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Accenture development partnerships

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  • 1. Partnering for Shared Value in Consumer Goods Accenture Development Partnerships 1
  • 2. Objectives for this Discussion • Our Point of View on Cross-Sector Partnerships & Potential Opportunities for Consumer Goods Companies • Game-Changing Partnerships Driving Significant Shared Value • Discussion on Partnering Approach: How to Drive Shared Value with Your Business & In Your Market • Call to Action Copyright © 2013 Accenture All rights reserved. 2
  • 3. Defining Cross-Sector Convergence Sector Axis Industry/Thematic Axis From “Issue” To “Outcome” R&D Operations Supply Chain Resource Mobilisation Advocacy Field Programmes Policy & Reg Treasury Service Delivery Public Sector Third Sector Copyright © 2013 Accenture All rights reserved. Comms & Marketing Monitoring & Evaluation Social Security Private Sector Convergence of issues: • Global development problems are complex, interdependent and should not be dealt with in isolation from one another Convergence of interests: • What’s good for NGOs may turn out to be good for business and vice versa Convergence of Solutions: • ADP anticipates a cross-sector convergence of solutions to development problems—putting the needs of those most affected squarely at the heart of the matter. • An emergent 4th sector?? 3
  • 4. A Convergence of Issues The challenges facing our planet today are systemic in nature and require integrated rather than siloed responses From silos...... .....to systems Millennium Development Goals MDG 1 Eradicate extreme hunger and poverty MDG 2 Achieve universal primary education MDG 3 Promote gender equality and empower women MDG 4 Reduce child mortality MDG 5 Improve maternal health MDG 6 Combat HIV/AIDS, malaria, and other diseases MDG 7 Ensure environmental responsibility MDG 8 Develop a global partnership for development Source: World Economic Forum, 2011 Copyright © 2013 Accenture All rights reserved. 4
  • 5. What is Driving Cross-Sector Convergence Now? Technology has become an enabler Emerging-market consumers are a force to be reckoned with More and more business leaders “get it” Citizens want it The timing is right to rethink capitalism Copyright © 2013 Accenture All rights reserved. Cross Sector Convergence New metrics are emerging The role of NGOs is changing Non-profits are warming to the role of business 5
  • 6. Results from UN Global Compact— Accenture CEO Study 2010 Most business leaders across industries believe more should be done than is happening Performance Gaps between ‘companies should’ and ‘my company does’ engage in multi-stakeholder partnerships to address development goals. % Respondents who ‘Agree’ or ‘Strongly agree’ 78% 64% 57% 83% 68% 83% 71% 81% 59% 80% 76% 79% 70% 79% 74% 79% 66% 76% 66% 76% 45% 75% 64% 72% 59% 71% 67% Should Does Copyright © 2013 Accenture All rights reserved. 6
  • 7. Results from UN Global Compact— Accenture CEO Study 2010 Consumers and Employees are playing a greater role in influencing business, while NGOs are searching for their new role Over the next five years, which stakeholder groups do you believe will have the greatest impact on the way you manage societal expectations? % of respondents indentifying each factor in their top three choices 58% Consumers 50% 45% Employees 39% 39% Governments 32% 28% Communities 29% 26% Regulators 25% 25% Media 24% Investment community 22% 19% 15% NGOs 27% 2010 2007 Copyright © 2013 Accenture All rights reserved. 7
  • 8. What kind of partnerships are we seeing develop? Systemic change will require more effective, transformational partnerships Increased Complexity, Investment and Impact Transformational Strategic Opportunistic Philanthropic • Discrete effort or relationship, with emphasis on PR and financial contributions • Program or intervention that brings short-term benefits • May leverage core competencies of partners, but in an adhoc manner • Leverages core competencies of partners to develop market and pilot new products & services • Explicit sharing of risk, resources and responsibilities • Tends to be bilateral agreement set up within existing system • Multi-stakeholder approach to systematically changing the rules of the game • Interventions & solutions to make markets work, improve enabling environments and frameworks, and set global standards “It’s time to step it up and move away from traditional partnerships based on volunteering, philanthropy and CRM. If partnerships are not driving new ways of doing business that tackle today’s big challenges, then what’s the point of them?” - Head of Business & Industry, WWF-UK Copyright © 2013 Accenture All rights reserved. 8
