Industrial Extension Processes

8/6/2019 Industrial Extension Processes

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THE INDUSTRIAL EXTENSION PRACTICE1

Like many other rapidly developingeconomies, South Africa looks toMSMEs to jumpstart a long and

durable economic growth. The sectorprovides many budding and existingentrepreneurs, workers, webs ofsuppliers and distribution chains withthe dynamism, challenges andeconomic opportunities. However, torelease its full economic potentials, thesector requires the delivery ofotherwise available but stillinaccessible managerial, marketing,technical, financial, information, and

institutional support services.

One potent approach that can move these much needed managerial and technicalassistance to the entrepreneurs doorsteps is industrial extension. Industrialextension fields industrial extension officers (or simply, IEOs) who are trained toperform such roles as: stimulants (they create or strengthen the need for andsustenance of change), catalysts (they introduce positive changes to MSME clients),and linkers (they provide diversified services without necessarily having all theexpertise needed). Essentially, they act as a go-between the MSME clients and thesupport gateways including development banks, R&D institutes, universities,Teknicons, chamber of commerce, and from among the MSMEs themselves. Beingfacilitators and resource linkers, they foster effective two-way communicationbetween the teeming entrepreneurs and the few support services. Likewise being go-betweens, the IEOs trigger a host of learning processes that eventually benefit boththe sector and the support institutions.

NEW KIDS ON THE BLOCK?

Industrial extension has its origin in agriculture. While their agriculture counterpartsgot fewer and fewer over time, their numbers increased in industry. Technically, IEOshave been in South Africa for sometime. They chance on the MSMEs while doingtheir regular jobs either as representatives of LBSCs, teknicons, financial institutions,DTI, universities and colleges, machinery suppliers, legal firms, charteredaccountants, export and trade promotion bodies, etc. They brandish varying titles

such as; sales engineers, accountants, business consultants or counsellors,business experts, business doctors, industrial diagnosticians, business analysts,business technicians, business helpers, business mentors, business coaches,business or management trainers, etc. to name a few. Indeed, theyre not reallysome new kids on the block! However much unlike many of them, the real IEOseventually become the entrepreneurs comrades in arm. Real friends andcompanions. They go beyond their jobs. They held industrial extension as aprofession, an avocation, a missionary zeal, and a life long commitment.

1This is now out-dated and part of a big book on Industrial Extension Tools published in South Africa

by NTSIKA of the Department of Trade and Industry, SMEDANs counterpart institution. The

processes presented here are still useful and applicable. It was written when internet was just starting to

influence the job of the IEO. You are welcome to adapt the principles to the current tools (includinginternet, e.g., netbooks, skype, Facebook, websites, YouTube, Powerpoint, databases, etc.) available toyou as one of the modern extension officers in Nigeria.


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At the end of the day, the IEOs helps the MSMEs to help themselves. They help byactually reaching out to MSMEsby knocking at their doors. They assist them toexplore their business pains and to resolve their inherent difficulties. They clarifyconflicting issues and help them discover alternative ways of managing themselvesand their situations. In doing so, the MSMEs can better decide what course of action(or behaviour) is useful for them. And since the MSMEs own both the problem andthe solution, IEOs do not assist nor direct. They help but not take control. Theysupport but not take action. In fact, they motivate the clients to take action. Theyconsider the clients uniqueness and capacity to do whats best for their ownrecovery, development and empowerment as the most important concern inrendering the service. Indeed, they work through and with, rather than for theirclients. They help MSMEs develop a new sense of competent autonomy, as theyconfront together a rapidly changing and increasingly becoming turbulent world ofbusiness.

THE CLIENTS

The MSME entrepreneurs (andtheir families) are individuals whoare uniquely struggling torespond to the various factorsand influences that affect theirbusiness performance. Despitethe rich personal, educational,experience, tribal, and regionaldiversity, however, they share anumber of importantcharacteristics:

They are much more than justentrepreneurs. They may be parents, village chiefs, religious leaders, metalworkers,furniture makers, healers, petty traders, etc. In these diverse roles, they participate incomplex local religious, social, cultural and economic patterns and are subject to awide range of demands besides running their own MSMEs.

