PACA Awareness & Process Launch

West Coast District 8 November 2013

Shannon Hiemstra & Colin Mitchell

• 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

What’s in a name?

PACA in Context of LEDGr

owth

Development

In Limbo

Gilded Cage

Retirement Village

Future Assured

PACA

Genesis

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

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.

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.

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

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

Profiling Stakeholders (CLIP’s)

Actors that have recognised rights, responsibilities and resolve

Legitimacy - Respected

Power - Dormant Interest -

MarginalisedActors that may be affected (winning or losing) by the actions or situation

Actors that may affect the situation or outcome

PI Forceful

IL Vulnerable

PL Influential

PIL Dominant

Conflict / Collaboration

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

PreparationStakeholder 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

PACA ProcessP

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Kic

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Wor

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p Results-Workshop:Diagnosis

+ Proposals

Interviews

Mini-workshops

Pre

sent

atio

nE

vent

Imple-mentation

PACA-Project 6 – 8 weeks

PACA-Exercise (2-3 weeks)

Fieldwork (1-2 weeks)

Hyp

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sis

Wor

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Way

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Hypothesis Workshop

• 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.

Definition: “a supposition or proposed explanation made on the basis of limited evidence as a starting point for further investigation.” (Free Dictionary.com)

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.

Porters Diamond

Mini-workshops

Engage sector or cluster stakeholders from priority sectorsFocus on sectors that are drivers of growthAvoid 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

Porters 5 ForcesPotential Entrants

Sector Competitors

Rivalry Among Existing Players

BuyersSuppliers

Substitutes

Threats of new entrants

Threats of substitute products or services

Bargaining power of buyers

Bargaining power of suppliers

Porters 5 Forces

Mini-workshop Examples

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.

Results Workshop

Often involves an extended PACA teamPACA Projects are targeted at the following quick win characteristics:

Local and available resourcesCommitted championVisible results in three monthsStart within a week

Create leverage and public good by beneficial use of municipal assets Address market failure

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 forward and

next steps

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”

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)