From "Donor Mentality" to "Owner Mentality"

Perhaps more so than any other part of Africa, there is a popular notion in Rwanda that we must depart from a “donor mentality”. This new mandate has been poignantly communicated in books such as “Dead Aid”, a book which President Kagame handed out to every member of his administration. The thought that local problems can, or should, be solved by benevolent outsiders is perhaps one of the most crippling legacies of Africa’s colonial past. Government, NGO and philanthropic aid continues to pervade countries like Rwanda, and while these people and institutions often have truly noble intentions, Kagame and others are fearful they may stunt the Rwandan mindset required for truly sustainable development. Karisimbi Partners is committed to the market-based sustainability of its client companies, and we feel we can do this best by being profitable and sustainable ourselves. This approach makes us somewhat odd among the many Westerners here representing religious, political or non-profit organizations, but it has also made us popular among the local public and private sector leaders seeking an alternative to traditional aid. I have been struck this week by some of the interactions we have witnessed from this vantage point…

Exhibit A. Too often, Rwandans will wait for aid to come to the rescue rather than working to rescue themselves. For instance, we know of a village that refused to build proper latrines because the village next door had them donated and they thought it would be easier to wait until they received similar help. One of our client companies has recently received a significant investment from a European businessman. As Karisimbi Partners has been asked to evaluate the caliber of the existing management team and supplement where necessary, I have had the opportunity to interview 16 of the top employees in this agricultural processing company. I have asked each, “What changes would you make if you were the owner of the company?”. Almost without fail, the initial response has been a laugh or smile and a comment which indicates they had a) never considered the possibility of their being an ‘owner’, and b) have little reason to think such could be any more than a hypothetical exercise.

Exhibit B. I met with a leading Private Sector Development manager working for a European embassy this week. He has lived here for four years and personally overseen millions of Euros in aid via more than 13 initiatives led from his office. When I told him what Karisimbi Partners was doing, he thought it a refreshing new approach. When I told him mid-sized companies here are paying us such that we are getting closer to profitability every month, he almost fell out of his chair. Like the recipients of donations, those giving donations may also suffer from this mentality. It becomes difficult to believe it could be done differently when you become an expert at giving money to those who are incented to solicit it from you. The donor mentality can be debilitating on both sides of the transaction and fail to recognize the full dignity and equality deserved by each party.

Such experiences reinforce our belief: an “owner mentality” is the best antidote for those suffering from “donor mentality”.

Onward and upward,

-Carter

Out of Control: Four Funerals & a Wedding

As I was sitting at the funeral service for a dear friend’s father this last weekend, I was very aware that this was one of those distinctive differences between the place I grew up and the place I am now getting to know. Although I could not decipher many of the Kinyarwanda words spoken at the ceremony, it was clear that every word my friend spoke was full of emotion and meaning. In the seven months since we moved here, there have been at least four funerals among our immediate Rwandan friends and neighbors. Initially, I was simply struck by the importance of such events, as demonstrated by the time and priority given to gathering together and mourning for as much as a week after the death. As one Rwandan explained to Dano, “It is not about wallowing in the past, it is about honoring the dead”. It is not uncommon for businesses to close and much of “normal” life to be put on hold while the deceased is honored by hundreds of friends and family members. Today, however, I was struck by the frequency of such events. Indeed, it is one of the more painful indicators that in a country like Rwanda, life seemingly ‘happens to you’ more than life is ‘directed by you’. Unlike any other place I’ve lived, tragedy is expected here as a fact of life and such events are expected to be given their due respect.

On a happier note, weddings are also more visible and frequent events than anything I have ever seen before. One of our business colleagues had to leave the funeral we were at on Saturday in order to join a friend’s wedding party. I received my first wedding invitation last week, and while I could not attend, I look forward to a future opportunity. To deal with the sheer volume of wedding ceremonies here, some churches will ask four or more couples at a time to say their vows together. Wedding parties of extended family and friends gather in public locations for pictures, and some weekends you can compare the formal attire of as many as six wedding parties at one traffic roundabout (This many brides can certainly stop traffic!). I am fairly certain that as we develop more relationships here, it will be fairly easy to spend all weekend at weddings or funerals.

I am continually struck by the way people here share pain and joy en masse. There is a surprising (even refreshing) capacity of local Rwandans to drop whatever they are doing in order to participate in such events. Because it is understood that ‘life happens to you’, there is no presumption that one’s life, work or even today’s schedule is one’s own. I have a theory: Rwandan’s naturally respond to such events by praising or praying to God (Imana) because it is so apparent they could not have orchestrated such things by themselves. It is only when we convince ourselves that we are in control that we fail to acknowledge the existence or possibility of a Creator with a Master Plan.

