PACA and Territorial Change PACA and Territorial Change Management Management

Jörg Meyer-Stamerjms@mesopartner.com

What is Change Management? What is Change Management?

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?What is Change Management?

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 Territorial Change What is Territorial Change Management? Management?

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

Why talk about territorial change Why talk about territorial change management instead of LED? 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

A simplified typology of territorial A simplified typology of territorial economies economies

Strongstructures

Weakstructures

Sustainedgrowth

Stagnationor Decline

Decliningterritory

Thrivingterritory

Marginalisedterritory

Emergingterritory

Approaches to territorial Approaches to territorial development development

Strongstructures

Weakstructures

Sustainedgrowth

Stagnationor Decline

Decliningterritory

Thrivingterritory

Marginalisedterritory

Emergingterritory

Territorial

Change

Management

TerritorialUpgrading

Initiative

Key features of a territorial Key features of a territorial change initiativechange initiative

Learning: about the actors present in the regionabout 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 initiativesabout ways to manage joint initiatives

What do we want to change with What do we want to change with territorial change management? territorial change management?

Individual producers and companies– raise their awareness of the need to become

nationally and internationally competitiveGroups 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

Challenges in a Territorial Change Challenges in a Territorial Change Initiative (TCI) 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

quick-win projects

Month Activities

1

6

12

18

24

30

quick-win projects

more ambitious

projects

quick-win projects

quick-win projects

quick-win projects

catalyticprojects

Institutions

Project management

LED Forum

LEDAgency

Effects

CredibilityMotivationLearning

Trust

Coordi-nation

AmbitionCompetence

Professio-nalisation

Using PACA to initiate a territorial Using PACA to initiate a territorial change processchange process

Lack ofcommunication

Distrust

Conceptualizing PACA: LED as an Conceptualizing PACA: LED as an iterative processiterative process

Rapidappraisal (PACA)

Planning forquick implementation

Implementation

AssessmentReflection

AdjustmentPlanning for newaction

Implementation

Implementation

AssessmentReflection

AssessmentReflection Adjustment

Planning for newaction

Crisis of fragmentation

Build-up

Kick-off

Fieldwork+ ResultsWorkshop

PresentationEvent Way-

forward

Implementation of quick-winactivities

PACAFollow-upWork-shop

Implementation of nextround of activities

(including more complex inter- ventions)

GENESIS StrategyFormulation

Targeted PACA- Exercises to opera- tionalise

GENESIS

Implementation of catalytic projects plus

continu- ation of quick- win activi-ties

Highlighting facts + percep-tions about thelocal economy

Aligning information andperceptions

Identifyingopportunities

for joint action

Learningby doing

The learning cycle in PACAThe learning cycle in PACA

Territorial change management Territorial change management with PACA is an undercover with PACA is an undercover approach approach We highlight the quality of PACA to deliver quick winsWe 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

Thank you for your attention! Thank you for your attention!