Partnering for Scale Ted London
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© 2016 by Ted London
GIZ/IBAN
Creating Knowledge Cutting edge, field based
research
Advising/Consulting Advising leadership teams
Engaging development sector
Supporting design and implementation
Education Executive education
Customized training
Engaging the Community Keynotes and presentations
Convenings and workshops
What We Do
© 2016 by Ted London
GIZ/IBAN
$2.3 Trillion and Counting
Can Foreign Aid Work Better?
“So far, our collective record is mixed.
The results…suggest that there have
been some gains, and that success is
still possible in most parts of the world.
But they also point to how much
remains to be done.”
UN Secretary General
Ban-Ki Moon Millennium
Development Goals
Report 2007
“A successful sustainable development agenda requires
partnerships between governments, the private sector and civil
society…Urgent action is needed to mobilize, redirect and
unlock the transformative power of trillions of dollars of private
resources to deliver on sustainable development objectives. http://www.un.org/sustainabledevelopment/globalpartnerships/
© 2016 by Ted London
GIZ/IBAN
Development Challenges • Need for scale • Have too many “customers” • Support local producers • Alleviate poverty
New Approaches
New Opportunities
Business Challenges
• Search for growth • Find new customers • Locate new sources of supply • Create value
Business Development + Social Impact
The BoP Promise
Sustainable, scalable enterprises that truly alleviate poverty
© 2016 by Ted London
GIZ/IBAN
Growing Momentum…
But Mixed Venture Success Lots of pilots, but where are the scalable enterprises?
Lots of activity, but what have we learned?
Lots of cases and reports, but what are best practices?
Conversation has changed; business part of the solution
Growing interest: companies & development partners
Unlocking new resources; attracting the best & brightest
Many new ventures being developed and launched
© 2016 by Ted London
GIZ/IBAN
Re-Framing From should we do this…to how can we do this better
Needed
Understanding Lessons Learned From inspiring stories of success…to
understanding variation in performance (including
failures)
Impact at Scale From launching pilots…to seeking scale
Roadmap for Enterprise Leaders From figuring it out as we go…to a toolkit for
achieving sustainability at scale
© 2016 by Ted London
GIZ/IBAN
“We have seen the promise of
sustainable, scalable, BoP impact
enterprises, but we have more to
do to truly deliver on that
promise. We must continue to
draw lessons from the experiences
– the successes and the
frustrations – of enterprises
operating in the field…and
identify what works and what
doesn’t.”
Standardized Tools;
Customized
Implementation
© 2016 by Ted London
GIZ/IBAN
Sustainability at Scale Toolkit
Business Model
Innovation Framework
Design for
Success
Develop
Partnerships
Manage Value
Creation
Co-create, Innovate,
Embed Framework
Plan for
Scale
Metrics Resources
Problem-Solving Structure
Partnership
Ecosystem Framework Impact Assessment
Framework
© 2016 by Ted London
GIZ/IBAN
Credits:
Shuan SadreGhazi
© 2016 by Ted London
GIZ/IBAN
New Partnership Approach Required
An Important Question:
Who should we partner with?
A Better Question:
How can we create a partnership ecosystem?
© 2016 by Ted London
GIZ/IBAN
Ecosystem Building Challenges
Build a venture
Create a market
Reach scale
Primarily motivated by
capital/funding; other types of
support can be an afterthought
Partner discovery is often not
considered a strategic necessity
Enterprises aren’t aware of the full
extent of the landscape of
potential partners
Curr
ent
Realit
y
Source: Improving Inclusive Business through
Enhanced Relationships with Scaling Facilitators (2015)
© 2016 by Ted London
GIZ/IBAN
Service A:
Equity
Service B: Loan
guarantee
Service C:
Board governance
Incubator
1
Service C:
Market intelligence
Incubator
2
Impact Investor
2
Service A: Debt
Service B:
Technical assistance
Challenge Fund
1
Challenge Fund
2
Service A: Seed
funding
Service B:
In-residence training
Service A: Mentorship
Service B:
Access to funders
Service A: Grant
Service B:
Network assess
Service C:
Market intelligence
Service A: Grant
Service B:
Demand creation
Scaling Facilitator - Model 1
Impact Investors
Impact Investor
1
Scaling Facilitator - Model 2
Incubators
Scaling Facilitator - Model 3
Challenge Funds
Potential Partners (Scaling Facilitators)
Building an Ecosystem of Partners?
Multiple potential partners, each with different strategies
© 2016 by Ted London
GIZ/IBAN
Source: London, T., 2016.
