Dialogues for Resilience in Dynamic Markets

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Dialogue for Resilience in Dynamic MarketsPrivate Markets for Climate Resilience, February 2017

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Dialogues among decision makers and experts:

To establish a baseline of understanding1

Starting with actors in decision spaces2

Designed to engage, capture dynamic change3

A dialogue for resilience in dynamic markets is

The dialogue is interactive communications with experts & stakeholders that shares understanding of the challenges and opportunities for investing in climate resilienceWorking closely together, with people who want to share their expertise and learn togetherDialogues in conversations that continue throughout the project (and beyond); more than an eventBenefits all parties: what does each take home from the event and the ongoing conversation?Establishes a common understanding of ways forward Purposeful: Not a survey of all views, nor a campaign to convince all actors

Dialogue to document shared knowledge

What are we trying to achieve?The Private Markets for Climate Resilience project uses dialogues as the first step in building a business case for climate resilience products and services in the private sector. The steps link to the analysis of risks and options (the BResilient Process Models) and the analysis of the market structure (maturity in supply and demand) for climate resilience products and services.

Dialogues for resilience have several outputs that lead to an insiders understanding of the market for climate resilience products and servicesWho acts leads to an assessment of potential partners for fund managers and investment projects. This is also the foundation of the analysis of the market structure.The stake and knowledge underpin the business case for investing with this actor. There is a range of business cases that we will explorefrom building capacity across the sector network to the direct financial benefits to a single company that provides a climate resilience productThe actions step is the link to the process models of outcomes and options for enhancing resilience. The close dialogue should come up with an extended list of current practice and potential innovations.Steps

Getting started

Actors act! Their interest in climate resilience is related to who they are. List types of actors with a simple description:Constitution:Single personInformal group or voluntary networkOrganization with formal managementCompetence: Level of understanding to expert knowledge about climate change and resilienceChampion and capacity to act to achieve resilient processes, especially in working with our teamInvolvement in resilience process (elaborated in the process model template):Consensual in supporting resilience outcomesContracted agent to deliver a climate resilience product or serviceCompetitor that may prevent an outcome from being achieved

Who are the actors?

Actors act in relationship to other actors. Networks provide new opportunities (what if a new actor comes in?) and also barriers (some actors control the actions of others).Use an actor-network map to take a quick look at the context for making decisions about climate resilience:A simple network with few actors in clear links that work to achieve resilience?A complex web with many actors in links that may compete with each other and no consensus as to desired outcomes?Which actors are champions who want to work with us to promote private sector investment in climate resilience?

What is their decision space?

No single method for understanding actors is perfect and not all are required. The dialogues for resilience are dynamic, people-centred, iterative. They are not protocols that you have to follow. Some of our favorite approaches:Synthesize from articles and trade literature. Much is already documented and experts have a good knowledge base to start with. Inventory actors in a typology, noting key attributes. A more formal method is a use casean illustrative example of the actor as a story.Interviews fill in the gaps and test out our ideas of who acts and what is important to the actors. Analysis of narratives is helpful. Formal questionnaires may be more useful later when the questions are more specific.A matrix of competence and leadership locates actors on this issue. The matrix can then be used to ask ourselves, where do we want this actor to be as a result of working with us? And from there plan further dialogues and capacity building.Actor-netmap protocol from IFPRI has been adapted for climate resilience with a growing library of real examples. It can be a very interactive exercise with stakeholders, or equally a quick snapshot done by experts.How do we learn, together?

Actor-network map from St Lucia

Influence matrix CompetenceLeadershipLearning journey to become an expert-championExample using the Actor-Netmap protocol (adapted for climate resilience with the option to classify barriers to action). This map shows the weak connection between two groups at different scales. The analysis can be extended to explore what happens if a new actor comes into the space.

The influence matrix is a classic in targeting communications. A party with low competence and leadership (the red squiggle) might be targeted to support in moving to be a champion for resilience (the blue circle).

Designing dialogues

Starting with what is already documented, the dialogue deepens the conversation in several cycles. Familiar steps:Choose people to work with, starting with friends of the family.Pilot dialogues to confirm what is already documented and test approaches for further dialogues Interviews and initial contactsFirst dialogue on private sector climate resilience to establish the processes of climate resilience and canvas initial ideas regarding options for investmentSecond dialogue to review BResilient Process Models and priorities for climate resilience investment including an initial discussion on the nature of the marketThird dialogue to review the market analysis and follow up recommendations for priority investments and enhanced climate resilience products and services

A progression of learning

The first dialogue focuses on structuring business processes in the sector and agreeing on what would be practical resilience outcomes.BResilient Process Model Exercise:Choose people to work with, starting with friends of the family.Pilot dialogues to confirm what is already documented and test approaches for further dialogues Interviews and initial contactsFirst dialogue on private sector climate resilience to establish the processes of climate resilience and canvas initial ideas regarding options for investmentSecond dialogue to review BResilient Process Models and priorities for climate resilience investment including an initial discussion on the nature of the marketThird dialogue to review the market analysis and follow up recommendations for priority investments and enhanced climate resilience products and services

First dialogue

The second dialogue uses the process models to refine what could be done, including the initial analysis of the demand for climate resilience products and services.Resilience options in a market analysis:There are likely to be hundreds of options for each sector. Choose options to focus on in the market analysis:Relate the options to the business processes and choose the most likely processes for early investment, given the stage of the market.Score the options using simple criteria directly related to the potential for effective private sector investment. There will be many good things to do, and some options require public actionto be noted. Think of our user as an investment fund manager.What is the nature of the market? At this stage, the dialogue should flag up how the stakeholders see the current market (in the sector and for enhancing climate resilience) and any frameworks and analyses that they use. We are working on the market appraisal approachideas and feedback from key actors is welcome!

Second dialogue

The project results deserve a third round in the conversation with stakeholders. The purpose is to ensure the people you have worked with benefit from their involvement in the dialogue and to test the waters for next steps.Working toward influencing the market:We may not have funds and time for a full third dialogue. Various forms of communication can be developed, as appropriate. Look for opportunities to engage through existing networks, other workshops and directly with the stakeholders.We are keen to test the waters for follow up services we can offerthe goal of the project is to build a shared business service and not just another assessment.If we have time and funding for a third dialogue, we can explore methods such as role playing games, visioning exercises and other creative ways to look at change-making.Third dialogue

The market for climate resilience products and services is emerging in many sectors and countries. This assessment supported by the MIF and NDF pioneers practical methods to identify investment-ready opportunities in developing countries.Main focus on Colombia, South Africa and The PhilippinesSupporting assessments in Nicaragua, Kenya and VietnamAgriculture: value chains for major commodities and subsistence cropsTransport: coastal and relating to agricultural marketsScaled methodology:Dialogues for Resilience in the Dynamic engage stakeholders and expertsBResilient Process Models document risks and actions to improve resilience in business processesIntegrate demand and supply in an analysis of Market Maturity for Climate ResiliencePreliminary reports: August 2017 to be reviewed in the Oxford Adaptation AcademyFinal presentations: November and December 2017 in Helsinki and WashingtonPrivate Markets for Climate Resilienc