1  

CHANGE WORKS SCALE & EXIT INCLUSIVE GROWTH

Behaviors

Benefits

System  Change  Process  

Upgraded  Prac4ces/Innova4ons  

Upgraded  Rela4onships  

Social/Economic  Benefits  

SEQUENCED  CHANGE  OVER  TIME  

System  Change  Process:  Plenary  Exercise  

CHANGE WORKS SCALE & EXIT Inclusive Growth

Behaviors

Benefits Farmers    adopt  improved  crop  protec4on    prac4ces  

Majority  of  farmers  using  quality    inputs  and  upgraded  prac4ces  

Farmers  open    to  a  more  construc/ve  rela/onship  with  an  input  supply  firm  

Majority  of  farmers  buying  from  customer  oriented  input  firms  

Farmers  increasing  income  from  quality    inputs  and  upgraded  prac4ces    

Farmers  that  are  good  customers  receive  special  offers  

Farmers  have    access  to  cost  effect  high  quality  inputs,  including  extension  services  

Farmers  indicate  interest  in  learning  more  about  quality  inputs    

Farmers  work  out  acceptable  deals  with  spray  service  providers  

Farmers  gain  access  to  quality  inputs  

The  norm  among  farmers    is  to  compete  by  upgrading  the  quality  of  their  inputs  

Farmers  +  input/service  firms  respond  to  joint  threats  and  opportuni4es  

SEQUENCED  CHANGE  OVER  TIME  

PRACTICES  

RELATIONSHIPS  

Intro  and  Task  Set  Up  •  BIG  IDEA:    ShiJ  to  a  customer-­‐

oriented  from  a  trader-­‐based  retail  strategy  in  input  supply  markets  will  contribute  to  inclusive  growth  in  agriculture.  

•  WHY:    Customer  oriented  retail  networks  align  incen/ves  of  input  firms,  farmers,  processors,  service  providers,  etc.  since  success  of  the  business  strategy  is  founded  on  genera/ng  volume  through  repeat  customers.    

•  PREFERRED  PARTNER:  An  input  firm  is  the  more  likely  first  mover  in  making  the  shiJ  to  a  customer  oriented  retail  strategy  and  if  successful  can  leverage  other  players  –  compe/ng  input  suppliers,  ag  service  providers,  chemical  firms  –  to  adopt  this  strategy  for  similar  reasons.  

•  OUR  VISION:      •  Compe//on  between  input  firms  

driven  by  innova/on  and  on-­‐going  upgrading  to  develop  a  loyal  customer  base.      

•  Input  firms  have  a  wide  range  of  robust  win-­‐win  rela/onships  with  their  customers,  suppliers  and  allied  firms.  

•  OUR  ROLE:    STAGE  1:  Iden/fy  a  willing  input  firm  and  facilitate  their  investments  in  new  promo/onal  tac/cs,  a  distribu/on  system  and  related  management  improvements  to  target  and  build  sa/sfied  customers  among  small  farmers.    

•  STAGE  2:  Leverage  our  engagement  with  the  input  firm  to  aPract  other  industry  players  –  compe/ng  input  firms,  agriculture  services  providers,  IT  firms,  management  consultants  and  trainers  –  to  support  this  customer  oriented  retail  strategy  to  become  the  industry  norm.    

A  Systemic  Change  process:    Input  Firm  Perspec4ve  (Group  Exercise)  

5  

•  Introduc4on:  You  have  10  cards.      –  5  cards  are  about  upgrades  in  the  input  supplier  prac/ces    –  5    cards  are  about  upgrades  in  the  input  suppliers  rela/onships  

•  In  groups:  –  Sequence  the  likely  behavior  changes  over  /me  in  the    input  suppliers  

•  business  prac/ce  (innova/ons)  •  business    rela/onships      

–  For  each  step  in  the  process  describe  (briefly)  the  benefit  that  should  result  to  allow  the  input  firm  to  move  to  the  next  step  in  this  change  process.  

Engagement  roles  and  offer...  

