Accenture development partnerships

Partnering for Shared Value in
Consumer Goods

Accenture Development Partnerships

1

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

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


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

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

4

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

Cross
Sector
Convergence

New metrics
are emerging

The role of NGOs
is changing

Non-profits are warming
to the role of business
5

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


6

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


7

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

8

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


9

Game-Changing Partnerships


10

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


• 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

Sector Development
Southern Africa Growth Corridor of Tanzania (SAGCOT)

Convergence Concept


• 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


• Secure long-term access to talent and resources

• Lift the sector for the benefit of all actors
12

New Product Development
Project Thrive

Convergence Concept


• 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)

• Positive PR / leadership in using core business to
contribute to development solutions
• Gateway to enter new commercial markets (rural poor,
fortified beverages)
13

Last Mile Distribution
JITA Rural Sales Programme

Convergence Concept


• 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

• 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

Public Sector Strengthening (Health)
Project Last Mile

Convergence Concept


• 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

• Enhanced branding as a leader in private sector
engagement in development
• Strengthened relations with Govt, MoH and other key
stakeholders
15

Discussion on Partnering Approach


16

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

17

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?


18

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

19

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

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


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

…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)


22

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