Partnering and Social Impact Measurement: Tools for Strategic Advantage

Transcription

1 Partnering and Social Impact Measurement: Tools for Strategic Advantage Optimising B2B and stakeholder relationships to develop new products, enter new markets, and build operational capacity to pursue innovative business models. Leveraging these relationships and other strategies to accurately measure your social impact

2 Purpose Building on increasing enthusiasm for inclusive business, this workshop is convened to introduce two, often neglected, yet important components of IB: Social Impact Measurement Partnering 2

3 Introducing inclusive business Many donors are realizing that business can through ways that are innovative play a key role in alleviating poverty in a developing country like Zambia; UK Government through Department For International Development (DFID) with their Business Innovation Facility and the Swedish Government through the Swedish International Development Agency (Sida) with their Innovations Against Poverty are leading their peers in providing support to businesses in this area; Both these programmes are delivered through an alliance of Partners led by PwC and in Zambia under the same management structure;

4 Inclusive business in practice Inclusive businesses are core business activities with opportunities for the poor, either as producers & suppliers, employees, distributors or customers 4

5 Different types of inclusive business clients (1) Inclusive businesses with low income people as customers/employment creation HealthStore Foundation: Employ business format franchising for owner run Child and Family Wellness (CFW) Clinics that treat 70% of diseases that account for over 40% of deaths in Sub Saharan Africa Franchisee 5

6 Different types of inclusive business clients (2) Inclusive businesses with low income people as distributors Manual Distribution Centres working with small-scale distributors to deliver products to remote areas difficult to reach with traditional distribution models 6

7 Different types of inclusive business clients (3) Inclusive businesses with low income people as suppliers Tata Zambia Tannery Division: business relies on hide sourced from small scale cattle farmers for wet blue exported to mainly Europe 7

8 Pro Poor Support Along The Value Chain 8

9 What is the Business Innovation Facility and Innovations Against Poverty? Innovations Against Poverty (IAP) IAP supports companies as they pilot and explore innovative inclusive business models (always early stage) IAP provides funding and financial assistance to companies & commercially oriented organizations; Global pilot now with specific country windows with Zambia being the first. Embassy of Sweden has added additional resources specific for Zambia; Business Innovation Facility (BIF) BIF supports companies as they develop and scale up innovative inclusive business models (often early stage). BIF provides Technical Assistance/ consulting support to businesses business planning, marketing strategy, partnership brokering, investment structuring, etc 5 pilot countries Zambia, Bangladesh, Nigeria, Malawi & India;

10 What are the objectives of BIF and IAP? Innovations Against Programme Mobilising resources and encourage companies to develop their core activities in ways that benefit poor Designed for companies which are based or operate in a poor country. Business Innovation Facility Helping business-led inclusive business initiatives to overcome constraints and progress of their inclusive business models by providing information, advice, partnership brokering and other support that helps companies implement inclusive business projects more effectively Distilling and sharing knowledge and learning to develop a better understanding of the issues across a range of areas of inclusive business development, implementation and impact assessment

11 What Inclusive Business/ BoP initiatives are supported? DFID s Business Innovation Facility (BIF) and Sida s Innovations Against Poverty (IAP) programmes have a high level of overlap. Both are focused on supporting private sector-led Inclusive Business (IB) or Base of the Economic Pyramid (BoP) initiatives that have the following characteristics. Commercial viability Can or has potential to fully cover total costs of the business, usually in 3 years or less (break even point) Scalability private sector led, rapid growth is possible due to business reasons (increases revenues, reduces cost, creates material business value) Development impact new goods & services for the poor offered, jobs created, incomes increased, skills transferred Innovative product/ service innovation; process innovation; or business model innovation BIF IAP Additionally IB/ BoP project will have a greater impact or happen quicker due to BIF or IAP intervention

12 Value proposition to businesses overlapping, but not identical BIF and IAP s value propositions are similar, but are not identical. BIF IAP Technical Assistance Main focus of BIF. Relatively limited with IAP. Grants For IAP both small grants (max Euro20k) and larger grants (max Euro200k). The IAP grant covers up to 50% of the cost - should be matched by an equal amount (capital and in-kind) by the applicant Knowledge Sharing Sharing learnings from projects supported; Sign-posting support from other initiatives Guarantees up to 50% of debt financing Both BIF and IAP have a focus on tracking results through the monitoring & evaluation of their portfolio of projects.

13 Important IAP dates Each year, two opportunities to apply for grants. For 2012: First cycle deadline: April 30th Second cycle deadline: November 23rd

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15 Introduction: IBLF The International Business Leaders Forum (IBLF) is an independent, global members organisation of over 150 leading multinational companies. We work across the sectors of business, governments and civil society, focusing on critical sustainability, growth and leadership issues. Challenge and change current assumptions through original research and ideas Capacity-build to deliver sustainable solutions by developing 'next generation' leadership and partnerships Catalyse collective action projects and new responsible business standards that put policy into practice

16 Introduction: TPI Empowers individuals to be able to broker, manage and lead partnerships for sustainable development Builds organisations and systems to be fit for purpose to operate effectively as partners Supports partnerships to maximise sustainable development impacts through greater innovation, efficiency and reach

17 Introduction: Aims & Objectives Raise awareness How can strategic stakeholder engagement, non-traditional business partnerships, cross-sector partnerships, and social impact measurement be tools for gaining strategic advantage? Explore approaches What approach is most useful for measuring social impact? What skills and steps are needed for successful stakeholder collaboration? Build Capacity What tools and support are available to help you pursue the steps and build the skills necessary for successful social impact measurement and stakeholder engagement?

