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Partnering for Shared Value in
Consumer Goods
Accenture Development Partnerships
1
Copyright © 2013 Accenture All rights reserved.
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
2
Copyright © 2013 Accenture All rights reserved.
Defining Cross-Sector Convergence
3
Convergence of issues:
• Global development problems are
complex, interdependent and
should not be dealt with in isolation
from one another
Private Sector Third Sector Public Sector
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??
Convergence of interests:
• What’s good for NGOs may turn
out to be good for business and
vice versa
Policy &
Reg
Service
Delivery
Social
Security Treasury
Resource
Mobilisation Advocacy
Field
Programmes
Monitoring
&
Evaluation
R&D Operations Supply
Chain
Comms &
Marketing
Industry/Thematic Axis Sector Axis
From
“Issue”
To
“Outcome”
Copyright © 2013 Accenture All rights reserved.
A Convergence of Issues
The challenges facing our planet today are systemic in nature and
require integrated rather than siloed responses
4
Develop a global partnership for
development
Eradicate extreme hunger and poverty
Achieve universal primary education
Promote gender equality and empower
women
Reduce child mortality
Improve maternal health
Combat HIV/AIDS, malaria, and other
diseases
Ensure environmental responsibility
From silos...... .....to systems
Millennium Development Goals
MDG
1
MDG
2
MDG
3
MDG
4
MDG
5
MDG
6
MDG
7
MDG
8
Source: World Economic Forum, 2011
Copyright © 2013 Accenture All rights reserved.
What is Driving Cross-Sector Convergence Now?
5
Technology has
become an enabler
Cross
Sector
Convergence
New metrics
are emerging
The role of NGOs
is changing
The timing is right to
rethink capitalism
Citizens
want it
Emerging-market
consumers are a force to
be reckoned with
More and more
business
leaders “get it”
Non-profits are warming
to the role of business
Copyright © 2013 Accenture All rights reserved.
Results from UN Global Compact— Accenture CEO Study 2010
Most business leaders across industries believe more should be done
than is happening
6
Performance Gaps between ‘companies should’ and ‘my company does’ engage in multi-stakeholder partnerships to
address development goals. % Respondents who ‘Agree’ or ‘Strongly agree’
Should
78%
83%
83%
81%
80%
79%
79%
79%
76%
76%
75%
72%
71%
64%
57%
68%
71%
59%
76%
70%
74%
66%
66%
45%
64%
59%
67%
Does
Copyright © 2013 Accenture All rights reserved.
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
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45%
39%
28%
26%
25%
22%
15%
50%
39%
32%
29%
25%
24%
19%
27%
2010 2007
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
Communities
Governments
NGOs
Investment
community
Employees
Consumers
Media
Regulators
58%
Copyright © 2013 Accenture All rights reserved.
What kind of partnerships are we seeing develop?
Systemic change will require more effective, transformational partnerships
8
“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
Transformational • 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
Strategic • 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
Opportunistic • Program or
intervention that
brings short-term
benefits
• May leverage core
competencies of
partners, but in an
adhoc manner
Philanthropic • Discrete effort or
relationship, with
emphasis on PR
and financial
contributions
Increased Complexity, Investment and Impact
Copyright © 2013 Accenture All rights reserved.
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
9
2 Invest in sector
development
Improved infrastructure,
strengthened suppliers, etc
Job creation & improved
income
1
Develop inclusive
business & supply
chains
Access to local resources &
supply, businesses & talent
Access to markets & growth
opportunities
Business Value Societal Value
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
Shared Value Opportunity
Copyright © 2013 Accenture All rights reserved. 10
Game-Changing Partnerships
Copyright © 2013 Accenture All rights reserved.
Inclusive Supply Chains
Project Nurture
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• Agricultural development for mangos and
passion fruit in Kenya and Ghana
• 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
• Develop long-term supply for juice business inputs
• Reduce dependency on imports
• Develop local agricultural sector & skill base
• Increase economic development through local value-add
• Increased prices for farmers through market access
Convergence Concept Shared Value Business Case
Copyright © 2013 Accenture All rights reserved.
