futuro de FACET. En síntesis, en los próximos años lo que quisiéramos es ver reflejada y multiplicada esta rica relación interinstitucional entre IDEPRO y FACET con muchas empresas de consultoría y organizaciones de desarrollo del Sur. En los próximos años quisiéramos ver reforzados valores y principios en FACET tales como: el compromiso con los objetivos de los clientes de sus clientes (empresarios (as) de la micro, pequeña y mediana empresa), búsqueda permanente de servicios a la medida de las necesidades de sus clientes, alto compromiso con los resultados de su trabajo, entre otros.

Desde su fundación, FACET ha tenido la oportunidad de llevar a cabo y/o asesorar algunas centenas de programas, proyectos e ideas de la cooperación internacional y de gobiernos sobre como generar sistemas más eficientes y eficaces de apoyo a la empresarialidad y al emprendedurismo en muchos países de América Latina, Africa y Asia. En los próximos años ese conocimiento debería traducirse en el principal valor agregado que FACET pueda ofrecer a sus clientes: alto nivel de conocimiento, profesionalismo y excelencia en su trabajo y (algo poco frecuente) compromiso con los resultados de su trabajo. Si hay ‘bancos éticos’ en el Norte que van ganando influencia en sus países, por qué no pensar en construir ‘consultoras éticas’ que actúen cada vez más bajo los valores y principios de la responsabilidad social empresarial mejor equilibrada con la búsqueda de rentabilidad. FACET debería liderizar esta corriente en Holanda y, por qué no, en Europa. En los próximos años, FACET debería consolidar y fortalecer su presencia en América Latina, Asia y Africa, pero con enfoques renovados. Si bien el modelo de la red de ‘Facetas Hermanas’ le ha permitido ampliar su ámbito geográfico de influencia en algunas regiones, sería recomendable explorar otros modelos de participación de FACET en empresas ya existentes que hayan alcanzado buena presencia en el mercado de la consultoría y, por supuesto, compartan elementos centrales de sus formulaciones de visión/misión. En un mundo cada vez más globalizado e interdependiente la regla ha sido promover y facilitar las inversiones (de empresas) del Norte en (empresas) del Sur. En el mundo de la consultoría esta corriente puede haber traído capitales, tecnología, ‘know how’ a las empresas receptoras de estas inversiones en el Sur. Es posible pensar en comenzar a revertir la dirección

tradicional de las inversiones y comenzar a facilitar y favorecer inversiones (modestas en un principio) de organizaciones / empresas del Sur en empresas del Norte? Esta sería una vía (entre otras) para comenzar a ‘latinizar / africanizar’ las empresas del llamado ‘Primer Mundo’. Será que el pensamiento de organizaciones y empresas del Sur puede contribuir a facilitar puntos de encuentro y construir visiones compartidas de desarrollo entre el Norte y el Sur? A mi juicio, vale la pena probarlo. FACET debería apostar, en la escala en la que le es posible hacerlo, a innovar este enfoque. Finalmente, en los próximos años FACET debería apostar a jugar un rol más político en la ‘industria del desarrollo’ de la que forma parte, al menos en Holanda. Actualmente cuenta con una amplia y privilegiada experiencia y ha acumulado un conjunto amplio de ‘buenas prácticas’ fruto de haber vivido experiencias diversas y experimentado una amplia gama de modelos de intervención públicos, privados y mixtos. Es un buen momento para un rol más o-activo y de búsqueda de mayor impacto, induciendo a la cooperación holandesa y europea a focalizar sus contribuciones en programas y proyectos que han mostrado resultados exitosos. Es parte de su responsabilidad como empresa privada con propósitos públicos. Este puede ser, sin duda, un gran desafío para la empresa y una gran contribución a ‘repensar’ como hacer más efectiva en el futuro la cooperación al desarrollo y el reto de ‘hacer mejores empresas’ en los países del Sur.

Just that difference... the involvement of FACETA Central SA, the sister company in Central America, in the SDC funded programme PROMIFIN.

Future paths of FACET: Tanzania Future paths of FACET could be found in Indonesia and Bolivia, both countries which are also part of the firm’s past. But the same goes for Africa. From the early years FACET was actively involved in, especially, the EastAfrican countries. So I wonder: is there also a future trail to be seen in countries like Kenya or Tanzania?

Absolutely. But the question is: what will FACET’s future in Africa look like? Will it have the form of a new sister company? The last one, FACET Kenya, was closed down after a few years operating. Will FACET participate in a joint venture, like it did in Bolivia, where it acts as partner in ProActiva, together with IDEPRO? All possible future scenarios, Marjan Duursma will state. She is a so-called ‘representative’ of FACET in Tanzania, a relatively new concept, only just developed some years ago. Marjan’s presence in the region is important to FACET. Before Marjan was a representative of FACET, she used to work for HIVOS. FACET was hired by HIVOS in the past for some projects in the East-African regions. But from 2002 onwards she fulfils this special role as FACET’s name and face in the region, breathing that particular FACET-spirit. In the next article she asks herself: Will ‘the representative’ be a successful concept for FACET in the years to come? And doesn’t an important region like Tanzania and the rest of East-Africa need more than just a representative? Does FACET have to start thinking about expanding in Tanzania, the way it did in the other regions in the world, like Asia and Latin America?

FACET innovation in East Africa By Marjan Duursma

FACET has been active in East Africa in various ways, ever since the company’s inception: from short-term consultancies to long-term project management. For a short while, a local sister company registered in Tanzania, FACET East Africa Ltd, was operational in the late nineties. Early 2004, a new modus operandi was introduced in an effort to build on existing experience and generate more business in the region: working with a locally resident representative. After fulfilling this role for little more than a year, I am confident that this concept adds a new facet to the company; a facet, I believe will assist us in inventing our future in East Africa and elsewhere.