“The BoP Promise”
Enterprise Development Market Creation
Facilitate Enterprise Activities
Market Intelligence o Cultural context, competitive landscape o Consumer demand, supplier preferences Market Access o Connection to distributors, other platforms o Implementation support
Value Creation o Assess poverty impacts
Enhance Enterprise Resources
Financial Capital o Grants, equity, debt, loan guarantee
Human Capital o Talent development, technical assistance
Knowledge Capital o Processes , tools, and frameworks
Social Capital o Legitimacy, access to networks
Facilitate Market Transactions
Demand Creation o Awareness raising, behavior change o Micro-credit, other sources of financing o Vouchers/subsidies
Supply Enhancement o Advisory services for producers o Improved inputs o Aggregation of outputs
Enhance Market Environment
Value Chain Infrastructure o Physical infrastructure development o Quality assurance and certification o Market transparency
Legal Infrastructure o Policy changes and regulation enforcement
Institutional Infrastructure o Banking, legal, property sector enhancement
Act
ion
En
abli
ng
C
apac
ity
Bu
ild
ing
Partnership Ecosystem Framework
Robust and Evolving Portfolio of Partners
© 2016 by Ted London
GIZ/IBAN
Partnering for Scale: Collaborating to More Effectively Engage Smallholder
Farmers
Stage 1 - The “Who”
Which partners should enterprise leaders prioritize as most crucial
to enabling sustainable, scalable inclusive business development?
Stage 2 - The “How”
Once inclusive business leaders have identified their priority
partners, what are the strategies and processes for developing and
maintaining these relationships to maximize their effectiveness?
© 2016 by Ted London
GIZ/IBAN
Stage 1 – The “Who”
Enterprise Development Market Creation
Facilitate Enterprise Activities
(FEA)
Enhance Enterprise Resources
(EER)
Facilitate Market Transactions
(FMT)
Enhance Market Environment
(EME)
Act
ion
E
nab
lin
g
Cap
acit
y
Bu
ild
ing
© 2016 by Ted London
GIZ/IBAN
Findings Stronger overall partnership ecosystem increased the
probability of successful pilot, defined in terms of validating
the business model & engaging with smallholder farmers.
Prioritization
Partnerships in FEA quadrant had the strongest association with
overall IB success in piloting
Partnerships in FEA and EER quadrants had the strongest
association with success in validating business model
Variations
For sourcing IBs (as compared to servicing), partnerships in FMT
quadrant had stronger association with engaging smallholders
Corporate initiatives (as compared to entrepreneurial IBs) had fewer
partners across their overall partnership ecosystem, and tended to
be less successful in their piloting
© 2016 by Ted London
GIZ/IBAN
Stage 2 – The “How”
Selected set of five mini case studies
Focused on the experiences of and
strategies used by these IBs in their
efforts to build a partnership ecosystem
over time.
Our goal was to develop insights into
the “how” of partnerships –
understanding how to develop and
maintain these relationships
© 2016 by Ted London
GIZ/IBAN
Findings
Partnership development and
management efforts were more successful
when an individual had been designated
as responsible for maintaining the
partnership ecosystem.
Skills required • Developing partnerships requires understanding not only the role that
partners play in their business model, but an understanding of partners’ own
business models and how this collaboration will create value for them
• Managing partnerships requires understanding how their partnership
ecosystem should evolve over time, and enabling a process to anticipate
and facilitate this change.
Photo Credit: TechnoServe
© 2016 by Ted London
GIZ/IBAN
Takeaways: Partnership Ecosystem Building partnership ecosystem is a key to
success
Universe of potential partners is large and diverse
Optimizing an ecosystem requires a strategic
approach
IBs must consider venture development and
market creation
These efforts benefit from dedicated senior-level
leadership
The dev’t sector has unfamiliar goals & ways of
thinking
Continued research has great value to IBs and
the development sector
Can provide actionable tools, strategies and
recommendations that can optimize performance
Photo Credit: TechnoServe
© 2016 by Ted London
GIZ/IBAN
Next Steps IB Partnership Strategies Across Industries & Geographies
Examine partnership landscapes for different industries and geographies and compare to understand which partnerships are important for IBs regardless of context and which are context specific
IB Partnership Strategies Across Stages of Development
Examine how partnership strategies evolve as IBs transition within and across stages on their journey to scale
Development Sector Strategies for Optimizing Support
Examine landscape of IB support provided by the development community (in a particular context) and compare to the partnership needs of these IBs to understanding how best to optimize and coordinate investments, and identify the highest impact investments
© 2016 by Ted London
GIZ/IBAN
Delivering on
the BoP Promise: Sustainability at Scale
Roadmap for Action: Understand Lessons Learned
Create Actionable Strategies, Frameworks, Processes
Build Better Enterprises
Optimize Development Sector Support
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