PACA and Territorial Change Management Jörg Meyer-Stamer

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? 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 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 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 economies Strong structures Weak structures Sustained growth Stagnation or Decline Declining territory Thriving territory Marginalised territory Emerging territory

Approaches to territorial development Strong structures Weak structures Sustained growth Stagnation or Decline Declining territory Thriving territory Marginalised territory Emerging territory Territorial Change Management Territorial Upgrading Initiative

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

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

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

quick-win projects MonthActivities quick-win projects more ambitious projects quick-win projects catalytic projects Institutions Project management LED Forum LED Agency Effects Credibility Motivation Learning Trust Coordi- nation Ambition Competence Professio- nalisation Using PACA to initiate a territorial change process Lack of communication Distrust

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

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

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

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

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