Onward and upward,
-Carter

Business Ethics: More 'Caught' than 'Taught'...Especially Here

The Private Sector Federation (PSF) serves as a representative of private sector institutions in Rwanda and liaison to the government ministries that attend to it. As such, PSF is an organization that sits somewhere between the ‘private’ and the ‘public’ spheres involved in the development of this economy. In recent years, Rwanda has earned the reputation as the safest and least corrupt African country, yet there is still much to be done to facilitate business and attract outside investors. PSF decided to champion an initiative to encourage better behavior as relates to key issues: transparency of financials, upholding of contracts, treatment of employees and quality production. The central point in this initiative was a small handbook on business ethics I learned last June was being published. Thinking my PhD in Entrepreneurial Ethics could come in handy here (I’m fairly certain I am the only one with such a credential in East Africa), I met with the organizer of the publication. As seems only possible in Rwanda, I was invited to contribute to the project on the spot. After just two days of work, I was able to contribute a great deal more than I would have thought possible to the final product. A small book called The Code of Business Ethics & Excellence was launched amid much fanfare and lofty speeches. In one of the keynote speeches I was proud to hear the CEO of the PSF quote one of the lines I had authored: “This book is NOT just about deterring the worst, it is also about encouraging and rewarding the best business behavior”. At the launch event, some organizations even signed a document signifying their organization’s commitment to the prescriptions laid out in “the code”. I am now part of a Business Ethics Committee responsible for maintaining some of the momentum generated at this event. The following newspaper article tells more about the event and the initiative: http://www.newtimes.co.rw/index.php?issue=14126&article=24355

After the book was launched, the ethical standard of Rwandan companies was immediately lifted. Ah, if only it were that easy! Like so many documents of this type, this is an important first step in stating ideals worth striving for, and ideas for reaching them. We have become painfully aware, however, that there is a critical shortage of qualified managers to understand and implement things handed to them in documents that describe a better future. This is partially because Rwandan culture is not a “reading” culture. Furthermore, reports are particularly ignored when the subject matter is as seemingly abstract and nebulous as business ethics.

Thankfully, lofty sentiments like integrity, honest and excellence are illustrated vividly in some of the practical business relationships we’ve forged here. Our actions certainly speak louder than any words we could write, so on our best days we and our Rwandan friends do our part to tangibly express our values and beliefs. I’m confident the decisions and interactions featured in our day-to-day relationships are easier for others to understand and emulate than anything we could put to paper. Thankfully, our business model accommodates the transfer of knowledge AND values, since we interact often, deeply, and long-term with many of the clients we serve. As a result, when feasible, we aspire to write fewer documents in order to spend more of our time living and implementing the words that may have died on the page.

Onward and upward,

-Carter

Stakeholders: Ethics & Value for All

In our “post-capitalist” world, people are concerned with more than the shareholders of a company, they are concerned with all stakeholders. Shareholders are also stakeholders, but they are one of many interests to consider, and not necessarily the most important. And the “purpose” of business is no longer defined as increasing shareholder value, but instead increasing value for all the stakeholders. Economic development discussions often replace the conventional “bottom line” with the “triple bottom line” measuring the impact on people, planet and profits.

For purposes of this discussion, we can call the following stakeholders, because each bears the consequences of the actions of corporations: shareholders, lenders, employees, suppliers, competitors, customers, government institutions and the community. I include the environment or the planet as a subset of many or all of the stakeholders because as the environment goes, so go the rest of the stakeholders.

What if a corporation paid its lenders per the terms of agreements, provided employees with meaningful work at a good wage, encouraged other businesses to grow (be those suppliers or competitors), sold customers a quality product for a fair price, abided by and helped to create laws and regulations that were good for the community and in all of the above improved the general standards of living of the community as a whole? That seems like it would be a company in which one could feel good about being a stakeholder. But you’ll note the shareholders are conspicuously absent from this list of stakeholders above. What if the shareholders of that company took their profits and spent them on frivolous living? What if they used those profits to advance causes that infringed on human rights? What if they used them to fund the sale of arms to those committing genocide? What if they simply used company funds to support a political party with which you disagree? Are any of these reasons to choose not to be a stakeholder in a corporation that otherwise seems to be doing so much good? Does the good being done by the corporation outweigh the consequences of the shareholders’ personal use of the profits? Is that even the right question to ask?

I don’t believe there is a moral or ethical rule to be followed or broken here. But as with many moral or ethical questions, it is to be thoughtfully assessed on a case-by-case basis and decided upon in the specific context of the stakeholders involved.

We are trying to do this on a regular basis in Rwanda. Here, it is possible to see the various extremes in the levels of power and it is easy to see the significant impact businesses have on their stakeholders. But as I write this, I realize our questions are not unique to this place; the same moral questions can be asked of any of the institutions we work for, regardless of geography.

Dano Jukanovich

Karisimbi Partners Makes the Headlines in Rwanda

Our plan was to avoid any ‘publicity’ or overt ‘marketing’ until we’d gotten settled a bit and earned our stripes working with some real local companies. Per usual in Rwanda, contacts and events took on an organic, unpredictable path of their own….

I had the good fortune to meet Davinah through a mutual friend. Davinah works in the Office of the President, Paul Kagame. As I tried to explain why we moved to Kigali to start Karisimbi Partners, she echoed a sentiment that I have heard a few times now: “Your story is inspiring!” I told Davinah that our story has (in part) been a response to the truly inspiring story that Rwanda is presently writing. This small country is audacious enough to dream of growth and development nobody thought possible… and that kind of vision is contagious; daily we see the diverse array of foreigners and supporters it has attracted to help in the effort.