18 Agenda 8:45 Introductions & Welcome 9:15 Experience from the Frontline Charles Bota, Deputy Director, Shoprite 9:35 Partnering for Inclusive Business Mabel Mungomba, TPI Associate 10:30 Discussion 10:45 Break 11:00 Social impact and its measurements Carolin Schramm, BIF Learning and Monitoring Manager 12:15 Knowledge Sharing and Information Session 12:30 Lunch/ Networking

19 Inclusive Business: Non-traditional business

20 Partnerships for IB: WHY Stimulate innovation Build capacity Access resources Build credibility Maximise & measure social impact To form and manage producer cooperatives To find and train qualified employees To tap into informal distribution systems Raise awareness of product or service consumer benefits To build supplier capacity To identify and/or create innovative distribution methods To create product or service demand Educate consumers on how to use products and services

21 Different sectors can bring different resources PUBLIC SECTOR Regulatory / tax framework Human resources Public finance budget Policies affecting the enabling environment Democratic legitimacy Land / buildings / office space Infrastructure and scale UN AGENCIES Experience, brand, mandate Global network Trust by government and good government contacts Technical expertise Ground level presence and operational capacity Legitimacy and impartiality DONORS Funding Experience Political connections Knowledge and ideas MDG focus Technical Assistance BUSINESS Access to customer base Trusted brands Human resources Business planning and project management Generation of new products / services Supply chain management Technical skills and infrastructure / logistics A market-based approach CIVIL SOCIETY Independence and legitimacy Local knowledge, connections, social capital Capacity to mobilize communities Emphasis on livelihoods and sustainability Technical knowledge Passion and commitment Advocacy

22 Types of Resources Financial Capital Social Capital Human Technical Natural 22

23 The Relationship Spectrum TRANSACTIONAL RELATIONSHIP PARTNERSHIP COLLABORATION An intuitive way of comparing and contrasting collaborative relationships. IS NOT a value judgement IS a tool to identify opportunities 23

24 Relationship spectrum TRANSACTIONAL PARTNERSHIP One party decides the programme, which is limited by their own knowledge / experience One party purchases a service from - or donates to the work of another Co-generation based on joint knowledge More appropriate / implementable solutions Partners bring together complementary resources Potential for more innovative solutions Fixed contractual arrangement with clear deliverables Collaboration agreement decided at beginning More adaptable to changing realities Parties not required / expected to reveal their underlying interests Limited engagement from parties beyond the contractual arrangement Greater transparency Better informed decision-making Stronger engagement and buy-in Partners willing to go extra distance Partners stay in their comfort zone each doing what Partners together create new ways of working they normally do Wider potential for influence int./ ext. One-way accountability Mutually accountability Ensures stronger over all accountability

25 Rich tapestry of partnerships...

26 Your Experiences Have engaged in any form of partnership? Why? Who were the actors? Benefits or Not? 26

27 Resources, Skills, Steps

28 Partnership most likely to be effective when Co-creation Smart objectives Solid institutional commitment Strong relationship management Strong project management Good internal and external communication Clear roles and responsibilities Built-in review processes Balance of benefits and inputs among partners

29 Potential risks (for all partners) Loss of autonomy Conflicts of interest Drain on resources Time investment in partnership-building Implementation / coordination challenges Poor performance by other partners Negative reputation impact

30 Power imbalances... Core principle: Equity

31 Hidden agendas... Core principle: Transparency

32 Risk is likely to be minimised if Partnering process is well understood by all the partners Partnership is well managed Partnership is outcome and output-oriented Partners are achieving their individual goals as well as shared goals Partners have an equal voice at the table Partnership relationship and the project management both get attention Enough (and not too much) time is given to partnership-building Partnership roles are well understood

33 Partners winning at the expense of others... Core principle: Mutual benefit

34 Why are these principles so important? EQUITY TRANSPARENCY MUTUAL BENEFIT

35 Discussion What are some challenges you have faced when exploring or implementing a partnership? What skills did you find vital? What resources did your partnership need to be successful? 35

36 Support: ONGOING: A partnership broker is an active go-between who supports partners in navigating their partnering journey by helping them to create a map, plan their route, choose their mode of transport and change direction when necessary. An external broker is an independent third party contracted to: scope, plan or facilitate the early stages of a partnership; develop a partnering agreement; research, maintain, monitor, review or evaluate a partnership over time. Essential Skills for Effective Partnering: September, London; October, Rotterdam Autumn, Washington, DC IMMEDIATE FUTURE Consultations BIF Event Page Innovation Spaces This event aims to stimulating idea generation and problem solving through cross-sector resource sharing, dialogue, and collaboration. DATE: Thursday, 20 September 2012 TIME: 3pm 6pm (followed by a reception) Tailored Trainings

37 Author: Mabel Mungomba &Jessica Scholl Date: September 2012

38 Closing slide For further information, go to: Practitioner Hub on inclusive business: Contact: Service provider contact details International Business Leaders Forum E: T: W: The Business Innovation Facility (BIF) is a pilot project funded by the UK Department for International Development (DFID). It is managed for DFID by PricewaterhouseCoopers LLP in alliance with the International Business Leaders Forum and Accenture Development Partnerships. It works in collaboration with Imani Development, Intellecap, Renaissance Consultants Ltd, The Convention on Business Integrity and Challenges Worldwide. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP and the other entities managing BIF (as listed above) do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. The views presented in this publication are those of the author(s) and do not necessarily represent the views of BIF, its managers, funders or project partners.