ILRT FPO Report with ASCENT maturity framework
- Ashu Sikri (Unlicensed)
2016 report from Institute of Livelihood Research and Training
Based on the findings of the study, a trajectory for FPO over first five years of its life cycle
has been proposed. A self-assessment tool: “Assessed Score for Capital and Capability for
Enterprise” (ASCENT) of an FPO was developed considering this emerging growth trajectory.
ASCENT of an FPO has five verticals with each vertical having variable and parameters. For
each parameter a maximum score and a benchmark score have been assigned based on the
age of the FPO. ASCENT will be useful for an FPO to assess its performance, comparing its
score with the bench mark score appropriate for its age. Application of the tool will provide
pointers to FPOs on areas that need attention and focus.
Business Mix
% of shareholders availing various services: Input, Productivity Enhancement, Ag Equipment, Warehouses, Marketing
Total turnover and breakdown across the various buckets above
Capital: Various financial rations including funds available for capex and opex vs. requirement, ROA and ROE, Receivable and Inventory Days, Current Ratio, Debt to Equity Ratio, Leverage Ratio
Board Capability:
Shareholders: Total number, inclusion of women and small/marginal farmers, participation in activities and AGM
Shareholder view on FPO services: Is FPO delivering valuable services to members. Maybe something for us to look at as we think about a Net Promoter Score concept. @Sai @Gautam Mandewalker
Board: How was board formed, it is representative, does it meet regularly
Do annual plans exist, does FPO have the right licenses, is audit complete and understood?
Staff Capability: How was staff selected, are they meeting regularly, do they get training, does performance appraisal happen?
External: Evaluation of local conditions like quality of roads, law and order, availability of govt schemes, availability of inputs, effectiveness of extension services, effectiveness of local mandis and private traders. Seems like an important selection criteria as we build our pipeline. @Ravi Shankar Sharma (Unlicensed) @Amrita Das (Unlicensed) @ashok
