"Vision and Mission Don't Need Organizations, Organizations Need Vision and Mission"
* If you haven't already, I highly recommend reading last week's column first (link to Part 1).
I. THE KIBBUTZ HISTORY
Historically, the Kibbutz model in Israel has demonstrated its efficacy. In the pre-Israeli era, Jewish pioneers transformed decades of poverty into prosperity by transitioning from a village organizational structure based on 12,000-year-old Agricultural Revolution principles to Kibbutz organizational and production structures rooted in the Industrial Revolution's principles. Despite lacking advanced technology and significant funding, Dgania, the first Kibbutz (1910), and the hundreds that followed it quickly turned a profit, highlighting the power of its novel organizational and production structures.
The impact of transitioning from a village to a Kibbutz organizational structure on farmers' lives cannot be overstated. This shift transformed a scenario of nearly 100% poverty and a struggling agricultural sector into a community with zero poverty and zero hunger. Remarkably, this change didn’t take centuries or even decades; it happened almost overnight.
Furthermore, the village farmers were older and more experienced than those in the younger Kibbutzim. The villages had better access to technologies, financial resources, knowledge, land, water, markets, and infrastructure. Despite these advantages, the village model ultimately disappeared from Israel, replaced primarily by the agro-business-oriented Kibbutz framework.
Remark.
I don’t suggest or promote copying the Kibbutz model as it is. Instead, I believe it would be better to apply its principles in a manner suitable for the target population.
Are impoverished farmers ready to embrace innovative, holistic life-work models like the Kibbutz, which can transform their limited resources through cooperative economic practices and pooled community assets, creating unprecedented synergy to lift them out of poverty?
II. KEY THINKERS AND UNIVERSAL LAWS
In the evolution of human societies, the key to success has often been the ability to transition and adapt to new situations by modifying organizational structures.
This organizational evolution was not random; it had a direction and a trajectory, moving from a structure of individuals/family in the pre-nomadic era, to extended families/tribes in the hunter-gatherers era, to villages in the post-Agricultural Revolution era, and to cities and companies in the modern industrial era (i.e., the Ltd-era).
As human societies advance, individuals are encouraged to specialize and collaborate within groups of experts, where individuals focus on specific tasks. This specialization fosters interdependency within the group, allowing it to excel in its chosen focus areas and move forward faster, with greater agility and efficiency.
Human societies have evolved from small groups where each individual "knows everything" to societies of experts, where individuals possess profound knowledge in specific areas and less in others. This shift advantages organizations that encourage specialization and promote order, cooperation, and integration, improving the overall system efficiency and progress.
Leading thinkers like Dr. Ichak Adizes and Prof. Yuval Noah Harari emphasize the importance of organization and cooperation. Adizes' Success Equation: Success = External Integration / Internal Disintegration illustrates how order, cooperation, collaboration, and integration are crucial for organizational success. The second law of thermodynamics also supports the notion that increasing order (i.e., external integration) and reducing chaos (i.e., internal disintegration) is essential for creation and success.
The Kibbutz organizational structure is designed as if the early Israeli pioneers knew about Adizes's Success equation, i.e., having a business arm responsible for maximizing External Integration and a social arm responsible for minimizing Internal Disintegration.
Prof. Harari points out that the ability to cooperate in large groups has been fundamental to the success of Homo sapiens.
The Kibbutz model aligns well with the insight and law suggested by Prof. Harari and Dr. Adizes. It supports large-scale cooperation, follows the success equation, and has demonstrated resilience and adaptability.
III. ORGANIZATIONAL CHARACTERISTICS
The table below compares characteristics across three organizational models: Ltd Company, Kibbutz, and Village. Each characteristic is rated on a scale from 1 to 10, reflecting its effectiveness and prevalence within each model. The total scores show the overall alignment of each model with contemporary economic and social demands.
Key Observations
There is High Similarity Between Kibbutz and Ltd Company Models: The Kibbutz and Ltd Company models exhibit high similarity across numerous critical characteristics. Both models emphasize customer focus, workforce development, technological integration, agility, innovation, market orientation, scalability, and employee satisfaction. This alignment reflects their shared commitment to modern business practices, efficiency, and adaptability. As a result, the Kibbutz model, like the Ltd model, is well-equipped to thrive in today's competitive economic landscape.
There is Low Similarity with the Village Model: Contrary to the common perception that Kibbutzim and villages are similar because they are both rural communities initially based on agriculture, the table presents a very different reality. The Village model receives a significantly lower score across almost all characteristics, especially in areas critical to modern economic success, such as technological integration, market orientation, scalability, and economic efficiency. This highlights its limited ability to meet the demands of contemporary economies and explains why it struggles compared to more advanced organizational structures.