They are usually skilled and experienced. Despite their relatively low education base,they are experts in their own enterprises and their markets. They use whateverrudimentary technologies (e.g., cabinet-making, flower decor, casting, etc.) they havemustered over time. In the face of change, they are in transition between thetraditional and the newer business practices. They are seldom aware of new

technology and managerial developments.

They have economic concerns. They participate in or are influenced by local andeven national development concerns. But they seldom have the time to discuss theseconcerns with their co-entrepreneurs. Likewise, they also do not have anyone todiscuss and examine these concerns in their own usually self-contained enterprises.For example, the decision to use or not use credit or even its sourcing beyond thelocal moneylenders in their townships can become agonizing and painful choices.

They learn to survive on their own. Over time, they learn that carrying out thetradition is a way of life. Gradually, they lose the ability to contend with the newproblems brought by accelerated change; particularly in technology. They experiencea feeling of impotence amid rapid change. A few might express openness and


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adaptability. But the majority, like their counterparts in agriculture, is really ambivalentto change.

REACH THEM BEFORE THEY FAIL!

Many of the clients problems stem from the lack of managerial competence.Complaints such as: non-competitiveness in quality and price, poor growthprospects, inadequate sales, tight working capital, burdensome debt, excessive fixedassets, over expansion, poor work habits, and mounting receivables are but a few ofthe more popular symptoms of managerial incompetence. Managerial incompetencegenerally results when the enterprise outgrew their entrepreneurs capacity tomanage. When the entrepreneurs fail to transform themselves into owner-managers.When the enterprise starters fail to become the enterprise sustainers.

Many studies on MSME failures worldwide blame managerial incompetence as theroot cause. For example, all the most frequently mentioned causes of MSME failuresshown below can be directly attributed to managerial incompetence.

1. Poor visioning and planning habits. Many entrepreneurs blame others (or externalfactors) than themselves (or their personal inadequacy) for their current problems.This shifts the opportunity to learn into situations beyond the entrepreneurs control.Moreover, this demotivates the MSMEs to plan as factors seemed to be beyond theircontrol anyway. Over time, vision becomes blurred. They react more and more toeveryday events and less and less on a long term vision. They miss the chance tomap out the future and lay out all the building blocks to realize it.

2. Desire for instant gratification. The unwillingness to sacrifice todays time andmoney for tomorrows gain. Genuine entrepreneurship discourages the easy and fastmoney attitude, normally observed among gamblers. Those who wish to start their

enterprise with borrowed capital and without any experience on the venture will soonfind themselves indebted and in even worse position than when they began.

3. Poor recording practice. Studies reveal that 9 out of 10 MSMEs who fail haveinadequate records and cost analysis for control purposes. Poor records lead toinsufficient basis for pricing and cost control. It also lead many MSMEs to amasscumulative losses, caused frequently by a series of insignificant financial leaks thatcould have been detected early if they had suitable cost reporting systems.Moreover, it can expand the MSMEs rapidly beyond what their actual resources canbear. Entrepreneurs should be taught how to keep and record their accountsproperly. And as their business grows a full (or even, part)-time bookkeeper shouldbe hired.

4. Lack of product development. Most MSMEs who fail tended to retain outmoded orobsolete product lines. When they did change to a more up-to-date one, it wasusually after every competitor in the market had done so. Hence, they werecontinually chasing the market instead of leading it. Over time customers realize thatthey did not offer the latest products, and began switching to others. Moreover, manyMSMEs fail to diversify their markets. They end up selling their goods to a merehandful of customers. Some MSMEs who concentrate on big buyers may also end upas losers if these buyers fold-up.

