TELE-WORKSHOP FACT SHEET May 1, 2002 Economics, Partnerships and Your Byway Community CREATING DESTINATIONS FROM SCENIC DRIVES TELE-WORKSHOP SPOTLIGHT SPEAKER Dr. Ernesto Sirolli Founder,The Sirolli Institute Sacramento, California USA Edmonton, Alberta Canada Speaker Profile: Born and raised in Italy, Dr. Ernesto Sirolli graduated from Rome University in 1976. He continued with post-gradu- ate work at Stellenbosch University in Cape Town, South Africa and at Murdoch University in Western Australia. In 1980, he created the Freemantle Shoemakers Co-op, Western Australia’s first workers’ cooperative, as his dis- sertation case study. By 1983, the project’s success earned a Silver Jubilee Award for Best Job Creation Scheme in Australia. Sirolli’s common-sense, humanistic perspective to eco- nomic development eventually became known as Enterprise Facilitation, a grass-roots approach similar to byway organization development. Using Enterprise Facilitation principles as a base, Sirolli established the Sirolli Institute International Enterprise Facilitation, Inc. in 1996 and a sister organization in Canada in 1997. Sirolli serves as chairman of the board for the Sirolli Institute International Enterprise Facilitation, Inc., and frequently speaks at national and international gatherings.The positive response to his presentation, "Economics, Partnership and Your Byway Community" during the 2001 National Scenic Byways Conference in Portland, Oregon, prompted the America’s Byways Resource Center to feature him in the Tele-Workshop Program. CREATING DESTINATIONS FROM SCENIC DRIVES Dr.Ernesto Sirolli began his lively discussion by explaining that the byways program offers an opportunity to tap inventive, creative and passionate individuals as building blocks to future economic success. Byways look hard at themselves, he said.They ask questions like,"How does our byway look? What could it look like? What has potential to be seen? What should it look like? What will attract interest?" Byway leaders understand that these are aesthetic values that can be transformed into their communities’ economic fortunes. Sirolli believes that every community has at least one person who has the passion and the dream ready to create a viable enterprise. "If you can help one person transform a dream or passion into a livelihood, then tell that story, you’re half way to changing the economic future of a community," he said. "Enterprise Facilitation is a mechanism to help people in your community right now develop a commercial or social enterprise that captures the attention of local residents and visitors." FROM PASSION TO ENTERPRISE Byway organizations and Enterprise Facilitation both rely heavily on grass-roots support. Sirolli pointed out that the purpose of his discussion was not promoting Enterprise Facilitation to byways; rather, he wanted to illustrate how the principles of Enterprise Facilitation can build upon existing grass-roots fundamentals. In addition, Sirolli emphasized that a community must invite the Sirolli Institute before the organization offers assistance (see the America’s Byways Resource Center newslet- ter, Vistas, February 2002). An invitation comes from a community only after civic leaders realize that the success of every single person in the community determines the success of the entire community. Sirolli acknowledged that some communities don’t understand why they should help an individual. However, Enterprise Facilitation has proven repeatedly that offering free coaching to one community member who wants to turn a passion into a reality will inspire other people to pursue their dreams. The commu- nity must employ (pay) this full-time, skilled coach, in the Enterprise Facilitation approach, but the results speak for themselves. CREATING THE BOARD Sirolli insisted that Enterprise Facilitation can help turn a cranky old man who builds bird- houses in his basement into a local economic development success. But, he said, it requires a strong local board of management.This group of civic leaders, up to 50 of the com- munity’s brightest and best thinkers, becomes the support network for the individual.They help each dreamer succeed and prosper. "Contacts and skills are important," said Sirolli. "We spend quite a bit of time recruit- ing and training." In addition to recruiting the board, the board then recruits the Enterprise Facilitatior with the assistance of the Institute. In the first three months, the 50 board members introduce 10 friends each to the Enterprise Facilitator. "From those 500 intro- ductions, we find 20 to 30 possible entrepre- neurs.The range and diversity is exciting, from a single 17-year-old to a group of 100 producers working together," said Sirolli. The Enterprise Facilitator then takes a prominent role. The Enterprise Facilitator listens to each entrepreneur, working one-onone to start or expand a business with complete confidentiality.The Facilitator goes to the entrepreneur, at no charge and only upon an invitation. "We’re in your kitchen looking at your ideas for enterprises," explained Sirolli. Every month the Enterprise Facilitator goes to the board to explain the clients’ circumstances.The network clicks into gear, offering suggestions, contacts or ideas.After each meeting, the Enterprise Facilitator goes back to each client with the offered resources to resolve the problems. An enormous energy develops and a spirit like a barn-raising ensues, according to Sirolli. "They say:‘You’ll help me, really? So I can move and open a business?’ It’s a very positive spirit," Sirolli said. THE TRINITY OF MANAGEMENT The Facilitator’s goal focuses on balancing a dream with business skills. In Sirolli’s opinion, a successful business "beautifully" integrates three elements that he calls the Trinity of Management: operations, marketing and finance. 1. Operations - Product/Service "The product has to be cared for beautifully," Sirolli explained. "A beautiful store on Main Street will make people stop to shop, not pass by, tell others, and return. But it must be original, unique." 2. Marketing and Sales These have to be done beautifully. "This is much more than selling," said Sirolli. "Marketing is an art form itself." 3. Finance - Money Management Much more than bookkeeping, this is the art and talent of money management. Sirolli said that business decisions, such as renting, buying, leasing or hiring, must be beautifully executed. But, in Sirolli’s opinion, it’s not enough to understand these three things. "You must understand what you HATE doing as much as what you LOVE to do," he said. "We have discovered one fundamental truth: we can never find one human being who equally loves all three components of an operation.We haven’t found one! The people we’ve met are in two groups:They love only one of these components, or they love only two of these components." The Facilitator's role is breaking the solitude of the entrepreneur. "If you’re alone in your business, you’ll do one or two of the components poorly.Your heart is not in it.We teach entrepreneurs who are stuck that every single business is a team effort. No successful company is run by one person," Sirolli added. The Facilitator helps define the group or component that’s missing. If the person doesn’t know somebody who can help, the Facilitator goes to the board members and asks who they know.They use fifty brains to come up with names to help. "We reconnect entrepreneurs to the community," said Sirolli. RURAL HOPE Yvonne Fizer,Vice President, Marketing, for the Sirolli Institute in Edmonton,Alberta, Canada also joined the discussion. She noted that Enterprise Facilitation has significant impact when the local board sees the potential to revitalize its community. "Hope returns to small rural communities," she said. Fizer cited the rejuvenation of hope that the Sirolli Institute helped to spark in a remote and rural area of northeastern Oregon, including Baker and Wallowa counties. "During an 18-month initial phase, 800 potential entrepreneurs approached the Enterprise Facilitator, 24 new businesses opened and14 businesses expanded," she said, "In all, a total of 59 net new jobs were created. The cost was $1,500 per job." "We only work with those who are passionate to see their dreams transform," Fizer said. "We look for the fire in the belly." She added that Enterprise Facilitation works where there is leadership. "The best communities are those communities with vision for themselves and believe in their local talent." Fizer noted that the Sirolli Institute was invited to assist the Kansas Department of Commerce to address rural development using Enterprise Facilitation.A Challenge Grant was issued and three demonstration projects were identified in some of the state’s poorest counties. "Kansas has incredible leadership," she commented. Hope revived,the response has been inspirational to other communities. Interest in Enterprise Facilitation has spread from rural to urban communities,including locations in Vancouver and Greater Minneapolis - St. Paul. Fizer said, "Ripples happen. People watch the dreamer succeed,and say,‘Me too!’ Then the same things happen with communities.They look at partnerships and study them for examples. Demonstrators become catalysts for hope.There is inspiration:‘if they can do it, we can do it.’" BYWAYS CAN DRIVE THE VISION Both Sirolli and Fizer emphasized that byway leaders can become links between the community’s vision and local entrepreneurs. "Local attractions are necessary," said Sirolli.The local entrepreneur can become the one component that begins a transformation from a drive-through town to a tourist destination. "A successful business in a community builds prosperity for all." He cautioned that business recruiters in America have bred animosity between communities who struggle to keep viable companies and those that try to entice companies away from others. "Enterprise Facilitation is one mechanism to grow your own," he said. "We encourage you to support your entrepreneurs." Q & A Following the discussion, several byway leaders asked Dr. Sirolli and Ms. Fizer questions about