Sector Development
Southern Africa Growth Corridor of Tanzania (SAGCOT)
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• Work in collaboration across the sector to develop
the agricultural corridor and business potential
• Jointly invest in removing key barriers to
agribusiness value chain development, e.g.
infrastructure, talent, inputs
• Form partnerships under SAGCOT to co-create
and implement targeted interventions
• Strengthen individual ag value chains to improve local
throughput and quality
• Share costs, risks and reward
• Secure long-term access to talent and resources
• Improve farmer access to markets and farmer talent
• Lift the sector for the benefit of all actors
Convergence Concept Shared Value Business Case
Copyright © 2013 Accenture All rights reserved.
New Product Development
Project Thrive
13
• New fortified, read-to-drink juice product
developed to address malnutrition need
• Three-tiered route-to-market strategy:
Government (school), Community (informal
retail) & Commercial (retail)
• Set up as a social enterprise with
complementary programmes (sanitation,
nutrition, education)
• Improvements in nutrition, learning capacity and
educational outcomes
• Strengthened relationship with local government
• Positive PR / leadership in using core business to
contribute to development solutions
• Gateway to enter new commercial markets (rural poor,
fortified beverages)
Convergence Concept Shared Value Business Case
Copyright © 2013 Accenture All rights reserved.
Last Mile Distribution
JITA Rural Sales Programme
14
• Rural women sales agents set up as a social
enterprise to sell a wide range of consumer goods
products
• 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
• Increased access to rural markets for consumer goods
companies
• 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
Convergence Concept Shared Value Business Case
Copyright © 2013 Accenture All rights reserved.
Public Sector Strengthening (Health)
Project Last Mile
15
• Build the capacity of African Ministries of Health in
10 countries to improve availability of medicines
• Leverage the core capabilities of Coca-Cola in
supply & distribution in the local context
• Transfer learnings, models, methods and
processes to MoH, alongside capacity building
• Demonstrate impact and replicate
• Improvements to medicines availability increases health,
nutrition and economic development
• Healthy communities as healthy customers
• Enhanced branding as a leader in private sector
engagement in development
• Strengthened relations with Govt, MoH and other key
stakeholders
Convergence Concept Shared Value Business Case
Copyright © 2013 Accenture All rights reserved. 16
Discussion on Partnering Approach
Copyright © 2013 Accenture All rights reserved.
Why Partner?
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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
Change the rules of the game - influence business and industry practices
Access government and key stakeholders Influence investment in developing & emerging
markets
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 issues-based, cross-sector partnerships
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)
Build skills and capabilities via knowledge and technology transfer
Strengthen internal operations, efficiency and quality/effectiveness of programs
Cross-Sector Partnering Benefits
Influence
Increase Impact
Strengthen Brand &
Reputation
Build Capabilities
Acquire Resources
Innovate
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
Copyright © 2013 Accenture All rights reserved.
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?
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Copyright © 2013 Accenture All rights reserved.
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
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Government Ministries NGOs Donors/ Foundations
• Recognition that socio-
economic 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
• Deep understanding of
community needs and
opportunities for new products
and services
• Trusted intermediary to reach
community, with significant
channels to these markets
• Provide lessons to business on
new approaches to capture
business value while driving
socio-economic development
• Seeking opportunities to drive
sustainable revenue through
social enterprise models
• Move towards ‘catalytic funding’
to help kick-start innovations in
development and reduce
upfront costs and risk
• Move to a ‘co-creation’
approach, encouraging private
sector to engage
• Provide technical assistance,
and trusted access to a huge
network of ministries and
potential partners
• 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.
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
20
Copyright © 2013 Accenture All rights reserved.
Transformational Partnerships are Challenging…
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Defining each sector’s added value Maintaining relevance to donors and beneficiaries in light of private sector engagement; Gain appreciation for non-cash benefits
Capability gap Identifying and developing the new skills that employees need in order to work effectively in these partnerships
Culture Adapting ways of working and communicating to meet the needs of the partnership; Addressing trust issues
Performance management Managing limited capacity for monitoring and evaluation, as well as attrition for measurement activities.
Integration and execution Scaling opportunities to move beyond one-off projects, and cross-fertilizing lessons learnt
Resource constraints Accessing and allocating funding/staff - very limited cash-flows, unrestricted funds and high staff turnover
Copyright © 2013 Accenture All rights reserved.
…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)
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