5. Lack of customer-orientation. Many MSMEs fail to realize the fact that thecustomer is the reason for their continuing existence. However, many MSMEs lackedinformation about their customers. For example, one common practice amongMSMEs is delivering goods to customers without sufficient credit investigation and


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information. This often causes receivables to mount. Failure to respond to customersneeds can eventually lead to business failure. Lack of customer orientation may alsobe a sign of poor communication skills; inability to present ideas, converse, listen,understand, negotiate, correspond, or listen very well. Many MSMEs fear objectivecriticism and refuse to seek them out. Hence, they miss the opportunity to turn thesecriticisms into challenges that can improve and strengthen their MSMEs.

6. Prolonged use ofone-personmanagement style.After starting theirenterprises andeventually becomingowners, managersand also workers,entrepreneur must tryto build an

organization as theirenterprise becomemore complex. Tryingto do it alone,wearing too manyhats and refusing todelegateresponsibilities or to

build an internal working team will not only overburden the entrepreneur but also capthe growth possibilities. Sooner or later, the load will crush them with no one to faultbut themselves. Doing it alone also prevent the MSME from building webs of supportnetworks among their key suppliers, financial sources, or other MSMEs. Moreover,

trying to do it alone could lead to unnecessary physical and mental stress that couldin turn seriously damage decision-making competence.

7. Lack of technical competence. Many entrepreneurs started their MSMEs withoutsufficient technical preparations. They decided to learn on-the-job. However as theirenterprises grow, most entrepreneurs are swarmed with tasks that could eventuallyswept learning on-the-job away. This could spell the difference between success andfailure. Learning the technical aspects of the enterprise is an unending process.There are always new developments (in materials, technical processes, formulations,machinery and equipment including jigs, tools and fixtures, as well as new ways ofdoing things) that can seriously affect the products and processes used in theMSMEs. Learning on-the-job however, does not mean that entrepreneurs should be

master craftsperson before they could go into business.

8. Absentee management. There are many factors that could deflect theentrepreneurs attention away from managing theirMSMEs. One entrepreneur, forexample, had a long period of profitable operation. Then, he went through a numberof months of absentee management. Another entrepreneur was persuaded by hisneighbors to act as a spokesperson for the township. He liked the job, which madehim absent from his MSME. Still another entrepreneur became the chapter presidentof a Rotary Club that physically threw him out of the enterprise. Their MSMEoperations and performance gradually deteriorated. Financial records wereneglected, they failed to meet creditor obligations, and ultimately their MSMEs failed.

9. Internal conflicts. The main cause of failures in many partnership MSMEs is theinternal conflicts between the partners. Partners who fight with each other, make


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allegations about various kinds of scandalous misconduct, manipulate expenseaccounts, and conduct secret negotiations for sales contracts are bound to destroythe MSMEs they manage. Another source of internal conflict is lack of balance in theentrepreneurs life. Neglecting family members, friends, or activities that lendmeaning to life could contribute to ineffectiveness and inefficiencies. A balance lifeenriches the horizons of the entrepreneur as an individual and contributes more inbuilding ones managerial competence.

Overall, the economic costs of these MSME failures are high. But most of them canbe avoided. The IEOs could be fielded in sufficient quantity to reach out and help theentrepreneurs deal with their growth pains. They can be trained to build trust, listen,understand, and communicate with the MSMEs nation-wide.

THE IEOs AND THEIR CLIENTS

In delivering their services to MSMEs, the IEOs usually meet three types of clients.The genuine clients belong to the first type. They realize that they are in a difficult

situation that they wish to improve. They sincerely needed some guidance anddirections and that they are committed to act on the possible improvements. Thecomplainers are the second type. They know that they have problems, but theyblame others (competitors, government, taxes, etc.) for them. They see themselvesoutside the problem and unable to do anything. Finally, the visitors type. They usuallydon't know that some problem do exist in their MSME or they just passively followtheir bankers advice to meet with an IEO. To hit the genuine clients, IEOs must beable to probe their clients self-interests.