  • 9. Shared Value Opportunities in Consumer Goods Consumer Goods companies have significant opportunities to tap into new markets and create sustainable growth while driving societal value Shared Value Opportunity Business Value Societal Value 1 Develop inclusive business & supply chains Access to local resources & supply, businesses & talent Access to markets & growth opportunities 2 Invest in sector development Improved infrastructure, strengthened suppliers, etc Job creation & improved income 3 Develop new products & services Meet emerging/ new customer needs to gain market share Better quality of life through improved access 4 Develop route to market & last mile Tap into new markets and emerging sources of growth Better quality of life through improved access 5 Invest in public sector strengthening Improved Govt. & stakeholder relations and ease of business Talent development, improved access and economic growth Copyright © 2013 Accenture All rights reserved. 9
  • 10. Game-Changing Partnerships Copyright © 2013 Accenture All rights reserved. 10
  • 11. Inclusive Supply Chains Project Nurture Convergence Concept Shared Value Business Case • Agricultural development for mangos and passion fruit in Kenya and Ghana • Develop long-term supply for juice business inputs • Provide focused training, support, infrastructure and inputs to over 50,000 small holder farmers • Develop localized routes to market to sustain benefits for the industry and farmers Copyright © 2013 Accenture All rights reserved. • Reduce dependency on imports • Develop local agricultural sector & skill base • Increase economic development through local value-add • Increased prices for farmers through market access 11
  • 12. Sector Development Southern Africa Growth Corridor of Tanzania (SAGCOT) Convergence Concept Shared Value Business Case • Work in collaboration across the sector to develop the agricultural corridor and business potential • Strengthen individual ag value chains to improve local throughput and quality • Jointly invest in removing key barriers to agribusiness value chain development, e.g. infrastructure, talent, inputs • Share costs, risks and reward • Form partnerships under SAGCOT to co-create and implement targeted interventions • Improve farmer access to markets and farmer talent Copyright © 2013 Accenture All rights reserved. • Secure long-term access to talent and resources • Lift the sector for the benefit of all actors 12
  • 13. New Product Development Project Thrive Convergence Concept Shared Value Business Case • New fortified, read-to-drink juice product developed to address malnutrition need • Improvements in nutrition, learning capacity and educational outcomes • Three-tiered route-to-market strategy: Government (school), Community (informal retail) & Commercial (retail) • Strengthened relationship with local government • Set up as a social enterprise with complementary programmes (sanitation, nutrition, education) Copyright © 2013 Accenture All rights reserved. • Positive PR / leadership in using core business to contribute to development solutions • Gateway to enter new commercial markets (rural poor, fortified beverages) 13
  • 14. Last Mile Distribution JITA Rural Sales Programme Convergence Concept Shared Value Business Case • Rural women sales agents set up as a social enterprise to sell a wide range of consumer goods products • Increased access to rural markets for consumer goods companies • Aim is to deepen access to rural markets through a sustainable model, generating income for sales ladies and CG companies • “One-stop” outlet for rural customers is good for customer preference and sales agent revenues Copyright © 2013 Accenture All rights reserved. • Lower-cost, shared risk and effective route-to-market • Improved livelihoods for rural sales agents • Improved access to key products for communities, including health, nutrition & sanitation products 14
  • 15. Public Sector Strengthening (Health) Project Last Mile Convergence Concept Shared Value Business Case • Build the capacity of African Ministries of Health in 10 countries to improve availability of medicines • Improvements to medicines availability increases health, nutrition and economic development • Leverage the core capabilities of Coca-Cola in supply & distribution in the local context • Healthy communities as healthy customers • Transfer learnings, models, methods and processes to MoH, alongside capacity building • Demonstrate impact and replicate Copyright © 2013 Accenture All rights reserved. • Enhanced branding as a leader in private sector engagement in development • Strengthened relations with Govt, MoH and other key stakeholders 15
  • 16. Discussion on Partnering Approach Copyright © 2013 Accenture All rights reserved. 16
  • 17. Why Partner?  Collaborate to jointly R&D new sustainable and inclusive solutions, including products/services appropriate for low-income communities and innovative delivery  Harness new technologies  Enable market-based approaches to poverty Influence  Change the rules of the game - influence business and industry practices  Access government and key stakeholders  Influence investment in developing & emerging markets Increase Impact Innovate Cross-Sector Partnering Benefits  Access increased pool of talent, knowledge, experience, skills, networks, assets, labour, products, services, and funding  Improve competitiveness of approaching donors and other partners by building issuesbased, cross-sector partnerships Strengthen Brand & Reputation Acquire Resources Build Capabilities  Leverage corporate reach/scale, networks and resources to achieve greater impact for beneficiaries  Enable wealth creation for local communities and economies (e.g., employment & inclusive business models)  Strengthen credibility of brand and partnership through association with respected global companies, NGOs governments and multilaterals  Raise profile amongst business community and global stage as the partner of choice  Build skills and capabilities via knowledge and technology transfer  Strengthen internal operations, efficiency and quality/effectiveness of programs Copyright © 2013 Accenture All rights reserved. 17