What are the advantages? For one, being locally represented makes it easier to remain connected with the society we work in and the people we work for. This stretches from understanding the particular bottlenecks local entrepreneurs are facing to being well connected to the local players in the field of private sector development. This pays off in the quality of work delivered. In addition, being in touch with the ‘grape vine’ (through people and local media) generates more business. Relevant local input and follow-up can also make a crucial difference in tendering processes. As compared to starting a locally registered sister company, having a local representative is less costly and less hassle. There are no minimum capital

requirements and registration fees, nor a search for a trust-worthy local partner is involved. A simple contract and monthly representation fee will do. Of course, finding a trust-worthy person who fits the company profile still remains key. In this age of the virtual work place, even far away in Africa one can function as any other colleague within FACET. In Tanzania, we chose a low profile and low-cost entry. I’m working from home, and business is mainly generated through personal contacts and opportunities found in the local media. This works well as an entry point, and at the current level of operations. But if we look at the future, I think there is more. There is no gain without growth. In countries like Tanzania, where the private sector is at an early developmental stage, general education levels are low and (donor) funding is available, FACET has a role to play in the years to come. A role that, in my opinion, is two-fold: to assist small business entrepreneurs through our services, but also to contribute to building up a professional local consultancy sector. To strategically position FACET in the local and regional market, and generate growth - more business for more consultants - a next step is

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necessary. There is only so much one person can do - with the risk of becoming fully caught up in consultancy assignments, at the expense of marketing and growth. Therefore I believe that in order to build a solid representation, promote FACET, and distinguish us in a local arena of growing competition, it is necessary to invest in visibility. And that is one thing a low-cost, low profile representative does not provide. That’s why, ultimately, I believe the strategy for the next couple of years should focus on the following.

Nairobi

office, such a pool remains a loose and mainly virtual network. In addition, it might be (more) difficult to attract the right people. As a next step, therefore, I see two basic options. The first one is to enter into a joint venture with a local consultancy company, like the venture in Bolivia where FACET has already gained experience in this kind of operation. It contributes to capacity building of local consultants in a structural way, and provides us with a local legal entity as well as visibility. Entrepreneurship development as part of vocational training, the solution of (youth) unemployment in Africa? FACET assists the Morogoro Vocational Instructors College to improve the training curriculum and skills of the instructors.

First of all, creating and nurturing a pool of local (associate) consultants is a starting point for developing a ‘local’ face. This is a ongoing process, which goes hand in hand with an active marketing approach to generate more work. It should be one of the main tasks of the representative to identify, train and coach suitable local consultants. This requires a considerable investment in time and effort, but will pay off over time. However, without a local

Finding the right partner, again, is the crux. In Tanzania, the private sector is only slowly emerging (due to a socialist past) and capacity at the few local consultancy firms is limited. Nevertheless, the landscape is slowly changing, with more international entrants, and local firms learning the ropes in private sector development. This dawning consultancy market means increasing competition - but also better opportunities to find a suitable partner. Nevertheless, engaging in a joint venture in Tanzania is likely to require some time, and capacity building will have to be a crucial element in any joint venture agreement. A second option is to grow from the current low-profile representation into a local office. This involves renting a small place, to serve as a proper ‘base’ for (associate) consultants to work from, where visitors can be received, and which will provide visibility and a professional image. With increased visibility and presence, however, also comes the need for a local legal entity. Either in the form of a locally registered company limited by shares, or a branch office of FACET Netherlands. Under the current Tanzanian legal framework, a locally registered company requires a long-term commitment, as well as (ideally) a local shareholding partner. A branch office is easier to establish and easier to wind up, albeit (slightly) more costly, as it is seen as a foreign entity. However, in my opinion, FACET’s future strategy requires a commitment to further invest in the local presence. Not just for the sake of it, but because it makes commercial sense. With our private sector focus, with all its facets, in combination with being a small, flexible and innovative company, we can still make a contribution to Tanzania, and Africa in general, for the years to come. Working through locally resident representatives is an excellent entry point, but should further develop over time in order to realize growth and provide continuity.

Reflecting the future Bolivia, Indonesia, Tanzania, future paths will lead FACET to new grounds all over the world. But one thing stands out, is apparent in the articles of Udijan Wahjusuprapto, Roberto Casanovas and Marjan Duursma: innovation. FACET has to constantly renew itself, be reborn out of its own ashes. The world nowadays changes in such an amazing speed, that before the phoenix loses its feathers, already the cry of a new mystic bird can be heard in the nearby distances. FACET is to much a part and much to independent on the fast global changes, to stand still. FACET is the whole wide world on a micro-scale. If the world changes, FACET has to change with it. Without hesitation. Is that a danger? Shouldn’t there be time for reflection? Haven’t we been told we should think, before we act? Indisputably a very important facet of FACET and unmistakably an aspect of every leap into the future is asking oneself what the possible challenges are in the-world-to-be. Taking into account the stories of Roy Kessler, Udjian Wahjusuprapto, Roberto Casanovas and Marjan Duursma we now know where FACET stands and that the company sees before it some future paths. But we no nothing of the global circumstances in

which it has to operate, the possible hardships it might encounter and the different tools at hand to tackle future issues. Henk Harmsen, partner of deputy director Hedwig Siewertsen, took the liberty of reflecting on the future of FACET as part of global changes. Himself being a ‘semi-outsider’ he wonders which of the recent international developments, like population growth, urbanization, rising unemployment and technological innovations will demand the presence of FACET in the future. Jan Roland Vergeer sat down and reflected on the possible solutions for future issues at hand, and the solutions still to be developed by FACET. He joined FACET not to long ago and is an ADAPPTadapt, focused on the development and business implementation of Corporate Social Responsibility. An approach FACET has put in to practice, one of the trails the Zeist-based company has set out for itself in search of new markets. Together Harmsen and Vergeer manage to tear FACET loose from its SME-roots, to lift it from the practical, solid ground of the everyday business of the consultancy firm. Future thinking is visualising.

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Game Rules Find the words that have been hidden in the grid - up, down, forward, backward, or diagonally. Within the puzzle, words can overlap; a letter can be part of two or more words. If you manage to find all the hidden words in the grid, the remaining letters will form the solution: reading the letters from left-to-right and top-to-bottom. Prizes As with every contest there are great prizes to win! FACET picks 5 winners from all the correct solutions. The winners will be announced on November 20th 2005 - and the prizes will be sent to them. Please send your solution (+ name, address and telephone number) before November 1st to FACET in Zeist.

SUPPORTINGSMALLENTERPRISES

The new, the many, the connected By Henk Harmsen

Where will FACET be in 2020? When FACET was created in 1990, Nelson Mandela walked out of his prison; the internet was invented the year before and the cold war had just ended. If so much has changed during the last 15 years, how can you visualize the next 15 years? I have tried to do this on the basis of 3 themes: the new, the many and the connected. Urbanization nearly doubles in 1990-2020 40 35 30 25 20 15 10 5 0 1985

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The new Today, most companies are directing their marketing efforts on the rich, thereby ignoring two thirds of the population of the planet. But imagine that they succeed in developing products, which combine new technology that adapts to local conditions. It could lead to the diminishing of the traditional dominant role of donors, and FACET would work more and more for companies that do not yet have the required expertise that FACET has. All this is happening now, with new partnerships forming between NGOâ&#x20AC;&#x2122;s, donors and companies. FACET will work in these types of partnerships in 2020.

