Clustering is about the interaction of organizations of a similar type, healthy competition, networking and collaboration between them.
Cluster theory emphasizes the role of networks and relationships between the various parts of a cluster but not of individual organizations, and also fits with models of innovation and competitiveness.
Clustering is a ‘philosophy’ based on the core principles of integration (of activities) and collaboration (of members) for mutual benefit.
Cluster benefits come at three levels: individual level, sector/regional level and the wider level (National/global).
“Innovation, imitation and entrepreneurship are what propel virtually all competitive clusters.
The most successful clusters build mechanisms that can speed the movement of ideas, innovations, and information from firm to firm throughout the economy.
The mechanisms and entities for collecting and disseminating knowledge are consequently vitally important to cluster competitiveness’’.
Cluster Formation – critical success factors – the 4Ps Cluster formation theory states that one must start with the 4 Ps – the right plan, people, processes and projects.
Analyzing trends, resources and similar – jointly elaborating the cluster’s strategy. Jointly elaborated short-term, medium-term and long-term objectives critical mass of businesses representing product value chain interested to form a cluster
Cluster manager: (proactive, entrepreneurial, resourceful, dedicated, good communicator, diplomatic, determined – (not simple to find!), supporting.
The success of a high performance cluster is in large part, due to people forming quality relationships and networking to achieve results –‘chemistry’. These linkages are informal, and are supported by more formal organizations / institutions.
They work best at a community level where participants in the local area already have formed a wide variety of relationships, and there is already some degree of dialogue and trust.
Clustering builds on the teamwork that is already in place and formalizes it into a framework.
The clustering process requires:
Consensus on key issues
Collaboration at multiple levels
Community wide involvement in the process of building new linkages between communities, businesses and government
Rules of conduct, an operations’ manual which sets out ’the way we will work together’. Continuum in communication within cluster and between cluster members
Development and implementation of joint projects: quick wins and strategic projects
The first task therefore was to create an overarching map of the strategic action process we were going to pursue.
Representation of the Cluster
When representing the Cluster both the Lead Coordinator and the Co‐coordinator commit to neutrally representing the Cluster and not their primary organisation.
Whenever possible, meetings that relate to the Cluster, inter‐cluster or cluster representation should be attended together. For example, when the Cluster is invited to an event and other inter‐sector coordination fora, both Coordinators should be able to represent the cluster.
Where this is not possible, representation at meetings should be equally and strategically divided through mutual agreement. In any meeting where one party is not present, key talking points should be agreed prior to the meeting and outcomes or minutes of meetings be communicated afterwards.
This is crucial. It is called Memorandum of Understanding, MOU.
This helps the parties to agree and have it signed.
SCOYAN is set to do this with any or every member or affiliating organization at different levels.
SCOYAN has developed an organogram which clearly state the reporting lines and Terms of Reference to guide subsequent activities.
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Thank you for your time.
Founding President/Executive Secretary