Innovate   Mediate  

Coach   Build  Rela4onships  

Communicate  Analyze  Systems  

MITIGATE  RISK  

TRANSFER  KNOWLEDGE  

Our  Roles  in  Rela/onship  to  Market  Partners  

TRANSFER  KNOWLEDGE  

MITIGATE  RISK  

Coaching   Communica4ng  Innova4ng  

Building    Rela4onships  

Analyzing    Systems  

WILL  

SKILL  

high  

high  

low  

low  

Capacity  problem?  

Incen2ve  problem?  

Why  aren’t  they  doing  it  already?  

Why  work  with  them?  

Build  ability  to  operate  outside  current  comfort  

zone  

Reduce  incremental  risk  associated  with  

change  

Focus  on  strategic  role  

Why  aren’t  they  influen2al  in  the  system?  

Work  beyond  partner  to  

address  external  obstacles  

Rules  of  Engagement:    how...  and  how  much?  

Facilitator  interven4on  Influencing  market  player  

behaviour  

Part  of  the  system  External  to  the  system  

Support  must  achieve  sustained  behaviour  change  amongst  market  players  

How?  Right-­‐sizing  the  intensity  of  our  support    

(roles,  resources,  /me,  money,  repor/ng)  to  …  §   Establish  more  effec2ve  rela2onships  §   S2mulate  ownership  of  desired  change  (incen2ves/capacity)  §   Influence  sustainable  systemic  change  

Offer  Defined  A  facilitator’s  “offer”  is  an  appropriate  bundle  of  resources…  

•  Time    •  Informa/on  •  Linkages  •  Limited  Funds      

…Presented  as  an  exchange  by  the  project  to  a  market  partner  (an  individual  or  firm)  where  the  project…  

•  Mi/gate  Risks  and  Transfer  Knowledge  for  Improved  Firm  Performance  •  Partners’  Willingness  to  Invest  in  Change,  Share  Informa/on  and  Be  Ac/ve  

Industry  Advocate    

…Appropriate  offers  consider:    Who  it  is  aimed  at?  (Specific  Market  Actor)    Why  would  they  want  it?  (Business  Case  to  Make  the  Change)    What  do  they  get  from  out  support?  (Risk  Mi/ga/on  and  Knowledge  Transfer)    What  do  we  get  from  their  engagement?  (Contribute  to  Systemic  Change  for  Inclusive  Growth)  

Framing  an  Offer:    Exercise  Introduc/on:      1.  You  now  have  a  good  sense  of  the  

likely  benefits  that  will  drive  behavior  of  the  input  firm  in  adop/ng  this  new  customer  oriented  retail  strategy.  

2.  As  your  partner’s  track  record  of  success  evolves,  you  will  need  to  frame  different  offers  over  /me  to  foster  con/nued  movement  along  the  pathway  without  distor/ng  the  incen/ves  or  undermining  the  ownership  of  your  partner.  

 

Group  Task:    Define  2  offers  at  different  stages  

of  the  change  process:  Offer  #1:Change  Works:  What  

they  get  are  benefits  of…  Offer  #2:Going  to  Scale:    What  

they  get  are  the  benefits  of…    Use  the  worksheet  to  guide  the  

framing  of  your  two  offers  Be  prepared  to  present  in  

plenary.  There  will  be  a  vote  on  the  best  

offer  and  prizes  will  be  awarded.  

 

APPROPRIATE  OFFERS  

•  A  clear  offer  is  essen/al  (if  you  are  not  giving  away  cash!)  –  Ensures  appropriate  influences  and  signals    –  Fosters  appropriate  incen/ves  and  behaviour  –  Permits  leverage  

•  Facilitators  need  to  have  mul/ple  offers  to  different  players  –  Understand  different  objec/ves,  mo/va/ons,  roles,  norms  and  

requirements  of  different  market  system  players  and  external  actors,  and...  

–  …  Translate  this  understanding  into  appropriate  offers  •  Facilitators  need  to  manage  partner  rela/onships  over  /me.  