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Another new development is the settling of people in cities. Consider the graph below. When FACET was created, about 21% of the population in the least developed countries lived in cities. In 2020, this will be more than 36%. What does this mean for FACET? Monitoring the specifics of small enterprises in an urban development looks like a good investment for FACET. The many When FACET started its operations in 1990, the world population counted about 5.3 billion. In 2020 this will be around 7.6 billion. The less developed regions will contribute the most to the population growth. In those places the population will increase from 3 billion to 4.9 billion.

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Commonwealth of Independent States Western Asia and Oceania Sout-EasternAsia Southern Asia Eastern Asia Latin America and the Caribbean Sub-Saharan Africa Northern Africa 0

% unemployed

This will create environmental stress and increase the competition for available resources. More important for FACET, jobs need to be created for all these newcomers. ‘Developing and implementing strategies for decent and productive work for youth in collaboration with developing countries’, was defined as a Millennium Goal by the United Nations. In the meantime, unemployment rates remain high in Africa and are increasing in other developing regions (see graph below). FACET will still have enough to do in 2020.

Sub-Saharan Africa

And new staff? The days of the expats are counted. There are many people available now with a long track record, going back to their times with the United Nations or the Dutch government. These people will be harder to find in the future. It could be that FACET has more staff-members with a company background. Not to forget all those people from other European Member States. The connected Communication technology is still developing at a neck-breaking speed. When FACET started its activities in 1990, mobile phones looked like suitcases, carried around by only a few people. Now they are everywhere, part of the daily life in both the developed and the developing world. The internet was invented in 1989, just the year before FACET started its activities. Now, life without the internet and email is unthinkable. Devices are getting smaller, cheaper and connected. People can live anywhere in the world and still do their work for FACET. Never has it been easier to form ad-hoc teams for a variety of projects. That’s why FACET in 2020 (and before) can work with a small core team of employees in combination with cooperative arrangements and contracts with freelancers. In an increasingly connected world, small is beautiful. The clients of FACET will have a far better access to information than is currently the case. Credit officers will collect financial information on mobile devices, and FACET can increasingly assist or evaluate electronically by logging in the database in which this information is put. Collaboration with partners will increasingly use net meetings, and we will see a widespread use of telephone by internet (VoIP). In the past, information technology has not led to less travel - on the contrary. The improved communications and access to information does not mean that FACET will travel less than before. A connected world means also a smaller world. Now, most people think of poverty and hunger when they consider the developing countries. This will change soon enough. When I worked for KPMG, the computer helpdesk was in Amsterdam. A few months later it was in Dublin. A year later it was in India. From the director to the secretaries, everybody was chatting with the Indians when their computers crashed.

internet users, per 1000 people, 2002 phones per 1000 people, 2002

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phones per 1000 people, 1990 Middle East & N. Africa Latin America & Carib. Europe & Central Asia East Asia & Pacific Low & middle income High income World 0

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And will it be fun? The remaining question is: will it be fun? As a semi-outsider, FACET looks like a great place to work. There are interesting projects, multicultural contacts and a good atmosphere. There will be other types of projects and more nationalities to work with. It is very small, and whether this is an advantage or a disadvantage in the future will to a great extent depend on FACET itself.

FACET als bruggenbouwer Door Jan Roland Vergeer

De wereld globaliseert en dualiseert. Kloven ontstaan tussen rijk en arm, Noord en Zuid, westerse en niet-westerse waarden. De invloed van Amerika is op politiek, economisch en cultureel vlak dominant aanwezig en wordt alleen nog maar groter. China, India en Brazilië zijn de nieuwe grootmachten in spé. De aarde is overbevolkt en overbelast. Milieu-problematiek is een hedendaagse eufemisme voor ecologische uitputting. In Nederland economiseert de ontwikkelingssamenwerking en staat samenwerking met het bedrijfsleven meer dan ooit voorop. Wellicht draagt het stimuleren van een duurzame groei van het Middenen Kleinbedrijf in ontwikkelingslanden bij tot het dichten van de ontstane kloven, tot het terugdringen van de armoede in de wereld en het bewuster omgaan met natuur en milieu. Hierin is een rol weggelegd voor FACET. De vraag is: hoe moet FACET die rol vervullen? Ten eerste vormen internationale partnerships met zusterorganisaties in de vele regio’s in de wereld een belangrijk aspect. Het gaat dan vooral om partnerships, daar waar zij de grootste toegevoegde waarde hebben. Maar het kan nog een stap verder gaan, zoals aandeelhouders in de FACET groep aantrekken, die uit het Zuiden en het Oosten van Europa komen. Afrika is het belangrijkste focus continent. Maar ook het nieuwe Europa is dat, of zal dat worden. De vraag is: kiest FACET focuslanden in het nieuwe, zich steeds verder uitbreidende Europa? Daarnaast kan het geen kwaad om na te denken of FACET iets wil lanceren in opkomende landen als China, India en Brazilië. Vooral India wordt een interessante tussenschakel in de wereld als tegenhanger van China.

Een tweede aspect die de rol van FACET in de toekomst kan bepalen, is de samenwerking met internationale organisaties voor het MKB, in Nederland en/of Europa. FACET kan er voor kiezen om steeds meer een netwerk te worden van kennis en projecten. Met een kleine vaste staf wordt het eenvoudiger om met meerdere organisaties samen te werken, kennis te delen, kennis en capaciteit internationaal uit te wisselen in de vorm van mensen die actief zijn in projecten. Voor kleinere en grotere projecten kunnen dan specialisten worden ingehuurd voor kortere of langere tijd. Flexibiliteit en vertrouwen zijn daarbij sleutelwoorden. Bindingen kunnen ontstaan door mensen extra te belonen voor goede prestaties. Ook aan aandeelhoudersschap door middel van certificaten met winstuitkering kan worden

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‘Kloven dichten begint met bruggen bouwen.’

zakelijke waardeketen vele MKB bedrijven als leverancier en afnemer heeft. Daarnaast is een goede band met NGO’s, locale, regionale en nationale overheden en andere organisaties natuurlijk onontbeerlijk.

