PACA Awareness & Process Launch

1. PACA Awareness & Process Launch West Coast District 8 November 2013 Shannon Hiemstra & Colin Mitchell

2. What’s in a name? • P • Participatory • motivating + involving local stakeholders • A • Appraisal • quick diagnostic: Strengths and weaknesses of local economy • CA • Competitive advantage • creating a differentiated profile of local economy • Relationship between static and dynamic advantage

3. PACA in Context of LED Gilded Cage Future Assured Genesis Growth Retirement Village In Limbo PACA Development

4. What is PACA? • In a narrow sense: • A methodology to prepare an action-oriented diagnostic of the local economy • to launch a local economic development initiative • to assess and refocus ongoing local economic development activities • A methodology to motivate local stakeholders to take an active role in an LED initiative • In a wider sense: • a business- and opportunity-driven approach to the job creation aspect of Local Economic Development

5. Features of PACA • Tried and tested approach and methodology • Quick-win and opportunity driven • Build sentiment and momentum in sectors and/or localities • Strict action-orientation • Strict market- and business-orientation • Looking at opportunities for quick, visible results, not at big issues and main bottlenecks • Concept of primary LED asset and motivating stakeholders. • Strong involvement of private sector and civil society – existing and especially developing.

6. PACA Focus • What is the basic economic structure of the locality (town, village, region)? • Rapid appraisal and perception information on the local economy • What are the competitive advantages, assets, potentials and opportunities of the main sectors or localities of the local economy? • Focus on opportunities, not the biggest problem • What can be done realistically and quickly to build on strengths and to alleviate weaknesses? • realistically refers to existing and available resources i.e. motivated people, skills, capacities and institutions.

7. Secondary Benefits • Efficient facilitation of LED • Build social capital • Mobilise local knowledge • Connect local knowledge and players • Connect and contrast local and external knowledge • Contrast perceptions and facts • Empower local players to learn that they can do things they never thought of. • Increases local government visibility & establishes / improves communication channels with stakeholders (customers?) “The wisdom of the locals always exceeds the knowledge of the experts” Margaret Mead

8. Who to involve in a PACA exercise? • A “Host” the leadership face of the project – shows commitment and credibility • A “Champion” who suggests and coordinates the PACA • provincial or local government agency, Business Chamber, NGO • A “Driver” the person who gets up every morning determined to make the process a success. • Other local organizations who take an active role • financing • making staff available for the PACA Team • The PACA Team: both external and local • Various local stakeholders who participate in the kick-off workshop, interviews, mini-workshops and the presentation

9. Profiling Stakeholders (CLIP’s)

10. The “Right” PACA Team • 1 preferably 2 external consultants & facilitators who are familiar with the PACA method and LED • to introduce a fresh view at the local reality • to transfer their know-how to local members of the team • 2 - 5 local members • for instance: members of municipal LED Team; professionals from the local business promotion agency; the local Chamber; the local educational institutions; NGO’s; Churches (particularly in marginalised localities • not too young, too junior • with experience in development and in dealing with private business

11. Preparation • Stakeholder Identification • Mavens, Connectors & Sales-persons • Choir & stone throwers • CLIPs • Communication • Intensive & multi-dimensional • Involve media … but carefully • Keep politicians informed! • Engagement • Stakeholder’s obligations & constraints • Use process to build social capital • Data Mining • Rapid scan by external team to determine key sectors and factors conditions – indicative not empirical

12. Interviews Imple- mentation Mini-workshops PACA-Exercise (2-3 weeks) PACA Process Results- Workshop: Diagnosis + Proposals Presentation Event Kickoff Workshop Hypothesis Workshop Preparation: Way forward Workshop Fieldwork (1-2 weeks) PACA-Project 6 – 8 weeks

13. Hypothesis Workshop Definition: “a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.” (Free Dictionary.com) • Involves the PACA team and can include key stakeholders • Focuses Attention and provides a constant point of reference. • Exposes pre-conceptions, biases or entrenched positions. • Aligns the team to a common (if not always agreed) perspective.

14. Kick-Off Workshop • Involves all identified stakeholders • Opportunity for Host (s) to set the tone and significance of the process and implication • Establishes momentum for the process • Identifies important information concerning the locality • Can reveal pre-conceptions or biases • Identifies people that may not yet have been included or who are under the radar • Sets the tone for the engagement process Normally would use Michael Porters Diamond as the primary instrument.

15. Porters Diamond

16. Mini-workshops Engage sector or cluster stakeholders from priority sectors Focus on sectors that are drivers of growth Avoid segmentation of the value chains – i.e. ICT; services and retail; education; construction; etc. • Main Tools / Instruments: • Porter 5 Forces • Value Chain Mapping • Interaction Matrix • Expectation Matrix • Mad, Glad & Sad • Life line • Leaking Bucket

17. Porters 5 Forces

18. Mini-workshop Examples

19. Interviews • People who avoid or could not attend workshops • Less structured more conversational • Often people considered as “hostile” by local government or business • External facilitators often need to do certain interviews due to local dynamics /prejudices • Often need to keep discussions “off the record” and use information intuitively. • Try to use interviews to build bridges and to get interviewees to the presentation event.

20. Results Workshop • Often involves an extended PACA team • PACA Projects are targeted at the following quick win characteristics: • Local and available resources • Committed champion • Visible results in three months • Start within a week • Create leverage and public good by beneficial use of municipal assets • Address market failure

21. Presentation Event • Present results to all participants and get feedback on findings, priorities and proposals. • Include any “outliers” that were identified during the process • Opportunity for stakeholders to make final comments or insights • Identify champions for the individual proposals • Opportunity for Host and Champion to commit to support the implementation • Determine and agree on institutional way forwardand next steps

22. Way Forward Workshop • Follows directly after the results workshop and is specifically for approved project champions. • Equips champions to plan how they will launch, implement and sustain their projects. • Application of Pfeiffer’s Six Points • What exactly do we mean with this proposal? • Who is taking responsibility for implementation? • Who has to collaborate in the implementation? • What are the resources we need for implementation? • When do we start? • How do we know that we started (and the Champion has not forgotten about it)? • Benevolent self-interest is a strength and not a threat if there is “public good”

23. Implementation • Implementation of activities by local stakeholders • monthly to bi-monthly visits of external PACA Team members to facilitate and troubleshoot • After 4 - 8 months: workshops for evaluation and definition of further activities, possibly facilitated by external consultants • option: More focused PACA Exercise, looking at one sector, cluster or value chain • In dynamic localities stakeholders may wish to consider a more future looking and innovation orientated strategic intervention (i.e. Genesis)