What is measured with a SCOPEinsight assessment? And why does it matter?

Experience from the development sector demonstrates that strengthening off-farm agribusinesses is a powerful driver for on-farm improvements as well as a catalyst for rural development. One of the most effective ways of strengthening agribusinesses is to strengthen their business acumen. SCOPEinsight refers to this as “farmer professionalism“. Over our eleven years as a company, clients have used our assessments to identify weaknesses in agribusiness professionalism, and have built successful capacity building programs linking agribusinesses to markets and finance using the data in our reports. In this article, we will cover what is measured with a SCOPE Basic assessment and why it matters.

What is measured with a SCOPEinsight assessment, and why is it important?

A SCOPE score is created by taking an average of eight dimensional scores. These eight dimensions are: internal management, operations, sustainability, financial management, production base, market, external risks, and enabling environment. [1] Within these dimensions are subdimensions which capture over two hundred data points per assessment. These dimensions are built on Management maturity models, Plan-Do-Check-Act Management Cycle, ISO Quality, Sustainability & Certification Systems, Financial Institutions Due Diligence process, Rating Systems, and Market requirements. This is impressive and shows great potential for information and benefits, but what exactly do the eight dimensions measure, and why does it matter?

Internal Management Subdimensions: Governance, internal organization, business planning, membership management What is measured: This dimension assesses how the agribusiness makes and implements the decisions necessary to operate. This also includes any aspects of organizing and operating a farm for maximum production and profit. Why it matters: Having good internal management is crucial because it provides the backbone for an agribusiness. A solid management team keeps everything running as it should. Research has shown [2] that high-quality management can lead to benefits for a business such as reduced costs.
[2] Arabiun, A., The importance of Management for Growing and Developing Agribusiness SMEs: Designing a Conceptual Framework
Operations Subdimensions: Processing, logistics, storage What is measured: This dimension assesses the processes that the agribusiness takes, all the way from collecting the produce to delivering it to clients. This also includes quality control and any processing necessary to turn the produce into the desired product. Why it matters: The process of collecting produce and processing it into the desired product is integral to an agribusiness's success. Having good operations can mitigate issues like postharvest loss [3]; for instance, through improving storage facilities or the processing of produce.
[3] Deloitte, Reducing Food Loss Along African Agricultural Value Chains
Sustainability Subdimensions: Social issues, environmental issues What is measured: This dimension assesses how the agribusiness manages and conserves its natural resource base. This also includes the use of new technologies to ensure the agribusiness's needs will continue to be met in the future. Why it matters: Sustainability assures the existence of resources for the future, which is essential to creating longevity for an agribusiness. Social sustainability can improve farm performance [4], and assessing social issues that plague agribusinesses gives them the means with which to address these issues.
[4] Ait Sidhoum, A., Valuing social sustainability in agriculture: An approach based on social outputs’ shadow prices
Financial Management Subdimensions: Financial services, financial planning, financial reporting & monitoring, financial administration What is measured: This dimension assesses how the agribusiness plans, directs, monitors, and controls its financial resources. Why it matters: Sound financial management helps agribusinesses make better-informed financial decisions based on information and experience from the past. External research has found [5] a positive correlation between financial management and profitability and our data shows a positive correlation between financial management and agribusiness profitability.
[5] Gloy, B., LaDue, E., Financial Management Practices and Farm Profitability
Production Base Subdimensions: Provision of inputs, collection from members, strength of production base, extension services What is measured: This dimension assesses how the management of the farmer base ensures timely and sufficient delivery of quality produce to the agribusiness. Why it matters: A solid production base is vital to both the agribusiness and the farmers from whom they buy their produce. Having a strong production base creates confidence in upstream market players as well as stability for the agribusiness. [6]
[6] Kirsten, J. & Sartorius, K., Linking agribusiness and small-scale farmers in developing countries: is there a new role for contract farming?
Market Subdimensions: Market related risks, marketing strategy What is measured: This dimension assesses how well the agribusiness understands its market. This also includes its ability to access it, anticipate risks, and be competitive. Why it matters: If agribusinesses are going to make a profit, they must have access, preferably directly, to the markets to sell their products. In addition, if the agribusiness understands the requirements of the market, they will be more likely to respond correctly. Increased access to markets helps agribusinesses increase profits. [7]
[7] Shiferaw, B., Hellin, J. & Muricho, G., Improving market access and agricultural productivity growth in Africa: what role for producer organizations and collective action institutions?
External Risks Subdimensions: Biological & environmental risks, weather & natural risks What is measured: This dimension assesses the agribusiness's awareness of various types of risks, including biological, climate, social, and political-related. It also assesses the agribusiness's its capacity to mitigate these risks. Why it matters: A thorough understanding of external risks is important to agribusinesses so they can avoid, mitigate, or deal with those risks. If farmers are not aware of the risks around them, they are vulnerable. Conversely, awareness (and mitigation) of external risks is what makes a resilient farmer. [8]
[8] Francesconi, N.; Wouterse, F.; Birungi Namuyiga, D., Agricultural Cooperatives and COVID-19 in Southeast Africa. The Role of Managerial Capital for Rural Resilience
Enabling Environment Subdimensions: Capacity builders & NGOs, community, government What is measured: This dimension assesses how efficiently the agribusiness connects with available services. This includes services offered by capacity builders, NGOs, and governments. It also assesses the agribusiness's awareness of local laws, and the quality and type of relationship it has to the community. Why it matters: An enabling environment is helpful to an agribusiness, but only so much as they are aware of it and can link to available services. External services can positively impact the success of an agribusiness. [9]
[9] Ha1, T., Bosch, O., & Nguyen, N., Necessary and Sufficient Conditions for Agribusiness Success of Small-scale Farming Systems in Northern Vietnam

All of these aspects are integral to an agribusiness, and a professional, thriving agribusiness must achieve proficiency in all eight dimensions to achieve success.

How can our data be used?

Our data can be used in different ways by different clients. For example, capacity builders can use it to tailor their trainings, while project leads can use it to measure the quality of technical assistance. In upcoming articles, we will explain some of the many ways our clients can use our data to increase their programmatic success.

Are you interested in conducting a SCOPE assessment? Contact us today to find out how you can get started.

[1] This is the case for a SCOPE Basic score. The SCOPE Pro tool adds a ninth dimension of professionalism: financial performance, which assesses how the agribusiness is performing financially based on the key financial ratios.

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