Een Adapppt seminar in Armenië, met aan de tafel Gerrit Ribbink (FACET) en Samvel Gevorgyan, directeur van onze Armeense partners BSC (maart 2004).

gedacht. Wellicht moet FACET in de toekomst de afhankelijkheid van donor-organisaties verminderen. Dat hoeft niet noodzakelijkerwijs door het afstoten van werk, maar kan ook door andere marktsegmenten te ontwikkelen. Daarbij moet worden gedacht aan het stoppen van oude kennis in nieuwe markten, nieuwe kennis in nieuwe markten en de ontwikkeling van nieuwe product/markt combinaties. Een derde aspect is een directe focus op werken voor het bedrijfsleven, met het accent op het MKB. Toch is het ook belangrijk dat er een speciale relatie met het grootbedrijf wordt ontwikkeld, te meer daar het grootbedrijf in haar

Samen met deze organisaties is het mogelijk om projecten te ontwikkelen rondom specifieke thema’s. Dat is een vierde aspect van FACET’s toekomstige rol in het stimuleren van de groei van het MKB in ontwikkelingslanden. Enkele voorbeelden van thema’s zijn: waardeketen, certificering, export, import, training-bewustwording, rol diaspora in de wereld, match-making, marktonderzoek, innovatie, internet/computers, productontwikkeling en netwerken. Een nieuwe pakket van allerlei Business Development Services kan worden ontwikkeld op basis van behoeften van allerlei stakeholders. Ten vijfde moeten ook de samenwerking en eventuele joint ventures met Venture Capital maatschappijen niet worden geschuwd en verder ontwikkeld worden. Samen met IFC, overheid en donor-organisaties moet een fund worden opgezet voor BDS services aan snel groeiende MKB bedrijven die bediend worden met Venture Capital in het segment tussen € 25.000 en € 500.000. Kloven dichten begint met bruggen bouwen. Samenwerking in verschillende regio’s, met meerdere partijen, op allerlei manieren, en rond verschillende thema’s zal voor een groot deel bepalen hoe FACET zijn rol vervult in het stimuleren van groei van het Midden- en Kleinbedrijf in ontwikkelingslanden. Om dit te realiseren moet worden gekeken naar de benodigde kennis en ervaring. Naast de huidige kennis van de ontwikkeling samenwerkingswereld is vooral veel kennis nodig van het grote en kleine bedrijfsleven. Daarnaast is meer management ervaring nodig voor de grotere projecten, en voor de interim-klussen voor het kleinere en grotere bedrijfsleven.

FACET: then, now and in the future FACET in the next fifteen years will not be the FACET as we know it today. It sounds like an understatement, but it actually is not. Bear in mind that the world is changing, you are changing. Perceptions change and differ over time, needs disappear where wants are created. So what has FACET to offer? Will be the question it has to answer to. Boldly the company grew. Nourished by a hard working and loyal staff, people with a vision of integrated services for the development of Small and Medium Enterprises. And the work paid of, in cash, in know-how, in business cards, but most importantly in friendships. Something tells me that FACET is not only in the game for the money. It has something to do with taking down barriers to entrepreneurship, creating future possibilities for growth en handing people the tools to further carry out that mission. But somehow I have the feeling all that is about to change. In the writing of Udjian Wahjusuprapto thinks the way FACET works and the services it offers are not made to fit the current, vast Indonesian market. Bolivian counterpart Roberto Casanovas thinks an opening has to be created, to let other companies in and participate as a partner in business, instead of mere partners in projects. That kind of future development will, according to Casanovas, prove the entrepreneurial attitude of FACET. Both Harmsen en Vergeer think FACET has to change its structure from being a big databasedriven total-solution company to a smaller, more flexible organisation that, like a spider in a web, dwells in the middle of a huge international network. Is FACET no longer of this time? Is FACET more history then future? Is FACET a company that is, because it so obviously was? Or does FACET

operate on the brink of a new future, willing to leap into the next fifteen years, but being hold back by something we still donâ&#x20AC;&#x2122;t know? Time to take it to the top. Letâ&#x20AC;&#x2122;s go back to Zeist and have a talk with the founder and former director, Klaas Molenaar, and the present director, Adriaan Loeff.

Close collaboration

PART I PART II

PART III PART IV

In Central America FACET develops an automated software module to improve and standardize the evaluation of small loans and increase the productivity of the credit officers. Furthermore, the introduction of the module has assisted over 20 institutions to improve their loan approval policies. The module can be linked to various loan administration softwares in order to integrate the history of the client with the institution in the analysis. FACET has developed the module in close collaboration with some pilot institutions and a large number of staff of financial institutions and regional consultants has been trained to introduce the tool in more institutions and develop the software module further in future.

Part IV TO EXPAND OR NOT TO EXPAND

A play on the nature of FACET, its present state and future form by Jeroen Molenaar

PROD. NO. SCENE

N PRODUCTIO

ACT

Facet

f f e o L . A lenaar &

FEATURING

K. Mo

t s i e Z , e c home offi

SETTING

PART I PART II PART III

PART IV

It must have been five years since I’ve visited Zeist and the town had not quite changed. A sunny Saturday morning, early spring, gently washed through the sleepy lanes. Nothing had changed. The blue door of FACET’s home office was as blue as ever. I still wondered about the nature of FACET and why the organisation seems to be the only one of its kind. But now I also asked myself how a company like that could have survived all those years, what changes it went through in the past, where FACET thinks it is in present days and what it will look like in fifteen years. I was hoping Klaas and Adriaan (I will use their first names, as we did during the interview) could provide me with some answers to my questions.