–  Self  selec/on  –  Strategic  Adjustments  –  Wait  and  See  –  Door  always  open  24/7/365  

Comfort  Zone:  -­‐  Actor’s  history/context  -­‐  Ra/onal  self  interest  

-­‐  Readiness  to  try  a  new  way    

Incen4ves:  -­‐  Economic  (yields,  

income)  -­‐  Social  (reputa/on,  

pres/ge)  

Higher Potential for Adoption of New Ideas

Drivers  for  System  Player  Change  

 Incremental  Risk:  -­‐  Quick  wins  from  

taking  a  risk  -­‐  Track  record  of  embracing  risk  

-­‐  Managing  risk  of  upgrading  

Behavior  Change  Principles  Principle   Defini4on  Most  people  live  by  their  commitments    

People  tend  to  follow  commitments  they  make  when  witnessed  by  others      

People  some4mes  need  to  go  around  to  get  ahead      

People  may  need  vehicles/mechanisms  to  get  around  social  requirements  to  advance  their  business  in  a  way  that  is  not  damaging    

Some4mes  the  default  op4on  is  the  right  op4on      

People  tend  to  take  the  default  op/on  because  its  easier  even  if  they  are  not  clear  why.    

A  li`le  incen4ve  can  go  a  long  way    

Small  incen/ves  are  enough  for  large  consequences    

Behavior  Change  Principles  

Principle   Defini4on  Remind  them  again,  and  again    

Reminders  do  help  people  stay  on  track  as  originally  intended  in  a  change  process      

Normal  is  Good     People  tend  to  be  more  comfortable  when  they  belong  and  messaging  that  a  behaviour  is  part  of  belonging  can  be  powerful    

Some4mes  normal  is  not  good    

Change  can  require  pushing  back  on  the  customary  way  of  doing  things,  and  to  be  effec/ve  in  pushing  back  requires  clear  evidence  of  costs/benefits      

Tac/cs  Used  to  Foster  Desired  Behavior  Change  •  A  buyer  of    maize    includes  a  signing  ceremony  in  the  

community  as  part  of  the  contract  agreement  process    •  Included  in  the  agreement  is  an  instalment  payment  

procedure  which  includes  a  payment  of  school  fees  and  pre-­‐payment  for  next  year’s  inputs.    

   •  Farmers  have  to  specifically  write  a  lePer  to  the  maize  buyer  

reques/ng  not  to  be  paid  according  to  the  pre-­‐set  instalment  payment  procedure  and  propose  an  alterna/ve.    

   •  The  maize  buyer  uses  SMS  e-­‐coupons  offering  a  discount  on  a  

needed  service  to  facilitate  a  specific  task  (eg  spraying  at  the  right  /mes).  

Tac/cs  Used  to  Foster  Desired  Behavior  Change    

•  The  maize  buyer  sends  out  regular  reminders  via  SMS  to  get  farmers  to  plan  ahead  and  carry  out  specific  tasks  on  their  farm  as  agreed.    

•  The  maize  buyers  sponsors  an  event  for  the  best  performing  farmers  to  provide  tes/monials  on  how  they  have  improved  their  performance  and  why  other  farmers  could  also  succeed  like  them.      

•  Regular  SMS  reminders  are  framed  to  imply  that  most  farmers  are  already  doing  the  task  i.e.  “Why  not  be  the  best  by  doing  your  weeding  on  /me!”    

Match  the  Principle  to  the  Tac/c  §  Everyone  has  a  stack  of  seven  pre-­‐labeled  cards  (principles):  

1.      Most  people  live  by  their  commitments    2.  People  some/mes  need  to  go  around  to  get  ahead    3.  Some/mes  the  default  op/on  is  the  right  op/on    4.  A  liPle  incen/ve  can  go  a  long  way    5.  Remind  them  again,  and  again    6.  Normal  is  good    7.  Some/mes  normal  is  not  good    

 §  Everyone  match  the  seven  (7)  cards  to  the  seven  (7)  illustra/ons  (tac/cs)  posted  on  flip  charts.    

