Ch 3 - Question 5 | foundation-guide

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:

5. What formal organizational structures should my network include?

Once you have an initial working group, the next step is to begin building out a formal organizational structure. Depending on the type of host organization, the structural needs of a network may vary.

Note that details of the network's decision-making processes are laid out Chapter 3, Question 6, "How do I formalize a governance structure and what are the key success factors and components?"

Example of Network structure (independent):

A typical independent network organizational structure has five key groups. It begins with the Members, organized into specific groups around industries (telcoms, logistics, finance) and areas of interest or specific topics or themes relevant to the network (water and sanitation, health). Below them sits the Board or Steering Committee, a smaller subset of members with specific expertise or experience who have been selected to make key decisions on the network's goals and activities. The Network Lead(s) serve as the public face of the organization and the key point of contact for potential members, and is advised by a set of Partners and Experts with relevant technical expertise. Finally the Network Staff provide support for day-to-day activities and programming.

Example of Network structure (hosted):

If a network is being hosted within a pre-established business network (for example, within a Chamber of Commerce), the organizational needs may be different. In these cases, networks typically create a separate council or committee under the Chamber, with specific governance and organizational details laid out in the Chamber's constitution. This might include a leadership council; a committee (including all members); a Chair/Vice Chair or similar organizational lead; a set of Partners and Experts, and the Network Staff.

<<KEY CONSIDERATIONS FOR CREATING AN INITIAL ORGANIZATION STRUCTURE>>

The guiding principles below can help establish an effective initial organizational structure:

Members:

The initial membership base should be representative of key industries
Members should be prepared to meet regularly face to face as required to monitor the progress of the network's activities
Members should be organized into relevant sectors, topics, or themes, with a lead member for each

Board/Steering Committee:

The Board/Steering Committee should be representative of key stakeholders, such as:
- Private sector actors and champions
- The host organization and other founders
- NGO/UN/Government representatives
The initial Board should be no more than five to six members, to facilitate decision-making

The initial Board should not be permanent, but should be replaced by a formal governance structure (for example, after a maximum 12-month term)

Network Foundation Guide

Connecting Business Initiative

CHAPTER 3: ESTABLISH NETWORK MODEL

5. What formal organizational structures should my network include?