Self interest is the basis for all that entrepreneurs do. The source of their motivation,whatever they may be, can be quite obscure to the IEOs servicing their needs.Entrepreneurs who seem to be strong, intelligent, financially secure, and aware of the

need to be successful may still cling to their timeworn practices rather than opt forsomething new that they may perceive to be against their interests. Neither repeatedcontacts with an IEO nor weighty scientific evidence will change their minds. Theentrepreneurs personal concerns e.g., family, religion, desires for materialpossessions - are foremost in their minds. Hence, they should also be the IEOs mainconcerns.

Understanding what the entrepreneurs value most in their endeavours is at the heartof the two-way communication process that all extension encounters have. Without it,the IEO cannot gauge the appropriateness of the changes they are introducing. Norcan they determine what extension or training methods are most suitable to theirMSME clients. Finally, and perhaps most importantly, the IEO will not be able to

empathize or even communicate effectively with their clients.

It takes hours and sweating in an MSME to learn about an entrepreneur's self-interest and specific needs. It requires a lot of quality time and shared experience toeventually build a common vision. Generally, MSME clients are interested in the IEOservices to satisfy their:

1. Psychological needs, i.e., reduce business uncertainty and confusion withpriorities, minimize isolation, ego massage, confidence boosting, socialization,and reinforcement.

2. Information needs, i.e., source of professional updates, technical information,technology trends, new financial packages and other support services, databasesand directories, legal requirements, management tricks and traps, among others.


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2. UNDERSTANDING

3. LEARNING4. PLANNING AND

CHANGING

5. EVALUATING

1. EXPLORING

3. Strategic needs, i.e., diagnosing, problem-solving, business planning, team-building, management development, crisis management.

Even if the methods used to probe them are informal and less systematic, the IEOsshould at least have a general feel of their clients special interests and needs as thiswill guide them through the conduct of the extension cycle.

THE INDUSTRIAL EXTENSION CYCLE

A typical industrial extension engagement follows a five-step communication andlearning process for both the IEOs and their clients. In doing this process, the IEOsmust always strike a balance between their tasks (to deliver the service) and theirrelationships with their clients. Tasks focus on the essence of extension and therelationship refers to the partnership in the learning process. Briefly, the processlooks like this:

Step 1 - Exploring

The journey begins here.In this step, the IEOs willaim to develop friendlyrelationships and toexplore the painsbesetting their clients.They should examine thelandscape, gain familiaritywith the territory, elicitinformation, listen, clarify,paraphrase, reinforce and

try to reach a clear pictureof the current situation,feed this back to theclients and achievereasonable agreementson what is reallyhappening. Some basic

questions (such as: Who is the real decision maker in the MSME? Why are theclients seeking extension services? Which problems will be handled first? What arethe real issues problems, not symptoms? What have been done?) must beanswered. Then the IEOs will explain what can and cannot be done, share theburden of dealing with the problems, the possible timing, fees, and expected

deliverables. In this step, the IEOs will emphasize building trust and developinggenuine partnerships over the task of delivering extension services. They should giveas much attention as possible, listen with non critical acceptance, help clients toorder their thoughts, and establish genuineness. Only then can they move on.

Step 2 - Understanding

This step enables the IEOs to help their clients gain fresh angles and views on theirproblems. The problems can either be well-defined (i.e., cut operating costs by 30percent, reduce the scrap rates from 20 to 3 percent) or ill-defined (i.e., use of plantdiagnosis may be required). To achieve new understanding, they challenge theirclients. They give direction, point out difficulties or weaknesses, share information,

recognise latent inconsistencies, show their feelings and present their experiences.Essentially, they get their clients to think more clearly about what they are doing and


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where are they going. In doing this step, IEOs (a) inquire, listen and record, (b)observe peoples feeling and constantly observe peoples feelings whether they arefriends or foes, (c) use empathy, that is seeing events as others see them, and (d)seek involvement by avoiding solving the problems singlehandedly. Likewise, theyperform various tasks involving diagnosis, needs analysis, fact-finding, and datagathering. Then, using appropriate data capture techniquesmost of which arecontained in this Resource Bookthey define and re-define the problems and zero-inon the real ones. The IEOs should involve the clients at every step of the way.