the Enterprise Facilitation concept. Q. What size community is feasible for the Sirolli Institute to consider undertaking Enterprise Facilitation? A. As small as 5,000, but no larger than 50,000. In Kansas, the parameters for selecting demonstration sites included a minimum of 15,000 residents located one hour from a central regional point, requiring counties to collaborate. Q. How long does the project last? A. The training agreement with the Sirolli Institute covers 30 months. In the first 6 months, the Sirolli Institute assists with recruiting and training both the local board and the Enterprise Facilitator. In the next 24 months, the real work begins.The board and Facilitator begin the process of assisting local passionate individuals and the Institute remains involved to deliver continuous training, support and trouble shooting. Q. How much does it cost? A. The program costs $300,000. Half of that is spent on operation costs, salary and office expenses, such as phone and travel. The other half goes to the Sirolli Institute for services, including training, sharing the community’s story, and helping to secure sustained funding for ongoing success. Q. Does the Sirolli Institute help find start-up money? A. Often the start-up money comes from multiple-party funding sources, including private and public entities. For example, in Kansas, the Challenge Grant funded 66 percent of the 30month budget and 34 percent came from the community, including local in-kind and cash contributions.It’s important for the community to make a financial commitment to implement the program and make it work.The Sirolli Institute also works to help communities secure long-term funding. BOX: cURRENT PROJECTS As of May 2002, the Sirolli Institute is implementing Enterprise Facilitation projects worldwide. United States • Montana • Idaho •Oregon • California • Kansas •Iowa • Ohio Canada • Ontario • British Columbia • Manitoba • Saskatchewan Australia • Queensland New Zealand • North Island RESOURCES INTERNET LINKS The Sirolli Institute International Enterprise Facilitation(TM), Inc. Web site: http://www.sirolli.com/index.html Toll-free: 1-877-747-6554 PO Box 22544 Sacramento, CA 95822 "Managing Wholes: Firsthand Reporting on Designing a Future That Works" Web site: http://www.managingwholes.com/ Managing Wholes offers easy registration. Registered users can post comments, stories and subscribe to the bimonthly email newsletter.The site index includes a variety of discussion areas, such as paradigms and decision making; community and economy; conflict, power and scarcity; and ecosystem issues, among other topics. "The Reading Room:Learning about Tools for Success" University of Wisconsin Extension Service Web site: http://www1.uwex.edu/ces/cced/readingroom/ reviewedbook.cfm?book_id=28 This site offers a review about Dr. Sirolli’s work, as well as reviews and excerpts from other books about economics, leadership and related topics. "Business Facilitation Group Celebrates Its First Year" Web site: http://www.lagrandeobserver.com/news/story.cfm?story_no=1989 Observer, La Grande, Oregon This newspaper article dated February 21, 2002, highlights Dr. Sirolli’s work in Oregon. The Economic Development Bookshelf Web site: http://www.narc.org/ed/ed_book.html This site provides a review of Dr. Sirolli’s book, and features economic development links. E. F. Schumacher Society Web site: http://www.schumachersociety.org/ This educational non-profit organization, founded in 1980, offers resources for community renewal and environmental sustainability. BOOKS Ripples in the Zambezi: Entrepreneurship and the Rebirth of Local Economies, by Ernesto Sirolli, New Society Publishers, 1999. Small is Beautiful: Economics As If People Mattered, by E.F. Schumacher, Hartley & Marks Publishers. The classic book on the inter-relationship of economics, environment and sustainability, originally written in 1973, latest edition 1999. America’s Byways Resource Center provides information, connections and expertise that help build better byways. State coordinators, local groups, volunteers and organizations with ties to nationally designated scenic byways look to us for hands-on assistance in planning, preserving, promoting and managing scenic byways. 2002 Tele-Workshops Alternative Funding: Looking Beyond Traditional Sources Don Charpio, Bureau of Land Management Economics, Partnerships and Your Byway Community Ernesto Sirolli,The Sirolli Institute Traveling Gracefully: Interpreting Scenic Byways Ron Zimmerman and Michael Gross, University of Wisconsin – Stevens Point Sharing Your Heritage: If You Promote It,They Will Come Amy Jordan Webb, National Trust Heritage Tourism Program Making the Grassroots Grow: Building and Sustaining Byway Organizations Web Site Technology Stephen Clyde, Utah State University, National Scenic Byways Online America’s Byways Resource Center 227 West First Street, Suite 610 Duluth, MN 55802 Tel: 218-625-3469 Fax: 218-625-3333 1-800-4BYWAYS (1-800-429-9297) Ext. 5 www.byways.org copyright 2002 America’s Byways Resource Center