Superior Characteristics of the Kibbutz Model
The Kibbutz model surpasses the Ltd model in several key areas, demonstrating its unique strengths and advantages:
1. Social and Community Values:
o Vision and Mission-Oriented: Kibbutzim scores higher in being forward-looking and mission-driven while demonstrating strong alignment to social and communal goals.
o Commitment and Togetherness: Kibbutzim's level of commitment and sense of togetherness is higher, showcasing strong community bonds.
o Equality and Mutual Support: Kibbutzim emphasizes equality and mutual support more than Ltd companies, fostering a fair and supportive environment.
2. Collaboration and Trust:
o Collaboration and Cooperation: Higher scores in these areas reflect intensive teamwork, commitment, and efforts within and among Kibbutzim.
o Trust and Social Responsibility: Kibbutzim fosters greater trust among members and emphasizes social responsibility, contributing to a cohesive and ethical community.
3. Work-Life Integration:
o Work-Family Balance and Integration: Kibbutzim offers superior work-family balance and better integration among members, emphasizing the importance of personal and professional harmony.
Implications
The high similarity between the Kibbutz and Ltd Company models, which contrasted with the lower scores of the Village model, supports the concept that the Kibbutz model is more aligned with modern industrial business practices, economic principles, and people. This alignment suggests that the Kibbutz model will likely encourage rapid economic growth in rural communities outside Israel, similar to its success in Israeli rural communities. Here’s why:
1. Alignment with Modern Economic Practices: The Kibbutz model incorporates fundamental business characteristics such as Emphasis on education and literacy professionalization, selection for a position based on performance, market orientation, technological integration, scalability, economy of scale, and innovation, which are essential for thriving today's global economy.
2. Scalability and Adaptability: The high scores in scalability and adaptability indicate that the Kibbutz model can grow and adjust to different environments and economic conditions, making it a versatile option for rural communities worldwide.
3. Focus on Community and Cooperation: While maintaining high business efficiency, the Kibbutz model also emphasizes social responsibility, mutual support, and equality, creating a balanced approach that can foster community cohesion and support.
4. Economic Efficiency and Stability: The combination of high economic efficiency and financial stability suggests that the Kibbutz model can provide a sustainable economic framework crucial for long-term growth and development.
Unique Resilience of the Kibbutz
The Kibbutz's unique social structure makes it far more resilient than company or village models. Over the past 100 years, more than 99% of Kibbutzim have survived, demonstrating their vibrancy and adaptability, thanks to their continuous readiness to change and evolve. In contrast, it is estimated that less than 10% of the companies that existed in Israel 100 years ago exist today, while the village model has largely disappeared. This resilience and adaptability are signs of the success of the collective Kibbutz model.
Conclusion
The comparison reveals that the Kibbutz model combines the strengths of traditional community-focused living with the efficiency and innovation of modern business practices. This hybrid approach makes it a powerful model for driving economic growth and development in rural areas globally, just as it has successfully done in Israel. The Kibbutz model's unique resilience and adaptability further highlight its potential as a sustainable and adaptable framework for the future.
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Dream Valley Fruit Export Program 2025 is now officially open for new exporters from developing economies who wish to export to Europe. Text me.
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Here are ways you can work with me to help your rural communities step forward to shift from poverty into ongoing prosperity:
* Nova Kibbutz and consultancy on rural communities' models.
* Local & National programs related to agro-produce export models - Dream Valley global vertical value and supply chain business model and concept connects (a) input suppliers with farmers in developing economies and (b) those farmers with consumers in premium markets.
* Crop protection: Biofeed, an eco-friendly zero-spray control technology and protocol solution, is most suitable for developing countries.
TAKEAWAY MESSAGES
Ø The ancient village model is obsolete in the modern era.
Ø Village smallholders must choose: embrace the Ltd-era or endure persistent poverty.
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More on the October 7th genocide in South Israel:
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"Mental and Economic Freedom Are Interconnected."
See you soon,
Nimrod
Dr. Nimrod Israely is the CEO and Founder of Dream Valley and Biofeed companies and the Chairman and Co-founder of the IBMA conference. +972-54-2523425 (WhatsApp), or email nisraely@biofeed.co.il
P.S.
If you missed it, here is a link to last week's blog, “Kibbutz: An Exclusive Local Israeli Model Or A Universal One Destined To Help Millions? (Part 1)"
P.P.S.
OPEN BUSINESS OPPORTUNITIES:
1) Exporting fresh fruits from Africa to the EU under the Dream Valley regenerative protocol brand for the 2024 season.
2) Joining the Nova-Kibbutz concept project or establishing a similar initiative in your region.
Kindly provide your background and credentials to receive tailored next-step instructions.
P.P.P.S.
Dream Valley is a field-proven disruptive business model based on the successful Israeli Model.
*This article addresses general phenomena. The mention of a country/continent is used for illustration purposes only.
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