Step 3 - Learning

Being essentially solution seeking, this is the most exciting part of the process. In thisstep, the IEOs and their clients jointly explore new ways of doing and managingMSME tasks. Hand-in-hand, they go through a series of analysis, synthesis, creativethinking, brainstorming, problem solving, decision making, goal setting, and planningexercises. They generate and consider many alternative solutions, assess each ofthem, select the best alternative and develop tentative plans. This step will only be

completed if the IEOs clients (or by teams constituted for the purpose) have decidedon the actions to be taken. But just before concluding this step, the IEOs shouldreflect whether their clients can live with solutions? They should also assess theirclients capacity for change. And, they should determine their clients commitment tothe solutions arrived at.

Step 4 Planning and Changing

After prioritising, decision making, signposting, summarising, etc., this steptransform what the client and the IEO have learned and the consequent changesneeded to a doable plan. Here, the aim is to get client to do specific actions that willeither move the enterprise forward or enhance the clients managerial competency. It

will la the foundation for the implementation plan, communication methods, training,and monitoring systems needed to implement the change. With the client, the IEOshould define the timelines and assign key responsibilities even to the resisters andsupporters of the change. The plan should also itemize the incremental changeneeded, signposts, and should build on small successes after another. The IEOshould also gradually disengage at this step. IEOs will start building the dreadeddependency syndrome, if they stay longer than this point. When disengaging,however, the IEOs should still assure their clients of their future availability and invitethem to other services offered by the IEOs agency.

Step 5 - Evaluating

After some time, the IEO will go back to the clients to assess the results, verify theproblems and solutions, and check the progress of the implementation plan. The IEOcan reflect whether the client is better off as a result of the extension engagement.Can the client sustain the change introduced? Did the client really learned from theprocess. Did the clients capacity for self-analysis improved? This step insures thatboth the client and IEO that the solution fit the problem and are satisfied with theoutcomes.

Not all extension engagements follow this process. Experienced IEOs usuallyintroduce some refinements depending on the need of their clients. For example, theGATHER method is a variation of the above process has been adapted for theindustrial extension from the health sector.

GREET THE Introduce yourself and the extension services


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CLIENT Ensure confidentialityDiscuss what you can and cannot doAsk the client for any problem besetting him/herImportant: In this step, the IEO begins to establish rapport with the client

ASK/ASSESS Inquire about the problems that they are currently facingAssess what s/he has done to solve the problem

For new clients, obtain baseline data: Sales, Employment, History, etc.For old clients, ask the following:

Ask if their situation has changed since the last visitAsk them if they have new concernsInquire about any problem that they might have

Important: Before moving to TELL, be sure that you know the clientsobjectives in dealing with the problems on-hand

TELL Tell the client:What the options are and briefly discuss each oneHow does each option worksAdvantages and disadvantagesPossible benefits and or side-effectsDistribute materials

Important points: Do not tell the client: options that are not related to theirneeds, information that have already been given. You can start this stepby asking the client what they know about the option related to theirneeds and you fill in the gaps in knowledge

HELP Ask the client if they have heard of anyone who have already successfullytried the options presented in the TELL phaseAsk the client for potential problems that can be anticipated and resolvedAsk the client if there is anything not fully understood, repeat theinformation as neededImportant points: If the client cannot make a decision, ask them whatadditional information is needed

EXPLAIN Explain the procedures for doing the optionExplain warning signs, what they are and how to get more help

Confirm the clients understanding of what has been said by asking torepeat what you have said in the clients own wordsGive the clients informational materials on the option chosenImportant points: The difference between this step and the TELL step is,in this step you are explaining how to use the option the client hadchosen. In the TELL step, you are telling the clients about all methodsbased on their needs

RETURN/REFER Tell the client when you plan to return for follow-up or refer the client forother services not offered by your institution.Tell the client when or where to go for follow-upTell the client about services that are available but you do not provideGive a referral note when needed.

