THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Developing a Systematic Approach to Dealing with Investor Inquiries Celia Ortega Dakar, Senegal November 2010

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Ecuador Case Study: Facilitation as Strategy 2 Political instability and deteriorating country image led CORPEI to emphasize efforts to attract and hold on to potential investors knocking on their doors High-skilled but small 5-people team (400 enquiries/year) Generation of information became top priority Reporting directly to top management Staff with sector specialization Key account management (pre-investment and post- investment) Results: Top 12 position worldwide

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 3 Facilitation is the most basic activity in foreign investment promotion>>> Everybody deserves a response An IPI’s support to a foreign company in the investment decision process can influence its location choice Invest in Sweden Agency (ISA) played a key role in the decision of Zeb Rice to establish a packing plant in Sweden: Zeb Rice considered the UK, Italy, Austria, Belgium and Spain ISA’s situation: Packing industry is not a key priority sector in Sweden Pakistan not a common country source of FDI Small project (US$4,4 million) ISA answered the investor’s inquiry and followed up with more detailed advice, information and hand-holding the set-up process. Zeb Rice plant opened in 2004, expanded from 15 to 23 employees one year later. 3

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency What Does it Take to Become a Good Facilitator? 4

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 5 What Do Top 25 Performers Have in Common? 1. Inquiries are taken very seriously  79% have key account management: a single person to handle each lead  86% screen and prioritize inquiries according to potential value of investment and sector priority 2. Internal systems are robust and processes are clear  92% use Client Tracking Systems  92% have written staff guidelines on how to respond to inquiries  57% establish fixed time parameters for responding to inquiries  86% have periodic staff meetings to update the pipeline 3. The right staff at the right pay  76% of staff has private sector experience  71% of successful IPIs pays staff at over public sector levels  76% staff stays a maximum of 5 years on the job

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Investor Inquiry Handling 6

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Components of Inquiry System: 5 Steps Reception Screening Processing Follow up Response

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 1. Reception: Making Sure Inquiries Get To Us Inquiry reception must be handled under the principles of Availability and Contactability 8 Web site Telephone Display clearly IPI contacts Display contacts from the inverstors’ need perspective: by topic or sector Make sure telephone works at all times! Promotion staff should have own phone line Voice Mail to allow prompt call-back Working s with adequate spam filters Individual s for each promoter Automatic replies.

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Screening: Setting Up Priorities Inquiry screening should be done promptly, fairly and following established qualification criteria 9 PlatinumGold Silver NIP Scorecard Sector Value Number of jobs Type of investor Source

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 3. Processing: Allocating Resources Based on Type of Inquiry Inquiry processing, with timely responsiveness and staff guidelines of response 10 General Inquiry Inv. Climate Procedures Macro Junior Officer Canned information (FAQs) Immediate reply 24 hours Sector Inquiry Project-related Non-priority sectors Experienced Officer Call to find out more Interim reply (24 hours) Prepare reply (5 days) Follow up Priority Sector Inquiry Project-related Strategic priority Sector Specialist Call to find out more Interim reply (24 hours) Research and prepare detailed resply (5 days) Follow up 2 days later Level 1Level 2 Level 3

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 4. Response: Ensuring Quality Drafting: Consistent, Accurate and Making a Business Case 11 Investor Information System Specific Research Adding Promotional Value Quality Control Client Tracking System KM

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 5. Follow-Up: Converting Inquiries into Leads By providing ongoing customer care to the interested investor, according to their timeline and process 12 Follow up and Build the Relationship with the Company For example: Can you tell me more about the project? – Before we answer the inquiry Have you received the information we sent you? --2 days after response Do you need anything else? – 1 week after response to inquiry How is the selection process going? – 1 week after inquiry deadline Can I come to meet you in your office? – Any time!!! InquiryMeeting Site Visit Project Decision

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Last but not Least - Monitoring & Evaluation: What Gets Measured Gets done Track the whole investment generation process: Responding to inquiries is the entry point of the lead pipeline, the IPI as a whole should measure its effectiveness in generating investment from this point on until establishment. Performance Targets for Staff: converting X inquiries into Y actual leads (site visit) Objective: follow up to develop relationship with investor with a view to influencing the investment decision Management Oversight is important to ensure quality control Survey client satisfaction some weeks after inquiry reply submitted 13

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency 14 The Site Selection Process

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency What will set your IPI apart from other IPIs? Timeliness Quality Professionalism Follow-Up Monitoring and Evaluation Improvement ! 15

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Take-Away: What Does It Take to Become a Good Facilitator? The Will to Become a Facilitator: 1. Facilitation is the lowest-cost activity in promotion, and the most cost-effective! 2. Budget is not an excuse: top IPI performers with small budget in low-income countries. 3. When opportunity knocks, make sure you open the door 16

THE WORLD BANK World Bank Group Multilateral Investment Guarantee Agency Thanks Questions? 17