Organizational Capacity: Ensuring Successful Implementation in Value

Chain Programs

Alexandra Snelgrove, MEDATracy Gerstle, CARE

Thulasy Balasubramaniam, EWB

Panel Overview

• Industry Challenges• Testing Our Capacity• Sharing Our Experiences: Different

Perspectives– Tracy Gerstle, CARE– Alexandra Snelgrove, MEDA– Thulasy Balasubramaniam, EWB

• Concluding Remarks• Question and Answer

Importance of Capacity Building

Thousands of NGO staff have participated in market facilitation training…..

Hundreds of Market Analyses and Value Chain Development Program Designs have been completed….

And yet, there are still relatively few, large- scale, successful market development programs….

Importance of Capacity Building

Why?

Industry Challenges

Working as a facilitator necessitates a different capacity and starting point…

• Approach requires a unique staff mindset and expertise

• Flexibility critical• Different program management and staffing models,

operations, and budget required• Familiarity with business models and processes• Longer time to achieve results• Heightened emphasis on M&E and learning over life of

program

Testing Capacity

• Hypothesis behind the tool: – Initially developed for internal purposes to guide EWB’s investments.– Practitioners could benefit from breaking down market facilitation into more

tangible parts • Purpose:

– Disaggregate components of market facilitation• Knowledge/Understanding ( Know-What)• Capacity ( Know- How)

– Offer starting point for conversation on organizational upgrading needs based on behaviours/evidence

• Activity:1. We will walk through 2-3 dimensions of the tool2. For each read the different practices/behaviours within each dimension –

which behaviours/responses best reflect your organisation?3. Discuss with the individuals around you some of the challenges that you face

in moving up to the next level? ( 5 minutes)4. Key insights? Comments to share?

Where is your organisation?

Know-What the approach

Know-How – ability to implement approach

Sophisticated MF Understanding

Conventional Agric Approach

Low High20

20

10

10

Know-How

5 key dimensions of org :1. Field Staff Capacity2. M&E Systems3. Management Approach4. Organisational Culture5. Relationships with Donor

Know-What

5 questions to gauge knowledge/understanding:1. What is the problem?2. What is the outcome?3. What are the constraints?4. What is the intervention

strategy?5. What is the role of org?

KNOW WHAT

Conventional agriculture project

Basic understanding of value chains and market facilitation approach

Good understanding of value chains and market facilitation approach

Sophisticated understanding of value chains and market facilitation approach

What is the problem?

People do not have enough food or are living in poverty. The problem is primarily one of production – quantity, quality, consistency.

Farmers do not have access to or have poor quality access to inputs and output markets. This is limiting their ability to benefit more from farming

The problem is not just with farmers, but also the firms/ market opportunities that could work with farmers. They are not interested or not as able to work with farmers and farmers are not able to engage with them effectively

The overall market system is not functioning to benefit the broader base of the population. There is a lack of commercial relationships between farmer and firmsCurrent behaviours – farmers and firms – are not oriented towards positive commercial relationships

KNOW HOW Conventional agriculture project

Basic understanding of value chains and market facilitation approach

Good understanding of value chains and market facilitation approach

Sophisticated understanding of value chains and market facilitation approach

Management approach

Centralised decision makingUses linear planning systems – log frames

Working to keep things on track according to linear planning approaches (ex. LFA)Few surprises because of linear approachFocusing on completing activitiesFocused on efficiency – burn rates, number of farmers reached, crop yields, etc.

Realising the need to re-look at management approach for value chain market oriented projects, not sure how to do it.

Seeing importance of investing in staff development as it requires entirely new behaviour

No clear vision for field staff to aim for, not sure how to communicate in an ambiguous environment

Able to manage bottom up solutions, while providing clear vision for teamRecognises the importance of their own role, staff performance and organisational effectiveness

Beginning to coaching staff and invest in field staff development

Focusing management for outcomes (behaviour change)

Starting to promote experimentation, creating ‘safe’ environments for staff to test out new behaviours

Introduces incentives to promote positive & desired behaviours within staff; careful in using heavy handed approachesFocused on effectiveness of interventions

Able to use various means to manage emergent strategies in highly ambiguous environment and all staff aligned on vision

Uses M&E as a critical management tool

Invests in development of staff, values field level knowledgeLearns quickly and adjust interventions quickly based on that learning

Manages for outcomesAccepts failures are part of innovationPromotes a culture of feedback and on-going learning and innovation

Able to manage a culture change process within organisation and team as it moves towards being more innovative

Builds off positive cultural norms

Sees organisation as a system, and understands the implications of own activities; highly self-aware