Adapted from AVSC International and the Department of Health, Philippines

EXTENSION STYLES

While the extension process is in progress, four major patterns can easily beidentifiable. These patterns become visible when during the process, we eitherinclude or exclude the clients and while dealing with the problem, we may either betask or entrepreneur-focused.


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Excludes the client

TaskTelling Manipulating

Entrepreneur

Focused Advising Counselling and

Extending

Focused

Indudes the client

If the IEO is more concerned about the problem and its resolution and merelyanticipates that the client will passively accept the solutions, then it is telling and notcounselling. This assumes that the clients has insufficient know-how about theproblem on-hand and can contribute very little towards their resolution. If the IEOincludes the client but still mainly focused on the problem, then this is advising.Advising is applied in cases where the client is perceived to be able to contribute toresolving the problem. If the IEO excludes the client but still focused on their needs,then it is manipulating. Once the IEO becomes aware of this, then they shouldretreat as the client may have a very high capacity for self-help and uses the IEO asa mere extra hand. Finally, when the IEO is client focused and including the client asan equal in the process, then it is more likely to be counselling and extending.Counselling and extending is more likely to achieve more permanent change inbehaviour and action.

There is no one best style in dealing with MSME clients. Each style is appropriate fora specific situation. The IEO must be flexible in using each of them. The complexityof the problem and the clients degree of know-how influence the choice of the style.As such, the IEO should have an approach that fits their client. For example, below isan extension style applied by an IEO to an MSME client.

Steps Styles Telling Advising Manipulating Extending1. Exploring2. Understanding3. Learning4. Planning andChanging5. Evaluating

In the above example, theIEO began with anextending style during theexploring step that began

the engagement.Discovering that the clientcan actually contribute tothe problem, the IEOspeeded-up theengagement by shifting tothe advising style whiledoing the second step.Moreover, the IEOapplied the telling style inthe learning step and the

extending style in boththe planning andchanging as well as


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evaluating steps. However, doing the extension cycle many times over is not the onlytask of the IEOs.

THE IEOS JOB

Generally, it is the IEOs job to help the MSME clients help themselves. Period. But todo this properly, the IEOs needed to do more tasks than merely delivering industrialextension services to as many MSMEs as possible. These tasks include thefollowing:

1. Client Generation. The task of generating MSME clients should always beforemost in the minds of the IEOs. Everyday, they must always have a set of clientsto work on. They should not wait for the clients to visit them. They should activelypursue them. To maintain a stream of clients, IEOs can either do: (a) pre-arrangedcalls (clients expect the visit), (b) cold-calls (IEO dropped-in without prior notice), (c)referred calls (a client refers another entrepreneur to the IEO), or (d) office calls (alsocalled walk-ins or clients drop-in on the IEO office).

2. Delivery of Managerial and Technical Assistance. Armed with the extensionprocess, the IEOs deliver various services to MSMEs in varying stages of enterprisedevelopment. For business starters, for example, IEOs can guide clients in preparingbusiness plans, site selection, machinery and equipment procurement, creditfacilitation, licensing and registration, etc. For those who are already in business, theIEOs can provide technical information, process engineering, productivityimprovement, quality control installation, enhancing marketing performance,accounting systems installation, etc. Moreover, if necessary, IEOs must always beready to provide planned or even on-the-spot managerial training to the MSMEs.

3. Promotion. Promotion extends the IEOs client generation task. Under this task,

the IEOs should explore every opportunity to promote the MSME sector in generaland their services in particular. Participating in seminars, selling entrepreneurship,promoting investments in townships, preparing business opportunity reports,distributing extension brochures, etc. are various types of promotional activities.

4. Linking with Other Service Providers. In addition to promoting the service, theIEOs should also establish and maintain a network of contacts. They should alwaysconnect bridges of communications between individuals, groups and the variousMSME service providers. Maintaining contact files, visiting the service providers,participating in multi-agency conferences, trade fairs, exhibitions, interviewingpotential resource persons, maintaining technicians pool, machinery and rawmaterials suppliers, contacts with the banking community, contacting information

sources, etc. are examples of linking activities.