Scene I, Act I. The library. Entering Klaas Molenaar, founder and past director, and Adriaan Loeff, present director. Klaas, carrying a tray with coffee and croissants. ‘It all started with croissants, more or less’. Adriaan can still remember the pioneering days of FACET in the early nineties, when the office was situated above a French bakery on the market square of Apeldoorn. He had run into Klaas in 1992 at a course, organised by FACET and MDF. After a short while Klaas had picked up the phone and asked Adriaan to join the consultancy firm, founded only two years before. In February 1993 Adriaan entered the office, only to be sent on a mission to Indonesia the next day. FMO, the Netherlands Development Finance Company, had just past through a big project in Jakarta to FACET. ‘Back then we already had an image of: ‘small business, hand it over to FACET,’ Klaas enthusiastically shouts. From the start FACET had a pretty good idea of where it was going. ‘I wanted to build up a ‘body of knowledge’, Klaas explains. ‘The aim was to collect all the expertise available on the development of Small and Medium Enterprises. We did that by drawing people, who had the knowledge and skills on that particular area. The rule at FACET was: You may go abroad, but you have to return to base. That was a completely new concept, contrary to the general rule of that time, namely that you had to go abroad, and may return to base.’ ‘It not only was an entirely new idea,’ adds Adriaan, ‘it also was the foundation of FACET’s success. To form a critical mass of twelve to fifteen professionals, who are devoted to the further development of knowledge. Most other consultancy firms and -organisations didn’t have the guts to do that. To keep people on the payroll also means you have to make considerable costs.’ For Adriaan the concept of building up a centre of expertise on Small and

Medium Enterprises was the most important reason to quit being a freelancer. ‘Look, a freelance consultant, when he’s involved in one project, is already thinking about the next. What will he do in three months time, after the current job is finished? A freelancer doesn’t have the time or the capacity of building up expertise. He cannot offer his client any back-up and there is no follow-up for his client, when the job is done.’

Scene I, Act II. Klaas Molenaar and Adriaan Loeff on the , importance of FACET s image In the fifteen years of its existence, FACET has built up a pretty solid reputation. ‘The name FACET stands for quality and good service,’ Klaas states. ‘But that doesn’t mean that FACET is known by the general public,’ Adriaan adds. ‘Once I was asked by the local tennis club to act as a sponsor. I pictured myself all those tennisshirts with the logo of FACET on them. And then people asking: what is FACET? No, that wouldn’t work. Our reputation is strictly limited to a very small, but specific circle.’

Does that mean the name FACET lacks successful branding? ‘No’, Klaas states, ‘We’ve established a good reputation. The lack of branding concerns our product, not our name. The reason is because our products and services cover such a broad area. We focused on the way we work, not on our product.’ FACET, in its own field, is thereby a company to reckon with. It hasn’t got real competitors. There are no other consultancy bureaus primarily concerned with the development and internal build-up of expertise concerning Small and Medium Enterprises. But that doesn’t mean that FACET can rest at ease. For FACET image building never ceases. To grow the business means marketing it’s name throughout the world and always assuring maximum client-satisfaction. As Adriaan puts it: ‘One negative ambassador can do a lot of harm. And unfortunately it doesn’t work the other way around.’

At this point Adriaan gets fired up. ‘I didn’t witness the conception of FACET’, he tells me, ’so I find this really interesting. Of course, we are confronted with all sorts of organisations like foundations, corporations and NGO’s with really vague organisational structures. And often people sneer at us: FACET is a commercial business. But that’s not because we want to make money. No, if you have a hundred thousand euros and want to make a profit, don’t invest them in FACET.’

This has to do with the way the market works. At this point Adriaan reaches for pen and paper and draws us triangles. He explains that at the top of the figure you can find the decision-maker, who also holds the money. The decision-maker can be anyone from a Dutch ministry, to the Swiss Agency for Development and Cooperation (SDC). This party decides on a project and the funding concerned.

‘The most important goal of being a commercial business,’ Adriaan underlines, ‘is to secure its survival on the mid- and long term. The bottom line is continuity, not making a profit.’

The bottom of the triangle is made up of, to the left, an organisation like FACET, and to the right the local party for whom the project is meant. After winning the tender, a firm like FACET has only to deal with the local party for whom it develops the project. After the job is done, FACET writes a report with a recommendation for the local party. If the work is done to a certain level of satisfaction, the top party (the decision-maker with the money) will probably remember FACET the next time it has plans for a project.

In its pioneering days FACET could, more or less, undertake anything it wanted. ‘But then comes the moment the company starts to grow and you get a certain responsibility towards the people working for the company,’ Klaas tells us. ‘You ask yourself: is its existence assured? The date of a pioneer expires, so we had to look for a kind of complementary, someone who could uphold the existing structure. That’s where Adriaan came in.’

Bottom line: to grow its business FACET has to make sure that people at the top of the triangle (usually the bureaucrats in The Hague and Brussels) have at least heard of its organisation and what it stands for. And because it stands for quality and expertise, it has to deliver at least these two services.

Scene I, act III. The interview now becomes a conversation. We take on another subject, namely why FACET chose the form of a commercial business. Is FACET in it for the money or for human interest? ‘When we laid the foundation for FACET we asked ourselves what kind of organisation we wanted it to be, a company or a foundation? For us the most important thing was the development of knowledge. And we had to make sure we were to be in front of the market, not in the rear. Walk ahead of the masses.’ According to Klaas it was really important to be independent. ‘We wanted to make our own decisions. We didn’t want a board to tell us what we could or couldn’t do. We didn’t want to rely on subsidies. It made us go against the flow. At that time, being commercial in our field, was simply not done.’ At that point Adriaan looks up: ‘That was the most important motive to choose the form of a commercial business? To be independent?’ ‘Yes’, Klaas states, ‘We wanted to be an open organisation, transparent towards our clients and the people we work with. And we were willing to take on the company risks. But it provided us with the necessary freedom to do the things we wanted to, things others had not done before. Like setting up sister- and daughter companies of FACET. Back then, that was something completely new. Although it only costs us money.’

For Adriaan, who became deputy director of FACET in 1996, when Ton Brunsveld moved to Indonesia, taking over the helm of the company from Klaas in 1999, was ‘a deliberate choice’. And while looking at the former director with a smile, Adriaan adds: ‘And Klaas leaves me lot of freedom.’ ‘When I sometimes talk with former college-friends, who work at companies like Shell, it strikes me that they are always complaining’, Adriaan continues. ‘They have to do this; they have to do that. Well, I don’t have that kind of a problem. It’s really nice to manage a team of professionals, so motivated, so driven. I don’t sell toothpaste, so I don’t have to think about renewing my product every five years or worrying about the profit margins of my product. I have the feeling that I make a difference. To put it bluntly, I think I’m very much involved in making the world a little better.’