Sharing Our Experiences

Mennonite Economic Development Associates

Building The Organizational Capacity of CARE in Market Development

A Quantum Leap in the Fight Against Poverty

Tracy GerstleEconomic Development UnitSustainable Livelihoods Cluster

Bangladesh: Strengthening the Dairy Value Chain 2007-2011$5.25 m BMGF

Ethiopia: PSNP-Plus2008-2011$14 m USAID

Peru: Portfolio of Programs: IADB, Wal-Mart, USDA: Horticulture and Small Livestock

Points of Light in Market Development Approaches at CARE

Sierra Leone: Improving Child Well-Being Via Egg Value Chains 2009-2011$2.4 m USAID

Zambia: ADAPT Agro-Dealer Project2008-2011$3.05 m AGRA

• 70 Country Offices, Annual Budget $700 m+• Decentralized Leadership, Program

Management, & Governance• Wide Array of Donors• Wide Array of Socioeconomic Contexts &

Programming Approaches • Empowered National Staff with Promotion

Tracks to Senior Management • Culture of Staff Development and Retention,

Resulting in Strong Managers/Generalists

Context for Scaling Market Development

MISSIONEmpower women, girls and their families to maximize their economic potential

as producers, workers and consumers in higher value local, regional, and global markets.

Poor women, girls and their families maintain increases in their incomes and quality of employments via participation in high value, well governed value chains.

=Enhanced market and financial literacy and the ability to manage risk

x Value added contributions to and benefits from market participation

xConducive policy and regulatory environment promoting inclusive, competitive markets

THEORY OF CHANGE

RESOURCE MOBILIZATIONCARE leverages significant funding and other non-financial resources from major donors and partners to realize

innovative, effective and scalable solutions to eradicate poverty via value chains.

VALUED PARTNER FOR THE PRIVATE SECTOR CARE is the partner of choice for the private sector in partnerships to advocate poverty alleviation and develop more competitive value chains and inclusive business that engage very poor women and girls.

ORGANIZATIONAL LEARNINGCARE will develop the processes and resources needed to continually improve upon the quality and impacts of its value chain programs by disseminating internal and external learning and innovation.

LEADERSHIP AND ADVOCACY CARE is recognized as leading the industry in learning and practice on employing the Value Chain approach with an emphasis on gender equity and advocacy to lift poor women, girls and their families out of poverty

PROGRAM QUALITYCARE has the organizational and staff capacity to undertake high quality, scalable value chain programs

CARE MARKET ENGAGEMENT STRATEGYLift 10 million women, girls and their families out of poverty by promoting dignified employment*

and sustainable incomes above the poverty line by 2015 through the development of agriculture and other value chains

M&E Peer-to-PeerLearning

Formal Training

Management

Mentoring

Community of Practice

E-Learning Courses:

Intro to Market Dev

Value Chain Analysis & Program Design

Empowerment & Gender

Market Facilitation Coaching System

Commitment to Market Facilitation Capacity Building in Country Office Annual Plans

Partnership with Human Resources Individual Staff Development Plans

Global Capacity AnalysisBenchmarking

Monitoring & EvaluationSystem

Framework for Program Quality and Staff Capacity

Supporting CARE’s Strategic Objectives on:

Program QualityOrganizational Learning

Furthering Sustainability: Enhancing VCD Capacity of Local Partners

Alexandra SnelgroveProduction and Marketing LinkagesMennonite Economic

Development Associates

MEDA

Pathways & Pursestrings - Pakistan• Project goal - Integrate 16,000 rural,

homebound women into lucrative value chains

• Four value chains (dairy, seedlings, embellished fabric, and glass bangles) in four geographic areas

• Complementary Goal - Develop the capacity of local non-government organizations (NGOs) and community based organizations (CBOs)

• Four Key Facilitating Partners (KFPs) (three public organizations and one private sector firm)

MEDA’s Approach

Iterative Learning Loop:

International Network/ Industry

KFPS

MEDA and key facilitating partners contribute to international learning based on action research and the experience in Pakistan

Local partners benefit from industry knowledge, best practices and advice

MEDA and partners learn from the grassroots innovations and activities of KFPS

MEDA and ECDI support the advancement of KFPs through knowledge dissemination, technical assistance and pilot programs

MEDA and key training partners (ECDI) act as a hub between local experience and international standards while developing a learning community.

