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CHAPTER 3: ESTABLISH NETWORK MODEL

After establishing that a private sector network has opportunities to create value and fill unmet needs in your country, there are two next steps: establishing the network itself and determining what its initial activities should be. This chapter focuses on establishing the network model, including considerations like hosting arrangements, legal requirements, and initial funding.  While there is no one best model for all networks, there is a standard set of questions to address and the experience of other networks can be informative. The questions in this chapter will help set up a private sector network for success, ensuring it has the required structure and support for long-term sustainability and scale. This chapter and its associated resources can also be used to support the ongoing work of your network as it grows and evolves.

 

The resources in this chapter will help you answer the following questions:

  1. What are the mission and objectives of the network?

  2. What kind of initial organizational bodies can help launch my network?

  3. What are the key considerations to determine an appropriate hosting arrangement?

  4. What role can key private sector actors play in championing a network?

  5. What formal organizational structures should my network include?

  6. How do I formalize a governance structure and what are the key success factors and components?

  7. What are the different ways networks generate funding to support their activities?

  8. What partnerships should a private sector network form?

  9. How do I grow my membership base?

  10. How do I organize my membership base?

3. What are the key considerations to determine an appropriate hosting arrangement?

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<<KEY CONSIDERATIONS TO DETERMINE HOST>>

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CBi Member Networks can take two organizational forms: they may be an independent organization or they may be hosted within another organization. Both are viable options, but Member Networks often begin as a platform or initiative hosted within a larger organization. This approach is generally recommended for new networks because of the time and resources required to set up an independent organization. Launching as an independent organization is recommended only in cases where there is no capable or willing host or if there is a set of multiple initial donors unable to host, but willing to fund a network's initial activities.

 

For Member Networks that are hosted by another organization, there are many options to consider.  CBi networks have been housed within organizations ranging from the foundation of a large company to Chambers of Commerce to Employer's Federations. The host organization is often one of the founding members of the network and acts as a champion for the network within the private sector.

 

In the Global Development Incubator report on Multi-Stakeholder Initiatives (2015), multi-stakeholder initiatives around the world described a number of benefits to having a host:

  • Access: to government leaders, policy makers, and major global organizations

  • Convening power: to increase the credibility of the network

  • Operating Platform: to provide administrative and other functional support, such as HR staff or office space

  • Mission-aligned capabilities: to leverage existing processes and resources to conduct work, such as advocacy campaigns or technical expertise

 

There are also a number of benefits to being a host, which may be helpful to articulate during your discussions with potential host organizations.  These can include:

  • Access: to a broader set of government or humanitarian actors

  • Credibility: to strengthen or augment the credibility of the host organization through its association with the UN system or other humanitarian actors

  • Mission-aligned expertise: opportunity to deepen the host organization's capabilities and expertise in specific humanitarian-mission-aligned areas through network partnerships and members

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However, these initiatives also highlighted the strategic and operational challenges which can arise due to a hosting arrangement, including:

  • Control: some hosts can engulf or be perceived to engulf the network, or attempt to dominate the governance and leadership of the network to advance their agenda

  • Cost effectiveness and speed to market: some hosting arrangements can be more costly due to operational requirements

  • Resource mobilization: hosts can have differing restrictions on resource mobilization and disbursement decisions

  • Start-up support: some hosts may not be able to provide start-up support

  • Reputation: depending upon the network's mission, the network's reputation can be affected by the reputation of the host

  • Donor constraints: the host's geographic location can affect the donors available to the network

 

Network Example: Organizations can provide significant benefits to the private sector network by providing it with a basic corporate structure and support for fundamental business operations (governance, auditing, IT, financial/accounting system, HR support, etc).  In the case of the Philippines Disaster Resilience Foundation (PDRF), the major telco who supported their initial launch helped provide auditing and financial support as well as general legal counsel and business operations support, which helped them during the long process of securing tax-exempt status as an independent organization.

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Additional factors to consider when selecting a host organization, based on the experience of CBi member networks to date, include evaluating whether a potential host will:

  • Build credibility with local and international actors

  • Increase access to key government, UN, and NGO actors

  • Have recognition as a private sector representative body (such as a Chamber of Commerce or other business network)

  • Provide national coverage (i.e., not limited to a particular geographical area)

  • Align with the network and CBi's goals and principles

  • Provide start-up funds to ensure success (Note: CBi may also provide network start-up funds in some cases)

  • Provide administrative support such as office space

  • Enhance the network's funding opportunities, for example through minimal requirements and a favorable geographic location

  • Ensure the independence of the network's governance

 

 

 

 

 

 

 

 

 

 

 

 

Any potential hosting arrangement will have both benefits and trade-offs for a new network to consider. When evaluating the optimal host organization for a private sector network, consider the benefits and challenges outlined above and how they might apply to each option.

 

In addition to political and financial considerations, for example, it is also important to consider the alignment of your mission and goals with any expectations of the host organization. If the host is the foundation arm of a major local company, for example, will they be comfortable with the network reaching out to other companies in their industry?  Or if the host organization has a clear mission -- protection of children for example -- will they be comfortable supporting the network's broader mission to support private sector engagement with disaster risk management and societal resilience?

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<<EXAMPLES FROM OTHER NETWORKS>>

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<<ADDITIONAL EXTERNAL RESOURCES>>

 

For more information on host arrangements, we suggest

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