The day after our meeting, the editor of The New Times, Rwanda’s most prominent daily newspaper, called me to say he also thought our story was inspiring. After a brief interview and a few weeks, there was a 2-page feature story on Karisimbi Business Partners in the business section! The link to the article is here: http://www.newtimes.co.rw/index.php?issue=14125&article=24218. Our little company is no longer flying “under the radar”. Word travels fast.

Onward & Upward,

-Carter

To Know Him is to Know Peace

We were only there to deliver a gift. What we received in return was nothing like I expected.

All three Karisimbi Partner families have always believed in committing the ‘first fruits’ of our labor, which is why it did not seem strange to want to donate a portion of the first company paycheck. It was not a huge amount, but somehow it just felt right to give a tenth of our earnings to an organization that honors those trying to rebuild after the genocide. In particular, we wanted to support an organization that encourages entrepreneurship. We decided on Amani Ava Hejuru, an organization committed to helping marginalized women in Africa find peace with God and one another. They focus on relationship-building while giving the women sewing and marketing skills. Their products represent excellence.

We wanted to buy three beautiful baskets made from fabric scraps. It seemed symbolic –first fruits are gathered in a basket, and our first fruits would support the business of women making baskets. Our donation could buy three baskets with surplus funds for purchasing a quilting machine that would allow them to produce more products. I communicated with Grace, the Managing Director, and was invited to their workplace. Upon arrival, their workshop appeared to be a small garage converted into a space for eleven sewing machines. Greg and Kristen Urquhart came as well (we have all since decided that the next time we present such a gift, we must all be present). We said some brief remarks and went to leave. Beata, who manages the store, asked if she could sing us a song. The drumbeats started. Her beautiful voice rang out. The others joined in. Hands began to raise and bodies began to sway. Three of the women began to dance the traditional Ingonza dance. Translated from Kinyarwanda, the following words filled that small space with such joy it moved me to tears. “Your husband cannot give you peace, your neighbor cannot give you peace, your friends cannot give you peace, your job cannot give you peace....only Jesus can give you peace.” In a way, this is a Christmas message… one that they sing and feel all year long.

These are words sung by women who lost their husbands during the genocide in horrific ways – often at the hands of their neighbors. They know what can and cannot give you peace. Where we thought our gift was small, to them it was another way Jesus was showing his love to them. And they celebrated that recognition through song and dance, completely uninhibited. I felt I was standing on holy ground. My three-year-old daughter, Anna, was hugging my leg as she listened. I said a silent prayer that she would remember this and someday be able to receive the gifts in her life with the joy and peace these women embodied.

We have the privilege of access – access to education, resources, networks. With this privilege comes responsibility. These women have received the gift of life – a second chance. Rwanda has received the gift of a second chance. We have the privilege to serve with what we hold in our hands. We also have the privilege to receive what this country extends to us.

-Jennifer Jukanovich

Address Common Needs - Hold Things in Common

As we have begun to find more opportunities to venture further outside Kigali and into rural Rwanda, our appreciation for the beauty of this place and its people has grown immensely. Apart from the heart of Africa, it is hard to imagine where in the world you might see so many tall green hills covered with cultivated crops and smiling people.

Today in Rwanda you can see a collective sense that “we are all in this together”. Despite the tragedies in this country’s past, and the struggles it currently faces, I am continually struck by what I see as simple indications of mutual affection and solidarity toward a brighter future. These indicators are probably poignant to me since the California culture I moved from was rarely characterized by: a) needs that were so commonly shared or desperately practical, b) willingness to share things I can rightfully claim as “mine”.

I regret I never get my camera out in time to show you these pictures, but some of the most colorful illustrations of what I’m talking about include:

- A community soccer ball (pictured here), one of five I brought from the states, that the children in my neighborhood use about 4 hours every day on the dirt road in front of my house. Children collect it from the guard when they wish to use it and return it when they are done.

- A group of seven school children running, laughing and attempting to share one umbrella during a sudden afternoon downpour on the way home from school

- A family of four sharing one moped

- Two boys speeding down a paved road… each with a roller blade on one foot (one right, one left, as they apparently only had one set to share)

The other day, a new Rwandan friend of mine named Shami was driving downtown and called for the attention of what seemed a random passer-by. A short, scruffy-looking man immediately came to the moving car, and Shami smiled, said a few words, and handed him money as we continued on our way. I had to ask what had just happened. Shami told me that the man was a thief he knew… and while he doesn’t condone the man’s occupation (thievery), he pities the man’s condition and makes a habit to pay him now and then so he is able to buy a bit of food. Apparently, on more than one occasion, Shami has been grateful for this man’s friendship. Shami’s car has never been broken into when parked in this part of the city, and when Shami has needed to get information on certain matters (e.g. when friend’s belongings have gone missing), this man has been a valuable informant.

It never before dawned on me that I should make a habit of paying a thief…but then, I’m still new here, and I’m not accustomed to relying so heavily on my neighbors as they do so well in Rwanda.

Onward & Upward,

-Carter