5. Information Transfer. One of the easiest tasks of the IEOs is the continuingdissemination of technical and managerial information that are of interest to theirMSME constituency. Their exposure and training will make them the mostappropriate persons to determine which information is needed by the MSME. Theycan search in their library, subscribe to magazines and technical journals, surf theInternet, and link with other national and international sources of information.


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6. Continuing Education. Nobodycan educate the IEO better thanthemselves. Although they canupgrade themselves by drawingpractical lessons from theengagements and self-studies,there is no substitute for formaleducation. Through its linkage withother service providers, the IEOscan create continuing educationopportunities. Likewise, they canattend night school, some in theirown vocational schools. Thecontinuing education can becomepart of the IEOs reward systemthat permit them to take short-termcourses, foreign fellowships,

familairization visits, or even a masteral programme at subsidized rates.

7. Reporting and Administration. The IEOs have reporting and administrationresponsibilities. Reporting feedbacks the extension results to the clients and theservice provider. Participating in staff meetings and completing monitoring sheets arereporting activities. The administrative responsibility includes: monthly time andactivity planning, coaching new recruits, delivery of training and coaching services,etc.

8. Special Projects. Many occasions demand the IEOs involvement in specialprojects. Establishing cooperatives, conducting topical conferences, preparingproposals, administering foreign aid projects, implementing policy impact studies, etc.

are some examples of special projects.

DO YOU HAVE WHAT IT TAKES?

There are three important skills that IEOs should possess. These are:

Analytical: ability to: clarify exactly what the symptoms are, collect and weigh data,sort out the irrelevant data, and see the underlying problem

Interpersonal: ability to form good relationships with the client through: good

communication and listening, emphaty, non-verbal behaviour, appropriate (non-jargon) language, and levelling.

Institutional: ability to draw on local and national sources of support, wide range ofcontacts including personal.

Contacts: ability to draw on a wide range of personal business experiences, both atthe level of illuminating anecdotes and at the conceptual modes.

At the heart of these skills is the ability to communicate. IEOs can: seek information(through open and closed questions, listening, multiple and single questions, etc.),

give information (amount, digestible, and capability, etc.), as well as summarize andtest understanding (helping MSMEs to move on, identifying gaps, checkingunderstanding, etc.). IEOs need to ask a lot of questions throughout the extension


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cycle to:probe, check facts, increase understanding, show interest, buildrelationships, determine attitudes, and develop a particular mental frame. IEOs caneffectively use verbal and non-verbal communication modes.

In South Africa, before one qualifies for an IEO post, candidates need to take anapplication and a formal interview with NTSIKA or in any one of its qualified serviceproviders. Moreover, the candidates need to participate in an Industrial ExtensionCourse which NTSIKA periodically provides throughout the country via its network ofservice providers. The selection interviews and the IEO courses are not easy. Itrequires significant preparations and discipline.

CONFIDENTIALITY AND PROFESSIONALISM

In the course of going through an extension cycle, the IEO will have to handlesensitive information about the client. Such information includes names, address,biographic details, and other descriptions of the client's life and circumstances whichmight result on the identification of the client. They should treat with confidence all

these information, whether obtained directly or indirectly by inference. This meansnot revealing any of the information noted above to any other person or through anypublic medium, except to those to whom the IEOs owe accountability or on whomthey rely for support and supervision. Information about specific clients is only usedfor publications in appropriate journals or meetings with the client's permission andwith anonymity preserved when specifics about the clients is released.

The client should be told and understand the confidentiality protocol and when itcould be broken. Permission should always be gained preferably in writing andcertainly prior to the disclosure to another person or organization. Where informationwill be disclosed because of possible danger either to the client or to others, theclient should be told of the disclosure before it is made.