PART I PART II PART III

PART IV

Scene I, Act IV. Yet unmentioned is Triodos Bank. As a 50%-shareholder, next to Klaas who holds the other half of the shares, the anthroposophically orientated bank was, in the person of director Peter Blom, one of the co-founders of FACET. Not present at our meeting, he nevertheless plays his part. When gazing around the office of FACET in Zeist, everything is painted a bright blue, from the windowpanes to the doorposts. But when you look closer, underneath the blue of FACET, there still lumbers a shadow of light, watery green. And notice that everywhere in the woodwork you can spot the letter ‘T’.

The job of the director; to listen or to launch just the other way? To break away from the often beaten track?

It was ten years before FACET came to life, that in this building on the Stationslaan 4, Triodos Bank held office. And it seems the interior of the office building in Zeist offers us a metaphor for the relationship between FACET en Triodos. The consultancy firm may shine a bright blue, FACET may be recognised worldwide for its quality and expertise in Small and Medium Enterprise development, but still present, underneath the surface, is Triodos Bank. Makes you wonder what a banker seeks in a commercial business, which isn’t devoted to generating a profit, but generating knowledge. ‘What Triodos and FACET have done is placing the development of expertise and entrepreneurship side by side’, Klaas tells us, ‘for a bank like Triodos money is a means of accomplishing its goals. For a venture like FACET entrepreneurship is a means of accomplishing its goals. The mixture of both is what you find in FACET. For Triodos a profit, in a material sense, is not the most important goal. The real profit the bank is after is the further development of entrepreneurship in Small and Medium Enterprises.’ The cooperation of FACET and Triodos bore fruit. Business grew, FACET got bigger and bigger and somewhere mid nineties there even existed the danger of overheating. But FACET steered away from a crash and managed to manage itself. The question if Triodos ever intervened was immediately answered with a ‘no’. According to Klaas, Triodos always kept its distance from the daily business of running FACET, though ‘Peter Blom did contribute a certain alertness. At one time he signalled that a change was necessary.’ It was in the late nineties, when Klaas stepped down as director and Adriaan took over. The

Triodos bank, Zeist

entrepreneur had to hand over the firm to the manager to hold up the structure of the business, be sure it continued operating. Triodos was always there, in the background, as one of the major shareholders and a financer, if need be. But now comes a time, Klaas tells me, Triodos is reconsidering the part it has played for so long. ‘Triodos started to keep its distance, more then it had before. The bank got in a dilemma of selling knowledge on the one hand and investing in that same organisation on the other,’ Klaas explains. ‘Let’s say that if Triodos wants to finance a project, it doesn’t want to make use of FACET for that same project. Triodos considers it a conflict of interests and therefore denounces it on ethical grounds.’ A way out for Triodos is to review its own position, according to Klaas. ‘We are considering the option of offering shares to sister companies of FACET. But that’s not all. We are currently testing different models of share offering. In one of them the staff can hold shares in the company.’ At this point Adriaan nods meaningfully as Klaas continues: ‘or maybe parties from the South can hold a stake in FACET, ranging from organisations

to individuals. A NGO like IDEPRO from Bolivia could become a shareholder, just to name one.’ ‘A scenario in which different parties from the South hold shares in FACET, is very good for our image’, Adriaan says. ‘FACET will be marketed more easily, because more parties will be involved’. Klaas adds that at the same time FACET will fasten its grip on its international network. ‘By letting them participate, we can really tie other parties to our company.’ Right now, both men are not quite sure how things will be going. ‘The plans are still on the drawing board,’ Adriaan says, ‘but people involved respond with enthusiasm to our plans.’ So it is possible FACET’s corporate structure is about to change. The question is: will it strengthen the firm to such an extent as to provide a harness thick enough to protect it from outside blows? Because not only FACET is changing, the world around the firm is taking on a new shape too. And maybe faster then you think. But that will be the subject of the next scene.

Scene II, Act I. The setting remains the same as in the previous scene. The conversation is slowly becoming a kind of entrepreneurial jam session. Speakers have poured themselves some more coffee and taken a bite of the croissants. We enter at a stage in which the clear and present dangers to FACET are analysed. Gathering know-how means setting up a database, and in the case of FACET the database is made up of people; a team of twelve to fifteen professionals. Working with a permanent staff of consultants is one of the many aspects of FACET’s unique character. Adriaan and Klaas both explained that keeping up a business like that in a sector that is made up of consultancy firms with a so-called director-secretary base is very hard. Mainly because of the fixed costs for personnel. So the question is: isn’t FACET too expensive? ‘No. Besides, that’s a question not very well put’, Klaas immediately rallies. ‘You pay a price for knowledge. That will never be too expensive or too cheap. It’s all about the client who has to consider the following: am I willing to pay that price. He has to acknowledge that the price he pays is worth the product.’ ‘Well, of course, there are competitors;’ Adriaan joins in. ‘Freelancers are less expensive than we are. Local consultants even come cheaper. But the difference in price is all about how much our clients are willing to pay for it. FACET offers quality and security, something a local consultant for example cannot. For us it’s very important to keep up our image and professional consultancy services, because then our future client will still be willing to pay our price.’ That tight relationship between price and quality is the keystone of the whole structure of small and medium enterprise development consultancy. One cannot pull it out and hope the structure doesn’t come down. Still, the Dutch Minister for Development Cooperation doesn’t seem to take any notice of this particular danger and calls for a withdrawal of half of the European development consultants, active

in the world. ‘That kind of positive discrimination doesn’t work,’ Adriaan states tactfully. ‘Still’, Klaas says,’ the local capacity is building up.’ More and more local consultants are trained and as the years go by they will get better and better. ‘That’s why it’s very important for us to offer international capacity in more places in the world than we do now.’ And again the importance of FACET’s sister companies is noted, as Adriaan adds: ‘FACET’s business volume is diminishing, we are drifting away from the source. We need to further develop our sister companies.’