§  Sign  your  cards  §  Pin  your  cards  (principle)  to  the  right  illustra/ons  (tac/c)  

Using  these  7  principles  in  framing  offers  

•  Understanding of the principles helps the facilitator in a number of ways: – They give us tools to address the more difficult

behavioural change constraints that are not so visible – When sequencing and combining these principles

facilitators can create more valid experiences that can drive systemic change.

18

Offer  (part  2)  

•  Do  you  think  these  principles  and  related  tac/cs  could  be  used  to  improve  your  offer?  

•  Choose  the  ones  you  think  fit  best.  

•  Explain  why  you  chose  them.  

Results  Measurement  

Implications

•  Tradi/onal  approaches  to  M&E  are  insufficient  in  market  systems  context:  

• Measure  results  only  at  the  middle  and  end  of  the  programme  

• M&E  divorced  from  management  func/on  • M&E  system  uses  LogFrame  only  • “Evalua/on”  seen  as  an  external  ac/vity  only  • Use  of  Randomised  Control  Trials  

Proving and Improving Results

Proving  Results   Improving  Results  

M&E  system  capable  of  credibly  demonstra/ng  programme  

results  

M&E  system  supports  improved  

design  and  implementa/on  of  

interven/ons  

System  Requirements  

ü Well  defined  indicators  ü Robust  measurement  tools  ü Robust  monitoring  plan  ü Baselines  ü Credible  aPribu/on  strategy  ü Credible  aggrega/on  strategy  

ü M&E  system  generates  /mely  and  relevant  informa/on  for  management  ü Knowledge  management  

M&E in a Market Systems Context

• Market  development  programmes  explicitly  acknowledge  that  systems  are  complex  

• M&E  needs  to  integrate  complexity  into  the  way  it  func/ons,  including  accommoda/ng  for:  

•  Formula/ng  and  tes/ng  assump/ons,  pilo/ng  interven/ons,  proceeding  by  trial  and  error  

•  Scaling-­‐up  interven/ons  that  work,  modifying  or  dropping  interven/ons  that  do  not  work  

•  Providing  credible  evidence  on  sustainability,  systemic  change  and  poverty  reduc/on  

Impact Profiles High-­‐le

vel  Impa

ct  

Time  Project  Life4me  

Direct  Delivery  Market  Development  

SCALE   SUSTAINABILITY  

• Market  development  programmes  will  have  different  impact  profiles  • Can  take  1-­‐3  years  to  deliver  high-­‐level  impact  • Progress  can  be  bumpy!  

Plausible  aPribu/on  across  the  Strategic  Results  Chain  

Influence  of  interven/on  (causality)  

External  influences  

stronger  

weaker  

harder  to  isolate  

easier  to  isolate  

Es/mate  contribu/on  transparently  

Validate  causality  transparently  

Demonstrate  results  rigorously  

Plausible  a`ribu4on  

Balancing  credibility  and  prac6cality  

Poverty  reduc/on  

Improved  growth  and  access  

Market  system  change  

Systemic  interven/on  

Springfield  Centre  |  Making  Markets  Work  

Emerging  Best  Prac/ces  

DCED Guidelines

    • Theory  of  Change  

    • Results  Chains  

    • Monitoring  Plans  

Applying Degrees of Evidence USAID

MSE/Household  level:  May  be  able  to  aPribute  changes  to  project  interven/on  through  sta/s/cal  and  qualita/ve  research  

Market  system  level:  Use  qualita/ve  techniques  to  determine  preponderance  of  evidence  on  effec/veness  at  market  level  

Triangulate  evidence  from  all  sources  

 

Click  to  edit  Master  /tle  style  Managing for Results

•  Need to consider direction, pace and scale

•  Need to question explicit data

•  Need a mix of explicit and tacit information to answer the “why” questions

•  Need M&E and KM

M&E   KM  

ASSESS  MOMENTUM  TO  ACHIEVE  DESIRED  CHANGE  

ADJUSTMENTS  ADJUSTMENTS  

Knowledge Management

OBSERVED  CHANGE  USING  TACIT  AND  EXPLICIT  METHODS  

Collective Learning Drives Interventions

Durable Results Over Time

Market not working for

the poor

Market  working  be`er  for  the  

poor