  • 18. When to Partner?  Complex, systemic development issue(s) where existing solutions have yet to drive large-scale, sustainable impact  Gaps in capabilities, expertise and resources exist so much so that any one entity cannot address the challenge alone  Increasing stakeholder pressures driving need for a response in shorter-time horizon  Multiple parties with vested interest in outcomes  Opportunity to blend corporate, brand and commercial objectives with a clear focus on benefit for society  Others? Copyright © 2013 Accenture All rights reserved. 18
  • 19. The Changing Roles of Development Sector Players In the last 10 years, we have seen significant shifts in the development sector, all of which suggest real opportunities for private sector engagement Government Ministries • Recognition that socioeconomic development cannot be done by Govt alone • Warming to private sector engagement, increased PPPs • • Concerted efforts to reduce duplication and consolidate efforts in areas of Ag, Health, Education, Finance, etc. Policy development to ease doing business and build enabling framework for private sector engagement in development NGOs Donors/ Foundations • Deep understanding of community needs and opportunities for new products and services • Move towards ‘catalytic funding’ to help kick-start innovations in development and reduce upfront costs and risk • Trusted intermediary to reach community, with significant channels to these markets • Move to a ‘co-creation’ approach, encouraging private sector to engage • Provide lessons to business on new approaches to capture business value while driving socio-economic development • Provide technical assistance, and trusted access to a huge network of ministries and potential partners • Seeking opportunities to drive sustainable revenue through social enterprise models • Share lessons from trials across countries and support shared value measurement Private Sector As companies search for new sources of growth and talent, there is a significant opportunity to align interests and engage meaningfully in development to drive long-term business and societal value Copyright © 2013 Accenture All rights reserved. 19
  • 20. Where to Begin? • Tap into existing global initiatives/ people/ networks to build on momentum, deepen impact and share experiences from local implementation • Combine a wide range of resources, including human, financial, IPR, networks and relationships to think of new ways of approaching old problems • Understand key community and government priorities and issues • Look at the strengths of your particular group and engage internally to brainstorm how best your organization could leverage this capability locally • Leverage convening power to pull together community and civil society leaders – they are asking the same questions on how to collaborate for impact! • Engage a “Partnership Broker”: to explore ideas, facilitate the ideation process and make local linkages into development and civil society to start the discussion Copyright © 2013 Accenture All rights reserved. 20
  • 21. Transformational Partnerships are Challenging… Defining each sector’s added value Maintaining relevance to donors and beneficiaries in light of private sector engagement; Gain appreciation for non-cash benefits Culture Adapting ways of working and communicating to meet the needs of the partnership; Addressing trust issues Resource constraints Capability gap Accessing and allocating funding/staff - very limited cashflows, unrestricted funds and high staff turnover Identifying and developing the new skills that employees need in order to work effectively in these partnerships Copyright © 2013 Accenture All rights reserved. Integration and execution Scaling opportunities to move beyond one-off projects, and cross-fertilizing lessons learnt Performance management Managing limited capacity for monitoring and evaluation, as well as attrition for measurement activities. 21
  • 22. …but worth it… A Call to Action • Truly leverage the power of your organization to make a meaningful change to our communities, countries and continent • Game-changing impact, while driving shared value for business, civil society government • Gain access to whole new sources of growth and talent – invest for the long game • Strengthen/ improve government and local stakeholder relations to ease of doing business • Increase employee engagement and promote leadership development • Cross-pollination of learnings across country programmes, partners and sectors (enhanced R&D for new products, services and markets) Copyright © 2013 Accenture All rights reserved. 22