Scene II, Act II. Ashes to the wind. Money and decision-making are scattered. Klaas and Adriaan now enter a quite technical conversation on how the market is changing. ‘Further developing our sister organisations and strengthening our mutual relationships, poses a problem,’ Klaas states. The business of setting op those organisations started as Spielerei, back in the early nineties. And not all of them have been successful, like FACET Andina one of the first in Bolivia, first very successful but later running into management problems, or FACET Kenya which turned out to be a reasonable success until the director started to compete with his own business and FACET had to close that sister organisation in 1995. ‘If we want to stimulate our sister companies in a more direct participation with the FACET Group we create a dilemma,’ Klaas explains. ‘From a development point of view we cannot interfere with our sister organisations. From a business point of view we have to be more involved with the daily business of our sister companies.’ I ask Klaas why FACET has to keep its distance from its sister companies and the term ‘supply driven’ is mentioned. This subject now starts a fierce debate

PART I PART II PART III

between both men. So I sit back, listen and try to figure out what they are talking about. ‘FACET used to do some supply driven assignments way back,’ Adriaan says. ‘Absolutely not.’ And to the sound of it, Klaas seems to be a little insulted. ‘Some of our assignment were Eurocentric, but that’s something else. Never our services have been supply-driven.’ ‘But how could you tell if an assignment was supply-driven, or not?’ Adriaan asks Klaas. ‘As a professional, you always make sure a project is not supply driven,’ Klaas states. And at this point I joined in and asked both men what supply-driven means. But maybe I shouldn’t have, as both men now reach for pen and paper and start drawing all sorts of figures. ‘Supply-driven nowadays is a deadly sin’, Adriaan tells me as Klaas is vividly putting his mind to paper, ‘but some twenty years ago that was the way development cooperation was set up.’ And he explains how in the old days some bureaucrat in New York or The Hague was making up all sorts of development projects for regions in the world he hadn’t even visited. But all that didn’t quite matter, as the tenders were written, all different parties like engineers, technical staff and consultants were contracted and the project was brought to life. Only to find out afterwards that the local people were not really in need of, say, a bridge or harbour. With bitter irony Adriaan tells me about his experience as a volunteer for the Dutch organisation SNV. ‘I can remember when, back in the eighties, I went to Nepal. Our job was to build new irrigation works. Why, nobody really knew. But, hey, don’t we all need irrigation works?’ As Adriaan finishes his story, Klaas seems to have finished his drawing. He took the picture Adriaan drew me just a half hour ago and added his own. ‘Look’,

PART IV

Klaas says, ‘this is how the market used to be, the triangle Adriaan drew. The money and the decision makers were to be found at the top. But the party we are really doing business with is the local one, at the bottom. In other words: too complicated.’ ‘Yes,’ Adriaan joins in,’ so now we are in an ongoing situation, in which the money and the decisions are both to be found at the bottom, the local party we have to deal with. That’s what is happening right now. Brussels, The Hague, they are all just handing down budgets to local parties like a Zambian Ministry of Agriculture with the message: you figure out what to do with it.’ Klaas points at the drawing. ‘Look’, he says, ‘There are a hundred and forty countries, of which a hundred are of any importance to FACET. That means that in the future there will be a thousand, maybe a few thousand, decision makers in the world. Most of them miles away from FACET. And information technology is not the answer. In our business we have to be face to face with the people we work with. Our job mainly consists of talking. So in order to do that, local presence is absolutely necessary. To get assignments and keep up our constant development and buildup of knowledge and expertise we have to be very close to the decision makers.’

Scene II, Act III. Will Development Cooperation cease to exist? Could it be that future governments in the West will cut their development budgets? Or is there a more present danger to FACET? The public debate in the Netherlands on development budget is dualistic. On the one hand few people still seem to care about anything happening outside the safe borders of Europe. Either a loss of hope in seeing war, poverty and disease die out in the world, or an egocentric apathy got a grip. Maybe both. On the

‘Dare to think. Outside the box.’

other hand Dutchmen always want to know exactly where, to what purpose, how and to what effect their tax money is used. In short, we don’t care about the world, only when it’s costing us money. Now, I don’t mean to be cynical, it is only meant to raise another issue. Because if it is true that The Hague and Brussels will in the near future do nothing but relocate money, the burghers of Holland will surely loose track of their tax-euros. A public outcry about possible misuse or disappearance of money may result in cutting the little budget that is still left for Development Cooperation, currently 0,7% of our GDP. ‘That 0,7% sticks’, Klaas says. But Adriaan seems to disagree: ‘There are critics who plea for cutting the budget. Measuring the effects of the development funding gets harder every time.’ ‘And there’s another thing’, Klaas adds, ‘the term ‘development budget’. It seems to imply a certain development. But it actually is a recurring item in the government budget, which will lead to a status quo, a lack of any innovation. The question is: how much do we need this time? Sometimes it will come to 0,7% of GDP, sometime just 0,3%. You never can tell, but you are right, it might disappear all together.’ What will happen if governments in the West keep reducing their

development budgets? Will there be other parties, filling the gap? Could big multinationals take over the role of the governments? In search of new consumer markets, it’s also for their benefit to develop and stimulate entrepreneurship around the world. Recently companies like the Dutch Rabobank or TNT are openly marketing their involvement in small- and medium enterprise in developing countries. But that only seems to be a charade. And a dangerous one too. According to Adriaan the big multinationals pose the most direct threat to the existence of FACET. ‘These are the consultants that work for free.’ Big international ventures, like the Rabobank, send their staff to the developing countries to offer their services for a week or two. These services are free of charge, and local parties think they can only benefit from them. ‘But actually these guys are going to do a lot of damage,’ Adriaan tells us. ‘Because it takes some time before the local parties, be they entrepreneurial organisations or entrepreneurs, realise that the free services they got, were useless. In many cases it’s too late and the harm is already done.’ For FACET it implies two things. First, they don’t get an assignment in places where the free-of-charge experts from firms like Rabobank and TNT roam around. That means lack of income, but more important a temporal setback of the ongoing development of expertise. Secondly, the damagerepair, which is going to take a long time. FACET’s name hasn’t been mentioned for quite a while in that particular corner of the world, which means reputation has to be build up all over again. The sending away of employees on short-term missions is part of a new marketing strategy of the multinationals. The outside world is drawn a picture of a social responsible company. For the lucky ones who are sent on a trip like that, it gives them an opportunity to use their new digital cameras and show the folk back home a part of the world hence known only from TV. A trip like that is sure to tie an employee to his firm. According to Adriaan, it’s just a matter of ‘feeling good, looking good and selling good.’

