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Partnering for Shared Value in Consumer Goods Accenture Development Partnerships 1

Accenture development partnerships

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Page 1: Accenture development partnerships

Partnering for Shared Value in

Consumer Goods

Accenture Development Partnerships

1

Page 2: Accenture development partnerships

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

Page 3: Accenture development partnerships

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”

Page 4: Accenture development partnerships

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

Page 5: Accenture development partnerships

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

Page 6: Accenture development partnerships

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

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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

Page 7: Accenture development partnerships

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%

Page 8: Accenture development partnerships

Copyright © 2013 Accenture All rights reserved.

What kind of partnerships are we seeing develop?

Systemic change will require more effective, transformational partnerships

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“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

Page 9: Accenture development partnerships

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

Page 10: Accenture development partnerships

Copyright © 2013 Accenture All rights reserved. 10

Game-Changing Partnerships

Page 11: Accenture development partnerships

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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

Page 12: Accenture development partnerships

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

Page 13: Accenture development partnerships

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New Product Development

Project Thrive

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• 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

Page 14: Accenture development partnerships

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Last Mile Distribution

JITA Rural Sales Programme

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• 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

Page 15: Accenture development partnerships

Copyright © 2013 Accenture All rights reserved.

Public Sector Strengthening (Health)

Project Last Mile

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• 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

Page 16: Accenture development partnerships

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Discussion on Partnering Approach

Page 17: Accenture development partnerships

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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

Page 18: Accenture development partnerships

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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Page 19: Accenture development partnerships

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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

Page 20: Accenture development partnerships

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

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Page 21: Accenture development partnerships

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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

Page 22: Accenture development partnerships

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…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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