Facilitation: How Much Does Context Matter ?

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microlinks.org/ MPEPseries Bill Grant Development Alternatives Incorporated Marina Krivoshlykova Development Alternatives Facilitation: How Much Does Context Matter? May 8, 2014

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May 8, 2014. Facilitation: How Much Does Context Matter ?. Bill Grant Development Alternatives Incorporated. Marina Krivoshlykova Development Alternatives Incorporated. Overview. Facilitating adoption and crowding-in Bay Area (Dead Show): No facilitation necessary - PowerPoint PPT Presentation

Transcript of Facilitation: How Much Does Context Matter ?

Page 1: Facilitation: How  Much Does Context Matter ?

microlinks.org/MPEPseries

Bill Grant Development Alternatives

Incorporated

Marina Krivoshlykova Development Alternatives

Incorporated

Facilitation: How Much Does Context

Matter?

May 8, 2014

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Overview

• Facilitating adoption and crowding-in – Bay Area (Dead Show): No facilitation necessary– Rural Cambodia (USAID MSME): A light touch does the trick

• Other market contexts: When light touch isn’t enough• Cases of intermediate & “heavy hand” engagement

– Niger Delta (Chevron PIND/MADE)– Northern Mozambique (SDC InovAgro)

• Conclusions– A framework to match your approach to your context

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How a Change Process Starts

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How Systems Change: The Adoption Process

Speed or pace by which system players adopt new ideasInnovators Early Adopters Early Majority Late Majority Laggards

FASTSLOW

Innovators: High risk fits easily in comfort zoneEarly Adopters: Comfortable taking risk on new idea provided adoption preserves their status as “opinion leader” in community.Early Majority: Waits for others to adopt/benefit to be in comfort zone.Late Majority: Skeptics w/discomfort to adopt unless majority have done so.Laggards: Tradition bound w/ high degree of discomfort to adopt new ideas.

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Cambodia MSME “light touch” facilitation

• Constraints in swine VC: low productivity due to high mortality,

– poor quality inputs, lack of knowledge, low investment

• MSME facilitation strategy:– Identify early adopters - the “leading few” enterprises and

individuals – Informal interest groups to discuss common problems– Identify market actors with the right incentives and then

facilitate relationships - input suppliers provide technical training

– Client participation based on value proposition and self-selection - no subsidies used

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Swine Value Chain Results

• Crowding in and results:– Leading farmers invest own funds to upgrade– Copycat behavior – the leading few copied by others– Crowding in of input suppliers: 14 provide embedded training

without project support; 85 more serve the VC– Increased productivity: reduced mortality (50% -> 10%)– Increased farm size and profitability (2 pigs -> 46)– Increased number of swine farmers (few hundred - >4000)– Stronger horizontal relationships between farmers

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Context for Intervention Design

Weak Market Context

Strong Market Context

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Context for Intervention Design

Weak Market Context

Strong Market Context

• Economic/purchasing power• Population density• Political Economy• Presence/dynamism of

interconnected systems, service providers

• Linkages to end markets• Social Cohesion

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Context for Intervention Design

Weak Market Context

Strong Market Context

Very Weak Market Context

Emerging Market Context

Stronger Market context

• Economic/purchasing power• Population density• Political Economy• Presence/dynamism of

interconnected systems, service providers

• Linkages to end markets• Social Cohesion

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Context for Intervention Design

External/Heavier Hand Invest time in analysis/building relationshipsInvest more money to buy down risk, elicit interestMore functions need to be addressedNeed to work on both supply and demand sideMore thoughtful engagement

Internal/Lighter Touch Understand the contextIdentify potential lead partnersStronger supporting systemsPresent value PropositionLow financial investmentMore rapid engagement from other market actors – crowding in

Weak Market Context

Strong Market Context

Very Weak Market Context

Emerging Market Context

Stronger Market context

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Partnership Initiative for the Niger Delta

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BMOUUFFA:

Organize, coordinate,

finance

HatcheryBrafin farms

Supply fingerlings

Feed companies

Vital Feed, Rannan Feed

Provide free feed

Specialist consultant

Dr Arthur OkoroCurriculum, training

supervision

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Partnership Initiative for the Niger Delta

Partnership Initiative for Niger Delta

Demo Pond for Increased Productivity

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BMO/Lead Farmer

Training sites

Consultant

TOT and Supervision

HatcherySupply fingerlings

PINDFacilitate, TOT, M&E

Demo Pond Scale-up Model

Feed Companies

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BMO/Lead Farmer

Training sites

ConsultantTOT and

Supervision

HatcherySupply fingerlings

Feed Companies Fisheries

Extension Service

Private Consultants

Financial Institutions

Smoking Kiln Manufacturers

Other Donors

PINDFacilitate, TOT, M&E

Demo Pond Scale-up Model

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King Frango Hatchery

African Century (ACAM)

Outgrower scheme

Grants

Advice

Farmer Groups (~20 farmers

each)

Soya to Silo

Purchasing and Collection

Advice

Group Organization

Equipment

Advice

Service markets

Credit

Guarantee

Breeder Seed

Inputs

Equipment prototypes

Extension Business model/to

ols

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Building Market for Certified Seed

Year 1 ACAM FarmersImport

NGO MFI Finance

Year 2 3 Seed Companies ACAM FarmersLocal Production

Guarantee

Year 3 1 Seed Company Farmers ACAMDirect Sales CAL

Other

Guarantee

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Conclusions on Context

• Must start with a vision of market system and the exit strategy in mind

• Context: Each value chain has a unique context - no copy and paste– Without basic market conditions, facilitation may not be right

• Style of engagement depends on the range of factors– Existing infrastructure/organization– Lead firms, interconnected systems, and farmers/beneficiaries– Appetite for change – Clarity of value propositions and potential for mutual benefits

• Very weak market system context requires much more time and investment (higher threshold for failure)– Emphasis on quick numbers may crowd out sustainable systems

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Thank you for joining us!

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