MEDA & Key Training

Partners (ECDI)

MEDA’s Approach

• Learning by doing theme whereby KFPs are involved in each step of the project – from value chain analysis onward

• Three elements of Capacity Building:

1. Formal Classroom Style Training 2. Mentoring 3. Cross-KFP Learning

• Regular Training Needs Assessment

Project Challenges• Partner background = traditional

NGO paradigm• Business acumen and value chain

skills are absent• Conflicting goals between

departments (provider mentality)• Skepticism towards the value chain

approach throughout the organization

• Value Chain Approach is a new approach in Pakistan

• Staff turnover is high for some partners

• Transferring training to field workers

Initial Lessons

• Flexibility and dynamism in capacity program

• Regular training needs assessment

• Package of training tools and processes

• Cross partner learning • Manage expectations of donor

and partners• Not just skills upgrading;

mindset shifts• Bringing it back to the impact

for the producers

Putting Market Facilitation into Practice: A View from the Field

Engineers Without Borders CanadaThulasy BalasubramaniamAgriculture Value Chains Team

EWB

• Over 50 organisations in Africa on organisational capacity

• Zambia, Malawi, Ghana, Burkina, • Long term secondments to partner organisations to

provide on-the-job support• Dedicated support to over 15 organisations and

companies in Zambia/Malawi for market linkages• We’re learning.

Introduction to EWB

EWB

Sustainable Change =

Value Chain Approach

Market Facilitation

Organisational Capacity

Our Hypothesis

EWB

Type 2: Service Delivery & Market Linkages

Type 1: Service Delivery

Type 3:Market Facilitation

Range of Interventions

EWB

Address Gaps Skills

Create Behavior Change

Attitude/Judgment

Trigger Mid-Set Shift

Knowledge

Field Staff CapacityRoles of Market facilitator

Com

mun

icat

or

Rel

atio

nshi

p B

uild

er

Bus

ines

s Pe

rson

Coa

ch

Inno

vato

r

Foundational Attitudes and Capacities

EWB

Management

Field Facilitators

Donors

M&E as Reporting & Accountability

• Longer time frame• Reporting to donors

1

Markets

2

M&E as Knowledge Management

• Captures information• On-going and quick feedback loops• Improve decision making• Adjust interventions• Supports staff

M&E

EWB

Management Approach

Donor Relationships

M&E as a management

tool

Field Facilitators

Capacity

Organizational culture

Management Approach

EWB

Conclusions• Field staff capacity development is an on-going process• Knowledge management systems are required for:

• Sustained staff behaviour change• Effective implementation

• Management approach is the driving force for organizational change• This shift takes time and requires commitment and patience from

managers and donors

Understanding of organizational structures to identify key levers to effect and support changeAppreciate that shifting organizational culture is very difficult Rooting a “learning culture” does not take place overnightCultivate a new identity for staff, e.g. “Business Advisors”Create incentives for desired behaviorsSenior Management buy-in critical since they set the toneRecognize what draws staff to a particular organization Change in Values and Mindset needed at all levels: HQ, Country Leadership, Field Staff

Make the vision tangible and relevant: Theory of Change/Causal PathwayCreate a tier M&E system: Management and Impact/Reporting Create financial systems that are responsive to program and market demandsCreate HR systems that promote staff development in facilitation at all levels: e.g. Management, Field StaffRearward and Promote development of soft as well as technical skills in field staff, e.g. Analytics, Judgment, Relationship BuildingEnsuring appropriate criteria and salary scale for new hires Develop systems that support and encourage risk-taking and innovation

KM as a tool for program management and building staff capacity Tools and systems that capture and share explicit and tacit knowledgeManagement can use KM as a tool to reinforce organizational cultureRegularly assess staff capacity and develop clear strategies to address identified gapsPromote learning at an organizational levelUnderstand that knowledge development happens in a variety of avenuesLearning programs need to include both technical skills (VCD principles etc) and commercial/business thinkingDevelop learning systems throughout organization HQ to field staff

Need to develop buy in of all program stakeholders: e.g. donors, target group, private sector, government, staff, management, other NGOsEnsure staff have capacity to build and develop partnerships at with the private sector and at different levelsBalanced Scorecard and other participatory benchmarking tools are a good resourceNeed to set expectations with donors on time periods needed for results: particularly in behavioral and attitudinal change Equip staff with a elevator speech and other means of branding to

explain new approach to partners, clients and others

Organizational Culture Management Systems

Knowledge Management Partnership Relations

Lessons in Staff Capacity and Organizational Change

Questions For Discussion• How do you deal with projects and organizations that combine traditional

and market facilitation approaches?• What types of organizations are the most conducive to a market

facilitation approach? • What are the most effective systems and incentives to shift organizational

culture and staff behavior towards market facilitation? • To what extent can you shift an organization?• Can the shift happen in a typical project timeframe (3 – 5 years)?• What factors engender this shift?• What can donors do to support this shift?• What can we, as a community of practice, do to ease this shift?

Questions & Answers