Professionalism and Code of Ethics

Even if industrial extension has yet to achieve the status of a profession such asmedicine, law or engineering, IEOs can improve their performance by adoptingstandards of performance and code of ethics governing behaviour and by acting in aprofessional manner. At the very least, the IEO should:

1. Aspire for Technical Excellence. Industrial extensions body of knowledgecomprises techniques for identifying, analysing and resolving MSMEs problemsalong with strategies and their applications. The IEOs should use these proventechniques many are described in this manualin performing their jobs.

Making deviations from standard practice or taking short cuts is permitted onlywhen circumstances warrant. Their goal should be technical excellencetempered by practical considerations.

2. Be objective. Though some IEOs favour one approach over another, this shouldnot stop them from trying other approaches. When pressed for an approach, theIEO should present appropriate reasons for the choice. Despite the desirabilityof maintaining good client relationship, he should never compromise hisobjectivity with relationships that become too intimate.

3. Be Honest. When assisting clients, the IEOs should honestly act for and onbehalf of his clients best interest acting and behaving as if he were a paidprofessional. They should avoid conflict of interest situations and actions thatcould hurt the clients interests. They should never position themselves as being


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obligated to the client beyond his professional responsibilities. Regarding giftsand gratuities, he should not accept gifts having more than a nominal value. Ifthey desire their clients products, they should buy them as if they are sold toemployees.

4. Avoid Conflict of Interest. IEOs shall inform their clients of any interests,relationships, or any other circumstances which may impair their professionaljudgement or objectivity. If these happen, they should be able to refer the clientsto their other IEO colleagues. Moreover, IEOs should refrain from giving anyclient proprietary information learned from previous clients without first obtainingthe consent of the previous clients.

5. Respect Commitments. The IEOs credibility depends on the manner they fulfilltheir commitments. They should make no commitments, however small, withoutthe intention of fulfilling them. They should be on time for their appointments andhonour their promises. If they have to cancel appointments or back out fromcommitments, they must excuse themselves early and explain.

6. Maintain Confidentiality. While performing extension work, the IEOs will knowtheir clients financial, marketing and technical positions. Such information isconfidential and should not be disclosed to outsiders without permission.Distribution of reports containing confidential information should be approved inadvance by the clients. Moreover, the IEO should never engage in idle gossipwith a client about another clients affairs. They should cultivate a reputation fordiscretion so that entrepreneurs may allow him access to confidential data.

7. Criticize Positively. As an agent of change, IEOs recommendations often implya criticism of the way things are currently done. Criticism, when awkwardlypresented, incites defensive reactions endangering the extension process. The

true professional comments objectively on an individuals actions and softens theintended criticism by sympathetic understanding.

8. Minimize Failure. Not all extension engagements lead to improvements. Andthere are many reasons why engagements fail. If after the situational analysisthe IEO feels that failure is inevitable, he should discuss it immediately with theentrepreneur. By terminating the engagement early, both parties save time.

9. Plan for Replacement. Not helping entrepreneurs is as bad as overhelpingthem. Throughout the engagement, the extension officer should educate theentrepreneur and his staff to the point that they can operate without the IEOsguidance. This planning to be replaced approach is a key to professional

extension work.

10. Minimize Length of Engagements. When IEOs overextend their engagements,they deprive other entrepreneur of their professional services. Although no hardand fast rule exists, they should never take longer than what the problemwarrants.

To be professional, an individual must have a group that adheres to a set ofstandards of professional conduct a code of ethics. A code is vital to a professionsince it : (a) lists the ethical behaviour expected of each participant, (b) erasesdoubts arising from task performance, and (c) itemizes performance standards.

Members of a professional extension organization may for, example, agree to : (a)keep the entrepreneurs interests above their own, (b) keep client information


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confidential, (c) accept no commissions/ fees directly or indirectly resulting from theengagement, (d) inform entrepreneur of any interests that might influenceobjectivity, (e) refrain from accepting engagements beyond their competence, and(f) refuse engagements that may lower the professions status.

Industrial Extension Processes

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