PACA and Territorial Change Management

1. PACA and Territorial Change Management Jörg Meyer-Stamer jms@mesopartner.com

2. In a narrow sense: An organised effort to shape change in an organisation Examples: Business process design Six Sigma Technology/system upgrades Restructuring Expansion or downsizing Business model changes/new ventures New marketing campaigns Job redesign Changes that impact suppliers Changes that impact customers What is Change Management?

3. In a wider sense: Organisational Development "an effort, planned, organization-wide, and managed from the top, to increase organizational effectiveness and health through planned interventions in the organization's processes, using behavioral-science knowledge” Robert H. Rouda, Mitchell E. Kusy, Jr: Organizational Development: the management of change What is Change Management?

4. A metaphor... a territory (location, region) is fundamentally different from an organisation unlike an organisation, a territoriy does not have a main objective ... for the transfer of change management concepts and tools from an organisational environment (hierarchy) to a territorial setting (heterarchy) An effort to turn around a declining or stagnating region to strengthen the basis of growth and prosperity to stimulate the development of innovative products and services by connecting actors in the territory in innovative ways by changing the way in which institutions and companies act and interact What is Territorial Change Management?

5. Why talk about territorial change management instead of LED? • LED is a routine activity that involves incremental upgrading steps in a local economy that is fundamentally sound and evolving reasonably well • We often confront a local or regional economy that is fundamentally not sound • weak producers, weak or no associations, weak or ineffective supporting institutions • little competitive advantage • massive fragmentation • More often than not we work in local economies that need fundamental, radical change rather than incremental improvement

6. A simplified typology of territorial economies Strongstructures Declining territory Thriving territory Stagnationor Decline Sustainedgrowth Marginalised territory Emerging territory Weakstructures

7. Approaches to territorial development TerritorialChange Management Strongstructures TerritorialUpgradingInitiative Declining territory Thriving territory Stagnationor Decline Sustainedgrowth Marginalised territory Emerging territory Weakstructures

8. Key features of a territorial change initiative Learning: • about the actors present in the region • about the economic assets available in the region • about the fact that “region” is a meaningful concept • about ways to engage with various actors • about ways to identify joint initiatives • about ways to manage joint initiatives

9. What do we want to change with territorial change management? • Individual producers and companies • raise their awareness of the need to become nationally and internationally competitive • Groups of producers and companies • organise effective collective action to address shared bottlenecks or joint opportunities • Supporting institutions • improve the customer focus and responsiveness • Government • improve the understanding of local business needs • improve the efficiency of service delivery

10. Challenges in a Territorial Change Initiative (TCI) • Many relevant players would find the notion of “territorial change management” plain silly • there is no CEO or Board that can enforce compliance • At least in the early stages, a TCI thus cannot be labelled as such • Initially, a TCI has to sail under a different name • that signals immediate benefit to relevant players • that does not signal a threat • for instance, PACA

11. quick-win projects more ambitious projects quick-win projects quick-win projects quick-win projects quick-win projects Using PACA to initiate a territorial change process Month Activities Lack of communication Distrust Effects Credibility Motivation Learning Trust Coordi-nation Ambition Competence Professio- nalisation Institutions Project management LED Forum LEDAgency 1 6 12 18 24 30 catalyticprojects

12. Conceptualizing PACA: LED as an iterative process Crisis of fragmentation Implementation Assessment Reflection Implementation Adjustment Planning for new action Assessment Reflection Adjustment Planning for new action Implementation Assessment Reflection Planning for quick implementation Rapid appraisal (PACA)

13. Implementation of catalytic projects plus continu- ation of quick- win activi- ties Implementation of next round of activities (including more complex inter- ventions) Presentation Event PACA Follow- up Work- shop Way- forward Fieldwork + Results Workshop Build-up Kick-off Targeted PACA- Exercises to opera- tionalise GENESIS Implementation of quick-win activities GENESIS Strategy Formulation

14. Learning by doing Highlighting facts + percep- tions about the local economy Identifyingopportunities for joint action Aligning information and perceptions The learning cycle in PACA

15. Territorial change management with PACA is an undercover approach • We highlight the quality of PACA to deliver quick wins • We don’t sell PACA under the banner of “change management” • A PACA exercise introduces a different way of doing things • not reliant on consultants, active participation of local stakeholders, direct interaction between different sectors of the local economy • quick action rather than strategic planning • Implementation of PACA activities introduces a new way of doing things • joint activities involving different stakeholders • practical activities lead to visible outcomes, quickly

16. Thank you for your attention!