Scene III, Act I. Nachdenken über die zukunft. Possible solutions to present dangers and future issues. Klaas and Adriaan meet on the cross-section of entrepreneurship and management. At certain moments in our conversation, thoughts on future scenario’s of FACET could already be heard. But towards the end, as the past and present unravelled themselves, one question is left unanswered: how will FACET survive? Klaas pinpoints to the changing of the market. ‘It used to be so easy’, he says. ‘You just had to convince some people in Brussels, for example. Now you have to find out where in the world these people are. And one of the issues we are struggling with right now is: are we still capable of doing that, being but a small player?’ Both men are convinced that, if FACET wants to turn at least thirty, local presence is an absolute necessity. Small and Medium enterprises will always play a pivotal role in the development of a private sector, thus being an important aspect of nearly every kind of economic development. In other words, as long as there is funding, there’s plenty of work to do. And FACET unmistakably wants to be part of that. But things aren’t that simple if seen from a business point if view. ‘If FACET takes the trouble of increasing their presence in local regions, how

In Bolivia, everybody knows FACET

much growth will it generate?’, Klaas asks. ‘And will that be enough? And how many people do we need to successfully run our business? Right now we know that as an organisation we are to vulnerable’, he states. ‘We don’t have the volume growth we need. We have to anticipate to new developments.’ Adriaan explains: ‘We work with twelve to fifteen professionals. If one or two fall ill, we have a problem. The project concerned comes to an end. And because labour costs are, more or less, the only costs we have and the fact that these are fixed costs, our margin goes down. That’s why we need more volume.’ Volume can be acquired in a couple of ways. ‘One of them is by putting an extra ten people, who aren’t part of the permanent staff, on long term projects,’ Adriaan says. ‘You keep your costs at a relatively stable level and generate growth when the projects comes to an end in a couple of years.’ Another way of achieving volume growth is intensifying the role of FACET’s sister organisations. By tying them to the mother ship, the whole structure will probably be less sensitive to the swell of the market. A way of binding these organisations is by letting them participate on a corporate level, by giving them a share of the company. But of course that creates a dilemma between too much interference on the one hand and too little involvement on the other. ‘A way out of that dilemma,’ Klaas says, ‘is to let other parties from the South become co-owners of FACET. That could be anyone, and doesn’t necessarily have to be our sister organisations.’ Klaas explains that firms, foundations, NGO’s or individuals could participate and in that

PART I PART II PART III

way growth could be accomplished, FACET will expand its network and local presence is assured. And how is FACET going to react to the new competitors in the business, the local consultants and the free consultants from the big multinationals? Not by lowering its prices, Adriaan states. ‘As price levels are concerned, there is no more room to manoeuvre. We cannot offer services below our cost price, if we don’t want to go down. A FACET-consultant, with good references and in possession of a lot of expertise, just has its price.’ But Klaas thinks there still is one area where FACET does have the room to manoeuvre. ‘We take all the countries in Asia, Latin America and Africa and throw them out of our portfolio. We will then solely focus on Europe. Become a Fort Europe.’ ‘But then you will need another staff, other kind of consultants than FACET has now,’ Adriaan states. ‘No, there are actually two things I would very much like to do. First, I want to make FACET less vulnerable and enhance its continuity. Second, I want to do more, take on things that are fun. I would very much like to put more time and effort in product development. I would like to see our staff take all sorts of courses and seminars, and organise all kinds of conferences ourselves. Maybe we should invest in other companies. Stuff like that.’ ‘But then we would have to hire more people, or go back to a staff of five professionals’, Klaas says. ‘No, the most important thing FACET has to do right now is to expand. If the scattering of money and decision makers continues, we have to grow in order to still be known and recognised. More people have to talk about FACET.’ And he explains: ‘Let’s say, we have got a project with revenue of three million dollars. For that particular project we need three hundred people in six countries. In that case, your profit margin will be quite narrow, but the margin of the organisation will be broad. That’s why volume is so important.’ As Klaas, the entrepreneur, visualises volume growth by taking on largescale projects, Adriaan, the manager, steps in: ‘No, a project like that would put too much pressure on the company. The costs we would have to make would be too high and FACET hasn’t got the resources to back up a venture of that size. In order to do that we will need higher margins, then we have now. And that’s why I, as a manager, think it would take too much of our time, effort and attention. Right now, we cannot undertake all we want. Margins are important to.

PART IV

final act.

To expand or not to expand. So there we were, in the library of FACET’s home office in Zeist. We had finished the coffee and croissants, but Klaas and Adriaan were in no mood to end our conversation. They had clearly reached some kind of point at which a choice had to be made: to expand or not to expand. A choice like that is never black or white. And Klaas and Adriaan and everyone else who is a part of FACET will have to map out a new route that lies somewhere in the big grey area in between. To me it seemed that during this Saturday morning entrepreneurial jam session Klaas and Adriaan got a little nearer to FACET’s future path. Lucky them. I’m left with a whole bunch of drawings, containing all sorts of strange pictures. But that’s not all. They also left me with a whole lot of questions. Will FACET succeed in its mission of tracking down the money and decision makers who no longer dwell in The Hague and Brussels, but are scattered all over the world? Will coownership of FACET by different parties from the South, sister organisations and staff-members strengthen or weaken the firm? Can FACET ward of the local consultants and free-of-charge multinational holiday advisers who roam the market? In fifteen years time, will the name FACET still stand for quality and know-how in all corners of the world? Being a financial journalist, one thing really struck me during our conversation. I am used to talking with company-CEO’s and -CFO’s about their million- and billion dollar businesses. But never have I met anyone, who runs an enterprise and does not talk about money. In Zeist I witnessed two men, daily engaged in steering a consultancyfirm through the rough sees of Small and Medium Enterprise development, who passionately talked about their company, what it does and what it wants, and not even once did they try to convince me by using all sorts of financial facts and figures. They were just talking and thinking about their business. Somewhat unique, I must say. So before I left I asked both of them what FACET means to them on a personal level. ‘A mix of commerce and compassion,’ Adriaan stated. ‘It’s a challenge to combine management with inspiration.’ And Klaas said: ‘Dare to think. Outside the box.’

Scene III, Act II. The 65

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SEON Stationslaan 4 3701 EP Zeist P.O. Box 3700 AD Zeist The Netherlands P +31 (0)30 6974232 (0)70 3051826 F +31 (0)30 6923936 E info@seon.nl W www.seon.nl

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INDONESIA PT FACET MATRA INDONESIA Jalan Teluk Bima Blok A. XI 8 KAVAL Duren Sawit, 13430 Jakarta, Indonesia P +62 21 8620161 F +62 21 8605026 E facetind@telkom.net facetind@indosat.net.id W www.facetbv.nl/ matra_indonesia.htm BOLIVIA PROACTIVA SA Pedro Salazar no. 489 La Paz, Bolivia P F E W

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67 65

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