Institutional Capacity Development Case Study: African Fine Coffees Association LCD Summit

1. Institutional Capacity Development Case Study: African Fine Coffees Association LCD Summit June 19, 2012

2. BackgroundQuick introduction to AFCA and COMPETE • AFCA • Regional non-profit member-driven organization representing the coffee sectors in 11countries made up of producers, exporters, importers, roasters, policy makers and development organizations • Annual African Fine Coffee Conference & Exhibition generates sufficient revenue to cover operating costs and fund core programs • Specialty coffee exports from Africa now exceed $300M1 • COMPETE - the Competitiveness and Trade Expansion program • Regional project focused on increasing food security and economic growth in East and Central Africa • Three integrated components designed to: • Reduce barriers to regional and international trade • Facilitate the efficiency and competitiveness of key value chains • Increase trade and investment between the US and East Africa • Where COMPETE’s work with AFCA falls 1. Source: ICO and COMPETE Analysis

3. Institutional Capacity Development Central to improving value chain competitiveness • COMPETE’s Approach to Competitiveness and Value Chain Development • Regional Value Chain Strategies • Staple Foods • Cotton/Textiles/Apparel • Coffee • Local and Regional Institutional Capacity Development • RTAs • RECs • FBOs/NGOs • Business Associations • Getting to Sustainability: AFCA’s Roadmap • 2009 • 2010 • 2011 • 2012 • 2013 Institutional Assessment • Develop Institutional Strategy • Develop and deliver value-added products and services • Institutionalize programs, processes and procedures • Strengthen regional ecosystem Benchmark, monitor and measure system and process evolution – CISMM An honest and collaborative relationship throughout the process helped AFCA transition from dependence to independence .

4. Strategy DevelopmentStaff involvement drives ownership and facilitates implementation Mission Vision Priorities • AFCA developed its strategic and operating plan following a 5-step process1, designed to speed the transition from development to execution • Step 1: Undertake Institutional Analysis • Step 4: Develop Budget & Work Plans • Step 5: Set-up for Implementation • Step 2: Understand Member & Partner Priorities • Step 3: Strategic Visioning & Choice-making Strategic relevance for member-based organizations is often based on how responsive a strategy is to constituent needs AFCA conducted a thorough stakeholder survey to reengage membership and develop a better understanding of their needs and what they value Organizations cannot be everything to everyone. Forcing focus and identifying priorities is critical for strategies and execution Based on the results of its various analyses, AFCA established more focused priorities and abandoned unsuccessful , unrealistic and unwanted activities Developing operating plans and budgets tied to strategic objectives helps guide implementation AFCA’s 2010–14 plans and budgets inform resource allocation and provide management and the BOD with performance management tools It is important to know where you are coming from and understand the dynamics of the environment in which the institution operates For AFCA this meant assessing the state of coffee sector in Eastern Africa and evaluating its own performance Ensuring that strategies are implemented requires organizations to align with the components of the strategy AFCA aligned its staff around its main priorities and services, ensuring clear lines of responsibility for delivery A robust and replicable strategy process driven by the organization’s staff helped AFCA create highly credible and practical strategic and operating plans 1. This institutional methodology draws from an approach taken by OTF Group

5. Product and Service Development Delivering value, institutionalizing systems and building a support ecosystem AFCA’s Taste of Harvest (TOH) cupping competition was an under-utilized program that under the new strategy became AFCA’s highest priority activity for its potential to extract unique information on the region’s quality coffees and facilitate market linkages • Reposition products to extract maximum value • Capture and catalogue unique/relevant information for all of the region’s specialty coffees – not just winners. • Package and deliver information in a compelling way that benefits all value chain players – Taste of Harvest web portal (www.africantoh.org) • Institutionalize programs, systems and procedures to ensure capacity to deliver remains with organization and not individuals • TOH implementation manual developed to document all processes and procedures, develop standard forms and marketing materials, and define the roles and responsibilities of various participants • Establish a regional ecosystem to support and facilitate implementation • Limited resources made decentralizing elements of program delivery essential for sustainability - developed network of national and international partners (government and private sector) to anchor TOH and ease burden of implementation Institutionalized systems and implementation networks critical for sustainability

6. Institutional Sustainability Maturity Model A framework to help measure and guide progress towards sustainability Based on Carnegie Mellon University’s Capability Maturity Model, CISMM is an important tool that allows COMPETE and its partner organizations to benchmark capabilities against best practice, identify weaknesses and develop improvement plans • Five Focus Areas Business Processes Financial Management People Capability Stakeholder Relationships Knowledge Management • AFCA Assessment • Five Maturity Levels Institutional growth toward sustainability cannot be managed or improved unless it is measured

7. Wrap UpWhat we learned and what worked well with AFCA • Continuity of Support – LCD takes time • Establish a solid and focused foundation built around core competencies and value delivery – strategies and operational plans are critical • Develop, refine and expand core products and services – need to meet stakeholder needs • Institutionalize systems and processes – from strategy and planning to communications and finance, systems need to be understood and replicable • Measure and track progress – develop tools for measuring progress and improving systems THANK YOU